INVESTMENTS IN COMMERCIAL FINANCE

9 Months Ended

Jun. 30, 2011

INVESTMENTS IN COMMERCIAL FINANCE [Abstract]

INVESTMENTS IN COMMERCIAL FINANCE

NOTE 5 – INVESTMENTS IN COMMERCIAL FINANCE

The Company's investments in commercial finance include the following (in thousands):

	June 30,			September 30,
	2011			2010
Direct financing leases, net	$	121,129		$	8,888
Equipment loans (1)		18,881			1,661
Assets subject to operating leases, net (2)		25,361			2,211
Future payment card receivables, net		96			316
Allowance for credit losses		(490	)		(900	)
Investments in commercial finance, net	$	164,977		$	12,176

(1) The interest rates on loans generally range from 6% to 17%.

(2) Net of accumulated depreciation of $4.6 million and $96,000, respectively, as of June 30, 2011 and September 30, 2010.

The components of direct financing leases are as follows (in thousands):

	June 30,			September 30,
	2011			2010
Total future minimum lease payments receivable	$	134,059		$	10,467
Initial direct costs, net of amortization		1,320			156
Unguaranteed residuals		7,271			421
Security deposits		(120	)		(102	)
Unearned income		(21,401	)		(2,054	)
Investments in direct financing leases, net	$	121,129		$	8,888

Lease and note terms extend over many years.  The contractual future minimum lease and note payments and related rental payments scheduled to be received on direct financing non-cancelable leases, notes receivable and operating leases that are held for investment for each of the five succeeding annual periods ending June 30, and thereafter, are as follows (in thousands):

	Direct Financing Leases		Equipment Loans		Operating Leases (1)
2012	$	39,038	$	6,102	$	12,734
2013		36,864		5,604		8,734
2014		32,268		4,426		2,768
2015		19,170		1,809		79
2016		6,562		566		1
Thereafter		157		374		−
	$	134,059	$	18,881	$	24,316

(1) Operating lease amounts as shown are net of the residual value, if any, at the end of the lease term.