SERVICING LIABILITY COMMERCIAL FINANCE

9 Months Ended

Jun. 30, 2011

SERVICING LIABILITY COMMERCIAL FINANCE [Abstract]

NOTE 11 – SERVICING LIABILITY – COMMERCIAL FINANCE

During fiscal 2010, the Company sold a portfolio of leases and loans to RCC. Although it remained as the servicer for the portfolio, the Company agreed not to charge any servicing fees. Accordingly, the Company recorded a $2.5 million liability for the present value of the estimated costs to service the portfolio. The liability was eliminated in the formation of LEAF in January 2011 and its reacquisition of the portfolio from RCC. The table below summarizes the activity for the servicing liability (in thousands):

	Three Months Ended		Nine Months Ended
	June 30,		June 30,
	2011		2011
Balance, beginning of period	$	−	$	(2,362	)
Amortization (1)		−		88
Elimination of the servicing liability due to the contribution of the RCC portfolio to LEAF		−		2,274
Balance, end of period	$	−	$	−

(1)	Amortization of the servicing liability was included in commercial finance revenues in the consolidated statements of operations.

- Definition

Tabular disclosure of the activity in the balance of servicing liabilities subsequently measured using the amortization method (including a description of where changes in carrying value are reported in the statement of income for each period for which results of operations are presented), including but not limited to, the following: beginning and ending balances, additions (through assumptions of servicing obligations and recognition of servicing obligations that result from transfers of financial assets), disposals, amortization, and other changes that affect the balance and a description of those changes.

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