NOTE 4 – FINANCING RECEIVABLES

The disclosures in this footnote are required pursuant to new guidance issued by the FASB that requires companies to provide more information about the credit quality of their financing receivables including, but not limited to, significant purchases and sales of financing receivables, aging information and credit quality indicators.

The following table is the aging of the Company's past due financing receivables (presented gross of allowance for credit losses) as of September 30, 2011 (in thousands):

	30-89 Days Past Due		Greater than 90 Days		Greater than 181 Days		Total Past Due		Current		Total
Receivables from managed entities and related parties: (1)
Commercial finance investment entities	$	−	$	−	$	37,547	$	37,547	$	490	$	38,037
Real estate investment entities		1,324		1,511		17,405		20,240		1,734		21,974
Financial fund management entities		2,395		93		28		2,516		136		2,652
RCC		−		−		−		−		2,539		2,539
Other		−		−		−		−		103		103
		3,719		1,604		54,980		60,303		5,002		65,305
Investments in commercial finance		984		526		−		1,510		190,932		192,442
Trade receivables		1		11		−		12		3		15
Total financing receivables	$	4,704	$	2,141	$	54,980	$	61,825	$	195,937	$	257,762

(1)

Receivables are presented gross of an allowance for credit losses of $8.3 million and $2.2 million related to the Company's commercial finance and real estate investment entities, respectively. The remaining receivables from managed entities and related parties have no related allowance for credit losses.

The following table summarizes the Company's financing receivables on nonaccrual status (in thousands):

	September 30,
	2011		2010
Investments in commercial finance:
Leases and loans	$	526	$	930
Future payment credit receivables		−		316
Investments in real estate loans		−		49
Total	$	526	$	1,295

The following table provides information about the credit quality of the Company's commercial finance assets as of September 30, 2011 (in thousands):

	Leases
	and Loans
Performing	$	191,916
Nonperforming		526
Total	$	192,442

The following table summarizes the activity in the allowance for credit losses for all financing receivables (in thousands):

			Investments in Commercial Finance
	Receivables from Managed Entities		Leases and Loans			Future Payment Card Receivables			Trade Receivables		Investment in Real Estate Loans			Total
Year Ended September 30, 2011:
Balance, beginning of year	$	1,075	$	770		$	130		$	−	$	49		$	2,024
Provision for credit losses		9,415		1,137			94			15		−			10,661
Charge-offs		−		(1,764	)		(286	)		−		(49	)		(2,099	)
Recoveries		−		287			62			−		−			349
Balance, end of year	$	10,490	$	430		$	−		$	15	$	−		$	10,935

Ending balance, individually evaluated for impairment	$	10,490	$	−		$	−		$	15	$	−		$	10,505
Ending balance, collectively evaluated for impairment		−		430			−			−		−			430
Balance, end of year	$	10,490	$	430		$	−		$	15	$	−		$	10,935

							Investments in Commercial Finance
	Receivables from Managed Entities			Investment in Loans			Leases and Loans			Future Payment Card Receivables			Investment in Real Estate Loans			Total
Year Ended September 30, 2010:
Balance, beginning year	$	−		$	−		$	570		$	2,640		$	1,585		$	4,795
Provision for credit losses		1,852			1			2,860			447			49			5,209
Charge-offs		(777	)		(1	)		(2,721	)		(2,983	)		(1,585	)		(8,067	)
Recoveries		−			−			61			26			−			87
Balance, end of year	$	1,075		$	−		$	770		$	130		$	49		$	2,024

Year Ended September 30, 2009:
Balance, beginning of year	$	−		$	1,595		$	650		$	1,100		$	1,129		$	4,474
Provision for credit losses		−			1,738			2,369			4,041			456			8,604
Charge-offs		−			(715	)		(1,054	)		(2,503	)		−			(4,272	)
Reduction due to sale of interest		−			(2,618	)		(1,500	)		−			−			(4,118	)
Recoveries		−			−			105			2			−			107
Balance, end of year	$	−		$	−		$	570		$	2,640		$	1,585		$	4,795

The Company's financing receivables (presented exclusive of any allowance for credit losses) as of September 30, 2011 relate to the balance in the allowance for credit losses, as follows (in thousands):

	Receivables from Managed Entities		Trade Receivables		Leases and Loans		Total
Ending balance, individually evaluated for impairment	$	65,305	$	15	$	−	$	65,320
Ending balance, collectively evaluated for impairment		−		−		192,442		192,442
Balance, end of year	$	65,305	$	15	$	192,442	$	257,762

The following table discloses information about the Company's impaired financing receivables as of September 30, 2011 (in thousands):

	Net Balance		Unpaid Balance		Specific Allowance		Average Investment in Impaired Assets
Financing receivables without a specific valuation allowance:
Receivables from managed entities – commercial finance	$	−	$	−	$	−	$	−
Receivables from managed entities – real estate		−		−		−		−
Leases and loans		−		−		−		−
Trade receivables		−		−		−		−

Financing receivables with a specific valuation allowance:
Receivables from managed entities – commercial finance	$	14,990	$	23,302	$	8,312	$	23,377
Receivables from managed entities – real estate		2,353		4,531		2,178		3,897
Leases and loans		310		526		216		318
Trade receivables		−		15		15		7

Total:
Receivables from managed entities – commercial finance	$	14,990	$	23,302	$	8,312	$	23,377
Receivables from managed entities – real estate		2,353		4,531		2,178		3,897
Leases and loans		310		526		216		318
Trade receivables		−		15		15		7