INVESTMENTS IN COMMERCIAL FINANCE

12 Months Ended

Sep. 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):

	September 30,
	2011			2010
Direct financing leases, net	$	145,476		$	8,888
Equipment loans (1)		19,640			1,661
Assets subject to operating leases, net (2)		27,326			2,211
Future payment card receivables, net		−			316
		192,442			13,076
Allowance for credit losses		(430	)		(900	)
Total investments in commercial finance, net	$	192,012		$	12,176

(1) The interest rates on loans generally range from 6% to 18%.

(2) Reflected net of accumulated depreciation of $7.1 million and $96,000 as of September 30, 2011 and 2010, respectively.

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

	September 30,
	2011			2010
Total future minimum lease payments receivable	$	159,722		$	10,467
Initial direct costs, net of amortization		2,034			156
Unguaranteed residuals		8,666			421
Security deposits		(120	)		(102	)
Unearned income		(24,826	)		(2,054	)
Total investments in direct financing leases, net	$	145,476		$	8,888

The contractual future minimum lease and note payments and related rental payments scheduled to be received on investments in commercial finance for each of the five succeeding annual periods ending September 30, and thereafter, is not presented due to the November 2011 LCC Transaction and anticipated resulting deconsolidation of LEAF subsequent to fiscal 2011(see Note 27).

The following table provides an analysis of the Company's cost of its investment in operating leases by major classes (in thousands):

	September 30,
	2011			2010
Office equipment	$	40,195		$	2,228
Computers		649			−
Telephone systems		157			−
Other		145			79
		41,146			2,307
Accumulated depreciation		(13,820	)		(96	)
Total assets subject to operating leases, net	$	27,326		$	2,211