LEAF Equipment Finance Fund 4 10-Q 12 Nov 14 2014 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Sep. 30, 2014
Document and Entity Information [Abstract]	'
Entity Registrant Name	'LEAF Equipment Finance Fund 4, L.P.
Entity Central Index Key	'0001426850
Current Fiscal Year End Date	'--12-31
Entity Well-known Seasoned Issuer	'No
Entity Voluntary Filers	'No
Entity Current Reporting Status	'Yes
Entity Filer Category	'Smaller Reporting Company
Entity Common Stock, Shares Outstanding	0
Document Fiscal Year Focus	'2014
Document Fiscal Period Focus	'Q3
Document Type	'10-Q
Amendment Flag	'false
Document Period End Date	30-Sep-14

Consolidated_Balance_Sheets_Un

Consolidated Balance Sheets (Unaudited) (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
ASSETS	'	'
Cash	$210	$229
Restricted cash	550	8,147
Investment in leases and loans, net	11,780	32,494
Deferred financing costs, net	214	625
Other assets	9	50
Total assets	12,763	41,545
Liabilities:	'	'
Accounts payable, accrued expenses, and other liabilities	656	1,052
Due to affiliates	2,711	6,284
Debt	7,974	25,870
Subordinated notes payable	9,295	9,295
Total liabilities	20,636	42,501
Commitments and contingencies (Note 10)	'	'
Partners' (Deficit) Capital:	'	'
General partner	-1,178	-1,110
Limited partners	-6,640	67
Total partners' deficit	-7,818	-1,043
Noncontrolling interest	-55	87
Total deficit	-7,873	-956
Total liabilities and deficit	$12,763	$41,545

Consolidated_Statements_of_Ope

Consolidated Statements of Operations (Unaudited) (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Revenues:	'	'	'	'
Interest on equipment financings	$323	$783	$1,236	$3,596
Rental income	12	105	75	386
(Losses) gains on sales of equipment and lease dispositions, net	-35	99	138	447
Gain on extinguishment of subordinated note payable	0	0	0	16
Other income	23	124	180	370
Revenues	323	1,111	1,629	4,815
Expenses:	'	'	'	'
Interest expense	543	1,554	2,811	5,397
Depreciation on operating leases	1	51	26	153
Provision for credit losses	728	2,775	2,798	4,982
General and administrative expenses	86	103	566	603
Administrative expenses reimbursed to affiliate	22	115	118	444
Expenses	1,380	4,598	6,319	11,579
Net loss	-1,057	-3,487	-4,690	-6,764
Less: Net loss attributable to the noncontrolling interest	26	23	142	166
Net loss attributable to LEAF 4 partners	-1,031	-3,464	-4,548	-6,598
Net loss allocated to LEAF 4's limited partners	($1,021)	($3,429)	($4,503)	($6,532)
Weighted average number of limited partner units outstanding during the period (in units)	1,259,537	1,259,537	1,259,537	1,259,537
Net loss per weighted average limited partner unit (in dollars per unit)	($0.81)	($2.72)	($3.58)	($5.19)

Consolidated_Statement_of_Chan

Consolidated Statement of Changes in Partners' (Deficit) Capital (Unaudited) (USD $)	General Partner [Member]	Limited Partners [Member]	Total Partners' Deficit [Member]	Non-Controlling Interest [Member]	Total
In Thousands, except Share data, unless otherwise specified
Balance at Dec. 31, 2013	($1,110)	$67	($1,043)	$87	($956)
Balance (in units) at Dec. 31, 2013	'	1,259,537	'	'	'
Increase (Decrease) in Partners' Capital [Roll Forward]	'	'	'	'	'
Cash distributions paid	-23	-2,204	-2,227	0	-2,227
Net loss	-45	-4,503	-4,548	-142	-4,690
Balance at Sep. 30, 2014	($1,178)	($6,640)	($7,818)	($55)	($7,873)
Balance (in units) at Sep. 30, 2014	'	1,259,537	'	'	'

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (Unaudited) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
Cash flows from operating activities:	'	'
Net loss	($4,690)	($6,764)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:	'	'
Depreciation on operating leases	26	153
Amortization of original issue discount on debt	884	1,425
Amortization of deferred charges	741	1,367
Provision for credit losses	2,798	4,982
Gains on sales of equipment and lease dispositions, net	-138	-447
Gain on extinguishment of subordinated note payable	0	-16
Changes in operating assets and liabilities:	'	'
Other assets	41	-33
Accounts payable, accrued expenses, and other liabilities	-396	-592
Due to affiliates	-3,573	2,549
Net cash (used in) provided by operating activities	-4,307	2,624
Cash flows from investing activities:	'	'
Proceeds from leases and loans	18,176	39,156
Purchases of leases and loans	-143	0
Security deposits returned, net of collections	-328	-565
Net cash provided by investing activities	17,705	38,591
Cash flows from financing activities:	'	'
Decrease in restricted cash	7,597	1,853
Repayment of debt	-18,780	-39,008
Cash distributions to partners	-2,227	-3,817
Increase in deferred financing costs	-7	-20
Redemption of subordinated note payable	0	-44
Net cash used in financing activities	-13,417	-41,036
(Decrease) increase in cash	-19	179
Cash, beginning of period	229	38
Cash, end of period	210	217
Cash paid for interest	$1,215	$2,651

ORGANIZATION_AND_NATURE_OF_BUS

ORGANIZATION AND NATURE OF BUSINESS	9 Months Ended
	Sep. 30, 2014
ORGANIZATION AND NATURE OF BUSINESS [Abstract]	'
ORGANIZATION AND NATURE OF BUSINESS	'
	NOTE 1 – ORGANIZATION AND NATURE OF BUSINESS
	LEAF Equipment Finance Fund 4, L.P. (“LEAF 4” or the “Fund”), a Delaware limited partnership, was formed on January 25, 2008 by its general partner, LEAF Asset Management, LLC (the “General Partner”), which manages the Fund. The General Partner is a Delaware limited liability company and a subsidiary of Resource America, Inc. (“RAI”). RAI is a publicly traded company (NASDAQ: REXI) that uses industry specific expertise to evaluate, originate, service and manage investment opportunities through its commercial finance, real estate and financial fund management segments. Through its offering termination date of October 30, 2009, the Fund raised $125.7 million by selling 1.3 million of its limited partner units. It commenced operations in September 2008.
	The Fund is expected to have a minimum of a nine-year life, consisting of an offering period of up to two years, a five-year reinvestment period and a subsequent maturity period of two years, during which the Fund’s leases and secured loans will either mature or be sold. In the event the Fund is unable to sell its leases and loans during the maturity period, the Fund expects to continue to return capital to its partners as those leases and loans mature. All of the Fund’s leases and loans mature by the end of 2032. The Fund expects to enter its maturity period beginning in October 2015. Contractually, the Fund will terminate on December 31, 2032, unless sooner dissolved or terminated as provided in the Limited Partnership Agreement (the “Partnership Agreement”).
	The Fund acquires diversified portfolios of equipment to finance to end users throughout the United States as well as the District of Columbia and Puerto Rico. The Fund also acquires existing portfolios of equipment subject to existing financings from other equipment finance companies, primarily an affiliate of its General Partner. The primary objective of the Fund is to generate regular cash distributions to its partners from its equipment finance portfolio over the life of the Fund.
	In addition to its 1% general partnership interest, the General Partner has also invested $1.0 million for a 0.85% limited partnership interest in the Fund.

SUMMARY_OF_SIGNIFICANT_ACCOUNT

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2014
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]	'
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	'
	NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	Basis of Presentation
	The consolidated financial statements include the accounts of the Fund and its wholly owned subsidiary LEAF Receivables Funding 4, LLC. The consolidated financial statements also include LEAF Funds Joint Venture 2, LLC (“LEAF Funds JV2”) and its subsidiaries LEAF Commercial Finance Fund, LLC (“LCFF”) and LEAF Receivables Funding 6, LLC, as well as LEAF Funding, LLC (“LEAF Funds JV1”) and its wholly owned subsidiaries LEAF Capital Funding III, LLC and LEAF Receivables Funding II, LLC. The Fund maintains a 98%, and 96% ownership interest in LEAF Funds JV2 and LEAF Funds JV1, respectively. All intercompany accounts and transactions have been eliminated in consolidation.
	The accompanying unaudited financial statements reflect all adjustments that are, in the opinion of management, of a normal and recurring nature and necessary for a fair statement of the Fund’s financial position as of September 30, 2014, and the results of its operations and cash flows for the periods presented. The results of operations for the three and nine month periods ended September 30, 2014 are not necessarily indicative of results of the Fund’s operations for the entire fiscal year. The financial statements have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for interim financial reporting.  Accordingly, certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) have been condensed or omitted pursuant to those rules and regulations. These interim financial statements should be read in conjunction with the Fund’s financial statements and notes thereto presented in the Fund’s Annual Report on Form 10-K for the year ended December 31, 2013, as filed with the SEC on May 16, 2014.
	Use of Estimates
	Preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include the allowance for credit losses and the estimated unguaranteed residual values of leased equipment, among others. The Fund bases its estimates on historical experience and on various other assumptions that it believes are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.
	Investments in Commercial Finance Assets
	The Fund’s investments in commercial finance assets consist of direct financing leases, operating leases, and loans.
	Direct Financing Leases. Certain of the Fund’s lease transactions are accounted for as direct financing leases (as distinguished from operating leases). Such leases transfer substantially all benefits and risks of equipment ownership to the customer. The Fund’s investment in direct financing leases consists of the sum of the total future minimum lease payments receivable and the estimated unguaranteed residual value of leased equipment, less unearned finance income. Unearned finance income, which is recognized as revenue over the term of the financing by the effective interest method, represents the excess of the total future minimum contracted payments plus the estimated unguaranteed residual value expected to be realized at the end of the lease term over the cost of the related equipment.
	Unguaranteed residual value represents the estimated amount to be received at lease termination from lease extensions or ultimate disposition of the leased equipment. The estimates of residual values are based upon the General Partner’s history with regard to the realization of residuals, available industry data and the General Partner’s senior management’s experience with respect to comparable equipment. The estimated residual values are recorded as a component of investments in leases. Residual values are reviewed periodically to determine if the current estimate of the equipment’s fair market value appears to be below its recorded estimate. If required, residual values are adjusted downward to reflect adjusted estimates of fair market values. Upward adjustments to residual values are not permitted.
	Operating Leases. Leases not meeting the criteria to be classified as direct financing leases are deemed to be operating leases. Under the accounting for operating leases, the cost of the leased equipment, including acquisition fees associated with lease placements, is recorded as an asset and depreciated on a straight-line basis over the equipment’s estimated useful life, generally up to seven years. Rental income consists primarily of monthly periodic rental payments due under the terms of the leases. The Fund recognizes rental income on a straight line basis.
	Generally, during the lease terms of existing operating leases, the Fund will not recover all of the cost and related expenses of its rental equipment and, therefore, it is prepared to remarket the equipment in future years. The Fund’s policy is to review, on a quarterly basis, the expected economic life of its rental equipment in order to determine the recoverability of its undepreciated cost. The Fund writes down its rental equipment to its estimated net realizable value when it is probable that its carrying amount exceeds such value and the excess can be reasonably estimated; gains are only recognized upon actual sale of the rental equipment.
	Loans. For term loans, the investment in loans consists of the sum of the total future minimum loan payments receivable less unearned finance income. Unearned finance income, which is recognized as revenue over the term of the financing by the effective interest method, represents the excess of the total future minimum contracted loan payments over the cost of the loan. For all other loans, interest income is recorded at the stated rate on the accrual basis to the extent that such amounts are expected to be collected.
	Allowance for Credit Losses. The Fund evaluates the adequacy of the allowance for credit losses (including investments in leases and loans) based upon, among other factors, management’s historical experience on the portfolios it manages, an analysis of contractual delinquencies, economic conditions and trends and equipment finance portfolio characteristics, adjusted for expected recoveries.  In evaluating historic performance of the Fund’s leases and loans, the Fund performs a migration analysis, which estimates the likelihood that an account progresses through delinquency stages to ultimate charge-off unless individually reviewed for impairment.  In an individual review for impairment the Fund considers the loans performance, probability of repayment, and general and local economic conditions when assessing whether impairment is necessary.  Substantially all of the Fund’s leases and loans evaluated for impairment on an individual basis include an analysis of the market values of underlying collateral values, as adjusted for estimated selling and other closing costs. After an account becomes 180 or more days past due, any remaining balance is fully-reserved less an estimated recovery amount. Generally, past due accounts are referred to our internal recovery group consisting of a team of credit specialists and collectors. The group utilizes several resources in an attempt to maximize recoveries on charged-off accounts including: 1) initiating litigation against the end user customer and any personal guarantor, 2) referring the account to an outside law firm or collection agency and/or 3) repossessing and remarketing the equipment or other assets through third parties.
	The Fund’s policy is to charge off to the allowance those financings which are in default and for which it is probable management will be unable to collect all amounts contractually owed. The Fund discontinues the recognition of revenue for leases and loans for which payments are more than 90 days past due.  Payments received while leases and loans are on non-accrual status are recorded as a reduction of principal. Generally income recognition resumes when a lease or loan becomes less than 90 days delinquent, unless certain factors specific to those leases or loans continue to raise concerns as to future collectability.
	Other Income
	Other income includes miscellaneous fees charged by the Fund such as late fee income, among others.  The Fund recognizes late fee income as fees are collected.  Late fee income was $14,000 and $156,000, respectively, for the three and nine month periods ended September 30, 2014, and was $114,000 and $332,000, respectively, for the three and nine month periods ending September 30, 2013.

INVESTMENT_IN_LEASES_AND_LOANS

INVESTMENT IN LEASES AND LOANS	9 Months Ended
	Sep. 30, 2014
INVESTMENT IN LEASES AND LOANS [Abstract]	'
INVESTMENT IN LEASES AND LOANS	'
	NOTE 3 – INVESTMENT IN LEASES AND LOANS
	The Fund’s investment in leases and loans, net, consists of the following (in thousands):
			September 30,			December 31,
			2014			2013
	Direct financing leases (1)		$	1,505		$	6,908
	Loans (2)			10,657			33,531
	Operating leases			18			105
				12,180			40,544
	Allowance for credit losses			(400	)		(8,050	)
			$	11,780		$	32,494
		-1	The Fund’s direct financing leases are for initial lease terms generally ranging from 24 to 180 months.
		-2	The interest rates on loans generally range from 5% to 18%.
	The components of direct financing leases and loans are as follows (in thousands):
			30-Sep-14						31-Dec-13
			Leases			Loans			Leases			Loans
	Total future minimum lease payments		$	1,268		$	11,967		$	5,620		$	35,227
	Unearned income			(159	)		(1,177	)		(303	)		(1,295	)
	Residuals, net of unearned residual income			433			-			1,676			-
	Security deposits			(37	)		(133	)		(85	)		(401	)
			$	1,505		$	10,657		$	6,908		$	33,531
	The Fund’s investment in operating leases consists of the following (in thousands):
			September 30,			December 31,
			2014			2013
	Equipment		$	212		$	1,487
	Accumulated depreciation			(194	)		(1,382	)
			$	18		$	105

ALLOWANCE_FOR_CREDIT_LOSSES_AN

ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY	9 Months Ended
	Sep. 30, 2014
ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY [Abstract]	'
ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY	'
	NOTE 4 – ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY
	The following table is an age analysis of the Fund’s receivables from leases and loans (presented gross of allowance for credit losses of $400,000 and $8.1 million) as of September 30, 2014 and December 31, 2013, respectively (in thousands):
			30-Sep-14						31-Dec-13
	Age of receivable		Investment in			%			Investment in			%
			leases and loans						leases and loans
	Current (a)		$	11,072			91	%	$	38,339			95	%
	Delinquent:
	31 to 91 days past due			715			6	%		1,351			3	%
	Greater than 91 days			393			3	%		854			2	%
			$	12,180			100	%	$	40,544			100	%
		(a)	Included in this category are approximately $0 and $8.378 million as of September 30, 2014 and December 31, 2013, respectively, of certain loans which are systematically current but are on the cost recovery method due to continued uncertainty as to collectability of future payments.  This secured loan obligation totals $0 as of September 30, 2014.  The obligor of this loan is another finance company that is no longer operating.  Collateral for the loan is a pool of loans to construction companies and developers.  The Fund has been in the process of monetizing the underlying collateral for the loan via sale.  The Fund has written the loan down to the net realizable value of the underlying collateral.
	The Fund had $393,000 and $9.2 million of leases and loans on nonaccrual status as of September 30, 2014 and December 31, 2013, respectively.  The credit quality of the Fund’s investment in leases and loans as of September 30, 2014 and December 31, 2013 are as follows (in thousands):
			September 30,			December 31,
			2014			2013
	Performing		$	11,787		$	31,312
	Nonperforming			393			9,232
			$	12,180		$	40,544
	The Company’s investment in non-performing leases and loans as of September 30, 2014 and December 31, 2013 were collectively evaluated for impairment, except for certain asset backed loans that were individually evaluated for impairment (see above for more information).  The following table summarizes the activity in the allowance for credit losses (in thousands):
			Three Months Ended						Nine Months Ended
			September 30,						September 30,
			2014			2013			2014			2013
	Allowance for credit losses, beginning of period		$	390		$	6,420		$	8,050		$	8,920
	Provision for credit losses			728			2,775			2,798			4,982
	Charge-offs			(804	)		(2,319	)		(10,909	)		(7,565	)
	Recoveries			86			754			461			1,293
	Allowance for credit losses end of period		$	400		$	7,630		$	400		$	7,630
	Allowance for credit losses:
	Ending balance, individually evaluated for impairment		$	–		$	7,030		$	–		$	7,030
	Ending balance, collectively evaluated for impairment			400			600			400			600
	Balance, end of year		$	400		$	7,630		$	400		$	7,630
	Recorded investment in leases and term loans: (b)
	Ending balance, individually evaluated for impairment		$	–		$	8,388		$	–		$	8,388
	Ending balance, collectively evaluated for impairment			12,180			40,478			12,180			40,478
	Balance, end of year		$	12,180		$	48,866		$	12,180		$	48,866
		(b)	Due to a 2012 adjustment, the investment in leases and loans individually evaluated for impairment and the corresponding total were restated and reduced by $4.0 million from the previously reported amounts for the three and nine months ended September 30, 2013.

DEFERRED_FINANCING_COSTS

DEFERRED FINANCING COSTS	9 Months Ended
	Sep. 30, 2014
DEFERRED FINANCING COSTS [Abstract]	'
DEFERRED FINANCING COSTS	'
	NOTE 5 – DEFERRED FINANCING COSTS
	As of September 30, 2014 and December 31, 2013, deferred financing costs include $214,000 and $625,000, respectively, of unamortized deferred financing costs which are being amortized over the terms of the estimated life of the related debt. Accumulated amortization as of September 30, 2014 and December 31, 2013 was $2.5 million, and $5.2 million, respectively.

DEBT

DEBT	9 Months Ended
	Sep. 30, 2014
DEBT [Abstract]	'
DEBT	'
	NOTE 6 –DEBT
	The Fund’s debt consists of the following (in thousands):
								December 31,
		30-Sep-14						2013
				Outstanding			Interest rate per	Outstanding
		Type		Balance (1)			annum	Balance
	2010-1 Term Securitization	Term		$	–		5.00%	$	3,311
	2010-3 Term Securitization	Term			–		3.5% to 5.5%		10,766
	2011-1 Term Securitization	Term			8,536		1.7% to 5.5%		13,239
				$	8,536			$	27,316
	Less:  Unamortized Original Issue Discount				(562	)			(1,446	)
				$	7,974			$	25,870
		-1	These borrowings are collateralized by specific leases and loans and restricted cash.  As of September 30, 2014, $7.7 million of leases and loans and $550,000 of restricted cash were pledged as collateral under the Fund’s term securitizations.  Recourse under these securitizations is limited to the amount of collateral pledged.
	Series 2010-1 Term Securitization.  In May 2010, three classes of asset-backed notes were issued (The “2010-1 Term Securitization”), one with an original maturity date of October 2016 and two with an original maturity date of September 2018, respectively.  The asset-backed notes totaled $92.7 million, bore interest at a fixed stated rate of 5%, and were issued at an original discount of $6.5 million.
	Series 2010-3 Term Securitization.  In August 2010, five classes of asset-backed notes were issued (The “2010-3 Term Securitization”), one with an original maturity date of June 2016 and four with an original maturity date of February 2022, respectively.  The asset-backed notes totaled $171.4 million, bore interest at fixed stated rates ranging from 3.5% to 5.5%, and were issued at an original discount of $3.7 million.
	In April 2014, the Company sold a pool of leases with a net investment of approximately $5.7 million to a third party for proceeds totaling approximately $5.9 million.  A portion of the proceeds from the sale were used to pay off in full the 2010-1 and 2010-3 Term Securitizations.
	Series 2011-1 Term Securitization.  In January 2011, a previous lender was paid-off with the proceeds from the 2011-1 Term Securitization (The “2011-1 Term Securitization”) in which six classes of asset-backed notes were issued that have varying maturity dates ranging  from December 2018 to December 2023.  The asset-backed notes totaled $96.0 million and bear interest at fixed, stated rates ranging from 1.7% to 5.5% and were issued at an original discount of approximately $6.2 million.
	Covenants:  The Fund’s securitization is serviced by an affiliate of the Fund’s General Partner (the “Servicer”).  If the Servicer of the Fund’s portfolio does not comply with certain requirements, the noteholders have the right to replace the Servicer.  The Fund is not, nor has been, delinquent on any payments owed to the noteholders.  The servicing agreement was amended to increase the cumulative net loss percentage as the portfolio has exceeded the allowed cumulative net loss amount.  In addition, the servicing agreement and the indenture on this facility was amended to establish an additional reserve account to be funded by cash flows on leases and loans that will be used by the trustee as additional collateral.  These events do not constitute events of default.  The portfolio has not been in compliance with the cumulative net loss percentage trigger level on the 2011-1 term securitization since October 31, 2013, of which the trustee, rating agency, and investors are aware.
	Debt Repayments:  Excluding $562,000 of remaining unamortized discount on the term securitizations, estimated annual principal payments on the Fund’s aggregate borrowings over the next five annual periods ended September 30, and thereafter, are as follows (in thousands):
	30-Sep-15		$	3,511
	30-Sep-16			2,087
	30-Sep-17			1,874
	30-Sep-18			570
	30-Sep-19			229
	Thereafter			265
			$	8,536

SUBORDINATED_NOTES_PAYABLE

SUBORDINATED NOTES PAYABLE	9 Months Ended
	Sep. 30, 2014
SUBORDINATED NOTES PAYABLE [Abstract]	'
SUBORDINATED NOTES PAYABLE	'
	NOTE 7 – SUBORDINATED NOTES PAYABLE
	LCFF has $9.3 million of 8.25% secured subordinated promissory notes (the “Notes”) outstanding, which are recourse to LCFF only.  The Notes were issued to private investors and require interest only payments until their maturity in February 2015.  LCFF may call or redeem the Notes, in whole or in part, at any time during the interest only period.  Insert disclosures here about 2015 maturity.
	Covenants:  The Notes are subject to various covenants as set forth in their indenture, including an interest coverage ratio test which LCFF is not in compliance with.  LCFF notified the Trustee and noteholders of this breach.  As a result, the noteholders have the right to declare an event of default, which to date has not occurred.  If the noteholders would declare an event of default they have various rights and remedies available to them including (1) the right to declare all amounts currently outstanding under the Notes as immediately due and payable; (2) the right to take immediate possession of the assets of LCFF; and (3) the right to sell or otherwise dispose of the assets of LCFF in their current condition.  If the noteholders choose to repossess and sell LCFF’s assets, such a sale of a portfolio could be at prices lower than its carrying value, which could result in losses to the Fund.
	Notwithstanding the foregoing, LCFF is not, nor has been, delinquent on any payments of interest owed to the noteholders.

FAIR_VALUE_MEASUREMENT

FAIR VALUE MEASUREMENT

9 Months Ended

Sep. 30, 2014

FAIR VALUE MEASUREMENT [Abstract]

'

FAIR VALUE MEASUREMENT

'

NOTE 8 – FAIR VALUE MEASUREMENT

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal or most advantageous market for the asset or liability at the measurement date (exit price). U.S. GAAP establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1) and the lowest priority to unobservable inputs (level 3). The level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the measurement in its entirety.

•

Level 1 – Quoted prices in active markets for identical assets and liabilities that the reporting entity has the ability to access at the measurement date.

•

Level 2 – Observable inputs other than quoted prices included within Level 1, such as quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets.

•

Level 3 – Unobservable inputs that reflect the entity’s own assumptions about the assumptions that market participants would use in the pricing of the asset or liability and are consequently not based on market activity, but rather through particular valuation techniques.

There were no assets or liabilities measured at fair value at September 30, 2014 or December 31, 2013.

The Fund is also required to disclose the fair value of financial instruments not measured at fair value for which it is practicable to estimate that value.  For cash, restricted cash, receivables, and payables, the carrying amounts approximate fair value because of the short term maturity of these instruments.

The methods used to estimate the fair value on bank debt that is not measured at fair value, the level within the fair value hierarchy that those fair value measurements are categorized, and the carrying value and fair value of the Fund’s debt at September 30, 2014 and December 31, 2013 is as follows:

Fair Value Measurements Using

Liabilities

Carrying Value

Level 1

Level 2

Level 3

At Fair Value

Debt, at September 30, 2014

$

7,974

$

−

$

6,459

$

−

$

6,459

Debt, at December 31, 2013

$

25,870

$

−

$

24,094

$

−

$

24,094

The fair value of the debt was determined using quoted prices obtained from a broker-dealer as of the measurement date.

CERTAIN_RELATIONSHIPS_AND_TRAN

CERTAIN RELATIONSHIPS AND TRANSACTIONS WITH AFFILIATES	9 Months Ended
	Sep. 30, 2014
CERTAIN RELATIONSHIPS AND TRANSACTIONS WITH AFFILIATES [Abstract]	'
CERTAIN RELATIONSHIPS AND TRANSACTIONS WITH AFFILIATES	'
	NOTE 9 – CERTAIN RELATIONSHIPS AND TRANSACTIONS WITH AFFILIATES
	The Fund relies on the General Partner and its affiliates to manage the Fund’s operations and pays the General Partner or its affiliates fees to manage the Fund in accordance with the Partnership Agreement. The following is a summary of fees and costs of services and materials charged by the General Partner or its affiliates (in thousands):
		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2014		2013		2014		2013
	Administrative expenses	$	22	$	115	$	118	$	444
	Administrative Expenses. The General Partner and its affiliates are reimbursed by the Fund for administrative services reasonably necessary to operate the Fund which do not exceed the General Partner’s actual cost of those services.
	Management Fees. The General Partner has waived management fees since August 2010.  The General Partner has waived management fees of approximately $55,000 and $397,000 for the three and nine month periods ended September 30, 2014, respectively, and $7.8 million have been waived on a cumulative basis.
	Due to Affiliates. Due to affiliates includes amounts owed to the General Partner and its affiliates for various items such as management fees, expense reimbursements, and the acquisition and management of equipment portfolios.  These amounts are expected to be repaid once the necessary funds are available.
	Distributions. The General Partner owns a 1% general partner interest and 0.85% limited partner interest in the Fund. The General Partner was paid cash distributions of $23,000 and $19,000 for its general partner and limited partner interests, respectively, for the nine months ended September 30, 2014 and $38,000 and $32,000 for its general partner and limited partner interests, respectively, for the nine months ended September 30, 2013.

COMMITMENTS_AND_CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2014
COMMITMENTS AND CONTINGENCIES [Abstract]	'
COMMITMENTS AND CONTINGENCIES	'
	NOTE 10 – COMMITMENTS AND CONTINGENCIES
	The Fund is party to various routine legal proceedings arising out of the ordinary course of its business. Management believes that none of these actions, individually or in the aggregate, will have a material adverse effect on the Fund’s financial condition or results of operations.

SUBSEQUENT_EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2014
SUBSEQUENT EVENTS [Abstract]	'
SUBSEQUENT EVENTS	'
	NOTE 11 – SUBSEQUENT EVENTS
	The Fund has evaluated its September 30, 2014 financial statements for subsequent events through the date the financial statements were issued.  The Fund is not aware of any subsequent events which would require recognition or disclosure in the financial statements.

SUMMARY_OF_SIGNIFICANT_ACCOUNT1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2014
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]	'
Basis of Presentation	'
	Basis of Presentation
	The consolidated financial statements include the accounts of the Fund and its wholly owned subsidiary LEAF Receivables Funding 4, LLC. The consolidated financial statements also include LEAF Funds Joint Venture 2, LLC (“LEAF Funds JV2”) and its subsidiaries LEAF Commercial Finance Fund, LLC (“LCFF”) and LEAF Receivables Funding 6, LLC, as well as LEAF Funding, LLC (“LEAF Funds JV1”) and its wholly owned subsidiaries LEAF Capital Funding III, LLC and LEAF Receivables Funding II, LLC. The Fund maintains a 98%, and 96% ownership interest in LEAF Funds JV2 and LEAF Funds JV1, respectively. All intercompany accounts and transactions have been eliminated in consolidation.
	The accompanying unaudited financial statements reflect all adjustments that are, in the opinion of management, of a normal and recurring nature and necessary for a fair statement of the Fund’s financial position as of September 30, 2014, and the results of its operations and cash flows for the periods presented. The results of operations for the three and nine month periods ended September 30, 2014 are not necessarily indicative of results of the Fund’s operations for the entire fiscal year. The financial statements have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for interim financial reporting.  Accordingly, certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) have been condensed or omitted pursuant to those rules and regulations. These interim financial statements should be read in conjunction with the Fund’s financial statements and notes thereto presented in the Fund’s Annual Report on Form 10-K for the year ended December 31, 2013, as filed with the SEC on May 16, 2014.
Use of Estimates	'
	Use of Estimates
	Preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include the allowance for credit losses and the estimated unguaranteed residual values of leased equipment, among others. The Fund bases its estimates on historical experience and on various other assumptions that it believes are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.
Investments in Commercial Finance Assets	'
	Investments in Commercial Finance Assets
	The Fund’s investments in commercial finance assets consist of direct financing leases, operating leases, and loans.
	Direct Financing Leases. Certain of the Fund’s lease transactions are accounted for as direct financing leases (as distinguished from operating leases). Such leases transfer substantially all benefits and risks of equipment ownership to the customer. The Fund’s investment in direct financing leases consists of the sum of the total future minimum lease payments receivable and the estimated unguaranteed residual value of leased equipment, less unearned finance income. Unearned finance income, which is recognized as revenue over the term of the financing by the effective interest method, represents the excess of the total future minimum contracted payments plus the estimated unguaranteed residual value expected to be realized at the end of the lease term over the cost of the related equipment.
	Unguaranteed residual value represents the estimated amount to be received at lease termination from lease extensions or ultimate disposition of the leased equipment. The estimates of residual values are based upon the General Partner’s history with regard to the realization of residuals, available industry data and the General Partner’s senior management’s experience with respect to comparable equipment. The estimated residual values are recorded as a component of investments in leases. Residual values are reviewed periodically to determine if the current estimate of the equipment’s fair market value appears to be below its recorded estimate. If required, residual values are adjusted downward to reflect adjusted estimates of fair market values. Upward adjustments to residual values are not permitted.
	Operating Leases. Leases not meeting the criteria to be classified as direct financing leases are deemed to be operating leases. Under the accounting for operating leases, the cost of the leased equipment, including acquisition fees associated with lease placements, is recorded as an asset and depreciated on a straight-line basis over the equipment’s estimated useful life, generally up to seven years. Rental income consists primarily of monthly periodic rental payments due under the terms of the leases. The Fund recognizes rental income on a straight line basis.
	Generally, during the lease terms of existing operating leases, the Fund will not recover all of the cost and related expenses of its rental equipment and, therefore, it is prepared to remarket the equipment in future years. The Fund’s policy is to review, on a quarterly basis, the expected economic life of its rental equipment in order to determine the recoverability of its undepreciated cost. The Fund writes down its rental equipment to its estimated net realizable value when it is probable that its carrying amount exceeds such value and the excess can be reasonably estimated; gains are only recognized upon actual sale of the rental equipment.
	Loans. For term loans, the investment in loans consists of the sum of the total future minimum loan payments receivable less unearned finance income. Unearned finance income, which is recognized as revenue over the term of the financing by the effective interest method, represents the excess of the total future minimum contracted loan payments over the cost of the loan. For all other loans, interest income is recorded at the stated rate on the accrual basis to the extent that such amounts are expected to be collected.
	Allowance for Credit Losses. The Fund evaluates the adequacy of the allowance for credit losses (including investments in leases and loans) based upon, among other factors, management’s historical experience on the portfolios it manages, an analysis of contractual delinquencies, economic conditions and trends and equipment finance portfolio characteristics, adjusted for expected recoveries.  In evaluating historic performance of the Fund’s leases and loans, the Fund performs a migration analysis, which estimates the likelihood that an account progresses through delinquency stages to ultimate charge-off unless individually reviewed for impairment.  In an individual review for impairment the Fund considers the loans performance, probability of repayment, and general and local economic conditions when assessing whether impairment is necessary.  Substantially all of the Fund’s leases and loans evaluated for impairment on an individual basis include an analysis of the market values of underlying collateral values, as adjusted for estimated selling and other closing costs. After an account becomes 180 or more days past due, any remaining balance is fully-reserved less an estimated recovery amount. Generally, past due accounts are referred to our internal recovery group consisting of a team of credit specialists and collectors. The group utilizes several resources in an attempt to maximize recoveries on charged-off accounts including: 1) initiating litigation against the end user customer and any personal guarantor, 2) referring the account to an outside law firm or collection agency and/or 3) repossessing and remarketing the equipment or other assets through third parties.
	The Fund’s policy is to charge off to the allowance those financings which are in default and for which it is probable management will be unable to collect all amounts contractually owed. The Fund discontinues the recognition of revenue for leases and loans for which payments are more than 90 days past due.  Payments received while leases and loans are on non-accrual status are recorded as a reduction of principal. Generally income recognition resumes when a lease or loan becomes less than 90 days delinquent, unless certain factors specific to those leases or loans continue to raise concerns as to future collectability.
Other Income	'
	Other Income
	Other income includes miscellaneous fees charged by the Fund such as late fee income, among others.  The Fund recognizes late fee income as fees are collected.  Late fee income was $14,000 and $156,000, respectively, for the three and nine month periods ended September 30, 2014, and was $114,000 and $332,000, respectively, for the three and nine month periods ending September 30, 2013.

INVESTMENT_IN_LEASES_AND_LOANS1

INVESTMENT IN LEASES AND LOANS (Tables)	9 Months Ended
	Sep. 30, 2014
INVESTMENT IN LEASES AND LOANS [Abstract]	'
Net leases and loan investments	'
	The Fund’s investment in leases and loans, net, consists of the following (in thousands):
			September 30,			December 31,
			2014			2013
	Direct financing leases (1)		$	1,505		$	6,908
	Loans (2)			10,657			33,531
	Operating leases			18			105
				12,180			40,544
	Allowance for credit losses			(400	)		(8,050	)
			$	11,780		$	32,494
		-1	The Fund’s direct financing leases are for initial lease terms generally ranging from 24 to 180 months.
		-2	The interest rates on loans generally range from 5% to 18%.
Components of direct financing leases and loans	'
	The components of direct financing leases and loans are as follows (in thousands):
			30-Sep-14						31-Dec-13
			Leases			Loans			Leases			Loans
	Total future minimum lease payments		$	1,268		$	11,967		$	5,620		$	35,227
	Unearned income			(159	)		(1,177	)		(303	)		(1,295	)
	Residuals, net of unearned residual income			433			-			1,676			-
	Security deposits			(37	)		(133	)		(85	)		(401	)
			$	1,505		$	10,657		$	6,908		$	33,531
Net operating leases	'
	The Fund’s investment in operating leases consists of the following (in thousands):
			September 30,			December 31,
			2014			2013
	Equipment		$	212		$	1,487
	Accumulated depreciation			(194	)		(1,382	)
			$	18		$	105

ALLOWANCE_FOR_CREDIT_LOSSES_AN1

ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY (Tables)	9 Months Ended
	Sep. 30, 2014
ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY [Abstract]	'
Age analysis	'
	The following table is an age analysis of the Fund’s receivables from leases and loans (presented gross of allowance for credit losses of $400,000 and $8.1 million) as of September 30, 2014 and December 31, 2013, respectively (in thousands):
			30-Sep-14						31-Dec-13
	Age of receivable		Investment in			%			Investment in			%
			leases and loans						leases and loans
	Current (a)		$	11,072			91	%	$	38,339			95	%
	Delinquent:
	31 to 91 days past due			715			6	%		1,351			3	%
	Greater than 91 days			393			3	%		854			2	%
			$	12,180			100	%	$	40,544			100	%
		(a)	Included in this category are approximately $0 and $8.378 million as of September 30, 2014 and December 31, 2013, respectively, of certain loans which are systematically current but are on the cost recovery method due to continued uncertainty as to collectability of future payments.  This secured loan obligation totals $0 as of September 30, 2014.  The obligor of this loan is another finance company that is no longer operating.  Collateral for the loan is a pool of loans to construction companies and developers.  The Fund has been in the process of monetizing the underlying collateral for the loan via sale.  The Fund has written the loan down to the net realizable value of the underlying collateral.
Credit quality indicators	'
	The Fund had $393,000 and $9.2 million of leases and loans on nonaccrual status as of September 30, 2014 and December 31, 2013, respectively.  The credit quality of the Fund’s investment in leases and loans as of September 30, 2014 and December 31, 2013 are as follows (in thousands):
			September 30,			December 31,
			2014			2013
	Performing		$	11,787		$	31,312
	Nonperforming			393			9,232
			$	12,180		$	40,544
Allowance for credit losses activity	'
	The Company’s investment in non-performing leases and loans as of September 30, 2014 and December 31, 2013 were collectively evaluated for impairment, except for certain asset backed loans that were individually evaluated for impairment (see above for more information).  The following table summarizes the activity in the allowance for credit losses (in thousands):
			Three Months Ended						Nine Months Ended
			September 30,						September 30,
			2014			2013			2014			2013
	Allowance for credit losses, beginning of period		$	390		$	6,420		$	8,050		$	8,920
	Provision for credit losses			728			2,775			2,798			4,982
	Charge-offs			(804	)		(2,319	)		(10,909	)		(7,565	)
	Recoveries			86			754			461			1,293
	Allowance for credit losses end of period		$	400		$	7,630		$	400		$	7,630
	Allowance for credit losses:
	Ending balance, individually evaluated for impairment		$	–		$	7,030		$	–		$	7,030
	Ending balance, collectively evaluated for impairment			400			600			400			600
	Balance, end of year		$	400		$	7,630		$	400		$	7,630
	Recorded investment in leases and term loans: (b)
	Ending balance, individually evaluated for impairment		$	–		$	8,388		$	–		$	8,388
	Ending balance, collectively evaluated for impairment			12,180			40,478			12,180			40,478
	Balance, end of year		$	12,180		$	48,866		$	12,180		$	48,866
		(b)	Due to a 2012 adjustment, the investment in leases and loans individually evaluated for impairment and the corresponding total were restated and reduced by $4.0 million from the previously reported amounts for the three and nine months ended September 30, 2013.

DEBT_Tables

DEBT (Tables)	9 Months Ended
	Sep. 30, 2014
DEBT [Abstract]	'
Schedule of debt	'
	The Fund’s debt consists of the following (in thousands):
								December 31,
		30-Sep-14						2013
				Outstanding			Interest rate per	Outstanding
		Type		Balance (1)			annum	Balance
	2010-1 Term Securitization	Term		$	–		5.00%	$	3,311
	2010-3 Term Securitization	Term			–		3.5% to 5.5%		10,766
	2011-1 Term Securitization	Term			8,536		1.7% to 5.5%		13,239
				$	8,536			$	27,316
	Less:  Unamortized Original Issue Discount				(562	)			(1,446	)
				$	7,974			$	25,870
		-1	These borrowings are collateralized by specific leases and loans and restricted cash.  As of September 30, 2014, $7.7 million of leases and loans and $550,000 of restricted cash were pledged as collateral under the Fund’s term securitizations.  Recourse under these securitizations is limited to the amount of collateral pledged.
Debt repayments	'
	Debt Repayments:  Excluding $562,000 of remaining unamortized discount on the term securitizations, estimated annual principal payments on the Fund’s aggregate borrowings over the next five annual periods ended September 30, and thereafter, are as follows (in thousands):
	30-Sep-15		$	3,511
	30-Sep-16			2,087
	30-Sep-17			1,874
	30-Sep-18			570
	30-Sep-19			229
	Thereafter			265
			$	8,536

FAIR_VALUE_MEASUREMENT_Tables

FAIR VALUE MEASUREMENT (Tables)	9 Months Ended
	Sep. 30, 2014
FAIR VALUE MEASUREMENT [Abstract]	'
Carrying value and fair value of funds	'
	The methods used to estimate the fair value on bank debt that is not measured at fair value, the level within the fair value hierarchy that those fair value measurements are categorized, and the carrying value and fair value of the Fund’s debt at September 30, 2014 and December 31, 2013 is as follows:
				Fair Value Measurements Using						Liabilities
		Carrying Value		Level 1		Level 2		Level 3		At Fair Value
	Debt, at September 30, 2014	$	7,974	$	−	$	6,459	$	−	$	6,459
	Debt, at December 31, 2013	$	25,870	$	−	$	24,094	$	−	$	24,094

CERTAIN_RELATIONSHIPS_AND_TRAN1

CERTAIN RELATIONSHIPS AND TRANSACTIONS WITH AFFILIATES (Tables)	9 Months Ended
	Sep. 30, 2014
CERTAIN RELATIONSHIPS AND TRANSACTIONS WITH AFFILIATES [Abstract]	'
Summary of related party fees	'
	The following is a summary of fees and costs of services and materials charged by the General Partner or its affiliates (in thousands):
		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2014		2013		2014		2013
	Administrative expenses	$	22	$	115	$	118	$	444

ORGANIZATION_AND_NATURE_OF_BUS1

ORGANIZATION AND NATURE OF BUSINESS (Details) (USD $)	9 Months Ended
In Millions, unless otherwise specified	Sep. 30, 2014
ORGANIZATION AND NATURE OF BUSINESS [Abstract]	'
Funds raised during offering termination date	$125.70
Units sold during offering termination date (in units)	1.3
Total expected life of the fund	'9 years
Expected offering period	'2 years
Expected reinvestment period	'5 years
Expected subsequent liquidation period	'2 years
Ownership interest (in hundredths)	1.00%
General Partner's investment in limited partnership interest	$1
General Partner's limited partnership interest (in hundredths)	0.85%

SUMMARY_OF_SIGNIFICANT_ACCOUNT2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Schedule of Consolidated Investments [Line Items]	'	'	'	'
Operating lease equipment useful life	'	'	'7 years	'
Delinquency period with full allowance	'	'	'180 or more days past due	'
Past due accounts provided with full reserve on allowance for credit losses	'	'	'180 days	'
Period of default on monthly payment	'	'	'90 days past due	'
Past due period for the discontinuation of revenue recognition, Minimum	'	'	'90 days	'
Income Recognition on leases or loans, Maximum period delinquent	'	'	'90 days	'
Other Income [Abstract]	'	'	'	'
Late fee income	$14,000	$114,000	$156,000	$332,000
LEAF Funds JV2 [Member]	'	'	'	'
Schedule of Consolidated Investments [Line Items]	'	'	'	'
Ownership interest (in hundredths)	'	'	98.00%	'
LEAF Funds JV1 [Member]	'	'	'	'
Schedule of Consolidated Investments [Line Items]	'	'	'	'
Ownership interest (in hundredths)	'	'	96.00%	'

INVESTMENT_IN_LEASES_AND_LOANS2

INVESTMENT IN LEASES AND LOANS (Details) (USD $)

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Sep. 30, 2014

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Sep. 30, 2014

Sep. 30, 2014

Dec. 31, 2013

In Thousands, unless otherwise specified

Direct Financing Leases [Member]

Direct Financing Leases [Member]

Direct Financing Leases [Member]

Direct Financing Leases [Member]

Loans [Member]

Loans [Member]

Loans [Member]

Loans [Member]

Operating Leases [Member]

Operating Leases [Member]

Minimum [Member]

Maximum [Member]

Minimum [Member]

Maximum [Member]

Investment in Leases and Loans [Line Items]

'

'

'

'

'

'

'

'

'

'

'

'

Investment in leases and loans, gross

$12,180

$40,544

$1,505

[1]

$6,908

[1]

'

'

$10,657

[2]

$33,531

[2]

'

'

$18

$105

Allowance for credit losses

-400

-8,050

'

'

'

'

'

'

'

'

'

'

Investment in leases and loans, net

11,780

32,494

'

'

'

'

'

'

'

'

'

'

Direct financing initial lease term

'

'

'

'

'24 months

'180 months

'

'

'

'

'

'

Loan interest rate (in hundredths)

'

'

'

'

'

'

'

'

5.00%

18.00%

'

'

Total future minimum lease payments

'

'

1,268

5,620

'

'

11,967

35,227

'

'

'

'

Unearned income

'

'

-159

-303

'

'

-1,177

-1,295

'

'

'

'

Residuals, net of unearned residual income

'

'

433

1,676

'

'

0

0

'

'

'

'

Security deposits

'

'

-37

-85

'

'

-133

-401

'

'

'

'

Investment in operating leases, net [Abstract]

'

'

'

'

'

'

'

'

'

'

'

'

Equipment

'

'

'

'

'

'

'

'

'

'

212

1,487

Accumulated depreciation

'

'

'

'

'

'

'

'

'

'

($194)

($1,382)

[1]

The Fund's direct financing leases are for initial lease terms generally ranging from 24 to 180 months.

[2]

The interest rates on loans generally range from 5% to 18%.

ALLOWANCE_FOR_CREDIT_LOSSES_AN2

ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY (Details) (USD $)	3 Months Ended				9 Months Ended
	Sep. 30, 2014		Sep. 30, 2013		Sep. 30, 2014		Sep. 30, 2013		Dec. 31, 2013
Aging of investment in leases and loans [Abstract]	'		'		'		'		'
Current	$11,072,000	[1]	'		$11,072,000	[1]	'		$38,339,000	[1]
Current, percentage of all aged receivables (in hundredths)	91.00%	[1]	'		91.00%	[1]	'		95.00%	[1]
Delinquent [Abstract]	'		'		'		'		'
31 to 91 days past due	715,000		'		715,000		'		1,351,000
31 to 91 days past due, percentage of all aged receivables (in hundredths)	6.00%		'		6.00%		'		3.00%
Greater than 91 Days Past due	393,000		'		393,000		'		854,000
Greater than 91 days, percentage of all aged receivables (in hundredths)	3.00%		'		3.00%		'		2.00%
Total aged investment in leases and loans	12,180,000		'		12,180,000		'		40,544,000
Percentage of all aged receivables (in hundredths)	100.00%		'		100.00%		'		100.00%
Contractually current but is recorded using cost recovery method	0		'		0		'		8,378,000
Secured loan obligation	0		'		0		'		'
Investment in leases and loans [Line Items]	'		'		'		'		'
Leases and loans on non-accrual status	393,000		'		393,000		'		9,200,000
Investment in leases and loans	12,180,000	[2]	48,866,000	[2]	12,180,000	[2]	48,866,000	[2]	40,544,000
Allowance for credit losses activity [Abstract]	'		'		'		'		'
Allowance for credit losses, beginning of period	390,000		6,420,000		8,050,000		8,920,000		'
Provisions for credit losses	728,000		2,775,000		2,798,000		4,982,000		'
Charge-offs	-804,000		-2,319,000		-10,909,000		-7,565,000		'
Recoveries	86,000		754,000		461,000		1,293,000		'
Allowance for credit losses end of period	400,000		7,630,000		400,000		7,630,000		'
Allowance for credit loss [Abstract]	'		'		'		'		'
Ending balance, individually evaluated for impairment	0		7,030,000		0		7,030,000		'
Ending balance, collectively evaluated for impairment	400,000		600,000		400,000		600,000		'
Balance, end of year	400,000		7,630,000		400,000		7,630,000		'
Recorded investment in leases and term loans [Abstract]	'		'		'		'		'
Ending balance individually evaluated for impairment	0	[2]	8,388,000	[2]	0	[2]	8,388,000	[2]	'
Ending balance collectively evaluated for impairment	12,180,000	[2]	40,478,000	[2]	12,180,000	[2]	40,478,000	[2]	'
Reduction of investment in leases and loans due to prior period adjustments	'		4,000,000		'		4,000,000		'
Performing [Member]	'		'		'		'		'
Investment in leases and loans [Line Items]	'		'		'		'		'
Investment in leases and loans	11,787,000		'		11,787,000		'		31,312,000
Nonperforming [Member]	'		'		'		'		'
Investment in leases and loans [Line Items]	'		'		'		'		'
Investment in leases and loans	$393,000		'		$393,000		'		$9,232,000
[1]	Included in this category are approximately $0 and $8.378 million as of September 30, 2014 and December 31, 2013, respectively, of certain loans which are systematically current but are on the cost recovery method due to continued uncertainty as to collectability of future payments. This secured loan obligation totals $0 as of September 30, 2014. The obligor of this loan is another finance company that is no longer operating. Collateral for the loan is a pool of loans to construction companies and developers. The Fund has been in the process of monetizing the underlying collateral for the loan via sale. The Fund has written the loan down to the net realizable value of the underlying collateral.
[2]	Due to a 2012 adjustment, the investment in leases and loans individually evaluated for impairment and the corresponding total were restated and reduced by $4.0 million from the previously reported amounts for the three and nine months ended September 30, 2013.

DEFERRED_FINANCING_COSTS_Detai

DEFERRED FINANCING COSTS (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013
DEFERRED FINANCING COSTS [Abstract]	'	'
Deferred financing costs	$214,000	$625,000
Accumulated amortization	$2,500,000	$5,200,000

DEBT_Details

DEBT (Details) (USD $)	9 Months Ended
	Sep. 30, 2014		Dec. 31, 2013
Debt Instrument [Line Items]	'		'
Long-term debt	$8,536,000	[1]	$27,316,000
Less: Unamortized Original Issue Discount	-562,000	[1]	-1,446,000
Long-term debt, net	7,974,000		25,870,000
Restricted cash pledged as collateral	550,000		8,147,000
Net unamortized original issue discount	562,000	[1]	1,446,000
Book value of leases sold	5,700,000		'
Proceeds from the sale	5,900,000		'
Debt repayments over the next five annual periods [Abstract]	'		'
30-Sep-15	3,511,000		'
30-Sep-16	2,087,000		'
30-Sep-17	1,874,000		'
30-Sep-18	570,000		'
30-Sep-19	229,000		'
Thereafter	265,000		'
Total	8,536,000		'
Term Securitization 2010-1 [Member]	'		'
Debt Instrument [Line Items]	'		'
Long-term debt	0	[1]	3,311,000
Less: Unamortized Original Issue Discount	-6,500,000		'
Interest rate (in hundredths)	5.00%		'
Number of classes of asset-backed notes	3		'
Number of classes of asset-backed notes, lower range	1		'
Number of classes of asset-backed notes, upper range	2		'
Maturity date, lower range	31-Oct-16		'
Maturity date, upper range	30-Sep-18		'
Asset-backed notes face amount	92,700,000		'
Net unamortized original issue discount	6,500,000		'
Term Securitization 2010-3 [Member]	'		'
Debt Instrument [Line Items]	'		'
Long-term debt	0	[1]	10,766,000
Less: Unamortized Original Issue Discount	-3,700,000		'
Interest rate, minimum (in hundredths)	3.50%		'
Interest rate, maximum (in hundredths)	5.50%		'
Number of classes of asset-backed notes	5		'
Number of classes of asset-backed notes, lower range	1		'
Number of classes of asset-backed notes, upper range	4		'
Maturity date, lower range	30-Jun-16		'
Maturity date, upper range	28-Feb-22		'
Asset-backed notes face amount	171,400,000		'
Net unamortized original issue discount	3,700,000		'
Term Securitization 2011-1 [Member]	'		'
Debt Instrument [Line Items]	'		'
Long-term debt	8,536,000	[1]	13,239,000
Less: Unamortized Original Issue Discount	-6,200,000		'
Interest rate, minimum (in hundredths)	1.70%		'
Interest rate, maximum (in hundredths)	5.50%		'
Leases and loan pledged as collateral	7,700,000		'
Restricted cash pledged as collateral	550,000		'
Number of classes of asset-backed notes	6		'
Maturity date, lower range	31-Dec-18		'
Maturity date, upper range	31-Dec-23		'
Asset-backed notes face amount	96,000,000		'
Net unamortized original issue discount	$6,200,000		'
[1]	These borrowings are collateralized by specific leases and loans and restricted cash. As of September 30, 2014, $7.7 million of leases and loans and $550,000 of restricted cash were pledged as collateral under the Fund's term securitizations. Recourse under these securitizations is limited to the amount of collateral pledged.

SUBORDINATED_NOTES_PAYABLE_Det

SUBORDINATED NOTES PAYABLE (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
SUBORDINATED NOTES PAYABLE [Abstract]	'	'
Subordinated notes payable	$9,295	$9,295
Interest rate (in hundredths)	8.25%	'

FAIR_VALUE_MEASUREMENT_Details

FAIR VALUE MEASUREMENT (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Carrying Value [Member]	'	'
Fair value of financial instruments for which it is practicable to estimate that value [Abstract]	'	'
Debt	$7,974	$25,870
Level 1 [Member]	'	'
Fair value of financial instruments for which it is practicable to estimate that value [Abstract]	'	'
Debt	0	0
Level 2 [Member]	'	'
Fair value of financial instruments for which it is practicable to estimate that value [Abstract]	'	'
Debt	6,459	24,094
Level 3 [Member]	'	'
Fair value of financial instruments for which it is practicable to estimate that value [Abstract]	'	'
Debt	0	0
Fair Value [Member]	'	'
Fair value of financial instruments for which it is practicable to estimate that value [Abstract]	'	'
Debt	$6,459	$24,094

CERTAIN_RELATIONSHIPS_AND_TRAN2

CERTAIN RELATIONSHIPS AND TRANSACTIONS WITH AFFILIATES (Details) (USD $)	3 Months Ended		9 Months Ended		50 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014
CERTAIN RELATIONSHIPS AND TRANSACTIONS WITH AFFILIATES [Abstract]	'	'	'	'	'
Administrative expenses	$22,000	$115,000	$118,000	$444,000	'
General partner management fee waived	55,000	'	397,000	'	'
Management fees waived	'	'	'	'	7,800,000
Ownership interest (in hundredths)	'	'	1.00%	'	'
Percentage of cumulative annual return on the limited partners capital contributions (in hundredths)	'	'	0.85%	'	'
General partners cash distributions paid	23,000	38,000	23,000	38,000	23,000
Limited partners cash distributions paid	$19,000	$32,000	$19,000	$32,000	$19,000