INVESTMENT IN LEASES AND LOANS

12 Months Ended

Dec. 31, 2014

INVESTMENT IN LEASES AND LOANS [Abstract]

NOTE 3 – INVESTMENT IN LEASES AND LOANS

The Fund’s investment in leases and loans, net, consists of the following (in thousands):

	December 31,
	2014			2013
Direct financing leases ^(a)	$	1,007		$	3,702
Loans ^(b)		1,702			5,281
Operating leases		52			122
		2,761			9,105
Allowance for credit losses		(50	)		(290	)
	$	2,711		$	8,815

(a)

The Fund’s direct financing leases are for initial lease terms generally ranging from 24 to 132 months.

(b)

The interest rates on loans generally range from 4% to 16%.

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

	December 31,
	2014						2013
	Leases			Loans			Leases			Loans
Total future minimum lease payments	$	949		$	1,874		$	3,384		$	5,907
Unearned income		(72	)		(133	)		(226	)		(518	)
Residuals, net of unearned residual income^(a)		138			-			581			-
Security deposits		(8	)		(39	)		(37	)		(108	)
	$	1,007		$	1,702		$	3,702		$	5,281

(a)

Unguaranteed residuals for direct financing leases represent the estimated amounts recoverable at lease termination from extensions or disposition of the equipment.

The Fund’s investment in operating leases, net, consists of the following (in thousands):

	December 31,
	2014			2013
Equipment on operating leases	$	338		$	967
Accumulated depreciation		(286	)		(845	)
	$	52		$	122

At December 31, 2014, the future payments scheduled to be received on non-cancelable leases and loans for each of the five succeeding annual periods ending December 31, and thereafter, are as follows (in thousands):

	Direct Financing Leases		Loans		Operating Leases ^(a)		Totals
2015	$	687	$	1,167	$	3	$	1,857
2016		159		405		–		564
2017		65		241		–		306
2018		38		54		–		92
2019		–		5		–		5
Thereafter		–		2		–		2
	$	949	$	1,874	$	3	$	2,826

(a)

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

The Fund discontinues the recognition of revenue for leases and loans for which payments are more than 90 days past due. As of December 31, 2014 and 2013, the Fund had $52,000 and $266,000, respectively, of leases and loans on non-accrual status.

- Definition

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

+ References+ Details

LEAF Equipment Leasing Income Fund III, L.P. 10-K