UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

x☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~September~~March 3031, ~~2014~~2015

¨☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 000-53667

LEAF EQUIPMENT FINANCE FUND 4, L.P.

(Exact Name of Registrant as Specified in Its Charter)

Delaware		61-1552209
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

110 South Poplar Street, Suite 101, Wilmington Delaware 19801

(Address of principal executive offices) (Zip Code)

(800) 819-5556

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. x☒ Yes ¨☐ No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every interactive data file required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). x☒ Yes ¨☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer ¨☐ Accelerated filer ¨☐ Non-accelerated filer ¨☐ (Do not check if a smaller reporting company) Smaller Reporting Company x☒

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ¨☐ Yes x☒ No

There is no public market for the Registrant’s securities.

LEAF EQUIPMENT FINANCE FUND 4, L.P.

INDEX TO QUARTERLY REPORT

ON FORM 10-Q

PART I	FINANCIAL INFORMATION	PAGE
ITEM 1.	Financial Statements	3
	Consolidated Balance Sheets – September 30, 2014 (Unaudited) and December 31, 2013	3
	Consolidated Balance Sheets – March 31, 2015 (Unaudited) and December 31, 2014	3
	Consolidated Statements of Operations – Three and Nine Months Ended September 30, 2014 and 2013 (Unaudited)	4
	Consolidated Statements of Operations (Unaudited) – Three Months Ended March 31, 2015 and 2014	4
	Consolidated Statement of Changes in Partners’ (Deficit) Capital – Nine Months Ended September 30, 2014 (Unaudited)	5
	Consolidated Statement of Changes in Partners’ Deficit (Unaudited) – Three Months Ended March 31, 2015	5
	Consolidated Statements of Cash Flows – Nine Months Ended September 30, 2014 and 2013 (Unaudited)	6
	Consolidated Statements of Cash Flows (Unaudited) – Three Months Ended March 31, 2015 and 2014	6
	Notes to Consolidated Financial Statements – September 30, 2014 (Unaudited)	7
	Notes to Consolidated Financial Statements – March 31, 2015 (Unaudited)	7
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	14
ITEM 3.	Quantitative and Qualitative Disclosures about Market Risk	2221
ITEM 4.	Controls and Procedures	2221
PART II	OTHER INFORMATION	2322
ITEM 6.	Exhibits	23
ITEM 3.	Defaults Upon Senior Securities	22
SIGNATURES		24
ITEM 6.	Exhibits	22
SIGNATURES		23

Index

PART I. FINANCIAL INFORMATION

ITEM 1.

Financial Statements

LEAF EQUIPMENT FINANCE FUND 4, L.P. AND SUBSIDIARIES

Consolidated Balance Sheets

(In thousands)

	September 30, 2014			December 31, 2013
	March 31, 2015			December 31, 2014
	(Unaudited)
ASSETS
Cash	$	~~210~~1		$	~~229~~99
Restricted cash		~~550~~722			~~8,147~~589
Investment in leases and loans, net		11,780			32,494
Investments in leases and loans, net		4,907			9,440
Deferred financing costs, net		~~214~~95			~~625~~143
Other assets		932			5027
Total assets	$	125,~~763~~757		$	4110,~~545~~298
LIABILITIES AND PARTNERS’ (DEFICIT) CAPITAL
LIABILITIES AND PARTNERS’ DEFICIT
Liabilities:
Debt	$	7,974		$	25,870
Secured debt	$	3,267		$	6,725
Promissory notes payable		9,295			9,295
Accounts payable, accrued expenses, and other liabilities		~~656~~922			~~1,052~~753
Due to affiliates		2,~~711~~464			62,~~284~~622
Total liabilities		2015,~~636~~948			4219,~~501~~395
Commitments and contingencies (Note 10)
Partners’ (Deficit) Capital:
Partners’ Deficit:
General partner		(1,~~178~~200	)		(1,~~110~~189	)
Limited partners		(68,~~640~~902	)		67(7,836	)
Total partners' deficit		(710,~~818~~102	)		(19,~~043~~025	)
Noncontrolling interest		(5589	)		87(72	)
Total deficit		(710,~~873~~191	)		(~~956~~9,097	)
Total liabilities and deficit	$	125,~~763~~757		$	4110,~~545~~298

The accompanying notes are an integral part of these consolidated financial statements.

Index

LEAF EQUIPMENT FINANCE FUND 4, L.P. AND SUBSIDIARIES

Consolidated Statements of Operations

(In thousands, except unit and per unit data)

(Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	Three Months Ended March 31,
	2014			2013			2014			2013
	2015			2014
Revenues:
Interest on equipment financings	$	~~323~~264		$	~~783~~568		$	~~1,236~~		$	~~3,596~~
Rental income		126			~~105~~38			75			~~386~~
Gains (losses) on sales of equipment and lease dispositions, net		(35	)		99			138			447
Gains on sales of equipment and lease dispositions, net		74			105
Gain on extinguishment of promissory notes payable		‒			‒			‒			16
Other income		33			88
Other income		23			124			180			370
		377			799
		323			1,111			1,629			4,815
Expenses:
Expenses:
Interest expense		466			1,530
Interest expense		543			1,554			2,811			5,397
Depreciation of operating leases		3			13
Depreciation from operating leases		1			51			26			153
Provision for credit losses		542			1,410
Provision for credit losses		728			2,775			2,798			4,982
General and administrative expenses		135			280
General and administrative expenses		86			103			566			603
Administrative expenses reimbursed to affiliate		14			70
Administrative expenses reimbursed to affiliate		22			115			118			444
		1,160			3,303
		1,380			4,598			6,319			11,579
Net loss		(783	)		(2,504	)
Net loss		(1,057	)		(3,487	)		(4,690	)		(6,764	)
Less: Net loss attributable to the noncontrolling interest		17			106
Less: Net loss attributable to the noncontrolling interest		26			23			142			166
Net loss attributable to LEAF 4 partners	$	(766	)	$	(2,398	)
Net loss attributable to LEAF 4 partners	$	(1,031	)	$	(3,464	)	$	(4,548	)	$	(6,598	)
Net loss allocated to LEAF 4's limited partners	$	(758	)	$	(2,374	)
Net loss allocated to LEAF 4's limited partners	$	(1,021	)	$	(3,429	)	$	(4,503	)	$	(6,532	)
Weighted average number of limited partnership units outstanding during the period		1,243,713			1,259,537
Weighted average number of limited partner units outstanding during the period		1,259,537			1,259,537			1,259,537			1,259,537
Net loss per limited partnership unit	$	(0.61	)	$	(1.88	)
Net loss per weighted average limited partner unit	$	(0.81	)	$	(2.72	)	$	(3.58	)	$	(5.19	)

The accompanying notes are an integral part of these consolidated financial statements.

Index

LEAF EQUIPMENT FINANCE FUND 4, L.P. AND SUBSIDIARIES

Consolidated Statement of Changes in Partners’ (Deficit~~) Capital~~

(In thousands, except unit data)

(Unaudited)

	General									Total			Non-
	Partner			Limited Partners						Partners’			Controlling			Total
	Amount			Units			Amount			Deficit			Interest			Deficit
Balance, at January 1, 2014	$	(1,110	)		1,259,537		$	67		$	(1,043	)	$	87		$	(956	)
Balance, at January 1, 2015	$	(1,189	)		1,243,761		$	(7,836	)	$	(9,025	)	$	(72	)	$	(9,097	)
Cash distributions paid		(23	)		-			(2,204	)		(2,227	)		-			(2,227	)
Cancellation of limited partnership units		–			(4,250	)		–			–			-			–
Net loss		(45	)		-			(4,503	)		(4,548	)		(142	)		(4,690	)
Cash distributions paid		(3	)		-			(308	)		(311	)		-			(311	)
Balance, September 30, 2014	$	(1,178	)		1,259,537		$	(6,640	)	$	(7,818	)	$	(55	)	$	(7,873	)
Net loss		(8	)		-			(758	)		(766	)		(17	)		(783	)
Balance, March 31, 2015	$	(1,200	)		1,239,511		$	(8,902	)	$	(10,102	)	$	(89	)	$	(10,191	)

The accompanying notes are an integral part of this consolidated financial statement.

Index

LEAF EQUIPMENT FINANCE FUND 4, L.P. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

	Nine Months Ended September 30,
	Three Months Ended March 31,
	2014			2013
	2015			2014
Cash flows from operating activities:
Net loss	$	(~~4,690~~783	)	$	(62,~~764~~504	)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation from operating leases		26			153
Depreciation of operating leases		3			13
Amortization of deferred financing costs		~~734~~79			~~1,367~~354
Amortization of original issue discount on debt		~~884~~67			~~1,425~~663
Provision for credit losses		~~2,798~~542			41,~~982~~410
Gains on sales of equipment and lease dispositions, net		(~~138~~74	)		(~~447~~105	)
Gain on extinguishment of promissory notes payable		–			(16	)
Changes in operating assets and liabilities:
Other assets		41(5	)		(3354	)
Accounts payable, accrued expenses, and other liabilities		~~(396~~169	)		~~(592~~92	)
Due to affiliates		(~~3,573~~158	)		~~2,549~~631
Net cash (used in) provided by operating activities		(~~4,314~~160	)		~~2,624~~500
Cash flows from investing activities:
Proceeds from leases and loans		184,~~176~~259			396,~~156~~430
Repurchases of leases and loans		(143	)		–
Security deposits returned		(228	)		(139	)
Security deposits returned		(328	)		(565	)
Net cash provided by investing activities		4,031			6,291
Net cash provided by investing activities		17,705			38,591
Cash flows from financing activities:
Decrease in restricted cash		7,597			1,853
(Increase) decrease in restricted cash		(133	)		752
Repayment of debt		(183,~~780~~525	)		(396,~~008~~430	)
Cash distributions to partners		(~~2,227~~311	)		(31,~~817~~167	)
Deferred financing costs incurred		–			(20	)
Net cash used in financing activities		(3,969	)		(6,845	)
Redemption of promissory notes payable		–			(44	)
Decrease in cash		(98	)		(54	)
Net cash used in financing activities		(13,410	)		(41,036	)
Cash, beginning of period		99			229
(Decrease) increase in cash		(19	)		179
Cash, end of period	$	1		$	175
Cash, beginning of period		229			38
Cash paid for interest	$	93		$	524
Cash, end of period	$	210		$	217
Cash paid for interest	$	1,215		$	2,651

The accompanying notes are an integral part of these consolidated financial statements.

Index

LEAF EQUIPMENT FINANCE FUND 4, L.P. AND SUBSIDIARIES

Notes To Consolidated Financial Statements

~~September~~March 3031, ~~2014~~2015

(Unaudited)

NOTE 1 – ORGANIZATION AND NATURE OF BUSINESS

LEAF Equipment Finance Fund 4, L.P. (“LEAF 4” or the “Fund”), is 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~~partnership 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 liquidation period of two years, during which time 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 liquidation 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~~December ~~end of~~ 2032. The Fund entered its liquidation period in October 2014, and accordingly, is prohibited from acquiring additional leases and loans under the Limited Partnership Agreement (“the Partnership Agreement”). Contractually, the Fund will terminate on December 31, 2032, unless sooner dissolved or terminated as provided in the Partnership Agreement.

The Fund ~~acquires~~acquired diversified portfolios of equipment leases and loans to finance to end users throughout the United States as well as the District of Columbia and Puerto Rico. The Fund also ~~acquires~~acquired existing portfolios ~~of equipment subject to existing financings~~ from other equipment finance companies, primarily from LEAF Financial Corporation (“LEAF Financial”), an affiliate of its General Partner and a subsidiary of RAI. 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 0.8587% limited partnership interest in the Fund.

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 Funding, LLC (“LEAF Funds JV1”) ~~and its wholly-owned subsidiaries LEAF Capital Funding III~~, ~~LLC~~ and LEAF ~~Receivables Funding 2, LLC. In addition, the consolidated financial statements 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. The Fund maintains a 96% and 98% ownership interest in LEAF Funds JV1 and LEAF Funds JV2, 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~~March 3031, ~~2014~~2015, and the results of its operations and cash flows for the periods presented. The results of operations for the three ~~and~~months ~~nine month periods~~ ended ~~September~~March 3031, ~~2014~~2015 are not necessarily indicative of the Fund’s operating results for the ~~entire~~2015 ~~fiscal~~calendar 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~~2014, as filed with the SEC on ~~May~~March 1630, ~~2014~~2015.

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.

Index

LEAF EQUIPMENT FINANCE FUND 4, L.P. AND SUBSIDIARIES

Notes To Consolidated Financial Statements – (Continued)

~~September~~March 3031, ~~2014~~2015

(Unaudited)

Investments in ~~Commercial~~Leases ~~Finance~~and ~~Assets~~Loans

The Fund’s investments in ~~commercial~~leases ~~finance~~and ~~assets~~loans 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~~Fund’s history with regard to the realization of residuals, available industry data, and the ~~General Partner~~Fund’s ~~senior management’s~~ experience with respect to comparable equipment. The estimated residual values are recorded as a component of ~~investments~~the investment 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,~~A ~~during~~review ~~the~~for ~~lease~~impairment ~~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~~performed towhenever ~~remarket~~events ~~the~~or ~~equipment~~changes in ~~future~~circumstances ~~years.~~indicate ~~The~~that ~~Fund’s policy is to review, on a quarterly basis,~~ the ~~expected~~carrying ~~economic~~amount ~~life~~ of ~~its rental equipment in order to determine~~ the ~~recoverability~~operating ofleases ~~its~~may ~~undepreciated~~not ~~cost.~~be recoverable. The Fund writes down its rental equipment to its estimated net realizable value when it is probable that its carrying amount exceeds ~~such~~its fair 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~~related equipment. 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~~will progress 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. The Fund’s policy is to charge off to the allowance those financings which are in default and for which management has determined the probability of collection to be remote. After an account becomes 180 or more days past due, any remaining balance is charged off. 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~~past due 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 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. Fees from delinquent payments are recognized when received and are included in other income.

Index

LEAF EQUIPMENT FINANCE FUND 4, L.P. AND SUBSIDIARIES

Notes To Consolidated Financial Statements – (Continued)

~~September~~March 3031, ~~2014~~2015

(Unaudited)

Other Income

Other income includes miscellaneous fees charged by the Fund such as late fee income, among others. The Fund recognizes fee income as fees are collected. Late fee income was $1431,000 ~~and $156,000, respectively,~~ for the three ~~and nine~~ month ~~periods~~period ended ~~September~~March 3031, ~~2014,~~2015 and was $~~114~~84,000 ~~and $332,000, respectively,~~ for the three ~~and nine~~ month ~~periods~~period ending ~~September~~March 3031, ~~2013~~2014.

~~NOTE~~Recent 3Accounting ~~– INVESTMENT IN LEASES AND LOANS~~Standards

~~The~~In ~~Fund’s~~April ~~investment~~2015, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2015-03, “Simplifying the Presentation of Debt Issuance Costs.” This ASU requires debt issuance costs related to a recognized debt liability be presented in ~~leases~~the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and ~~loans~~measurement guidance for debt issuance costs are not affected by this ASU, ~~net~~which is effective retrospectively for fiscal years, ~~consists~~and interim periods within those fiscal years, beginning after December 15, 2015, although early adoption is permitted. The Fund is currently in the process of evaluating the ~~following~~impact (of adoption of this ASU on its consolidated balance sheets and plans to adopt this ASU for interim and fiscal periods beginning in ~~thousands):~~2016.

	September 30, 2014			December 31, 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

NOTE 3 – INVESTMENTS IN LEASES AND LOANS, NET

~~(1)~~ The Fund’s ~~direct~~investments ~~financing~~in leases ~~are~~and ~~for~~loans, ~~initial~~net, ~~lease~~consists ~~terms~~of ~~generally~~the ~~ranging~~following ~~from~~(in ~~24 to 180 months.~~thousands):

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

	March 31, 2015			December 31, 2014
Direct financing leases ^(a)	$	614		$	954
Loans ^(b)		4,983			9,013
Operating leases		–			3
		5,597			9,970
Allowance for credit losses		(690	)		(530	)
	$	4,907		$	9,440

(a)

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

(b)

The interest rates on loans generally range from 3% to 13%.

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

	September 30, 2014						December 31, 2013
	March 31, 2015						December 31, 2014
	Leases			Loans			Leases			Loans
Total future minimum contractual payments	$	~~1,268~~609		$	115,~~967~~658		$	~~5,620~~897		$	3510,~~227~~059
Unearned income		(~~159~~62	)		(~~1,177~~591	)		(~~303~~85	)		(~~1,295~~932	)
Residuals, net of unearned residual income		433			-			1,676			-
Residuals, net of unearned residual income (a)		99			-			175			-
Security deposits		(3732	)		(~~133~~84	)		(8533	)		(~~401~~114	)
	$	~~1,505~~614		$	104,~~657~~983		$	~~6,908~~954		$	339,~~531~~013

~~The~~(a) ~~Fund’s~~Unguaranteed ~~investment~~residuals infor ~~operating~~direct financing leases ~~consists~~represent of the ~~following~~estimated ~~(in~~amounts ~~thousands):~~recoverable at lease termination from extensions or disposition of the equipment.

	September 30, 2014			December 31, 2013
Equipment on operating leases	$	212		$	1,487
Accumulated depreciation		(194	)		(1,382	)
	$	18		$	105

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

	March 31, 2015		December 31, 2014
Equipment on operating leases	$	–	$	108
Accumulated depreciation		–		(105	)
	$	–	$	3

Index

LEAF EQUIPMENT FINANCE FUND 4, L.P. AND SUBSIDIARIES

Notes To Consolidated Financial Statements – (Continued)

~~September~~March 3031, ~~2014~~2015

(Unaudited)

NOTE 4 – ALLOWANCE FOR CREDIT LOSSES AND ~~ASSET~~CREDIT QUALITY

The following table is an age analysis of the Fund’s receivables from its investments in leases and loans (presented gross of an allowance for credit losses of $~~400~~690,000 and $~~8.1 million~~530,000) as of ~~September~~March 3031, ~~2014~~2015 and December 31, ~~2013~~2014, respectively (dollars in thousands):

	September 30, 2014					December 31, 2013
	March 31, 2015					December 31, 2014
Age of receivable	~~Investment~~Investments in leases and loans		%			~~Investment~~Investments in leases and loans		%
Current (a)	$	11,072		91	%	$	38,339		95	%
Current	$	3,828		68.4	%	$	8,264		82.9	%
Delinquent:
31 to 91 days past due		~~715~~915		616.3	%		~~1,351~~925		9.3	%
Greater than 91 days		~~393~~854		15.3	%		~~854~~781		27.8	%
	$	125,~~180~~597		100.0	%	$	409,~~544~~970		100.0	%

~~(a)~~The ~~Included~~credit inquality ~~this category, as~~ of ~~December~~the ~~31,~~Fund’s ~~2013,~~receivables ~~are~~from ~~approximately~~its ~~$8.378~~investments ~~million~~in ofleases ~~certain~~and loans ~~which~~as ~~are~~of ~~systematically~~March ~~current~~31, ~~but~~2015 ~~are~~and onDecember ~~the~~31, ~~cost~~2014 ~~recovery~~is ~~method due to continued uncertainty~~ as tofollows ~~collectability~~(in ~~of future payments.~~thousands):

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):

	March 31, 2015		December 31, 2014
Performing	$	4,743	$	9,189
Nonperforming		854		781
	$	5,597	$	9,970

	September 30, 2014		December 31, 2013
Performing	$	11,787	$	31,312
Nonperforming		393		9,232
	$	12,180	$	40,544

The Company’s investments in leases and loans as of March 31, 2015 and 2014 was collectively evaluated for impairment, except for certain asset-backed loans that were individually evaluated for impairment in 2014 as they were classified as nonperforming due to collectability concerns. The following table summarizes the activity in the allowance for credit losses (in thousands):

The Company’s investment in non-performing leases and loans as of September 30, 2014 was collectively evaluated for impairment, except for certain asset-backed loans that were individually evaluated for impairment. The following table summarizes the activity in the allowance for credit losses (in thousands):

	Three Months Ended March 31,
	2015			2014
Allowance for credit losses, beginning of period	$	530		$	8,050
Provision for credit losses		542			1,410
Charge-offs		(559	)		(1,451	)
Recoveries		177			121
Allowance for credit losses, end of period	$	690		$	8,130

Allowance for credit losses:
Ending balance, individually evaluated for impairment	$	–		$	7,230
Ending balance, collectively evaluated for impairment		690			900
Balance, end of period	$	690		$	8,130

Investments in leases and loans:
Ending balance, individually evaluated for impairment	$	–		$	8,368
Ending balance, collectively evaluated for impairment		5,597			24,556
Balance, end of period	$	5,597		$	32,924

	Three Months Ended September 30,						Nine Months Ended 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

NOTE 5 – DEFERRED FINANCING COSTS, NET

~~(b)~~As ~~Due~~of toMarch a31, ~~2012~~2015 ~~adjustment~~and December 31, ~~the~~2014, ~~investment~~deferred infinancing ~~leases~~costs ~~and~~include ~~loans~~$95,000 ~~individually~~and ~~evaluated~~$143,000, ~~for~~respectively, ~~impairment~~of ~~and~~unamortized ~~the~~deferred ~~corresponding~~financing ~~total~~costs ~~were~~which ~~restated~~are ~~and~~being ~~reduced~~amortized byover ~~$4.0~~the ~~million~~estimated ~~from~~life of the ~~previously~~related ~~reported~~debt. Accumulated ~~amounts~~amortization ~~for~~as ~~the~~of ~~three~~March 31, 2015 and ~~nine~~December ~~months~~31, ~~ended~~2014 ~~September~~was 30$2.6 million and $2.5 million, ~~2013~~respectively.

Index

LEAF EQUIPMENT FINANCE FUND 4, L.P. AND SUBSIDIARIES

Notes To Consolidated Financial Statements – (Continued)

~~September~~March 3031, ~~2014~~2015

(Unaudited)

NOTE 56 – ~~DEFERRED~~SECURED ~~FINANCING COSTS~~DEBT

AsThe ofFund’s ~~September~~secured ~~30,~~debt ~~2014~~consists ~~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~~following of(dollars ~~the~~in ~~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.~~thousands):

NOTE 6 –DEBT

	March 31, 2015								December 31, 2014
	Type	Maturity Date	Outstanding Balance			Interest rate per annum			Outstanding Balance
2011-1 Term Securitization	Term	December 2023	$	3,664			5.50	%	$	7,189
Less: Unamortized Original Issue Discount				(397	)					(464	)
Total Debt Balance			$	3,267					$	6,725

~~The~~2011-1 ~~Fund’s~~Term ~~debt consists of the following (in thousands):~~Securitization

	As of September 30, 2014						December 31, 2013
	Type	Outstanding Balance (1)			Interest rate per annum		Outstanding Balance
2010-1 Term Securitization	Term	$	–			–	$	3,311
2010-3 Term Securitization	Term		–			–		10,766
2011-1 Term Securitization	Term		8,536		5.00% to 5.50%			13,239
		$	8,536				$	27,316
Less: Unamortized Original Issue Discount			(562	)				(1,446	)
		$	7,974				$	25,870

In January 2011, LEAF Receivables Funding 6, LLC, a subsidiary of LCFF, issued six classes of asset-backed notes (the “2011-1 Term Securitization”), one with a stated maturity date of December 2018 and five with a stated maturity date of December 2023. The notes totaled approximately $96.0 million, bore interest at fixed stated rates ranging from 1.70% to 5.50%, and were issued at an original discount of approximately $6.2 million, of which approximately $397,000 remains unamortized as of March 31, 2015. As of that date, approximately $3.1 million of gross leases and loans and $626,000 of restricted cash were pledged as collateral for this facility. Recourse is limited to the amount of collateral pledged, should the proceeds from the collateral not be sufficient to repay the notes in full. As of March 31, 2015, the first four classes of notes have been paid off in full prior to their stated maturity dates.

~~(1)~~In ~~These~~March ~~borrowings~~2015, ~~are~~the ~~collateralized~~Company bysold ~~specific~~a pool of 26 leases ~~and~~with ~~loans~~a ~~and~~net ~~restricted~~investment ~~cash~~of approximately $2.6 Asmillion ofto ~~September~~a ~~30,~~third ~~2014,~~party for proceeds totaling approximately $72.7 million ofand ~~leases~~recognized ~~and~~a ~~loans~~gain ~~and~~on the sale of approximately $~~550~~80,000. The ofproceeds ~~restricted~~from ~~cash~~the sale were ~~pledged~~used asto ~~collateral~~repay ~~under~~a portion of the ~~Fund~~Company’s 2011-1 term ~~securitizations~~securitization. The ~~Recourse~~Company ~~under these securitizations~~ is ~~limited~~no tolonger servicing the ~~amount~~leases ~~of collateral pledged~~sold.

2010-1 Term Securitization. In May 2010, LEAF Funding, LLC’s subsidiary LEAF Receivables Funding 2, LLC issued three classes of asset-backed notes (The “2010-1 Term Securitization”), one with a stated maturity date of October 2016 and two with a stated maturity date of September 2018. The notes totaled approximately $92.7 million, bore interest at a fixed stated rate of 5%, and were issued at an original discount of approximately $6.5 million.Covenants

~~2010~~The 2011-31 Term Securitization~~. In~~ ~~August~~is ~~2010,~~serviced by LEAF ~~Receivables Funding 4~~Financial, ~~LLC~~an ~~issued~~affiliate ~~five~~of ~~classes~~the ofFund’s ~~asset-backed~~General ~~notes~~Partner (~~The~~the “~~2010-3 Term Securitization~~Servicer”),. If ~~one~~the ~~with~~Servicer aof ~~stated~~the ~~maturity~~Fund’s ~~date~~portfolio ofdoes ~~June~~not ~~2016~~comply ~~and~~with ~~four~~certain ~~with~~requirements, athen ~~stated~~the ~~maturity~~noteholders ~~date~~have ofthe ~~February~~right ~~2022~~to replace the Servicer. The ~~notes~~portfolio ~~totaled~~was ~~approximately~~not ~~$171.4~~in ~~million,~~compliance ~~bore~~with ~~interest~~these atrequirements ~~fixed~~as ~~stated~~of ~~rates~~March ~~ranging~~31, ~~from~~2015, ~~3.45%~~of towhich ~~5.50%~~the trustee, rating agency, and noteholders were ~~issued~~aware. However, atthe anFund ~~original~~is ~~discount~~not, ofnor ~~approximately~~has ~~$3.7~~been, ~~million~~delinquent on any payments owed to the noteholders.

InDebt 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 prior to their stated maturity dates.Repayments

~~2011-1~~Estimated ~~Term~~future ~~Securitization. In~~annual ~~January~~principal ~~2011,~~payments ~~LCFF’s subsidiary LEAF Receivables Funding 6, LLC issued six classes of asset-backed notes~~ (~~The~~gross ~~“2011-1 Term Securitization”), one with a stated maturity date~~ of ~~December~~unamortized ~~2018~~original ~~and~~issue ~~five~~discount ~~with a stated maturity date~~ of ~~December 2023. The notes totaled approximately~~ $~~96.0 million~~397,000 ~~bear~~as ~~interest~~of atMarch ~~fixed stated rates ranging from 1.70% to 5.50%~~31, ~~and~~2015) ~~were~~on ~~issued~~the atFund’s anaggregate ~~original~~borrowings ~~discount~~over ofthe ~~approximately~~next ~~$6.2~~five ~~million. As~~annual ofperiods ~~September~~ended ~~30,~~March ~~2014~~31, ~~the~~and ~~first~~thereafter, ~~three~~are ~~classes~~as offollows ~~notes have been paid off~~ (in ~~full prior to their stated maturity dates.~~thousands):

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.

March 31, 2016	$	1,345
March 31, 2017		822
March 31, 2018		662
March 31, 2019		463
March 31, 2020		182
Thereafter		190
	$	3,664

Index

LEAF EQUIPMENT FINANCE FUND 4, L.P. AND SUBSIDIARIES

Notes To Consolidated Financial Statements – (Continued)

~~September~~March 3031, ~~2014~~2015

(Unaudited)

Debt Repayments: Estimated annual principal payments (gross of unamortized original issue discount of $562,000 at September 30, 2014) on the Fund’s aggregate borrowings over the next five annual periods ended September 30, and thereafter, are as follows (in thousands):

September 30, 2015	$	3,511
September 30, 2016		2,087
September 30, 2017		1,874
September 30, 2018		570
September 30, 2019		229
Thereafter		265
	$	8,536

NOTE 7 – PROMISSORY NOTES PAYABLE

LCFF offered 8.25% secured recourse promissory notes (the “Notes”) to private investors in 2008. The offering closed in February 2009 and raised approximately $9.4 million, of which about $9.3 million was outstanding as of ~~September~~March 3031, ~~2014~~2015. The Notes ~~have~~had a six-year term, ~~require~~required interest only payments until their maturity in February 2015, payable in March 2015, and are subordinated to ~~the Fund~~LCFF’s ~~bank~~secured debt. The Notes are recourse to LCFF ~~may~~only ~~call~~and orare ~~redeem~~collateralized by LCFF’s net assets. LCFF failed to make the ~~Notes,~~January in2015 ~~whole~~and orall infuture ~~part,~~periodic atinterest ~~any~~payments ~~time~~to ~~during~~date and did not pay the ~~interest~~principal ~~only~~balance ~~period.~~when ~~The~~due ~~Notes~~in ~~are~~March ~~recourse~~2015. As tosuch, LCFF ~~only~~was ~~and~~notified ~~are collateralized~~of byits ~~net~~default ~~assets~~under the terms of ~~approximately~~the $1Notes and began accruing interest in January 2015 at a 10.400% ~~million~~default ~~plus~~rate. However, ~~future~~no ~~recoveries~~rights ~~of previously~~or ~~written~~remedies, ~~off~~as ~~accounts~~listed below, have been executed at this time.

~~Covenants:~~ The Notes are subject to various covenants as set forth in their indenture, including an interest coverage ratio test which LCFF iswas not in compliance with~~. LCFF~~ ~~notified~~as of March 31, 2015, of which the ~~Trustee~~trustee and noteholders ofwere ~~this breach~~aware. 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. IfHowever, as the Notes are subordinated to LCFF’s secured debt, the noteholders ~~choose~~are only entitled to ~~repossess~~the ~~and~~collateral ~~sell~~remaining after the secured debt is satisfied, if any. As of March 31, 2015, substantially all of LCFF’s assets, ~~such~~of aapproximately ~~sale~~$3.8 million (gross of athe ~~portfolio~~related ~~could~~allowance befor atcredit ~~prices~~losses) ~~lower~~were ~~than~~collateral ~~its~~for ~~carrying~~the ~~value,~~gross ~~which~~balance ~~could~~of ~~result~~approximately in$3.7 ~~losses~~million toon ~~the~~its ~~Fund~~2011-1 term securitization.

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~~March 3031, ~~2014~~2015 or December 31, ~~2013~~2014.

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 secured 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 of the Fund’s secured debt at March 31, 2015 and December 31, 2014 is as follows (in thousands):

	Carrying		Fair Value Measurements Using						Liabilities
	Value		Level 1		Level 2		Level 3		at Fair Value
Secured Debt, at March 31, 2015	$	3,267	$	−	$	2,640	$	−	$	2,640
Secured Debt, at December 31, 2014	$	6,725	$	−	$	5,330	$	−	$	5,330

The fair value of the secured debt was determined using quoted prices obtained from broker-dealers as of the measurement date. The fair value of the promissory notes payable at March 31, 2015 was determined to be $0 as the notes are in default and as LCFF did not pay the principal balance when due in March 2015 and does not expect to repay the balance in the future.

Index

LEAF EQUIPMENT FINANCE FUND 4, L.P. AND SUBSIDIARIES

Notes To Consolidated Financial Statements – (Continued)

~~September~~March 3031, ~~2014~~2015

(Unaudited)

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.

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 September 30,				Nine Months Ended September 30,
	Three Months Ended March 31,
	2014		2013		2014		2013
	2015		2014
Administrative expenses	$	2214	$	~~115~~70	$	~~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 and all future management fees. ~~The~~Through March 31, 2015, the General Partner has waived management fees of approximately $557.9 million,~~000~~ ~~and~~of which approximately $~~397~~34,000 ~~for~~related to the three ~~and~~months ~~nine month periods~~ ended ~~September~~March 3031, ~~2014, respectively, and approximately $7~~2015.~~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 were advanced with the original expectation of repayment.

Distributions. The General Partner owns a 1.0% general ~~partner~~partnership interest and a 0.8587% limited ~~partner~~partnership interest in the Fund. The General Partner was paid cash distributions of $233,000 and $193,000 for its general ~~partner~~partnership and limited ~~partner~~partnership interests, respectively, for the ~~nine~~three months ended ~~September~~March 3031, ~~2014~~2015 and $3812,000 and $3210,000 for its general ~~partner~~partnership and limited ~~partner~~partnership interests, respectively, for the ~~nine~~three months ended ~~September~~March 3031, ~~2013~~2014.

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.

NOTE 11 – SUBSEQUENT EVENTS

The Fund has evaluated its ~~September~~March 3031, ~~2014~~2015 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.

Index

ITEM 2 – MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

When used in this Form 10-Q, the words “believes,” “anticipates,” “expects,” and similar expressions are intended to identify forward-looking statements. Such statements are subject to certain risks and uncertainties more particularly described in other documents filed with the Securities and Exchange Commission. These risks and uncertainties could cause actual results to differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly release the results of any revisions to forward-looking statements which we may make to reflect events or circumstances after the date of this Form 10-Q or to reflect the occurrence of unanticipated events.

The following discussion provides an analysis of our operating results, an overview of our liquidity and capital resources and other items related to us. ~~The~~This ~~following~~ discussion and analysis should be read in conjunction with (i) the accompanying interim financial statements and related notes and (ii) our consolidated financial statements, related notes, and management’s discussion and analysis of financial condition and results of operations included in our Annual Report on Form 10-K for the year ended December 31, ~~2013~~2014.

As used herein, the terms “we,” “us,” or “our” refer to LEAF Equipment Finance Fund 4, L.P. and its subsidiaries (“LEAF 4” or the “Fund”).

Business

We are a Delaware limited partnership formed on January 25, 2008 by our ~~general~~General ~~partner~~Partner, LEAF Asset Management, LLC (the “General Partner”), which, along with its affiliates, manages us. The ~~Our~~ 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. Our offering period began on August 12, 2008. Through our offering termination date of October 30, 2009, we raised $125.7 million by selling 1.2 million of our limited ~~partner~~partnership units. We commenced operations in September 2008.

We expect 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 liquidation period of two years, during which our leases and secured loans will either mature or be sold. In the event we are unable to sell our leases and loans during the liquidation period, we expect to continue to return capital to our partners as those leases and loans mature. All of our leases and loans mature by ~~the~~December ~~end of~~ 2032. We entered our liquidation period in October 2014, and accordingly, are prohibited from acquiring additional leases and loans under the Limited Partnership Agreement (“the Partnership Agreement”). Contractually, we will terminate on December 31, 2032, unless sooner dissolved or terminated as provided in the Partnership Agreement.

We acquire a diversified portfolio of new, used or reconditioned equipment that we lease to third parties. We also acquire portfolios of equipment subject to existing leases from other equipment lessors. Our financings are typically acquired from LEAF Financial Corporation (“LEAF Financial”), an affiliate of our General Partner and also a subsidiary of RAI. In addition, we may make secured loans to end users to finance their purchase of equipment. We attempt to structure our secured loans so that, in an economic sense, there is no difference to us between a secured loan and a full payout equipment lease. We also invest in equipment, leases and secured loans through joint venture arrangements with our General Partner’s affiliated investment programs. We finance business essential equipment including, but not limited to, computers, copiers, office furniture, water filtration systems, machinery used in manufacturing and construction, medical equipment and telecommunications equipment. We focus on the small to mid-size business market, which generally includes businesses with:

500 or fewer employees;

· $1.0 billion or less in total assets; or

· Or $100.0 million or less in total annual sales.

To date, limited partners have received total distributions ranging from approximately 2122% to 3031% of their original ~~amount invested~~investment, depending upon when ~~the~~it ~~investment~~ was made. As the cash flows and liquidity of the Fund could no longer support a 4% monthly distribution at an annual rate of 4%, beginning with the February 2014 distribution, received in March, monthly distributions were reduced to 3%. Also, the April and May 2014 distributions, received in May and June respectively, were lowered to 2%. Distributions for June 2014, received in July, were lowered to 1% and will continue for as long as the Fund can support them. However, management is working to maximize the amount that can be distributed to limited partners in the future. Future cash distributions are not guaranteed and are solely dependent on our performance and are impacted by a number of factors, which include lease and loan defaults by our customers, accelerated principal payments on our debt facilities required per our agreements, and prevailing economic conditions. In order to reduce our ongoing cash requirements, the General Partner has waived management fees since August 2010.

Index

General Economic Overview

For the quarter ended ~~September~~March 3031, ~~2014~~2015, U.S. economic activity demonstrated ~~a continuation of~~ the ~~slow~~sustained ~~but~~and steady growth ~~following~~as seen over the ~~weather-related~~last ~~contraction~~several quarters, including a 2.2% increase in GDP reported for the ~~first~~4th quarter of 2014. Most sectors of the economy, including the small business sector, showed improvement. ~~Congress~~Continued ~~passed~~job agrowth ~~continuing~~and ~~resolution~~drops in ~~September 2014 to fund~~ the ~~government~~unemployment ~~through~~rate ~~December~~contributed ~~11,~~to ~~2014,~~expanding ~~and no legislative initiatives are expected from Congress until after~~ the ~~November 2014 election~~economy. ~~This~~Low ~~provides~~fuel ~~some~~prices ~~short-term~~in ~~relief~~general ~~from~~had ~~the~~a ~~uncertainty~~positive ~~surrounding~~effect ~~government~~on ~~policy. The~~the ~~Federal~~economy ~~Reserve~~and ~~continued~~helped ~~its~~boost ~~quantitative~~consumer ~~easing program~~ and ~~did~~business ~~not signal any imminent changes to the interest rate environment~~spending. AtThe ~~the~~unusually ~~same~~harsh ~~time,~~winter ~~the emergence of international crises in Ukraine, unrest in Hong Kong, the rise of ISIS, and the spreading of the Ebola virus have~~ had a ~~dampening~~negative effect on ~~economic enthusiasm due to~~ the ~~uncertainty of fallout from these events~~economy.

Some ~~specific~~ key economic indicators and reports that were released in the ~~third~~1st quarter of ~~2014~~2015 that have specific relevance for small -to -medium ~~size~~sized business performance are summarized below. The indicators ~~show~~continue ~~overall~~to ~~positive~~be ~~trends~~positive. These indicators have especially important relevance to us as ~~loans~~leases and ~~leases~~loans to small -to -medium ~~size~~sized businesses comprise the majority of our portfolio.

· The Monthly Confidence Index reported by The Equipment Leasing & Finance Foundation ~~for~~reported ~~September~~in ~~2014~~March 2015 was 6072.21, the highest level in four years, and an increase from 5863.94 atin ~~the~~December ~~August~~ 2014 ~~Index~~. Any Index over 50 indicates a positive outlook for future business conditions. The Monthly Confidence Index measures lease and finance company executive sentiment with respect to availability of capital, plans on hiring, and overall U.S. economic trends. The ~~September~~March ~~2014~~2015 Index reflected the sentiment of the majority of the executives surveyed that business conditions will remain the same or improve over the next four months.

· The National Association of Realtors reported in ~~September~~December 2014 that the number of existing home sales ~~and~~increased ~~pending~~4.7% ~~home~~over the prior year period, and the sales ~~both~~price ~~declined~~of ~~slightly~~existing ~~from~~homes increased 7.5% over the prior ~~month~~year ~~but~~period. ~~still~~Total ~~remained~~housing inventory at athe ~~strong~~end ~~level~~of asFebruary ~~compared~~increased 1.6% to ~~prior periods~~1.89 ~~Home~~million ~~sales~~existing homes available for ~~the~~sale, ~~remainder~~but ofremains ~~2014~~0.5% below a year ago. Home sales are expected to becontinue ~~strong~~to grow due to improved inventory conditions and the improving U.S. economy. Indications exist that the Federal Reserve may implement a rate increase and affordability concerns could be heightened. These housing statistics are important economic indicators because rising home sales generally contribute to an improvement in consumer sentiment which can spur consumer spending, the most important driver of economic growth.

· OnThe ~~October~~1st 1,quarter ~~2014~~2015 ~~the~~ Thomson Reuters/PayNet Small Business Lending ~~Index~~Indices, which ~~measures~~measure the volume of lending to small businesses, showed aan ~~decline~~increase ofover ~~10% as compared to~~ the prior year period. ~~Commentary~~Over in the ~~report~~same ~~stated~~period, “the ~~data tells us~~ small business ~~are~~loan ~~making~~delinquency ~~measured~~rates ~~investment~~increased slightly. ~~This~~Commentary ~~measured~~in ~~investment~~the ~~with~~report ~~low~~stated, ~~credit~~“While ~~risk~~not ~~helps~~in ~~extend~~a ~~the~~boom ~~low~~phase, ~~risk~~small ~~expansion~~business ~~phase~~credit ofshows ~~this~~a ~~economic~~solid ~~cycle~~increase that is keeping with an expanding economy.”

· The National Federation of Independent Business reported that its Small Business Optimism Index as reported in ~~September~~February ~~2014~~2015 ~~increased~~gained ~~to 96~~0.1 ~~which~~points ~~was~~to 0reach 98.40, ~~higher~~the ~~than~~third ~~the~~highest ~~previous~~reading ~~month’s~~since ~~report.~~early ~~While~~2007 ~~the~~and ~~Index~~only iseclipsed ~~still~~by ~~below~~November ~~the~~and ~~pre-recession~~December ~~high~~2014, itwhich ~~has~~were ~~been~~a ~~showing~~bit ~~steady~~higher. ~~progress~~The ~~and~~economy ~~points~~lost tomomentum ~~economic~~in the fourth quarter, with GDP growth ofnow ~~about~~estimated at 2%.2 percent (up 2.4 percent for the year) after strong second and third quarter performances. ~~The~~Gas ~~Index~~prices ~~measures~~remain ~~ten~~much ~~different~~lower ~~items~~than ~~including~~year ~~small~~ago ~~business~~levels, ~~sentiment~~continuing ~~about~~to feed consumer spending and saving. There are fundamental domestic economic currents leading business ~~expansion,~~owners ~~hiring,~~to add workers and ~~sales~~these ~~trends~~should bubble up in the official statistics and support stronger growth in domestic output.

· The National Association of Credit Management Index (“CMI”) for ~~September~~March ~~2014~~2015 ~~measured~~was 5451.92, ~~which was~~ down from ~~the 55~~54.69 ~~from~~at the ~~prior~~end ~~month~~of last quarter. Any ~~number~~Index over 50 shows an economy in expansion. The factors comprising the CMI include activities like credit extended, credit approval rates, delinquencies, and bankruptcies. The recent CMI numbers suggest a still sluggish but slowly growing economy. The CMI has remained over 50 for more than a year.

· The ~~September~~March ~~2014~~2015 Institute of Supply Management reported its PMI Index on the manufacturing sector showed continued expansion,. ~~and~~The ~~the September 2014~~ PMI ~~index~~Index of 5651.65 ~~(any~~indicated ~~number~~the ~~over~~27th 50consecutive ~~indicates~~month ~~growth) reflected expansion~~ of ~~the~~ manufacturing ~~sector for the 16th consecutive month~~expansion. The PMI Index covers 18 manufacturing industries, and 1510 of those industries reported growth in ~~September~~March ~~2014~~2015, down from 11 industries reporting growth in the prior quarter. Comments from the panel refer to continuing challenges from the West Coast port issue, lower oil prices having both positive and negative impacts depending upon the industry, residual effects of the harsh winter, and higher costs of healthcare premiums.

·Taken ~~The~~altogether, ~~2014~~these ~~Equipment~~indicators ~~Leasing~~point &to ~~Finance~~an ~~Foundation’s~~economy Q4that ~~U.S.~~is ~~Economic~~continuing ~~Outlook~~to ~~update~~grow ~~released~~steadily inbut ~~early~~slowly, ~~October 2014 projects full year 2014 economic growth to be 2.2%~~ which is ~~down~~positive ~~from~~for anthe ~~initial~~small-to-medium ~~forecast~~sized ofbusinesses ~~2.8%~~that ascomprise ~~a result of~~ the ~~sluggish~~majority ~~first quarter weather related performance. Overall 2014 shipments~~ of ~~durable~~our ~~goods are expected to show 5~~portfolio.~~5% growth.~~

Taken altogether, these indicators point to an economy that is continuing to grow steadily but slowly which is positive for the small to medium size businesses that comprise the majority of our portfolio.

Index

Finance Receivables and Asset Quality

Information about our portfolio of ~~commercial~~leases ~~finance~~and ~~assets~~loans is as follows (dollars in thousands):

	September 30, 2014			December 31, 2013
	March 31, 2015			December 31, 2014
Investment in leases and loans, net	$	11,780		$	32,494
Investments in leases and loans, net	$	4,907		$	9,440
Active contracts: (a)
Active contracts:
Number of contracts		~~451~~143			~~2,644~~254
Number of individual end users (b)		439			2,443
Number of individual end users (a)		138			247
Average original equipment cost	$	91131.27		$	47126.45
Average initial lease term (in months)		~~101~~102			80104
Average remaining lease term (in months)		2628			1827
States accounting for more than 10% of lease and loan portfolio:
New York		1220	%		2914	%
California		11	%		9	%
Florida		15	%		9	%
Texas		11	%		9	%
California		14	%		9	%
Texas		9	%		12	%
Types of assets accounting for more than 10% of lease and loan portfolio:
Medical equipment		4748	%		2854	%
Restaurant equipment		1819	%		15	%
Asset-backed secured loans		1	%		24	%
Building systems		12	%		7	%
Industrial equipment		10	%		8	%
Types of businesses accounting for more than 10% of lease and loan portfolio:
Services		5960	%		4265	%
Retail trade		2225	%		1718	%
Finance/Insurance/Real Estate		5	%		28	%

(a) ~~The~~Located ~~December 31, 2013 amounts reported~~ in ~~this~~the ~~section~~50 ~~have~~states ~~been~~as ~~restated~~well ~~from~~as the ~~previously~~District ~~reported~~of ~~amounts~~Columbia ~~due~~and toPuerto aRico. ~~change~~No inindividual ~~methodology~~end ~~that~~user ~~occurred~~accounted ~~during~~for ~~the~~more ~~third~~than ~~quarter~~10% of ~~2014~~our ~~to only include active contracts into these amounts~~portfolio.

(b) Located in the 50 states as well as the District of Columbia and Puerto Rico. No individual end user accounted for more than 5% of our portfolio.

Index

Portfolio Performance

The table below provides information about our ~~commercial~~ finance ~~assets~~receivables including non-performing assets, which are those assets that are not accruing income due to non-performance or impairment (dollars in thousands):

	As of and for the Nine Months Ended September 30,
	As of and for the Three Months Ended March 31,
							Change
	2014			2013			$			%
	2015			2014			$				%
				(restated)(a)
Investments in leases and loans before allowance for credit losses	$	5,597		$	32,924		$	(27,327	)		(83	)%
Investment in leases and loans before allowance for credit losses	$	12,180		$	48,866		$	(36,686	)		(75	)%
Less: allowance for credit losses		(690	)		(8,130	)		7,440			(92	)%
Less: allowance for credit losses		(400	)		(7,630	)		7,230			(95	)%
Investments in leases and loans, net	$	4,907		$	24,794		$	(19,887	)		(80	)%
Investment in leases and loans, net	$	11,780		$	41,236		$	(29,456	)		(71	)%
Weighted average investments in direct financing leases and loans before allowance for credit losses	$	8,799		$	36,304		$	(27,505	)		(76	)%
Weighted average investment in direct financing leases and loans before allowance for credit losses	$	25,228		$	69,097		$	(43,869	)		(63	)%
Non-performing assets	$	854		$	9,588		$	(8,734	)		(91	)%
Non-performing assets	$	393		$	8,853		$	(8,460	)		(96	)%
Charge-offs, net of recoveries	$	382		$	1,330		$	(948	)		(71	)%
Charge-offs, net of recoveries	$	10,448		$	6,272		$	4,176			67	%
As a percentage of finance receivables:
Allowance for credit losses		312.2833	%		1524.6169	%
Non-performing assets		315.2326	%		1829.12	%
As a percentage of weighted average finance receivables:
Charge-offs, net of recoveries		414.4134	%		93.0866	%

~~(a)~~Our ~~Due~~allowance tofor ancredit ~~adjustment~~losses tois ~~increase~~our ~~the~~estimate ~~provision~~of ~~for~~losses ~~credit~~inherent ~~losses~~in ~~and~~our ~~reduce~~commercial ~~the~~finance ~~investment~~receivables. inThe ~~leases~~allowance ~~and~~is ~~loans~~based ~~and~~on ~~equity~~factors bywhich ~~$4.0~~include ~~million,~~our ~~the~~historical ~~gross~~loss ~~and~~experience ~~net~~on ~~investment~~the inequipment ~~leases~~finance ~~and~~portfolios ~~loans~~that we manage, ~~weighted~~an ~~average~~analysis ~~investment~~of incontractual ~~direct~~delinquencies, ~~financing~~current ~~leases~~economic conditions and ~~loans~~trends, and ~~non-performing~~equipment ~~assets~~finance ~~changed~~portfolio ~~from~~characteristics, ~~the~~adjusted ~~previously~~for ~~filed~~expected ~~$52~~recoveries.9 ~~million,~~In ~~$45.2~~evaluating ~~million~~historic performance, ~~$73.1~~we ~~million~~perform a migration analysis, ~~and~~which ~~$12~~estimates the likelihood that an account will progress through delinquency stages to ultimate charge-off.9 ~~million,~~Our ~~respectively,~~policy is to charge-off to the allowance those financings which ~~changed~~are in default and for which management has determined the ~~previously~~probability ~~filed~~of ~~percentages~~collection ~~from~~to ~~14.43%,~~be 24remote.~~31%~~ Substantially all of our assets are collateral for our debt, and ~~8.58%~~therefore, ~~respectively~~significantly greater delinquencies than anticipated will have an adverse impact on our cash flow and distributions to our partners.

~~Our~~We ~~allowance~~focus ~~for~~on ~~credit~~financing ~~losses~~equipment isused ~~our~~by ~~estimate~~small ofto ~~losses~~mid-sized ~~inherent~~businesses. Because ~~in our commercial finance receivables at~~ the ~~current~~Fund ~~time. The allowance~~ is ~~based~~in onthe ~~factors~~liquidation ~~which include our historical loss experience on equipment finance portfolios we manage~~phase, anthe ~~analysis of contractual delinquencies, current economic conditions and trends and equipment finance~~ portfolio ~~characteristics, adjusted for recoveries. In evaluating historic performance~~ of ~~our~~outstanding leases and loans, wehas ~~perform~~decreased aalong ~~migration~~with ~~analysis, which estimates~~ the ~~likelihood~~allowance ~~that~~for ancredit ~~account~~losses, ~~progresses~~non-performing ~~through~~assets, ~~delinquency~~and ~~stages to ultimate~~ charge-~~off~~offs ~~unless~~net ~~individually~~of ~~reviewed for impairment~~recoveries. InAs anthere ~~individual~~have ~~review~~been ~~for~~signs ~~impairment~~of weimprovement ~~consider~~in the ~~loans~~overall ~~performance~~economy, ~~probability~~the ofallowance ~~repayment,~~for ~~and~~credit ~~general~~losses and ~~local~~non-performing ~~economic~~assets ~~conditions~~as ~~when~~a ~~assessing~~percentage ~~whether impairment is necessary. Substantially all~~ of ~~our~~finance ~~leases~~receivables ~~and~~also ~~loans~~decreased. Also, ~~evaluated~~as ~~for~~expected ~~impairment~~in ona anliquidating ~~individual~~portfolio, ~~basis include an analysis of~~ the ~~market~~performing ~~values~~leases ofpayoff ~~underlying collateral values,~~ as ~~adjusted~~scheduled ~~for~~while ~~estimated~~the ~~selling~~delinquent ~~and~~leases ~~other~~remain ~~closing~~delinquent, ~~costs.~~resulting ~~Our~~in ~~policy~~an isincrease toin charge-~~off~~offs tonet ~~the~~of ~~allowance~~recoveries ~~those~~as ~~financings~~a ~~for~~percentage ~~which it is probable management will be unable to collect all amounts contractually owed. Substantially all~~ of ~~our~~weighted ~~assets~~average ~~are~~finance ~~collateral for our debt, and therefore, significantly greater delinquencies than anticipated will have an adverse impact on our cash flow and distributions to our partners~~receivables.

WeCritical ~~focus~~Accounting onPolicies ~~financing equipment used by small to mid-sized businesses. Due to the shrinking size of the portfolio, the investment in leases~~ and loans, allowance for credit losses, and non-performing assets all decreased from the same period in the prior year. The lingering effects of the recent economic recession in the U.S. has adversely affected our operations in the form of higher charge-offs, net of recoveries. These increased primarily due to certain non-performing loans that were written off because of continued uncertainty as to future collectability. These loans were systematically current, but were on the cost recovery method due to collectability concerns.Estimates

The discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with U.S. GAAP. The preparation of these consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of our assets, liabilities, revenues, costs, and expenses, and the related disclosure of contingent assets and liabilities. On an on-going basis we evaluate our estimates, including the allowance for credit losses and the estimated unguaranteed residual values of leased equipment, among others. We base our estimates on historical experience, current economic conditions and on various other assumptions that we believe 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 under different assumptions or conditions.

For a complete discussion of our critical accounting policies and estimates, see our annual report on Form 10-K for fiscal 2014 under “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Policies and Estimates.” There have been no material changes to these policies through March 31, 2015.

Index

Critical Accounting Policies

The discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with U.S. GAAP. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of our assets, liabilities, revenues and cost and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis we evaluate our estimates, including the allowance for credit losses and the estimated unguaranteed residual values of leased equipment, among others. We base our estimates on historical experience, current economic conditions and on various other assumptions that we believe 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 under different assumptions or conditions.

For a complete discussion of our critical accounting policies and estimates, see our annual report on Form 10-K for fiscal 2013 under “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Policies and Estimates.” There have been no material changes to these policies through September 30, 2014.

Results of Operations

AsThree ~~discussed~~Months ~~previously,~~Ended ~~the~~March ~~lingering~~31, ~~effects~~2015 ofas ~~the~~Compared recent economic recession has negatively impacted our operating results primarily through increased rates of default on outstanding leases and loans and increased costs of borrowing from our lenders. These factors have resulted in our inability to ~~reinvest~~the ~~earnings~~Three inMonths ~~additional~~Ended ~~leases~~March ~~and loans~~31, ~~leading~~2014 to(dollars ~~a decrease~~ in ~~our portfolio balance and a reduction in cash generated to continue to support distributions to our limited partners.~~thousands):

Three months ended September 30, 2014 compared to three months ended September 30, 2013 (dollars in thousands):

							Increase (Decrease)
	2015			2014			$			%
Revenues:
Interest on equipment financings	$	264		$	568		$	(304	)	(54	)%
Rental income		6			38			(32	)	(84	)%
Gains on sales of equipment and lease dispositions, net		74			105			(31	)	(30	)%
Other income		33			88			(55	)	(63	)%
		377			799			(422	)	(53	)%
Expenses:
Interest expense		466			1,530			(1,064	)	(70	)%
Depreciation of operating leases		3			13			(10	)	(77	)%
Provision for credit losses		542			1,410			(868	)	(62	)%
General and administrative expenses		135			280			(145	)	(52	)%
Administrative expenses reimbursed to affiliate		14			70			(56	)	(80	)%
		1,160			3,303			(2,143	)	(65	)%
Net loss		(783	)		(2,504	)		1,721
Less: Net loss attributable to the noncontrolling interest		17			106			(89	)
Net loss attributable to LEAF 4 partners	$	(766	)	$	(2,398	)	$	1,632
Net loss allocated to LEAF 4's limited partners	$	(758	)	$	(2,374	)	$	1,616

							Increase (Decrease)
	2014			2013			$			%
Revenues:
Interest on equipment financings	$	323		$	783		$	(460	)		(59	)%
Rental income		12			105			(93	)		(89	)%
Gains (losses) on sales of equipment and lease dispositions, net		(35	)		99			(134	)		(135	)%
Other income		23			124			(101	)		(81	)%
		323			1,111			(788	)		(71	)%
Expenses:
Interest expense		543			1,554			(1,011	)		(65	)%
Depreciation from operating leases		1			51			(50	)		(98	)%
Provision for credit losses		728			2,775			(2,047	)		(74	)%
General and administrative expenses		86			103			(17	)		(17	)%
Administrative expenses reimbursed to affiliate		22			115			(93	)		(81	)%
		1,380			4,598			(3,218	)		(70	)%
Net loss		(1,057	)		(3,487	)		2,430
Less: Net loss attributable to the noncontrolling interest		26			23			3
Net loss attributable to LEAF 4 partners	$	(1,031	)	$	(3,464	)	$	2,433
Net loss allocated to LEAF 4's limited partners	$	(1,021	)	$	(3,429	)	$	2,409

The decrease in total revenues was primarily attributable to the following:

· A decrease in interest on equipment financings and rental income. Our weighted average net investment in financing assets decreased to $138.98 million for the three months ended ~~September~~March 3031, ~~2014~~2015 as compared to $5536.23 million for the three months ended ~~September~~March 3031, ~~2013~~2014, a decrease of $4127.35 million or 7576%. ~~As noted previously, this decrease was primarily~~ due to the continued runoff of our ~~portfolio~~equipment offinancing leases and loans, as higher than anticipated defaults resulted in excess cash being used to settle debt obligations and support distributions to our partners, rather than be reinvested in new leases and loansportfolio.

· Gains ~~(losses)~~ on sales of equipment and lease dispositions decreased $~~134~~31,000 to a ~~loss~~gain of $3574,000 for the three months ended ~~September~~March 3031, ~~2014~~2015 compared to a gain of $99105,000 for the three months ended ~~September~~March 3031, ~~2013~~2014. Gains and losses on sales of equipment may vary significantly from period to period.

· ~~Other~~A ~~income~~decrease ~~decreased~~in ~~$101,000~~other ~~from~~income ~~$124,000 at September 30, 2013 to $23,000 at September 30, 2014. The decrease is~~ primarily due to a reduction in late fee income. ~~which~~Late isfee aincome ~~result~~decreased ofdue to the decrease inof our equipment financing portfolio.

The decrease in total expenses was primarily a result of the following:

A decrease in interest expense due to a decline in our average secured debt outstanding. Average secured borrowings for the three months ended March 31, 2015 and 2014 were $6.0 million and $23.0 million, respectively. The interest expense reduction was driven by accelerated debt payments required by our lenders.

A decrease in depreciation of operating leases due to the decrease of our operating lease portfolio.

A decrease in the provision for credit losses due to the decrease of our equipment financing portfolio.

A decrease in general and administrative expenses and administrative expenses reimbursed to affiliate occurred due to the decrease in the size of our portfolio.

The net loss per limited partnership unit, after the net loss allocated to our General Partner, for the three months ended March 31, 2015 and 2014 was $0.61 and $1.88, respectively, based on the weighted average number of limited partnership units outstanding during the period of 1,243,713 and 1,259,537, respectively.

Index

The decrease in total expenses was primarily a result of the following:

· A decrease in interest expense due to a decline in our average debt outstanding. Average borrowings for the three months ended September 30, 2014 and 2013 were $8.5 million and $40.8 million, respectively. The interest expense reduction was primarily driven by the reduction in the size of our portfolio of leases and loans.

· A decrease in depreciation from operating leases due to a decrease in the size of our portfolio.

· A decrease in our provision for credit losses principally reflects the decrease in our equipment financing portfolio and the diminishing impact of the recession.

· A decrease in general and administrative expenses and administrative expenses reimbursed to affiliates due to the reduction in the size of our portfolio.

The net loss per limited partner unit, after the net loss allocated to our General Partner, for the three months ended September 30, 2014 and 2013 was $0.81 and $2.72, respectively, based on a weighted average number of limited partner units outstanding of 1,259,537 each period.

Nine months ended September 30, 2014 compared to nine months ended September 30, 2013 (dollars in thousands):

							Increase (Decrease)
	2014			2013			$			%
Revenues:
Interest on equipment financings	$	1,236		$	3,596		$	(2,360	)		(66	)%
Rental income		75			386			(311	)		(81	)%
Gains on sales of equipment and lease dispositions, net		138			447			(309	)		(69	)%
Gain on extinguishment of promissory notes payable		‒			16			(16	)		(100	)%
Other income		180			370			(190	)		(51	)%
		1,629			4,815			(3,186	)		(66	)%
Expenses:
Interest expense		2,811			5,397			(2,586	)		(48	)%
Depreciation from operating leases		26			153			(127	)		(83	)%
Provision for credit losses		2,798			4,982			(2,184	)		(44	)%
General and administrative expenses		566			603			(37	)		(6	)%
Administrative expenses reimbursed to affiliate		118			444			(326	)		(73	)%
		6,319			11,579			(5,260	)		(45	)%
Net loss		(4,690	)		(6,764	)		2,074
Less: Net loss attributable to the noncontrolling interest		142			166			(24	)
Net loss attributable to LEAF 4 partners	$	(4,548	)	$	(6,598	)	$	2,050
Net loss allocated to LEAF 4's limited partners	$	(4,503	)	$	(6,532	)	$	2,030

The decrease in total revenues was primarily attributable to the following:

· A decrease in interest on equipment financings and rental income. Our weighted average net investment in financing assets decreased to $25.2 million for the nine months ended September 30, 2014 as compared to $69.1 million for the nine months ended September 30, 2013, a decrease of $43.9 million or 64%. As noted previously, this decrease was primarily due to the continued runoff of our portfolio of leases and loans, as higher than anticipated defaults resulted in excess cash being used to settle debt obligations and support distributions to our partners, rather than be reinvested in new leases and loans.

· Gains on sales of equipment and lease dispositions decreased $309,000 to $138,000 for the nine months ended September 30, 2014 compared to a gain of $447,000 for the nine months ended September 30, 2013. Gains and losses on sales of equipment may vary significantly from period to period.

· Other income decreased $190,000 from $370,000 for the nine months ended September 30, 2013 to $180,000 for the nine months ended September 30, 2014. The decrease is primarily due to a reduction in late fee income which is a result of the decrease in our portfolio.

Index

The decrease in total expenses was primarily a result of the following:

· A decrease in interest expense due to a decline in our average debt outstanding. Average borrowings for the nine months ended September 30, 2014 and 2013 were $14.5 million and $53.1 million, respectively. The interest expense reduction was primarily driven by the reduction in the size of our portfolio of leases and loans.

· A decrease in depreciation from operating leases due to a decrease in the size of our portfolio.

· A decrease in our provision for credit losses is principally due to a decrease of our equipment financing portfolio.

· A decrease in general and administrative expenses and administrative expenses reimbursed to affiliates due to the reduction in the size of our portfolio.

The net loss per limited partner unit, after the net loss allocated to our General Partner, for the nine months ended September 30, 2014 and 2013 was $3.58 and $5.19, respectively, based on a weighted average number of limited partner units outstanding of 1,259,537 each period.

Liquidity and Capital Resources

General

Our major source of liquidity is from the collection of lease and loan payments. Our primary cash requirements, in addition to normal operating expenses, are for debt service, ~~investments in leases~~ and ~~loans, and~~ distributions to our partners. We entered our liquidation period in October 2014, and accordingly, are prohibited from acquiring additional leases and loans under the Partnership Agreement.

The following table sets forth our sources and uses of cash for the periods indicated (in thousands):

	Nine Months Ended September 30,
	Three Months Ended March 31,
	2014			2013
	2015			2014
Net cash (used in) provided by operating activities	$	(~~4,314~~160	)	$	~~2,624~~500
Net cash provided by investing activities		174,~~705~~031			386,~~591~~291
Net cash used in financing activities		(133,~~410~~969	)		(416,~~036~~845	)
(Decrease) increase in cash	$	(19	)	$	179
Decrease in cash	$	(98	)	$	(54	)

Cash decreased by $1998,000 due to net proceeds from ~~our investments in~~ leases and loans of $174.~~705~~031 million, ~~and~~offset aby ~~reduction~~cash used in ~~our~~operating ~~restricted~~activities ~~cash~~ of $~~7.597 million~~160,000, ~~offset~~an byincrease ~~cash used~~ in ~~operating~~restricted ~~activities~~cash of $~~4.314 million~~133,000, debt repayments of $183.~~780~~525 million, and distributions to our partners of $2311,000.~~227 million.~~

Partner’s distributions paid for the ~~nine~~three months ended ~~September~~March 3031, ~~2014~~2015 and ~~September~~March 3031, ~~2013~~2014 were $~~2.2~~311,000 ~~million~~ and $31.82 million, respectively~~, each period~~. Cumulative partner distributions paid from our inception to ~~September~~March 3031, ~~2014~~2015 were approximately $3233.51 million. ~~To date, limited partners have received total distributions of approximately 26% of their original amount invested, depending upon when the investment was made.~~ As the cash flows and liquidity of the Fund could no longer support a 4% monthly distribution at an annual rate of 4%, beginning with the February 2014 distribution, received in March, monthly distributions were reduced to 3%. Also, the April and May 2014 distributions, received in May and June respectively, were lowered to 2%. Distributions for June 2014, received in July, were lowered to 1% and will continue for as long as the Fund can support them. Future cash distributions are not guaranteed and are solely dependent on our performance and are impacted by a number of factors which include lease and loan defaults by our customers, accelerated principle payments on our debt facilities required per our agreements, and prevailing economic conditions. The terms of our current debt facilities are structured to use excess cash to accelerate the repayment of debt. This results in paying less interest expense over time, but also limits available cash to make monthly distributions to the partners. The terms of our current debt facilities coupled with continued higher than expected lease and loan defaults, caused by a slow economic recovery could impact our ability to make monthly cash distributions to our limited partners.

~~Our~~Cash ~~General~~distributions ~~Partner~~are ~~has~~not ~~waived~~guaranteed, ~~management~~are ~~fees~~solely ~~since~~dependent ~~August~~on ~~2010. Through~~our ~~September~~performance, 30and are impacted by a number of factors which include lease and loan defaults by our customers, ~~2014~~accelerated principle payments on our debt facilities required per our agreements, ~~the~~and ~~General~~prevailing ~~Partner~~economic ~~has~~conditions. Higher ~~waived~~than ~~management~~expected ~~fees~~lease ofand ~~approximately~~loan $7defaults have reduced our liquidity and impacted our ability to make monthly cash distributions to our limited partners.8 In ~~million~~addition, the terms of ~~which~~our ~~approximately~~current ~~$397,000~~debt ~~related~~facilities are structured to use excess cash to accelerate the ~~nine~~repayment ~~months~~of ~~ended~~debt. This ~~September~~results 30in paying less interest expense over time, ~~2014~~but also has limited available cash to make monthly distributions to the partners.

20Our General Partner has waived all management fees since August 2010 and all future management fees. Through March 31, 2015, the General Partner has waived management fees of approximately $7.9 million, of which approximately $34,000 related to the three months ended March 31, 2015.

Index

Borrowings

~~Our~~2011-1 ~~borrowing~~Term relationships each require the pledging of eligible leases and loans to secure amounts advanced. Borrowings outstanding under our debt facilities as of September 30, 2014 were as follows (in thousands):Securitization

	Type		Amount Outstanding				Amount of Collateral (1)
2011-1 Term Securitization	Term		$	7,974			$	8,254

Secured debt outstanding as of March 31, 2015 was as follows (dollars in thousands):

(1) This borrowing is 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 securitization. Recourse under this securitization is limited to the amount of collateral pledged.

	Type	Maturity Date	Outstanding Balance			Interest rate per annum
2011-1 Term Securitization	Term	December 2023	$	3,664			5.50	%
Less: Unamortized Original Issue Discount				(397	)
Total Debt Balance			$	3,267

~~2011-1 Term Securitization.~~ In January 2011, ~~LCFF’s subsidiary~~ LEAF Receivables Funding 6, LLC, a subsidiary of LEAF Commercial Finance Fund, LLC (“LCFF”) issued six classes of asset-backed notes (~~The~~the “2011-1 Term Securitization”), one with a stated maturity date of December 2018 and five with a stated maturity date of December 2023. The notes totaled approximately $96.0 million, ~~bear~~bore interest at fixed stated rates ranging from 1.70% to 5.50%, and were issued at an original discount of approximately $6.2 million, of which approximately $397,000 remains unamortized as of March 31, 2015. As of ~~September~~that 30date, ~~2014~~approximately $3.1 million of gross leases and loans and $626,000 of restricted cash were pledged as collateral for this facility. Recourse is limited to the amount of collateral pledged, should the proceeds from the collateral not be sufficient to repay the notes in full. As of March 31, 2015, the first ~~three~~four classes of notes have been paid off in full prior to their stated maturity dates.

~~Promissory~~The ~~Notes~~2011-1 ~~Payable: In~~Term ~~addition~~Securitization tois ~~the~~serviced ~~above~~by ~~borrowing~~LEAF Financial, ~~LCFF~~an ~~offered~~affiliate ~~8.25%~~of ~~secured~~the ~~recourse~~Fund’s ~~promissory~~General ~~notes~~Partner (the “~~Notes~~Servicer”) ~~to private investors~~. ~~The~~If ~~offering~~the ~~closed~~Servicer inof ~~February~~the ~~2009~~Fund’s ~~and~~portfolio ~~raised~~does ~~approximately~~not ~~$9.4~~comply ~~million,~~with ofcertain ~~which~~requirements, ~~about~~then ~~$9.3~~the ~~million~~noteholders ~~was~~have ~~outstanding~~the asright ofto ~~September~~replace ~~30,~~the ~~2014~~Servicer. The ~~Notes~~portfolio ~~have~~was anot ~~six-year~~in ~~term,~~compliance ~~are~~with ~~recourse~~these torequirements ~~LCFF,~~as ~~require~~of ~~interest~~March ~~only~~31, ~~payments~~2015, ~~until~~of ~~their~~which ~~maturity~~the intrustee, ~~February~~rating ~~2015~~agency, and ~~are~~noteholders ~~subordinated~~were toaware. However, the Fund’s ~~bank~~is ~~debt. LCFF may call or redeem the Notes~~not, innor ~~whole~~has ~~or in part~~been, atdelinquent on any ~~time~~payments ~~during~~owed to the ~~interest only period~~noteholders.

~~Our~~Promissory ~~primary~~Notes source of liquidity comes from payments on our lease and loan portfolio. Our primary use of cash is for debt service. Substantially all of our leases and loans are collateral for our debt, however, all of our debt is non-recourse to the partnership which limits our financial exposure. Repayment of our debt is based on the payments we receive from our customers. If a lease or loan becomes delinquent our lender uses the excess collateral from performing leases to repay our loan, even though our customer has not paid us. Therefore, higher than expected lease and loan defaults will reduce our liquidity.Payable

~~The~~LCFF ~~terms~~offered of8.25% ~~securitizations~~secured ~~require~~recourse promissory notes (the ~~use~~“Notes”) ofto ~~excess~~private ~~cash~~investors ~~flow~~in ~~from~~2008. The ~~the~~offering ~~underlying~~closed ~~collateral~~in toFebruary ~~accelerate~~2009 ~~the~~and ~~repayment~~raised onapproximately ~~our~~$9.4 ~~debt~~million, of which about $9. As3 amillion ~~result~~was outstanding as of March 31, ~~this~~2015. The ~~minimizes~~Notes ~~the~~had ~~excess~~a ~~cash~~six-year ~~flow~~term, ~~available~~required tointerest usonly ~~for~~payments ~~the~~until ~~acquisition~~their ofmaturity ~~new~~in ~~leases~~February ~~and~~2015, ~~loans~~payable ~~until~~in ~~our~~March ~~securitizations~~2015, and are ~~paid~~subordinated ~~off~~to LCFF’s secured debt. ~~When~~The weNotes ~~have~~are ~~available~~recourse ~~resources,~~to ~~the~~LCFF ~~climate~~only ofand ~~the~~are ~~credit~~collateralized ~~markets~~by isLCFF’s ~~such~~net ~~that~~assets. As ~~our~~higher ~~liquidity~~than ~~may~~expected belease ~~adversely~~and ~~affected,~~loan ~~particularly~~defaults ~~our~~resulting ~~ability~~from tothe ~~obtain~~Great orRecession ~~renew~~reduced ~~debt~~its ~~financing~~liquidity, ~~needed~~LCFF failed to ~~execute~~make ~~our~~the ~~investment~~January ~~strategies. Historically,~~2015 weand ~~have~~all ~~utilized~~future ~~both~~periodic ~~revolving~~interest payments to date and ~~term~~did ~~debt~~not ~~facilities~~pay tothe ~~fund~~principal ~~our~~balance ~~acquisitions~~when ofdue ~~equipment~~in ~~financings~~March 2015. IfAs wesuch, ~~are~~LCFF ~~unable~~was tonotified ~~obtain~~of ~~new~~its ~~debt~~default ~~that~~under ~~will~~the ~~allow~~terms usof tothe ~~invest~~Notes ~~the~~and ~~repayments~~began ofaccruing ~~existing~~interest ~~leases~~in ~~and~~January ~~loans~~2015 ~~into~~at ~~new~~a ~~investments~~10.00% default rate. However, ~~then~~no ~~our~~rights ~~portfolio~~or ofremedies, ~~leases~~as ~~and~~listed ~~loans~~below, ~~will~~have ~~continue~~been toexecuted ~~decline~~at this time.

The Notes are subject to various covenants as set forth in their indenture, including an interest coverage ratio test which LCFF was not in compliance with as of March 31, 2015, of which the trustee and noteholders were aware. 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. However, as the Notes are subordinated to LCFF’s secured debt, the noteholders are only entitled to the collateral remaining after the secured debt is satisfied, if any.

As of March 31, 2015, substantially all of LCFF’s assets of approximately $3.8 million (gross of the related allowance for credit losses) were collateral for the gross balance of approximately $3.7 million on its 2011-1 term securitization. The promissory notes are non-recourse to LEAF 4 and the impact of the default on the future cash flow of LEAF 4 is expected to be minimal.

Liquidity Summary

Our primary source of cash comes from payments on our lease and loan portfolio. Our primary use of cash is for debt service. We used debt to finance substantially all of our leases and loans, which are collateral for the debt. However, all of the debt is non-recourse to the partnership, which limits our financial exposure. Repayment of the debt is based on the payments we receive from our customers. If a lease or loan becomes delinquent, our lender uses the excess collateral from performing leases to repay our loan, even though our customer has not paid us. Therefore, higher than expected lease and loan defaults will reduce our liquidity.

Index

Legal Proceedings

We are a party to various routine legal proceedings arising out of the ordinary course of our business. Our General Partner believes that none of these actions, individually or in the aggregate, will have a material adverse effect on our financial condition or results of operations.

Index

ITEM 3 – QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Quantitative and Qualitative Disclosures about Market Risk have been omitted as permitted under rules applicable to smaller reporting companies.

ITEM 4 – CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our periodic reports under the Securities Exchange Act of 1934, as amended, or the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our chief executive officer and our chief financial officer, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, our management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and our management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

Under the supervision of our General Partner’s chief executive officer and chief financial officer, we have carried out an evaluation of the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report. Based upon that evaluation, our General Partner’s chief executive officer and chief financial officer concluded that our disclosure controls and procedures are effective at athe reasonable assurance level discussed above.

Changes in Internal Control over Financial Reporting

There has been no change in our internal control over financial reporting that occurred during the quarter ended ~~September~~March 3031, ~~2014~~2015 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

2221

Index

PART II. OTHER INFORMATION

ITEM 3 – DEFAULTS UPON SENIOR SECURITIES

LEAF Commercial Finance Fund, LLC (“LCFF”), a subsidiary of LEAF Equipment Finance Fund 4, L.P., offered 8.25% secured recourse promissory notes (the “Notes”) to private investors in 2008. The offering closed in February 2009 and raised approximately $9.4 million, of which about $9.3 million was outstanding as of March 31, 2015. The Notes had a six-year term, required interest only payments until their maturity in February 2015, payable in March 2015, and are subordinated to LCFF’s secured debt. The Notes are recourse to LCFF only and are collateralized by LCFF’s net assets. As higher than expected lease and loan defaults resulting from the Great Recession reduced its liquidity, LCFF failed to make the January 2015 and all future periodic interest payments to date and did not pay the principal balance when due in March 2015. As such, LCFF was notified of its default under the terms of the Notes and began accruing interest in January 2015 at a 10.00% default rate. However, no rights or remedies, as listed below, have been executed at this time.

ITEM 6 – EXHIBITS

Exhibit
Exhibit No.		Description
No.		Description
3.1		Certificate of Limited Partnership (1)
3.1		Certificate of Limited Partnership (1)
3.2		Amended and Restated Agreement of Limited Partnership (2)
3.2		Amended and Restated Agreement of Limited Partnership (2)
3.3		Amendment No. 1 to Amended and Restated Agreement of Limited Partnership of LEAF Equipment Finance Fund 4, L.P. (5)
3.3		Amendment No. 1 to Amended and Restated Agreement of Limited Partnership of LEAF Equipment Finance Fund 4, L.P. (7)
4.1		Forms of letters sent to limited partners confirming their investment (1)
4.1		Forms of letters sent to limited partners confirming their investment (1)
10.1		Form of Origination and Servicing Agreement Among LEAF Financial Corporation, LEAF Equipment Finance Fund 4, LP and LEAF Funding, Inc. (1)
10.1		Form of Origination and Servicing Agreement Among LEAF Financial Corporation, LEAF Equipment Finance Fund 4, LP and LEAF Funding, Inc. (1)
10.2		Indenture by and between LEAF Commercial Finance Fund, LLC and U.S. Bank National Association (3)
10.2		Indenture by and between LEAF Commercial Finance Fund, LLC and U.S. Bank National Association (3)
10.3		Amended and Restated Limited Liability Company Agreement of LEAF Commercial Finance Fund, LLC (3)
10.3		Amended and Restated Limited Liability Company Agreement of LEAF Commercial Finance Fund, LLC(3)
10.4		Limited Liability Company Agreement of LEAF Funds Joint Venture 2, LLC (3)
10.4		Limited Liability Company Agreement of LEAF Funds Joint Venture 2, LLC (3)
10.5		Indenture between LEAF Receivables Funding 6, LLC and U.S. Bank National Association dated as of January 6, 2011 (4)
10.5		Indenture between LEAF Receivables Funding 2, LLC and U.S. Bank National Association dated as of May 1, 2010 (4)
10.6		First Amendment dated as of February 25, 2013 to the Indenture between LEAF Receivables Funding 6, LLC and U.S. Bank National Association (6)
10.6		Indenture between LEAF Receivables Funding 4, LLC and U.S. Bank National Association dated as of July 4, 2010 (5)
31.1		Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
10.7		Indenture between LEAF Receivables Funding 6, LLC and U.S. Bank National Association dated as of January 6, 2011 (6)
31.2		Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
10.8		First Amendment dated as of September 28, 2012 to the Indenture between LEAF Receivables Funding 2, LLC and U.S. Bank National Association (8)
32.1		Certification of Chief Executive Officer pursuant to Section 1350 18 U.S.C., as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
10.9		First Amendment dated as of October 15, 2012 to the Indenture between LEAF Receivables Funding 4, LLC and U.S. Bank National Association (8)
32.2		Certification of Chief Financial Officer pursuant to Section 1350 18 U.S.C., as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
10.10		First Amendment dated as of February 25, 2013 to the Indenture between LEAF Receivables Funding 6, LLC and U.S. Bank National Association (8)
101		Interactive data file containing the following financial statements formatted in XBRL (Extensible Business Reporting Language): (i) the Consolidated Balance Sheets at March 31, 2015 and December 31, 2014; (ii) the Consolidated Statements of Operations for the three months ended March 31, 2015 and 2014; (iii) the Consolidated Statement of Changes in Partners’ Deficit for the three months ended March 31, 2015; (iv) the Consolidated Statements of Cash Flows for the three months ended March 31, 2015 and 2014; and, (v) the Notes to Consolidated Financial Statements.
31.1		Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2		Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1		Certification of Chief Executive Officer pursuant to Section 1350 18 U.S.C., as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2		Certification of Chief Financial Officer pursuant to Section 1350 18 U.S.C., as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101		Interactive data file containing the following financial statements formatted in XBRL (Extensible Business Reporting Language): (i) the Consolidated Balance Sheets at September 30, 2014 and December 31, 2013; (ii) the Consolidated Statements of Operations for the three and nine month periods ended September 30, 2014 and 2013; (iii) the Consolidated Statement of Changes in Partners’ (Deficit) Capital for the nine months ended September 30, 2014; (iv) the Consolidated Statements of Cash Flows for the nine month periods ended September 30, 2014 and 2013; and, (v) the Notes to Consolidated Financial Statements.
(1)		Filed previously as an exhibit to our Registration Statement on Form S-1 filed on March 24, 2008 and by this reference incorporated herein.
(2)		Filed previously as an exhibit to Form 8-K on May 8, 2009 and by this reference incorporated herein.
(3)		Filed previously on May 12, 2009 in Post-Effective Amendment No. 1 as an exhibit to our Registration Statement and by this reference incorporated herein.
(4)		Filed previously as an exhibit to our Quarterly Report on Form 10-Q/A for the quarter ended June 30, 2010 and by this reference incorporated herein.
(5)		Filed previously as an exhibit to our Quarterly Report on Form 10-Q/A for the quarter ended September 30, 2010 and by this reference incorporated herein.
(6)		Filed previously as an exhibit to our Quarterly Report on Form 10-Q for the quarter ended March 31, 2011 and by this reference incorporated herein.
(7)		Filed previously as an exhibit to form 8-K on October 20, 2011 and by this reference incorporated herein.
(8)		Filed previously as an exhibit to our Annual Report on Form 10-K for the year ended December 31, 2012 and by this reference incorporated herein.

(1)		Filed previously as an exhibit to our Registration Statement on Form S-1 filed on March 24, 2008 and by this reference incorporated herein.
(2)		Filed previously as an exhibit to Form 8-A on May 8, 2009 and by this reference incorporated herein.
(3)		Filed previously on May 12, 2009 in Post-Effective Amendment No. 1 as an exhibit to our Registration Statement and by this reference incorporated herein.
(4)		Filed previously as an exhibit to our Quarterly Report on Form 10-Q for the quarter ended March 31, 2011 and by this reference incorporated herein.
(5)		Filed previously as an exhibit to Form 8-K on October 20, 2011 and by this reference incorporated herein.
(6)		Filed previously as an exhibit to our Annual Report on Form 10-K for the year ended December 31, 2012 and by this reference incorporated herein.

Index

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	LEAF EQUIPMENT FINANCE FUND 4, L.P.
	Delaware Limited Partnership
	By:	LEAF Asset Management, LLC, its General Partner
November 12, 2014	By:	/s/ CRIT S. DEMENT
		Crit S. DeMent
		Chief Executive Officer
November 12, 2014	By:	/s/ ROBERT K. MOSKOVITZ
		Robert K. Moskovitz
		Chief Financial Officer

	LEAF EQUIPMENT FINANCE FUND 4, L.P.
	Delaware Limited Partnership
	By: LEAF Asset Management, LLC, its General Partner

May 14, 2015	By:	/s/ CRIT S. DEMENT
		Crit S. DeMent
		Chief Executive Officer

May 14, 2015	By:	/s/ ROBERT K. MOSKOVITZ
		Robert K. Moskovitz
		Chief Financial Officer

Filing Compare · LEAF Equipment Finance Fund 4, L.P.