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This guidance was adopted by the Fund for the period beginning January 1, 2012 and did not significantly impact the Fund's consolidated financial statements.</div></div></div> <div><div style="text-align: justify; text-indent: 0pt; display: block; font-family: Times New Roman; margin-left: 0pt; font-size: 10pt; font-weight: bold; margin-right: 0pt;">Use of Estimates</div><div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;">&#160;</div><div style="text-align: left; text-indent: 36pt; display: block; font-family: Times New Roman; margin-left: 0pt; font-size: 10pt; margin-right: 0pt;">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.</div></div> 1195631 1195631 1195631 1195631 5 1 436000 486000 0 -813000 <div><div><table align="center" border="0" cellpadding="0" cellspacing="0" style="width: 100%; font-family: times new roman; font-size: 10pt;"><tr valign="top"><td style="width: 54pt;"><div style="display: inline; font-family: Times New Roman; font-size: 10pt; font-weight: bold;">NOTE 5 &#8211;</div></td><td><div style="text-align: left; font-family: Times New Roman; font-size: 10pt; font-weight: bold;">DEFERRED FINANCING COSTS</div></td></tr></table></div><div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;">&#160;</div><div style="text-align: left; text-indent: 36pt; display: block; font-family: Times New Roman; margin-left: 0pt; font-size: 10pt; margin-right: 0pt;">As of September 30, 2012 and December 31, 2011, deferred financing costs include $379,000 and $1.6 million, respectively, of unamortized deferred financing costs which are being amortized over the estimated life of the related debt. Accumulated amortization as of September 30, 2012 and December 31, 2011 is $1.7 million and $2.5 million, respectively. In June 2012, the Fund expensed the remaining unamortized deferred financing costs totaling $568,000 related to its DZ Bank facility due to uncertainty that the Fund will utilize the facility in the future.</div></div> P9Y P2Y P5Y P2Y 1300000 0.013 <div><div style="text-align: left; text-indent: 0pt; display: block; font-family: Times New Roman; margin-left: 0pt; font-size: 10pt; font-weight: bold; margin-right: 0pt;">Other Income</div><div style="text-indent: 0pt; display: block;"><br /></div><div style="text-align: left; text-indent: 36pt; display: block; font-family: Times New Roman; margin-left: 0pt; font-size: 10pt; margin-right: 0pt;">Other income includes miscellaneous fees charged by the Fund such as late fee income, among others.&#160;&#160;&#160;&#160;The Fund recognizes late fee income as fees are collected. Late fee income was $196,000 and $719,000, respectively, for the three and nine months ended September 30, 2012 and $338,000 and $1,126,000, respectively, for the three and nine months ended September 30, 2011.</div></div> P7Y <div><div style="text-align: left; text-indent: 0pt; display: block; font-family: Times New Roman; margin-left: 0pt; font-size: 10pt; font-weight: bold; margin-right: 0pt;">Recent Accounting Standards</div><div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;">&#160;</div><div style="text-align: left; text-indent: 0pt; display: block; font-family: Times New Roman; margin-left: 0pt; font-size: 10pt; margin-right: 0pt; text-decoration: underline;">Accounting Standards Recently Adopted</div><div style="text-indent: 0pt; display: block;"><br /></div><div style="text-align: left; text-indent: 0pt; display: block; font-family: Times New Roman; margin-left: 0pt; font-size: 10pt; margin-right: 0pt;"><font style="font-style: italic; display: inline;">Comprehensive Income</font> - In June 2011, the FASB issued an amendment to eliminate the option to present components of other comprehensive income as part of the statement of changes in equity.&#160;&#160;The amendment requires that all non-owner changes in equity be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In the two-statement approach, the first statement should present total net income and its components followed consecutively by a second statement that should present total other comprehensive income, the components of other comprehensive income, and the total of comprehensive income. The Fund adopted the two-statement approach for the period beginning January 1, 2012.&#160;&#160;However, adoption of this standard did not impact the Fund's financial statements for the three and nine months ending June 30, 2012 as the Fund had no items of other comprehensive income.</div><div style="text-indent: 0pt; display: block;"><br /></div><div style="text-align: left; text-indent: 0pt; display: block; font-family: Times New Roman; margin-left: 0pt; font-size: 10pt; margin-right: 0pt;"><font style="font-style: italic; display: inline;">Fair Value Measurements</font> - In May 2011, the FASB issued an amendment to revise the wording used to describe the requirements for measuring fair value and for disclosing information about fair value measurements. For many of the requirements, the FASB does not intend for the amendments to result in a change in the application of the current requirements. Some of the amendments clarify the FASB's intent about the application of existing fair value measurement requirements, such as specifying that the concepts of highest and best use and valuation premise in a fair value measurement are relevant only when measuring the fair value of nonfinancial assets. Other amendments change a particular principle or requirement for measuring fair value or for disclosing information about fair value measurements such as specifying that, in the absence of a Level 1 input, a reporting entity should apply premiums or discounts when market participants would do so when pricing the asset or liability. This guidance was adopted by the Fund for the period beginning January 1, 2012 and did not significantly impact the Fund's consolidated financial statements.</div></div> P24M P96M 4522000 2850000 888000 2250000 0.874 0.941 0.105 0.033 0.021 0.026 1 1 0.04 0.02 0.085 5200000 1100000 327000 0.075 206000 6 Unguaranteed residuals for direct financing leases represent the estimated amounts recoverable at lease termination from extensions or disposition of the equipment. End of period balances were collectively evaluated for impairment The Fund's direct financing leases are for initial lease terms generally ranging from 24 to 96 months. The interest rates on loans generally range from 6% to 15%.