EX-14.1

Exhibit 14.1

ATEL CAPITAL EQUIPMENT FUND VII, L.P.

CODE OF ETHICS FOR CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL AND OPERATING OFFICER

A. SCOPE

This Code of Ethics is applicable to ATEL Capital Equipment Fund VII, L.P. (“Fund VII”), including the Chief Executive Officer and Chief Financial Officer and Chief Operating Officer of its General Partner, ATEL Financial Services, LLC (“AFS”), or persons acting in such capacity (collectively the “Covered Officers”) on behalf of Fund VII, referred to herein as the “Company.”

Accordingly, under the Securities and Exchange Commission’s interpretation of its disclosure rules, the Board of Directors of AFS functions as the de facto audit committee for the Company with respect to all procedural and disclosure requirements applicable to audit committees under Securities and Exchange Commission rules. The Board of Directors shall have oversight responsibility over the activities of the Company for purposes of this Code of Ethics.

B. PURPOSE

The Company is proud of the values with which it conducts business. It has and will continue to uphold the highest levels of business ethics and personal integrity in all types of transactions and interactions. To this end, this Code of Ethics serves to (1) emphasize the Company’s commitment to ethics and compliance with the law; (2) set forth basic standards of ethical and legal behavior; (3) provide reporting mechanisms for known or suspected ethical or legal violations; and (4) help prevent and detect wrongdoing. This Code of Ethics is intended to augment and supplement the standard of ethics and business conduct expected of all Company employees, and its limitation to Covered Officers is not intended to limit the obligation of all Company employees to adhere to the highest standards of business ethics and integrity in all transactions and interactions conducted while in the Company’s employ.

Given the variety and complexity of ethical questions that may arise in the course of business of the Company, this Code of Ethics serves only as a rough guide. Confronted with ethically ambiguous situations, the Covered Officers should remember the Company’s commitment to the highest ethical standards and seek independent advice, where necessary, to ensure that all actions they take on behalf of the Company honor this commitment.

C. ETHICS STANDARDS

1. Honest and Ethical Conduct

The Covered Officers shall behave honestly and ethically at all times and with all people. They shall act in good faith, with due care, and shall engage only in fair and open competition, by treating ethically competitors, suppliers, customers, and colleagues. They shall not misrepresent facts or engage in illegal, unethical, or anti-competitive practices for personal or professional gain.

2. Conflicts of Interest

This fundamental standard of honest and ethical conduct extends to the handling of conflicts of interest. The Covered Officers shall avoid any actual, potential, or apparent conflicts of interest with the Company and any personal activities, investments, or associations that might give rise to such conflicts. They shall not compete with or use the Company, for personal gain, self-deal, or take advantage of any Company opportunities. They shall act on behalf of the Company free from improper influence or the appearance of improper influence on their judgment or performance of duties. A Covered Officer shall disclose any material transaction or relationship that reasonably could be expected to give rise to such a conflict to the Company’s General Counsel or a member of AFS’s Board of Directors. No action may be taken with respect to such transaction or party unless and until AFS’s Board of Directors has approved such action.

Notwithstanding the foregoing, it is understood, as fully disclosed in the offering documents for the Company, that AFS as General Partner of the Company has certain inherent conflicts of interest. The provisions of the Company’s Partnership Agreement have been drafted to address the obligations, restrictions and limitations on the power and authority of AFS to manage the Company’s affairs, including restrictions prohibiting or limiting the terms of any transactions in which conflicts of interest may arise. Furthermore, AFS has a fiduciary duty to the Company as its

General Partner. It is therefore expressly understood by the Company and the Covered Officers that any and all actions by AFS and its personnel that comply with the provisions of the Company’s Partnership Agreement, and which are consistent with AFS’s fiduciary duty to the Company, will not be considered material transactions or relationships which require disclosure or reporting under this Code of Ethics.

3. Timely and Truthful Disclosure

In reports and documents filed with or submitted to the Securities and Exchange Commission and other regulators by the Company and in other public communications made by the Company, the Covered Officers shall make disclosures that are full, fair, accurate, timely, and understandable. The Covered Officers shall provide thorough and accurate financial and accounting data for inclusion in such disclosures. The Covered Officers shall not knowingly conceal or falsify information, misrepresent material facts, or omit material facts necessary to avoid misleading the Company’s independent public auditors or investors.

4. Legal Compliance

In conducting the business of the Company, the Covered Officers shall comply with applicable governmental laws, rules, and regulations at all levels of government in the United States and in any non-U.S. jurisdiction in which the Company does business, as well as applicable rules and regulations of self-regulatory organizations of which the Company is a member. If the Covered Officer is unsure whether a particular action would violate an applicable law, rule, or regulation, he or she should seek the advice of inside counsel (if available), and, where necessary, outside counsel before undertaking it.

D. VIOLATIONS OF ETHICAL STANDARDS

1. Reporting Known or Suspected Violations

The Covered Officers will promptly bring to the attention of the Company’s General Counsel or AFS’s Board of Directors any information concerning a material violation of any of the laws, rules or regulations applicable to the Company and the operation of its businesses, by the Company or any agent thereof, or of violation of this Code of Ethics. The Company’s General Counsel will investigate reports of violations and the findings communicated to AFS’s Board of Directors.

2. Accountability for Violations

If the Company determines that this Code of Ethics has been violated, either directly, by failure to report a violation, or by withholding information related to a violation, it may discipline the offending Covered Officer for non-compliance with penalties up to and including termination of employment. Violations of this Code of Ethics may also constitute violations of law and may result in criminal penalties and civil liabilities for the offending Covered Officer and the Company.

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO RULE 13a-14(a) OR RULE 15d-14(a)
OF THE SECURITIES EXCHANGE ACT OF 1934
AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Dean L. Cash, certify that:

1. I have reviewed this annual report on Form 10-K of ATEL Capital Equipment Fund VII, L.P.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: March 14, 2013

/s/ Dean L. Cash Dean L. Cash President and Chief Executive Officer of ATEL Financial Services, LLC (General Partner)

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO RULE 13a-14(a) OR RULE 15d-14(a)
OF THE SECURITIES EXCHANGE ACT OF 1934
AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Paritosh K. Choksi, certify that:

1. I have reviewed this annual report on Form 10-K of ATEL Capital Equipment Fund VII, L.P.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: March 14, 2013

/s/Paritosh K. Choksi Paritosh K. Choksi Executive Vice President and Chief Financial Officer and Chief Operating Officer of ATEL Financial Services, LLC (General Partner)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. §1350,
AS ADOPTED PURSUANT TO
§906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of ATEL Capital Equipment Fund VII, L.P. (the “Partnership”) on Form 10-K for the year ended December 31, 2012 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Dean L. Cash, President and Chief Executive Officer of ATEL Financial Services, LLC, General Partner of the Partnership, hereby certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership.

Date: March 14, 2013

/s/ Dean L. Cash Dean L. Cash President and Chief Executive Officer of ATEL Financial Services, LLC (General Partner)

A signed original of this written statement required by Section 906 has been provided to the Partnership and will be retained by the Partnership and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. §1350,
AS ADOPTED PURSUANT TO
§906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of ATEL Capital Equipment Fund VII, L.P. (the “Partnership”) on Form 10-K for the year ended December 31, 2012 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Paritosh K. Choksi, Executive Vice President and Chief Financial Officer and Chief Operating Officer of ATEL Financial Services, LLC, General Partner of the Partnership, hereby certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership.

Date: March 14, 2013

/s/ Paritosh K. Choksi Paritosh K. Choksi Executive Vice President and Chief Financial Officer and Chief Operating Officer of ATEL Financial Services, LLC (General Partner)

A signed original of this written statement required by Section 906 has been provided to the Partnership and will be retained by the Partnership and furnished to the Securities and Exchange Commission or its staff upon request.

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Investments In Equipment And Leases, Net (Future Minimum Lease Payments Receivable) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012
Operating Leases
Year ending December 31, 2013	$ 1,548
2014	398
2015	321
2016	27
Operating Leases, Future Minimum Payments Receivable, Total	2,294
Direct Financing Leases
Year ending December 31, 2013	165
Capital Leases, Future Minimum Payments Receivable, Total	165
Total
Year ending December 31, 2013	1,713
2014	398
2015	321
2016	27
Operating and Capital Leases, Future Minimum Payments, Receivable, Total	$ 2,459

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Allowance For Credit Losses (Financing Receivables By Credit Quality Indicator And Class) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011
Financing Receivable, Recorded Investment [Line Items]
Finance Leases	$ 197	$ 405
Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Finance Leases	197	405
Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Finance Leases
Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Finance Leases
Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Finance Leases

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Summary Of Significant Accounting Policies (Narrative) (Details) (USD $)	12 Months Ended
	Dec. 31, 2012 segment	Dec. 31, 2011
Summary Of Significant Accounting Policies [Line Items]
Number of operating segments	1
Number of reportable segments	1
Percentage of operating revenues	100.00%	100.00%
Provision for franchise fees and state taxes	$ 35,000	$ 83,000
Period subject to income tax examination	3 years
Net foreign currency loss	(9,000)
Minimum [Member]
Summary Of Significant Accounting Policies [Line Items]
Required assets value of financial institutions for cash deposits	10,000,000,000
Operating leases, initial terms	36 months
Equipment and lessee period of review for impairment	90 days
Direct financing leases, period for non accrual status	90 days
Period of scheduled vessel drylocking	24 months
Maximum [Member]
Summary Of Significant Accounting Policies [Line Items]
U.S. Treaasury instruments maturity period	90 days
Cash deposits, insured amount	$ 250,000
Operating leases, initial terms	120 months
Operating leases, period for non accrual status	90 days
Equipment and lessee period of review for impairment	90 days
Period of scheduled vessel drylocking	30 months

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Gain Contingencies (Narrative) (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012 item
Gain Contingencies [Line Items]
Gain Contingency, Unrecorded Amount	$ 2.8
Fleet Manager [Member]
Gain Contingencies [Line Items]
Gain Contingency, Unrecorded Amount	2.8
Gain contingency, number of vessels	3
Gain contingency, percentage of fross proceeds	10.00%
Fleet Manager [Member] | ATEL Capital Equipment Fund VII, L.P. [Member]
Gain Contingencies [Line Items]
Gain Contingency, Unrecorded Amount	$ 1.4

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Investments In Equipment And Leases, Net (Property On Operating Leases) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Property Subject to or Available for Operating Lease [Line Items]
Balance	$ 5,284	$ 7,075
Additions	(480)
Reclassifications or Dispositions	(1,311)
Transportation [Member]
Property Subject to or Available for Operating Lease [Line Items]
Balance	28,689	29,707
Reclassifications or Dispositions	(1,018)
Marine Vessels [Member]
Property Subject to or Available for Operating Lease [Line Items]
Balance	7,400	15,675
Reclassifications or Dispositions	(8,275)
Materials Handling [Member]
Property Subject to or Available for Operating Lease [Line Items]
Balance	83	83
Construction [Member]
Property Subject to or Available for Operating Lease [Line Items]
Balance		156
Reclassifications or Dispositions	(156)
Total Property Subject to or Available For Operating Lease [Member]
Property Subject to or Available for Operating Lease [Line Items]
Balance	36,172	45,621
Reclassifications or Dispositions	(9,449)
Less Accumulated Depreciation [Member]
Property Subject to or Available for Operating Lease [Line Items]
Balance	(30,888)	(38,546)
Additions	(480)
Reclassifications or Dispositions	$ 8,138

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Summary Of Significant Accounting Policies

12 Months Ended

Dec. 31, 2012

Summary Of Significant Accounting Policies [Abstract]

Summary Of Significant Accounting Policies

2.Summary of significant accounting policies:

Basis of presentation:

The accompanying balance sheets as of December 31, 2012 and 2011, and the related statements of income, changes in partners’ capital and cash flows for the years then ended, have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the Securities and Exchange Commission. Certain prior year amounts have been reclassified to conform to the current year presentation. These reclassifications had no significant effect on the reported financial position or results from operations.

Footnote and tabular amounts are presented in thousands, except as to Units and per Unit data.

In preparing the accompanying financial statements, the Partnership has reviewed, as determined necessary by the General Partner, events that have occurred after December 31, 2012, up until the issuance of the financial statements. No events were noted which would require disclosure in the footnotes to the financial statements.

Use of estimates:

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Such estimates relate primarily to the determination of residual values at the end of the lease term and expected future cash flows used for impairment analysis purposes and determination of the allowance for doubtful accounts.

2.Summary of significant accounting policies (continued):

Cash and cash equivalents:

Cash and cash equivalents include cash in banks and cash equivalent investments such as U.S. Treasury instruments with original and/or purchased maturities of ninety days or less.

Credit risk:

Financial instruments that potentially subject the Partnership to concentrations of credit risk include cash and cash equivalents, operating and direct financing lease receivables and accounts receivable. The Partnership places the majority of its cash deposits in noninterest-bearing accounts with financial institutions that have no less than $10 billion in assets. Such deposits are insured up to $250 thousand. The remainder of the Funds’ cash is temporarily invested in U.S. Treasury denominated instruments. The concentration of such deposits and temporary cash investments is not deemed to create a significant risk to the Partnership. Accounts receivable represent amounts due from lessees in various industries, related to equipment on operating and direct financing leases.

Accounts receivable:

Accounts receivable represent the amounts billed under operating and direct financing lease contracts which are currently due to the Partnership. Allowances for doubtful accounts are typically established based on historical charge off and collection experience and the collectability of specifically identified lessees and invoiced amounts. Accounts receivable deemed uncollectible are charged off to the allowance on a specific identification basis. Amounts recovered that were previously written-off are recorded as other income in the period received.

Equipment on operating leases and related revenue recognition:

Equipment subject to operating leases is stated at cost. Depreciation is recognized on a straight-line method over the terms of the related leases to the equipment’s estimated salvage or residual values. Maintenance costs associated with the Fund’s portfolio of leased assets are expensed as incurred. Major additions and betterments are capitalized.

Operating lease revenue is recognized on a straight-line basis over the term of the underlying leases. The initial lease terms vary as to the type of equipment subject to the leases, the needs of the lessees and the terms negotiated, but initial leases were generally from 36 to 120 months. The difference between rent received and rental revenue recognized is recorded as unearned operating lease income on the balance sheet.

Operating leases are generally placed in a non-accrual status (i.e., no revenue is recognized) when payments are more than 90 days past due. Additionally, management considers the equipment underlying the lease contracts for impairment and periodically reviews the credit worthiness of all operating lessees with payments outstanding less than 90 days. Based upon management’s judgment, the related operating leases may be placed on non-accrual status. Leases placed on non-accrual status are only returned to an accrual status when the account has been brought current and management believes recovery of the remaining unpaid lease payments is probable. Until such time, revenues are recognized on a cash basis.

The Partnership earns revenues from its marine vessels based on charter utilization of the vessels or a fixed term lease. When the vessels are chartered, contingent rentals and the associated expenses are recorded when earned and/or incurred. From time to time, the Partnership incurs “drydocking” costs on its vessels. Drydocking costs include labor and material costs related to refurbishing, overhauling and/or replacing engine and other major mechanical components of the vessel, hull maintenance and other repairs that bring the vessel into seaworthy compliance with U.S. marine codes in order to have it certified as available for charter. Such drydocking costs are capitalized and added to the equipment cost and depreciated over the period between scheduled drydockings, which generally occur every 24 to 30 months.

2.Summary of significant accounting policies (continued):

Direct financing leases and related revenue recognition:

Income from direct financing lease transactions is reported using the financing method of accounting, in which the Partnership’s investment in the leased property is reported as a receivable from the lessee to be recovered through future rentals. The interest income portion of each rental payment is calculated so as to generate a constant rate of return on the net receivable outstanding.

Allowances for losses on direct financing leases are typically established based on historical charge off and collection experience and the collectability of specifically identified lessees and billed and unbilled receivables. Direct financing leases are charged-off to the allowance as they are deemed uncollectible.

Direct financing leases are generally placed in a non-accrual status (i.e., no revenue is recognized) and deemed impaired when payments are more than 90 days past due. Additionally, management periodically reviews the creditworthiness of all direct finance lessees with payments outstanding less than 90 days. Based upon management’s judgment, the related direct financing leases may be placed on non-accrual status. Leases placed on non-accrual status are only returned to an accrual status when the account has been brought current and management believes recovery of the remaining unpaid lease payments is probable. Until such time, all payments received are applied only against outstanding principal balances.

Asset valuation:

Recorded values of the Partnership’s asset portfolio are periodically reviewed for impairment. An impairment loss is measured and recognized only if the estimated undiscounted future cash flows of the asset are less than their net book value. The estimated undiscounted future cash flows are the sum of the estimated residual value of the asset at the end of the asset’s expected holding period and estimates of undiscounted future rents. The residual value assumes, among other things, that the asset is utilized normally in an open, unrestricted and stable market. Short-term fluctuations in the market place are disregarded and it is assumed that there is no necessity either to dispose of a significant number of the assets, if held in quantity, simultaneously or to dispose of the asset quickly. Impairment is measured as the difference between the fair value (as determined by a valuation method using discounted estimated future cash flows, third party appraisals or comparable sales of similar assets as applicable based on asset type) of the asset and its carrying value on the measurement date.

Segment reporting:

The Partnership is not organized by multiple operating segments for the purpose of making operating decisions or assessing performance. Accordingly the Partnership operates in one reportable operating segment in the United States.

The Partnership’s principal decision makers are the General Partner’s Chief Executive Officer and its Chief Financial Officer and Chief Operating Officer. The Partnership believes that its equipment leasing business operates as one reportable segment because: a) the Partnership measures profit and loss at the equipment portfolio level as a whole; b) the principal decision makers do not review information based on any operating segment other than the equipment leasing transaction portfolio; c) the Partnership does not maintain discrete financial information on any specific segment other than its equipment financing operations; d) the Partnership has not chosen to organize its business around different products and services other than equipment lease financing; and e) the Partnership has not chosen to organize its business around geographic areas.

However, certain of the Partnership’s lessee customers may have international operations. In these instances, the Partnership is aware that certain equipment, primarily rail and transportation, may periodically exit the country. However, these lessee customers are US-based, and it is impractical for the Partnership to track, on an asset-by-asset and day-by-day

basis, where these assets are deployed. The primary geographic regions in which the Partnership sought leasing opportunities were North America and Europe.

2.Summary of significant accounting policies (continued):

The table below summarizes geographic information relating to the sources, by nation, of the Partnership’s total revenues for the years ended December 31, 2012 and 2011 and long-lived tangible assets as of December 31, 2012 and 2011 (dollars in thousands):

		For the Year Ended December 31,
		2012	% of Total		2011	% of Total
Revenue
United States	$	4,260	93%	$	4,391	93%
United Kingdom		-	0%		16	0%
Canada		320	7%		294	7%
Total International		320	7%		310	7%
Total	$	4,580	100%	$	4,701	100%
		As of December 31,			As of December 31,
		2012	% of Total		2011	% of Total
Long-lived assets
United States	$	6,525	96%	$	7,309	97%
United Kingdom		-	0%		-	0%
Canada		240	4%		240	3%
Total International		240	4%		240	3%
Total	$	6,765	100%	$	7,549	100%

Unearned operating lease income:

The Partnership records prepayments on operating leases as a liability under the caption of unearned operating lease income. The liability is recorded when prepayments are received and recognized as operating lease revenue over the period to which the prepayments relate using a straight-line method.

Income taxes:

Pursuant to the provisions of Section 701 of the Internal Revenue Code, a partnership is not subject to federal income taxes. All income and losses of the Partnership are the liability of the individual partners and are allocated to the partners for inclusion in their individual tax returns. Accordingly, the Partnership has provided current income and franchise taxes for only those states which levy taxes on partnerships. For the years ended December 31, 2012 and 2011, the related provision for state income taxes was approximately $35 thousand and $83 thousand, respectively. The Partnership does not have any entity level uncertain tax positions. The Partnership files income tax returns in the U.S. federal jurisdiction and various state jurisdictions and is generally subject to examination by U.S. federal (or state and local) income tax authorities for three years from the filing of a tax return.

The tax bases of the Partnership’s net assets and liabilities vary from the amounts presented in these financial statements at December 31, 2012 and 2011 as follows (in thousands):

		2012		2011
Financial statement basis of net assets	$	7,181	$	7,883
Tax basis of net assets (unaudited)		(19,428)		(20,064)
Difference	$	26,609	$	27,947

2.Summary of significant accounting policies (continued):

The primary differences between the tax bases of the net assets and the amounts recorded in the financial statements are the result of differences in accounting for syndication costs and differences in depreciation methods used in the financial statements and the Partnership’s tax returns.

The following reconciles the net income reported in these financial statements to the income reported on the Partnership’s federal tax return (unaudited) for each of the years ended December 31, 2012 and 2011 (in thousands):

		2012		2011
Net income per financial statements	$	2,134	$	1,096
Tax adjustments (unaudited):
Adjustment to depreciation expense		422		863
Provision for doubtful accounts		122		-
Adjustments to gain on sales of assets		106		82
Other		297		116
Income per federal tax return (unaudited)	$	3,081	$	2,157

Per Unit data:

Net income and distributions per Unit are based upon the weighted average number of Limited Partnership Units outstanding during the year.

Other loss, net:

Other loss, net represents $9 thousand of foreign currency translation losses during 2011. The Partnership’s foreign currency translation transactions were nominal during 2012.

Recent accounting pronouncements:

Recent accounting standards updates as issued by the Financial Accounting Standards Board (FASB) were evaluated and determined to be not applicable to the Partnership.

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Partners' Capital (Narrative) (Details) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Other Members Capital Account [Line Items]
Limited Partners' capital account, units issued	14,985,550	14,985,550
Limited Partners' capital account, units outstanding	14,985,550	14,985,550
Limited Partners' capital account, units authorized	15,000,050	15,000,050
Partnership right to repurchase Units of a Unitholder	100.00%
Percentage of cash distributions from operations as incentive management fee	4.00%
Initial Limited Partners [Member]
Other Members Capital Account [Line Items]
Limited Partners' capital account, units issued	50	50
Limited Partner [Member]
Other Members Capital Account [Line Items]
Allocation of net income, net losses, and tax credits	92.50%
General Partner [Member]
Other Members Capital Account [Line Items]
Allocation of net income, net losses, and tax credits	7.50%
First [Member] | Limited Partner [Member]
Other Members Capital Account [Line Items]
Percentage of cash distributions from operations	88.5
Percentage of cash distributions from sales or refinancing as annual return on invested capital	10.00%
Percentage of cash distribution from sales or refinancing as incentive management fee	92.50%
First [Member] | General Partner [Member]
Other Members Capital Account [Line Items]
Percentage of cash distribution from sales or refinancing as incentive management fee	7.50%
Thereafter [Member] | Limited Partner [Member]
Other Members Capital Account [Line Items]
Percentage of cash distributions from sales or refinancing as annual return on invested capital	10.00%
Thereafter [Member] | General Partner [Member]
Other Members Capital Account [Line Items]
Percentage of cash distributions from operations	7.5
Percentage of cash distributions from operations as incentive management fee	4.00%
Second [Member] | Limited Partner [Member]
Other Members Capital Account [Line Items]
Percentage of cash distributions from operations	85.0
Percentage of cash distributions from sales or refinancing as annual return on invested capital	85.00%
Second [Member] | General Partner [Member]
Other Members Capital Account [Line Items]
Percentage of cash distributions from operations	7.5
Percentage of cash distributions from operations as incentive management fee	7.50%
Percentage of cash distributions from sales or refinancing as annual return on invested capital	7.50%
Second [Member] | Affiliated Entity [Member]
Other Members Capital Account [Line Items]
Percentage of cash distribution from sales or refinancing as incentive management fee	7.50%

XML

Concentration Of Credit Risk And Major Customers (Schedule Of Leasing And Lending Revenues) (Details)	12 Months Ended
	Dec. 31, 2012		Dec. 31, 2011
Leasing and Lending Revenues [Member] | AET Offshore Services, Inc. [Member]
Percentage of concentration risk	28.00%		28.00%
Leasing and Lending Revenues [Member] | Interstate Commodities [Member]
Percentage of concentration risk	16.00%		11.00%
Leasing and Lending Revenues [Member] | Paneltech Products, Inc. [Member]
Percentage of concentration risk		[1]	12.00%
Leasing and Lending Revenues [Member] | Genesee & Wyoming Inc. [Member]
Percentage of concentration risk		[1]	11.00%
Transportation [Member] | Equipment Cost [Member]
Percentage of concentration risk	61.00%		53.00%
Marine Vessels [Member] | Equipment Cost [Member]
Percentage of concentration risk	19.00%		30.00%

[1] * Less than 10%

XML

Summary Of Significant Accounting Policies (Reconciliation of Net Income Loss Reported in Financial Statements and Federal Tax Return) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Summary Of Significant Accounting Policies [Abstract]
Net income per financial statements	$ 2,134	$ 1,096
Adjustment to depreciation expense	422	863
Provision for doubtful accounts	122
Adjustments to gain on sales of assets	106	82
Other	297	116
Loss per Federal tax return (unaudited)	$ 3,081	$ 2,157

XML

Partners' Capital (Distributions To Other Members) (Details) (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Partners' Capital [Abstract]
Distributions declared	$ 2,623	$ 3,747
Weighted average number of Units outstanding	14,985,550	14,985,550
Weighted average distributions per Unit	$ 0.18	$ 0.25

XML

Allowance For Credit Losses (Narrative) (Details)	12 Months Ended
	Dec. 31, 2012
Minimum [Member]
Equipment and lessee period of review for impairment	90 days
Accounts receivable period for non accrual status	90 days
Maximum [Member]
Operating leases, period for non accrual status	90 days
Equipment and lessee period of review for impairment	90 days

XML

Allowance For Credit Losses (Activity in Allowance for Doubtful Accounts) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2010
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Balance	$ 11	$ 11
(Reversal of provision) provision	122
Ending Balance	133	11
Finance Leases [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Balance	10	10
(Reversal of provision) provision	(10)
Ending Balance		10
Accounts Receivable Allowance for Doubtful Accounts [Member] | Operating Leases [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Balance	1	1
(Reversal of provision) provision	132
Ending Balance	$ 133	$ 1

XML

Organization And Limited Liability Partnership Matters

12 Months Ended

Dec. 31, 2012

Organization And Limited Liability Partnership Matters [Abstract]

Organization And Limited Liability Partnership Matters

1.    Organization and Limited Partnership matters:

ATEL Capital Equipment Fund VII, L.P. (the “Partnership” or the “Fund”) was formed under the laws of the State of California on May 17, 1996 for the purpose of acquiring equipment to engage in equipment leasing and sales activities, primarily in the United States. The Partnership may continue until December 31, 2017. The General Partner of the Partnership is ATEL Financial Services, LLC (“AFS”), a California limited liability company. Prior to converting to a limited liability company structure, AFS was formerly known as ATEL Financial Corporation.

The Partnership conducted a public offering of 15,000,000 Units of Limited Partnership Interest (“Units”), at a price of $10 per Unit. On January 7, 1997, subscriptions for the minimum number of Units (120,000, $1.2 million) had been received (excluding subscriptions from Pennsylvania investors) and AFS requested that the subscriptions be released to the Partnership. On that date, the Partnership commenced operations in its primary business (acquiring equipment to engage in equipment leasing and sales activities). Gross contributions in the amount of $150 million (15,000,000 units) were received as of November 27, 1998, exclusive of $500 of initial Partners’ capital investment and $100 of AFS’ capital investment. The offering was terminated on November 27, 1998. As of December 31, 2012, 14,985,550 Units were issued and outstanding.

The Partnership’s principal objectives have been to invest in a diversified portfolio of equipment that (i) preserves, protects and returns the Partnership’s invested capital; (ii) generates regular distributions to the partners of cash from operations and cash from sales or refinancing, with any balance remaining after certain minimum distributions to be used to purchase additional equipment during the reinvestment period (“Reinvestment Period”) (defined as six full years following the year the offering was terminated), which ended December 31, 2004 and (iii) provides additional distributions following the Reinvestment Period and until all equipment has been sold. The Partnership is governed by its Limited Partnership Agreement (“Partnership Agreement”).

Pursuant to the Partnership Agreement, AFS receives compensation and reimbursements for services rendered on behalf of the Partnership (see Note 6). The Partnership is required to maintain reasonable cash reserves for working capital, the repurchase of Units and contingencies. The repurchase of Units is solely at the discretion of AFS.

As of December 31, 2012, the Partnership continues in the liquidation phase of its life cycle as defined in the Partnership Agreement.

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Allowance For Credit Losses (Allowance For Credit Losses And Recorded Investment In Financing Receivables) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011
Allowances for credit losses:
Ending balance
Ending balance: individually evaluated for impairment
Ending balance: collectively evaluated for impairment
Ending balance: loans acquired with deteriorated credit quality
Financing receivables:
Ending balance	197	405
Ending balance: individually evaluated for impairment	197	405
Ending balance: collectively evaluated for impairment
Ending balance: loans acquired with deteriorated credit quality
Finance Leases [Member]
Allowances for credit losses:
Ending balance
Ending balance: individually evaluated for impairment
Ending balance: collectively evaluated for impairment
Ending balance: loans acquired with deteriorated credit quality
Financing receivables:
Ending balance	197	405
Ending balance: individually evaluated for impairment	197	405
Ending balance: collectively evaluated for impairment
Ending balance: loans acquired with deteriorated credit quality

XML

Related Party Transactions (Narrative) (Details)	12 Months Ended
	Dec. 31, 2012
Related Party Transaction [Line Items]
Incentive management fees as a percentage of cash distributions from operations	4.00%
Operating Leases [Member]
Related Party Transaction [Line Items]
Equipment management fees as a percentage of gross revenue	3.50%
Full Payout Leases [Member]
Related Party Transaction [Line Items]
Equipment management fees as a percentage of gross revenue	2.00%

XML

Balance Sheets (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011
ASSETS
Cash and cash equivalents	$ 686	$ 1,354
Accounts receivable, net of allowance for doubtful accounts of $133 as of December 31, 2012 and $11 as of December 31, 2011	652	307
Investments in equipment and leases, net of accumulated depreciation of $38,658 as of December 31, 2012 and $39,106 as of December 31, 2011	6,765	7,549
Prepaid expenses and other assets	17	6
Total assets	8,120	9,216
Accounts payable and accrued liabilities:
General Partner	420	670
Other	421	416
Unearned operating lease income	98	247
Total liabilities	939	1,333
Commitments and contingencies
Partners' capital:
General Partner
Limited Partners	7,181	7,883
Total Partners' capital	7,181	7,883
Total liabilities and Partners' capital	$ 8,120	$ 9,216

XML

Statements Of Changes In Partners' Capital (Parenthetical) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Statements Of Changes In Partners' Capital [Abstract]
Distributions to Limited Partners, per unit	$ 0.18	$ 0.25

XML

Investments In Equipment And Leases, Net (Narrative) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Investments In Equipment And Leases, Net [Abstract]
Depreciation of operating lease assets	$ 480	$ 963
Average estimated residual value for assets on operating leases	14.00%
Contingent rental revenue	$ 105	$ 239

XML

Related Party Transactions (Tables)

12 Months Ended

Dec. 31, 2012

Related Party Transactions [Abstract]

Affiliates Earned Commissions and Billed for Reimbursements Pursuant to Operating Agreement

		2012		2011
Equipment and incentive management fees to General Partner	$	229	$	208
Cost reimbursements to General Partner		247		750
	$	476	$	958

XML

Investments In Equipment And Leases, Net (Investment In Leases) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012
Leases Disclosure [Line Items]
Balance December 31, 2011	$ 7,549
Reclassifications, Additions/ Dispositions	(105)
Depreciation/ Amortization Expense or Amortization of Leases	(679)
Balance December 31, 2012	6,765
Operating Leases [Member]
Leases Disclosure [Line Items]
Balance December 31, 2011	7,075
Reclassifications, Additions/ Dispositions	(1,311)
Depreciation/ Amortization Expense or Amortization of Leases	(480)
Balance December 31, 2012	5,284
Direct Financing Leases [Member]
Leases Disclosure [Line Items]
Balance December 31, 2011	405
Reclassifications, Additions/ Dispositions	(9)
Depreciation/ Amortization Expense or Amortization of Leases	(199)
Balance December 31, 2012	197
Assets Held For Sale or Lease [Member]
Leases Disclosure [Line Items]
Balance December 31, 2011	69
Reclassifications, Additions/ Dispositions	1,215
Balance December 31, 2012	$ 1,284

XML

Organization And Limited Liability Partnership Matters (Narrative) (Details) (USD $)	0 Months Ended			73 Months Ended	199 Months Ended
	Nov. 27, 1998	Jan. 07, 1997	Nov. 29, 1996	Dec. 31, 2004	Dec. 31, 2012	Dec. 31, 2011
Organization And Limited Liability Partnership Matters [Abstract]
Partnership business cessation date					Dec. 31, 2017
Public offering of limited partnership units			15,000,000
Public offering price per units			$ 10
Sale of Limited Partnership Units, number of units		120,000
Proceeds from sale of limited partners units		$ 1,200,000
Gross contributions	150,000,000
Gross contributions, number of units	15,000,000
Initial Partners' capital investment	500
AFS' capital investment	$ 100
Units issued					14,985,550	14,985,550
Units outstanding					14,985,550	14,985,550
Reinvestment period				6 years

XML

Statements Of Cash Flows (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Operating activities:
Net income	$ 2,134	$ 1,096
Adjustments to reconcile net income to cash provided by operating activities:
Gain on sales of assets	(224)	(315)
Depreciation of operating lease assets	480	963
Provision for credit losses	122
Changes in operating assets and liabilities:
Accounts receivable	(467)	4
Prepaid expenses and other assets	(11)	1
Accounts payable, General Partner	(250)	166
Accounts payable, other	5	(5)
Unearned lease income	(149)	145
Net cash provided by operating activities	1,640	2,055
Investing activities:
Proceeds from sales of lease assets	329	596
Principal payments received on direct financing leases	199	117
Net cash provided by investing activities	528	713
Financing activities:
Distributions to General Partner	(213)	(304)
Distribution to limited partners	(2,623)	(3,747)
Net cash used in financing activities	(2,836)	(4,051)
Net increase (decrease) in cash and cash equivalents	(668)	(1,283)
Cash and cash equivalents at beginning of year	1,354	2,637
Cash and cash equivalents at end of year	686	1,354
Supplemental disclosures of cash flow information:
Cash paid during the year for taxes	39	85
Schedule of non-cash transactions:
Improvements to operating lease equipment		$ 150

XML

Balance Sheets (Parenthetical) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011
Balance Sheets [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 133	$ 11
Investments in equipment and leases, accumulated depreciation	$ 38,658	$ 39,106

XML

Summary Of Significant Accounting Policies (Policy)

12 Months Ended

Dec. 31, 2012

Summary Of Significant Accounting Policies [Abstract]

Basis of Presentation

Basis of presentation:

The accompanying balance sheets as of December 31, 2012 and 2011, and the related statements of income, changes in partners’ capital and cash flows for the years then ended, have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the Securities and Exchange Commission. Certain prior year amounts have been reclassified to conform to the current year presentation. These reclassifications had no significant effect on the reported financial position or results from operations.

Footnote and tabular amounts are presented in thousands, except as to Units and per Unit data.

In preparing the accompanying financial statements, the Partnership has reviewed, as determined necessary by the General Partner, events that have occurred after December 31, 2012, up until the issuance of the financial statements. No events were noted which would require disclosure in the footnotes to the financial statements.

Use of Estimates

Use of estimates:

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Such estimates relate primarily to the determination of residual values at the end of the lease term and expected future cash flows used for impairment analysis purposes and determination of the allowance for doubtful accounts.

Cash and Cash Equivalents

Cash and cash equivalents:

Cash and cash equivalents include cash in banks and cash equivalent investments such as U.S. Treasury instruments with original and/or purchased maturities of ninety days or less.

Credit Risk

Credit risk:

Financial instruments that potentially subject the Partnership to concentrations of credit risk include cash and cash equivalents, operating and direct financing lease receivables and accounts receivable. The Partnership places the majority of its cash deposits in noninterest-bearing accounts with financial institutions that have no less than $10 billion in assets. Such deposits are insured up to $250 thousand. The remainder of the Funds’ cash is temporarily invested in U.S. Treasury denominated instruments. The concentration of such deposits and temporary cash investments is not deemed to create a significant risk to the Partnership. Accounts receivable represent amounts due from lessees in various industries, related to equipment on operating and direct financing leases.

Accounts Receivable

Accounts receivable:

Accounts receivable represent the amounts billed under operating and direct financing lease contracts which are currently due to the Partnership. Allowances for doubtful accounts are typically established based on historical charge off and collection experience and the collectability of specifically identified lessees and invoiced amounts. Accounts receivable deemed uncollectible are charged off to the allowance on a specific identification basis. Amounts recovered that were previously written-off are recorded as other income in the period received.

Equipment on Operating Leases and Related Revenue Recognition

Equipment on operating leases and related revenue recognition:

Equipment subject to operating leases is stated at cost. Depreciation is recognized on a straight-line method over the terms of the related leases to the equipment’s estimated salvage or residual values. Maintenance costs associated with the Fund’s portfolio of leased assets are expensed as incurred. Major additions and betterments are capitalized.

Operating lease revenue is recognized on a straight-line basis over the term of the underlying leases. The initial lease terms vary as to the type of equipment subject to the leases, the needs of the lessees and the terms negotiated, but initial leases were generally from 36 to 120 months. The difference between rent received and rental revenue recognized is recorded as unearned operating lease income on the balance sheet.

Operating leases are generally placed in a non-accrual status (i.e., no revenue is recognized) when payments are more than 90 days past due. Additionally, management considers the equipment underlying the lease contracts for impairment and periodically reviews the credit worthiness of all operating lessees with payments outstanding less than 90 days. Based upon management’s judgment, the related operating leases may be placed on non-accrual status. Leases placed on non-accrual status are only returned to an accrual status when the account has been brought current and management believes recovery of the remaining unpaid lease payments is probable. Until such time, revenues are recognized on a cash basis.

The Partnership earns revenues from its marine vessels based on charter utilization of the vessels or a fixed term lease. When the vessels are chartered, contingent rentals and the associated expenses are recorded when earned and/or incurred. From time to time, the Partnership incurs “drydocking” costs on its vessels. Drydocking costs include labor and material costs related to refurbishing, overhauling and/or replacing engine and other major mechanical components of the vessel, hull maintenance and other repairs that bring the vessel into seaworthy compliance with U.S. marine codes in order to have it certified as available for charter. Such drydocking costs are capitalized and added to the equipment cost and depreciated over the period between scheduled drydockings, which generally occur every 24 to 30 months.

Direct financing leases and related revenue recognition

Direct financing leases and related revenue recognition:

Income from direct financing lease transactions is reported using the financing method of accounting, in which the Partnership’s investment in the leased property is reported as a receivable from the lessee to be recovered through future rentals. The interest income portion of each rental payment is calculated so as to generate a constant rate of return on the net receivable outstanding.

Allowances for losses on direct financing leases are typically established based on historical charge off and collection experience and the collectability of specifically identified lessees and billed and unbilled receivables. Direct financing leases are charged-off to the allowance as they are deemed uncollectible.

Direct financing leases are generally placed in a non-accrual status (i.e., no revenue is recognized) and deemed impaired when payments are more than 90 days past due. Additionally, management periodically reviews the creditworthiness of all direct finance lessees with payments outstanding less than 90 days. Based upon management’s judgment, the related direct financing leases may be placed on non-accrual status. Leases placed on non-accrual status are only returned to an accrual status when the account has been brought current and management believes recovery of the remaining unpaid lease payments is probable. Until such time, all payments received are applied only against outstanding principal balances.

Asset Valuation

Asset valuation:

Recorded values of the Partnership’s asset portfolio are periodically reviewed for impairment. An impairment loss is measured and recognized only if the estimated undiscounted future cash flows of the asset are less than their net book value. The estimated undiscounted future cash flows are the sum of the estimated residual value of the asset at the end of the asset’s expected holding period and estimates of undiscounted future rents. The residual value assumes, among other things, that the asset is utilized normally in an open, unrestricted and stable market. Short-term fluctuations in the market place are disregarded and it is assumed that there is no necessity either to dispose of a significant number of the assets, if held in quantity, simultaneously or to dispose of the asset quickly. Impairment is measured as the difference between the fair value (as determined by a valuation method using discounted estimated future cash flows, third party appraisals or comparable sales of similar assets as applicable based on asset type) of the asset and its carrying value on the measurement date.

Segment Reporting

Segment reporting:

The Partnership is not organized by multiple operating segments for the purpose of making operating decisions or assessing performance. Accordingly the Partnership operates in one reportable operating segment in the United States.

The Partnership’s principal decision makers are the General Partner’s Chief Executive Officer and its Chief Financial Officer and Chief Operating Officer. The Partnership believes that its equipment leasing business operates as one reportable segment because: a) the Partnership measures profit and loss at the equipment portfolio level as a whole; b) the principal decision makers do not review information based on any operating segment other than the equipment leasing transaction portfolio; c) the Partnership does not maintain discrete financial information on any specific segment other than its equipment financing operations; d) the Partnership has not chosen to organize its business around different products and services other than equipment lease financing; and e) the Partnership has not chosen to organize its business around geographic areas.

However, certain of the Partnership’s lessee customers may have international operations. In these instances, the Partnership is aware that certain equipment, primarily rail and transportation, may periodically exit the country. However, these lessee customers are US-based, and it is impractical for the Partnership to track, on an asset-by-asset and day-by-day

basis, where these assets are deployed. The primary geographic regions in which the Partnership sought leasing opportunities were North America and Europe.

2.Summary of significant accounting policies (continued):

The table below summarizes geographic information relating to the sources, by nation, of the Partnership’s total revenues for the years ended December 31, 2012 and 2011 and long-lived tangible assets as of December 31, 2012 and 2011 (dollars in thousands):

		For the Year Ended December 31,
		2012	% of Total		2011	% of Total
Revenue
United States	$	4,260	93%	$	4,391	93%
United Kingdom		-	0%		16	0%
Canada		320	7%		294	7%
Total International		320	7%		310	7%
Total	$	4,580	100%	$	4,701	100%
		As of December 31,			As of December 31,
		2012	% of Total		2011	% of Total
Long-lived assets
United States	$	6,525	96%	$	7,309	97%
United Kingdom		-	0%		-	0%
Canada		240	4%		240	3%
Total International		240	4%		240	3%
Total	$	6,765	100%	$	7,549	100%

Unearned Operating Lease Income

Unearned operating lease income:

The Partnership records prepayments on operating leases as a liability under the caption of unearned operating lease income. The liability is recorded when prepayments are received and recognized as operating lease revenue over the period to which the prepayments relate using a straight-line method.

Income Taxes

Income taxes:

Pursuant to the provisions of Section 701 of the Internal Revenue Code, a partnership is not subject to federal income taxes. All income and losses of the Partnership are the liability of the individual partners and are allocated to the partners for inclusion in their individual tax returns. Accordingly, the Partnership has provided current income and franchise taxes for only those states which levy taxes on partnerships. For the years ended December 31, 2012 and 2011, the related provision for state income taxes was approximately $35 thousand and $83 thousand, respectively. The Partnership does not have any entity level uncertain tax positions. The Partnership files income tax returns in the U.S. federal jurisdiction and various state jurisdictions and is generally subject to examination by U.S. federal (or state and local) income tax authorities for three years from the filing of a tax return.

The tax bases of the Partnership’s net assets and liabilities vary from the amounts presented in these financial statements at December 31, 2012 and 2011 as follows (in thousands):

		2012		2011
Financial statement basis of net assets	$	7,181	$	7,883
Tax basis of net assets (unaudited)		(19,428)		(20,064)
Difference	$	26,609	$	27,947

2.Summary of significant accounting policies (continued):

The primary differences between the tax bases of the net assets and the amounts recorded in the financial statements are the result of differences in accounting for syndication costs and differences in depreciation methods used in the financial statements and the Partnership’s tax returns.

The following reconciles the net income reported in these financial statements to the income reported on the Partnership’s federal tax return (unaudited) for each of the years ended December 31, 2012 and 2011 (in thousands):

		2012		2011
Net income per financial statements	$	2,134	$	1,096
Tax adjustments (unaudited):
Adjustment to depreciation expense		422		863
Provision for doubtful accounts		122		-
Adjustments to gain on sales of assets		106		82
Other		297		116
Income per federal tax return (unaudited)	$	3,081	$	2,157

Per Unit Data

Per Unit data:

Net income and distributions per Unit are based upon the weighted average number of Limited Partnership Units outstanding during the year.

Recent Accounting Pronouncements

Recent accounting pronouncements:

Recent accounting standards updates as issued by the Financial Accounting Standards Board (FASB) were evaluated and determined to be not applicable to the Partnership.

XML

Document And Entity Information (USD $)	12 Months Ended
	Dec. 31, 2012	Feb. 28, 2013	Jun. 30, 2012
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2012
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	FY
Entity Registrant Name	ATEL CAPITAL EQUIPMENT FUND VII LP
Entity Central Index Key	0001019542
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Well-known Seasoned Issuer	No
Entity Public Float			$ 0
Entity Units Outstanding		14,985,550

XML

Summary Of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2012

Summary Of Significant Accounting Policies [Abstract]

Summary of Geographic Information Relating to Sources, by Nation, of Partnership's Total Revenue and Long-Lived Assets

		For the Year Ended December 31,
		2012	% of Total		2011	% of Total
Revenue
United States	$	4,260	93%	$	4,391	93%
United Kingdom		-	0%		16	0%
Canada		320	7%		294	7%
Total International		320	7%		310	7%
Total	$	4,580	100%	$	4,701	100%
		As of December 31,			As of December 31,
		2012	% of Total		2011	% of Total
Long-lived assets
United States	$	6,525	96%	$	7,309	97%
United Kingdom		-	0%		-	0%
Canada		240	4%		240	3%
Total International		240	4%		240	3%
Total	$	6,765	100%	$	7,549	100%

Schedule of Differences Between Book Value and Tax Basis of Net Assets

		2012		2011
Financial statement basis of net assets	$	7,181	$	7,883
Tax basis of net assets (unaudited)		(19,428)		(20,064)
Difference	$	26,609	$	27,947

Reconciliation of Net Income Loss Reported in Financial Statements and Federal Tax Return

		2012		2011
Net income per financial statements	$	2,134	$	1,096
Tax adjustments (unaudited):
Adjustment to depreciation expense		422		863
Provision for doubtful accounts		122		-
Adjustments to gain on sales of assets		106		82
Other		297		116
Income per federal tax return (unaudited)	$	3,081	$	2,157

XML

Statements Of Operations (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Leasing activities:
Operating leases	$ 4,172	$ 4,063
Direct financing leases	169	272
Gain on sales of assets	224	315
Interest income	2
Other	13	51
Total revenues	4,580	4,701
Expenses:
Depreciation of operating lease assets	480	963
Marine vessel maintenance and other operating costs		159
Cost reimbursements to General Partner	247	750
Equipment and incentive management fees to General Partner	229	208
Railcar and equipment maintenance	659	670
Professional fees	233	87
Insurance	11	(13)
Outside services	82	65
Other management fees	144	152
Equipment storage	13	59
Franchise fees and state taxes	35	83
Freight and shipping	8	250
Provision for credit losses	122
Property taxes	23	15
Postage	17	16
Printing and photocopying	33	25
Other	110	107
Total operating expenses	2,446	3,596
Income from operations	2,134	1,105
Other loss, net		(9)
Net income	2,134	1,096
Net income:
General Partner	213	304
Limited Partners	1,921	792
Net income	$ 2,134	$ 1,096
Net income per Limited Liability Partnership Unit	0.13	0.05
Weighted average number of Units outstanding	14,985,550	14,985,550

XML

Investments In Equipment And Leases, Net

12 Months Ended

Dec. 31, 2012

Investments In Equipment And Leases, Net [Abstract]

Investments in Equipment and Leases, Net

5.Investments in equipment and leases:

The Partnership’s investments in equipment and leases consist of the following (in thousands):

		Balance December 31, 2011		Reclassifications & Additions / Dispositions		Depreciation/ Amortization Expense or Amortization of Leases		Balance December 31, 2012
Net investment in operating leases	$	7,075	$	(1,311)	$	(480)	$	5,284
Net investment in direct financing leases		405		(9)		(199)		197
Assets held for sale or lease, net		69		1,215		-		1,284
Total	$	7,549	$	(105)	$	(679)	$	6,765

Impairment of investments in leases and assets held for sale or lease:

Management periodically reviews the carrying values of its assets on leases and assets held for lease or sale. The fair value of the assets is determined based on the sum of the discounted estimated future cash flows of the assets. Impairment losses are recorded as an adjustment to the net investment in operating leases. No impairment losses were recorded during 2012 and 2011.

The Partnership utilizes a straight line depreciation method for equipment in all of the categories currently in its portfolio of operating lease transactions. Depreciation expense on the Partnership’s equipment totaled $480 thousand and $963 thousand for the years ended December 31, 2012 and 2011, respectively.

All of the remaining property subject to leases was acquired in the years 1997 through 1998.

Operating leases:

Property on operating leases consists of the following (in thousands):

		Balance December 31, 2011		Additions		Reclassifications or Dispositions		Balance December 31, 2012
Transportation	$	29,707	$	-	$	(1,018)	$	28,689
Marine vessels		15,675		-		(8,275)		7,400
Materials handling		83		-		-		83
Construction		156		-		(156)		-
		45,621		-		(9,449)		36,172
Less accumulated depreciation		(38,546)		(480)		8,138		(30,888)
Total	$	7,075	$	(480)	$	(1,311)	$	5,284

The average estimated residual value for assets on operating leases was 14% of the assets’ original cost at both December 31, 2012 and 2011.

The Partnership earns revenues from its marine vessels and certain lease assets based on utilization of such assets or through fixed term leases. Contingent rentals (i.e., short-term, operating charter hire payments) and the associated expenses are recorded when earned and/or incurred. The revenues associated with these rentals are included as a component of Operating Lease Revenues. Prior to 2011, the most significant sources of contingent rentals were the Partnership’s two largest marine vessels. Such vessels were converted to fixed term leases in August 2010 and March 2011. Contingent rentals totaled $105thousand and $239 thousand for the years ended December 31, 2012 and 2011, respectively.

There were no operating leases in non-accrual status at December 31, 2012 and 2011.

5.Investments in equipment and leases (continued):

Direct financing leases:

As of December 31, 2012 and 2011, investment in direct financing leases consists of various transportation, ground support and manufacturing equipment. The following lists the components of the Partnership’s investment in direct financing leases as of December 31, 2012 and 2011 (in thousands):

		2012		2011
Total minimum lease payments receivable	$	165	$	533
Estimated residual values of leased equipment (unguaranteed)		65		75
Investment in direct financing leases		230		608
Less unearned income		(33)		(203)
Net investment in direct financing leases	$	197	$	405

There were no net investments in direct financing leases in non-accrual status as of December 31, 2012 and 2011.

At December 31, 2012, the aggregate amounts of future minimum lease payments to be received under operating and direct financing leases are as follows (in thousands):

		Operating Leases		Direct Financing Leases		Total
Year ended December 31, 2013	$	1,548	$	165	$	1,713
2014		398		-		398
2015		321		-		321
2016		27		-		27
	$	2,294	$	165	$	2,459

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Allowance For Credit Losses

12 Months Ended

Dec. 31, 2012

Allowance For Credit Losses [Abstract]

Allowance For Credit Losses

4.Allowance for credit losses:

The Partnership’s allowance for credit losses are as follows (in thousands):

		Accounts Receivable Allowance for Doubtful Accounts				Valuation Adjustments on Financing Receivables		Total Allowance for Credit Losses
		Finance Leases		Operating Leases		Finance Leases
Balance December 31, 2010	$	10	$	1	$	-	$	11
Provision		-		-		-		-
Balance December 31, 2011		10		1		-		11
(Reversal of provision) provision		(10)		132		-		122
Balance December 31, 2012	$	-	$	133	$	-	$	133

Accounts Receivable

Accounts receivable represent the amounts billed under operating and direct financing lease contracts which are currently due to the Partnership.

Allowances for doubtful accounts are typically established based upon their aging and historical charge off and collection experience and the creditworthiness of specifically identified lessees, and invoiced amounts. Accounts receivable deemed uncollectible are generally charged off against the allowance on a specific identification basis. Recoveries of amounts that were previously written-off are recorded as other income in the period received.

Accounts receivable are generally placed in a non-accrual status (i.e., no revenue is recognized) when payments are more than 90 days past due. Additionally, management periodically reviews the creditworthiness of companies with lease payments outstanding less than 90 days. Based upon management’s judgment, such leases may be placed in non-accrual status. Leases placed on non-accrual status are only returned to an accrual status when the account has been brought current and management believes recovery of the remaining unpaid receivable is probable. Until such time, revenues on operating leases are recognized on a cash basis. All payments received on amounts billed under direct financing leases contracts are applied only against outstanding principal balances.

Financing Receivables

In addition to the allowance established for delinquent accounts receivable, the total allowance related solely to financing receivables also includes anticipated impairment charges on direct financing leases.

4.Allowance for credit losses (continued):

The asset underlying a direct financing lease contract is considered impaired if the estimated undiscounted future cash flows of the asset are less than its net book value. The estimated undiscounted future cash flows are the sum of the estimated residual value of the asset at the end of the asset’s expected holding period and estimates of undiscounted future rents. The residual value assumes, among other things, that the asset is utilized normally in an open, unrestricted and stable market. Short-term fluctuations in the market place are disregarded and it is assumed that there is no necessity either to dispose of a significant number of the assets, if held in quantity, simultaneously or to dispose of the asset quickly.

As of December 31, 2012 and 2011, the Partnership did not record an allowance for credit losses related to its financing receivables. The Partnership’s recorded investment in financing receivables at December 31, 2012 and 2011 are as follows (in thousands):

December 31, 2012		Finance Leases		Total
Allowance for credit losses:
Ending balance	$	-	$	-
Ending balance: individually evaluated for impairment	$	-	$	-
Ending balance: collectively evaluated for impairment	$	-	$	-
Ending balance: loans acquired with deteriorated credit quality	$	-	$	-
Financing receivables:
Ending balance	$	197	$	197
Ending balance: individually evaluated for impairment	$	197	$	197
Ending balance: collectively evaluated for impairment	$	-	$	-
Ending balance: loans acquired with deteriorated credit quality	$	-	$	-

December 31, 2011		Finance Leases		Total
Allowance for credit losses:
Ending balance	$	-	$	-
Ending balance: individually evaluated for impairment	$	-	$	-
Ending balance: collectively evaluated for impairment	$	-	$	-
Ending balance: loans acquired with deteriorated credit quality	$	-	$	-
Financing receivables:
Ending balance	$	405	$	405
Ending balance: individually evaluated for impairment	$	405	$	405
Ending balance: collectively evaluated for impairment	$	-	$	-
Ending balance: loans acquired with deteriorated credit quality	$	-	$	-

The Partnership evaluates the credit quality of its financing receivables on a scale equivalent to the following quality indicators related to corporate risk profiles:

Pass – Any account whose lessee/debtor, co-lessee/debtor or any guarantor has a credit rating on publicly traded or privately placed debt issues as rated by Moody’s or S&P for either Senior Unsecured debt, Long Term Issuer rating or Issuer rating that are in the tiers of ratings generally recognized by the investment community as constituting an Investment Grade credit rating; or, has been determined by the Manager to be an Investment Grade Equivalent or High Quality Corporate Credit per its Credit Policy or has a Not Rated internal rating by the Manager and the account is not considered by the Chief Credit Officer of the manager to fall into one of the three risk profiles below.

4.Allowance for credit losses (continued):

Special Mention – Any traditional corporate type account with potential weaknesses (e.g. large net losses or major industry downturns) or, any growth capital account that has less than three months of cash as of the end of the calendar quarter to fund their continuing operations. These accounts deserve management’s close attention. If left uncorrected, those potential weaknesses may result in deterioration of the Fund’s receivable at some future date.

Substandard – Any account that is inadequately protected by the current worth and paying capacity of the borrower or of the collateral pledged, if any. Accounts that are so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Fund will sustain some loss as the likelihood of fully collecting all receivables may be questionable if the deficiencies are not corrected. Such accounts are on the Manager’s Credit Watch List.

Doubtful – Any account where the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Accordingly, an account that is so classified is on the Manager’s Credit Watch List, and has been declared in default and the Manager has repossessed, or is attempting to repossess, the equipment it financed. This category includes impaired leases as applicable.

At December 31, 2012 and 2011, the Partnership’s financing receivables by credit quality indicator and by class of financing receivables are as follows (in thousands):

		Finance Leases
		2012		2011
Pass	$	197	$	405
Special mention		-		-
Substandard		-		-
Doubtful		-		-
Total	$	197	$	405

At December 31, 2012 and 2011, investment in financing receivables is aged as follows (in thousands):

December 31, 2012		30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Financing Receivables		Recorded Investment > 90 Days and Accruing
Finance leases	$	-	$	-	$	-	$	-	$	197	$	197	$	-

December 31, 2011		30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Financing Receivables		Recorded Investment > 90 Days and Accruing
Finance leases	$	-	$	-	$	-	$	-	$	405	$	405	$	-

The Partnership did not carry an impairment reserve on its financing receivables at December 31, 2012 and 2011. At December 31, 2012 and 2011, there were no investments in financing receivables with related accounts receivable past due more than 90 days which were still on an accrual basis.

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Partners' Capital (Tables)

12 Months Ended

Dec. 31, 2012

Partners' Capital [Abstract]

Distributions to Other Members

		2012		2011
Distributions declared	$	2,623	$	3,747
Weighted average number of Units outstanding		14,985,550		14,985,550
Weighted average distributions per Unit	$	0.18	$	0.25

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Concentration Of Credit Risk And Major Customers (Tables)

12 Months Ended

Dec. 31, 2012

Concentration Of Credit Risk And Major Customers [Abstract]

Schedule Of Equipment Leased Credit Risk Concentration

	2012	2011
Transportation	61%	53%
Marine vessels	19%	30%

Schedule Of Major Customers Credit Risk Concentration

		Percentage of Total Lease Revenues
Lessee	Type of Equipment	2012	2011
AET Offshore Services, Inc.	Marine vessel	28%	28%
Interstate Commodities	Transportation	16%	11%
Paneltech Products, Inc.	Transportation	*	12%
Genesee & Wyoming Inc.	Transportation	*	11%
* Less than 10%

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Gain Contingencies

12 Months Ended

Dec. 31, 2012

Gain Contingencies [Abstract]

Gain Contingencies

8.Gain contingencies:

The Partnership’s vessel activity in the Gulf of Mexico was severely impacted by the British Petroleum (“BP”) “Deep Water Horizon” oil spill of 2010 which severely adversely impacted charter activity in the Gulf region. BP established a program to compensate those businesses and individuals suffering economic hardship and loss as a result of the Deep Water Horizon oil spill. The Partnership submitted a claim to the BP program administrator seeking an approximate $2.8 million for loss of revenues during the period of the vessel’s diminished activity commencing at the time of the oil spill and continuing through 2010. The BP claim administrator denied the Partnership’s claim on the basis that the Partnership suffered damages as a result of the President’s moratorium on oil drilling subsequent to the Deep Water Horizon accident. The Partnership believes its claim continues to be of merit, and has opted out of the BP claims fund, and is pursuing a claim in a collective action with other similarly situated plaintiffs. Currently, the amount of any compensation or award from BP is extremely difficult to determine. As such, the potential for compensation or award has not been recorded on the Partnership’s books and records.

8.Gain contingencies (continued):

ATEL filed a claim on behalf of the Partnership and certain affiliated entities in Federal court in New Orleans for the under-reporting of revenue by a fleet manager of three marine vessels, seeking to recover an approximate amount of 10% of gross proceeds, which in the aggregate for all affiliated entities represents $2.8 million for the years 2005-2007 (of which the Partnership’s portion is an approximate $1.4 million). The annual allocable portion of the claim is not considered material to the Partnership in any given year. The trial was concluded during the first week of August 2012. As of October 10, 2012, the matter has been in the hands of the Federal Judge to render a decision on both the law and the facts. The decision of the Court is imminent, and the Partnership is hopeful for a recovery of all or portion of its asserted claims, but the outcome of the litigation remains uncertain as of such date. While the Partnership's recovery with respect to this matter may be significant, there is no assurance that judgment will be rendered in favor of the Partnership.

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Related Party Transactions

12 Months Ended

Dec. 31, 2012

Related Party Transactions [Abstract]

Related Party Transactions

6.Related party transactions:

The terms of the Partnership Agreement provide that AFS and/or affiliates are entitled to receive certain fees for equipment management and resale and for management of the Partnership.

The Partnership Agreement allows for the reimbursement of costs incurred by AFS in providing administrative services to the Partnership. Administrative services provided include Partnership accounting, investor relations, legal counsel and lease and equipment documentation. AFS is not reimbursed for services whereby it is entitled to receive a separate fee as compensation for such services, such as disposition of equipment. The Partnership will be liable for certain future costs to be incurred by AFS to manage the administrative services provided to the Partnership.

Each of ATEL Leasing Corporation (“ALC”) and AFS is a wholly-owned subsidiary of ATEL Capital Group and performs services for the Partnership. Acquisition services, equipment management, lease administration and asset disposition services are performed by ALC; investor relations, communications services and general administrative services are performed by AFS.

Cost reimbursements to the General Partner are based on its costs incurred in performing administrative services for the Partnership. These costs are allocated to each managed entity based on certain criteria such as total assets, number of investors or contributed capital based upon the type of cost incurred, subject to limitations as described below.

Incentive management fees are computed as 4.0% of distributions of cash from operations, as defined in the Partnership Agreement and equipment management fees are computed as 3.5% of gross revenues from operating leases, as defined in the Partnership Agreement plus 2.0% of gross revenues from full payout leases, as defined in the Partnership Agreement.

6.Related party transactions (continued):

During the years ended December 31, 2012 and 2011, AFS and/or affiliates earned fees, commissions and reimbursements, pursuant to the Partnership Agreement as follows (in thousands):

		2012		2011
Equipment and incentive management fees to General Partner	$	229	$	208
Cost reimbursements to General Partner		247		750
	$	476	$	958

The Fund’s Limited Partnership Agreement places an annual and cumulative limit for cost reimbursements to AFS and/or its affiliates. Any reimbursable costs incurred by AFS and/or affiliates during the year exceeding the annual and/or cumulative limits cannot be reimbursed in the current year, though such costs may be reimbursable in future years to the extent such amounts may be payable if within the annual and cumulative limits in such future years.The Fund is a finite life and self liquidating entity, and AFS and its affiliates have no recourse against the Fund for the amount of any unpaid excess reimbursable administrative expenses. The Fund will continue to require administrative services from AFS and its affiliates through the end of its term, and will therefore continue to incur reimbursable administrative expenses in each year.The Fund has determined that payment of any amounts in excess of the annual and cumulative limits is not probable, and the date any portion of such amount may be paid, if ever, is uncertain. When the Fund completes its liquidation stage and terminates, any unpaid amount will expire unpaid, with no claim by AFS or its affiliates against any liquidation proceeds or any party for the unpaid balance.For the year ending December 31, 2012, the amount of reimbursable expenses billed to the Fund did not exceed either the annual or the cumulative limitations. It is not anticipated that any further billings to the Fund will equal or exceed the annual or cumulative reimbursable expense limitation. Such is reflective of the continued diminishing Fund asset base over which reimbursements are calculated.

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Guarantees

12 Months Ended

Dec. 31, 2012

Guarantees [Abstract]

Guarantees

7.Guarantees:

The Partnership enters into contracts that contain a variety of indemnifications. The Partnership’s maximum exposure under these arrangements is unknown. However, the Partnership has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.

The General Partner knows of no facts or circumstances that would make the Partnership’s contractual commitments outside standard mutual covenants applicable to commercial transactions between businesses. Accordingly, the Partnership believes that these indemnification obligations are made in the ordinary course of business as part of standard commercial and industry practice, and that any potential liability under the Partnership’s similar commitments is remote. Should any such indemnification obligation become payable, the Partnership would separately record and/or disclose such liability in accordance with GAAP.

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Partners' Capital

12 Months Ended

Dec. 31, 2012

Partners' Capital [Abstract]

Partners' Capital

9.Partners’ capital:

As of December 31, 2012 and 2011, 14,985,550 Units were issued and outstanding. The Partnership was authorized to issue up to 15,000,050 Units, including the 50 Units issued to the Initial Limited Partners, as defined.

The Partnership has the right, exercisable at the General Partner’s discretion, but not the obligation, to repurchase Units of a Unitholder who ceases to be a U.S. Citizen, for a price equal to 100% of the holder’s capital account. The Partnership is otherwise permitted, but not required, to repurchase Units upon a holder’s request. The repurchase of Fund units is made in accordance with Section 13 of the Amended and Restated Agreement of Limited Partnership. The repurchase would be at the discretion of the General Partner on terms it determines to be appropriate under given circumstances, in the event that the General Partner deems such repurchase to be in the best interest of the Partnership; provided,the Partnership is never required to repurchase any Units. Upon the repurchase of any Units by the Fund, the tendered Units are cancelled. Units repurchased in prior periods were repurchased at amounts representing the original investment less cumulative distributions made to the Unitholder with respect to the Units. All Units repurchased during a quarter are deemed to be repurchased effective the last day of the preceding quarter, and are not deemed to be outstanding during, or entitled to allocations of net income, net loss or distributions for the quarter in which such repurchase occurs.

The Partnership’s Net Profits, Net Losses, and Tax Credits are to be allocated 92.5% to the Limited Partners and 7.5% to AFS. In accordance with the terms of the Partnership Agreement, additional allocations of income were made to AFS in 2012 and 2011. The amounts allocated were determined to bring AFS’s ending capital account balance to zero at the end of each period.

As defined in the Partnership Agreement, Available Cash from Operations shall be distributed as follows:

First, Distributions of Cash from Operations shall be 88.5% to the Limited Partners, 7.5% to AFS and 4% to AFS or its affiliate designated as the recipient of the Incentive Management Fee, until the Limited Partners have received Aggregate Distributions in an amount equal to their Original Invested Capital, as defined, plus a 10% per annum cumulative (compounded daily) return on their Adjusted Invested Capital, as defined in the Partnership Agreement.

Second, 85% to the Limited Partners, 7.5% to AFS and 7.5% to AFS or its affiliate designated as the recipient of the Incentive Management Fee.

As defined in the Partnership Agreement, Available Cash from Sales or Refinancing are to be distributed as follows:

First, Distributions of Sales or Refinancing shall be 92.5% to the Limited Partners and 7.5% to AFS, until the Limited Partners have received Aggregate Distributions in an amount equal to their Original Invested Capital, as defined, plus a 10% per annum cumulative (compounded daily) return on their Adjusted Invested Capital.

Second, 85% to the Limited Partners, 7.5% to AFS and 7.5% to AFS or its affiliate designated as the recipient of the Incentive Management Fee.

9.Partners’ capital (continued):

Distributions to Limited Partners were as follows (in thousands except Units and per Unit data):

		2012		2011
Distributions declared	$	2,623	$	3,747
Weighted average number of Units outstanding		14,985,550		14,985,550
Weighted average distributions per Unit	$	0.18	$	0.25

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Allowance For Credit Losses (Net Investment in Financing Receivables by Age) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2012 Finance Leases [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due
60-89 Days Past Due
Greater Than 90 Days
Total Past Due
Current	405	197
Total financing receivable	405	197
Recorded Investment > 90 Days and Accruing

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Investments In Equipment And Leases, Net (Tables)

12 Months Ended

Dec. 31, 2012

Investments In Equipment And Leases, Net [Abstract]

Investment in Leases

		Balance December 31, 2011		Reclassifications & Additions / Dispositions		Depreciation/ Amortization Expense or Amortization of Leases		Balance December 31, 2012
Net investment in operating leases	$	7,075	$	(1,311)	$	(480)	$	5,284
Net investment in direct financing leases		405		(9)		(199)		197
Assets held for sale or lease, net		69		1,215		-		1,284
Total	$	7,549	$	(105)	$	(679)	$	6,765

Property on Operating Leases

		Balance December 31, 2011		Additions		Reclassifications or Dispositions		Balance December 31, 2012
Transportation	$	29,707	$	-	$	(1,018)	$	28,689
Marine vessels		15,675		-		(8,275)		7,400
Materials handling		83		-		-		83
Construction		156		-		(156)		-
		45,621		-		(9,449)		36,172
Less accumulated depreciation		(38,546)		(480)		8,138		(30,888)
Total	$	7,075	$	(480)	$	(1,311)	$	5,284

Components of Partnership's Investment in Direct Financing Leases

		2012		2011
Total minimum lease payments receivable	$	165	$	533
Estimated residual values of leased equipment (unguaranteed)		65		75
Investment in direct financing leases		230		608
Less unearned income		(33)		(203)
Net investment in direct financing leases	$	197	$	405

Future Minimum Lease Payments Receivable

		Operating Leases		Direct Financing Leases		Total
Year ended December 31, 2013	$	1,548	$	165	$	1,713
2014		398		-		398
2015		321		-		321
2016		27		-		27
	$	2,294	$	165	$	2,459

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Summary Of Significant Accounting Policies (Summary of Geographic Information Relating to Sources, by Nation, of Partnership's Total Revenue and Long-Lived Assets) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 4,580	$ 4,701
Percentage of total revenue	100.00%	100.00%
Long-lived assets	6,765	7,549
Percentage of long lived assets	100.00%	100.00%
United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	4,260	4,391
Percentage of total revenue	93.00%	93.00%
Long-lived assets	6,525	7,309
Percentage of long lived assets	96.00%	97.00%
United Kingdom [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues		16
Percentage of total revenue	0.00%	0.00%
Percentage of long lived assets	0.00%	0.00%
Canada [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	320	294
Percentage of total revenue	7.00%	7.00%
Long-lived assets	240	240
Percentage of long lived assets	4.00%	3.00%
Total International [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	320	310
Percentage of total revenue	7.00%	7.00%
Long-lived assets	$ 240	$ 240
Percentage of long lived assets	4.00%	3.00%

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Related Party Transactions (Affiliates Earned Commissions And Billed For Reimbursements Pursuant To Operating Agreement (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Related Party Transactions [Abstract]
Equipment and incentive management fees to General Partner	$ 229	$ 208
Cost reimbursements to General Partner	247	750
Related Party Transaction, Expenses from Transactions with Related Party, Total	$ 476	$ 958

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Statements Of Changes In Partners' Capital (USD $) In Thousands, except Share data	Limited Partner [Member]	General Partner [Member]	Total
Beginning Balance at Dec. 31, 2010	$ 10,838		$ 10,838
Beginning Balance (in units) at Dec. 31, 2010	14,985,550
Distributions to Limited Partners	(3,747)		(3,747)
Distributions to General Partners		(304)	(304)
Net income	792	304	1,096
Ending Balance at Dec. 31, 2011	7,883		7,883
Ending Balance (in units) at Dec. 31, 2011	14,985,550
Distributions to Limited Partners	(2,623)		(2,623)
Distributions to General Partners		(213)	(213)
Net income	1,921	213	2,134
Ending Balance at Dec. 31, 2012	$ 7,181		$ 7,181
Ending Balance (in units) at Dec. 31, 2012	14,985,550

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Concentration Of Credit Risk And Major Customers

12 Months Ended

Dec. 31, 2012

Concentration Of Credit Risk And Major Customers [Abstract]

Concentration Of Credit Risk And Major Customers

3.Concentration of credit risk and major customers:

The Partnership leases equipment to lessees in diversified industries. Leases are subject to AFS’s credit committee review. The leases provide for the return of the equipment upon default.

As of December 31, 2012 and 2011, there were concentrations (defined as greater than 10%) of equipment leased to lessees in certain industries (as a percentage of total equipment cost) as follows:

	2012	2011
Transportation	61%	53%
Marine vessels	19%	30%

3.Concentration of credit risk and major customers (continued):

During 2012 and 2011, certain lessees generated significant portions (defined as 10% or more) of the Partnership’s total lease revenues as follows:

		Percentage of Total Lease Revenues
Lessee	Type of Equipment	2012	2011
AET Offshore Services, Inc.	Marine vessel	28%	28%
Interstate Commodities	Transportation	16%	11%
Paneltech Products, Inc.	Transportation	*	12%
Genesee & Wyoming Inc.	Transportation	*	11%
* Less than 10%

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Summary Of Significant Accounting Policies (Schedule of Differences Between Book Value and Tax Basis of Net Assets) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Summary Of Significant Accounting Policies [Abstract]
Financial statement basis of net assets	$ 7,181	$ 7,883	$ 10,838
Tax basis of net assets (unaudited)	(19,428)	(20,064)
Difference	$ 26,609	$ 27,947

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Investments In Equipment And Leases, Net (Components of Partnership's Investment in Direct Financing Leases) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011
Investments In Equipment And Leases, Net [Abstract]
Total minimum lease payments receivable	$ 165	$ 533
Estimated residual values of leased, equipment (unguaranteed)	65	75
Investment in direct financing leases	230	608
Less unearned income	(33)	(203)
Net investment in direct financing leases	$ 197	$ 405

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Allowance For Credit Losses (Tables)

12 Months Ended

Dec. 31, 2012

Allowance For Credit Losses [Abstract]

Activity in Allowance for Doubtful Accounts

		Accounts Receivable Allowance for Doubtful Accounts				Valuation Adjustments on Financing Receivables		Total Allowance for Credit Losses
		Finance Leases		Operating Leases		Finance Leases
Balance December 31, 2010	$	10	$	1	$	-	$	11
Provision		-		-		-		-
Balance December 31, 2011		10		1		-		11
(Reversal of provision) provision		(10)		132		-		122
Balance December 31, 2012	$	-	$	133	$	-	$	133

Recorded Investment in Financing Receivables

December 31, 2012		Finance Leases		Total
Allowance for credit losses:
Ending balance	$	-	$	-
Ending balance: individually evaluated for impairment	$	-	$	-
Ending balance: collectively evaluated for impairment	$	-	$	-
Ending balance: loans acquired with deteriorated credit quality	$	-	$	-
Financing receivables:
Ending balance	$	197	$	197
Ending balance: individually evaluated for impairment	$	197	$	197
Ending balance: collectively evaluated for impairment	$	-	$	-
Ending balance: loans acquired with deteriorated credit quality	$	-	$	-

December 31, 2011		Finance Leases		Total
Allowance for credit losses:
Ending balance	$	-	$	-
Ending balance: individually evaluated for impairment	$	-	$	-
Ending balance: collectively evaluated for impairment	$	-	$	-
Ending balance: loans acquired with deteriorated credit quality	$	-	$	-
Financing receivables:
Ending balance	$	405	$	405
Ending balance: individually evaluated for impairment	$	405	$	405
Ending balance: collectively evaluated for impairment	$	-	$	-
Ending balance: loans acquired with deteriorated credit quality	$	-	$	-

Financing Receivables by Credit Quality Indicator and by Class

		Finance Leases
		2012		2011
Pass	$	197	$	405
Special mention		-		-
Substandard		-		-
Doubtful		-		-
Total	$	197	$	405

Net Investment in Financing Receivables by Age

December 31, 2012		30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Financing Receivables		Recorded Investment > 90 Days and Accruing
Finance leases	$	-	$	-	$	-	$	-	$	197	$	197	$	-

December 31, 2011		30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Financing Receivables		Recorded Investment > 90 Days and Accruing
Finance leases	$	-	$	-	$	-	$	-	$	405	$	405	$	-