Non-recourse Loan Payable

6 Months Ended

Jun. 30, 2013

10.	Non-recourse Loan Payable

On June 19, 2013, Bravo borrowed $5,860,085 from an unrelated insurance company and interest accrues at 7.75% per year. The majority of the proceeds were used to acquire various types of leased equipment from SQN Fund II. Bravo has the ability to borrow additional amounts, at monthly intervals, between July 2013 and January 2014 which cumulatively total $5,508,000. The insurance company, as collateral, has a first priority security interest in all of the leased assets acquired by Bravo. The insurance company has the right to receive 100% of the cash proceeds from all of these leased assets, including the leased assets transferred from the Partnership into Bravo, until the loan is repaid in full. Beginning July 31, 2013 and monthly thereafter, Bravo will remit all of the cash received from its leased assets to be applied first against interest with any excess applied against the outstanding principal balance. There is no stated repayment term for the principal.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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