UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q


                                   (Mark One)

    [X]     QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
                              EXCHANGE ACT OF 1934

             For the quarterly period ended      September 30, 2002
                                            -----------------------

                                       OR

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

                    For the transition period from to       .
                                                     --------


                           Commission File No. 0-21444

                             AFG INVESTMENT TRUST C
                             ----------------------
             (Exact name of registrant as specified in its charter)


  Delaware                                                           04-3157232
    (State or other jurisdiction of                             (IRS Employer
   incorporation or organization)                         Identification No.)

         1050 Waltham Street, Suite 310, Lexington, MA            02421
   (Address of principal executive offices)                        (Zip Code)

Registrant's  telephone  number,  including  area  code     (781)  676-0009
                                                        -------------------


(Former  name,  former  address  and  former  fiscal year, if changed since last
report.)

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



<PAGE>



                             AFG INVESTMENT TRUST C

                                    FORM 10-Q

                                      INDEX




<TABLE>
<CAPTION>


PART I. FINANCIAL INFORMATION:                                                   Page
                                                                                 ----
<S>                                                                              <C>
     Item 1. Financial Statements

                Statements of Financial Position
                at September 30, 2002 and December 31, 2001                         3

                Statements of Operations
                for the Three and Nine Months Ended September 30, 2002 and 2001     4

                Statement of Changes in Participants' Capital
                for the Nine Months Ended September 30, 2002                        5

                Statements of Cash Flows
                for the Nine Months Ended September 30, 2002 and 2001               6

                Notes to the Financial Statements                                   7


     Item 2. Management's Discussion and Analysis of Financial
                 Condition and Results of Operations                               20

     Item 3. Quantitative and Qualitative Disclosures about Market Risk            30

     Item 4. Controls and Procedures                                               30

PART II. OTHER INFORMATION:

     Item 1 - 6                                                                    31
</TABLE>

















<PAGE>

                             AFG INVESTMENT TRUST C

                        STATEMENTS OF FINANCIAL POSITION

                    SEPTEMBER 30, 2002 AND DECEMBER 31, 2001

                                   (UNAUDITED)
<TABLE>
<CAPTION>

                                                            September 30,    December 31,
                                                                2002             2001
                                                           ---------------  --------------
ASSETS
<S>                                                        <C>              <C>

Cash and cash equivalents                                  $      857,210   $   1,716,588
Rents receivable                                                   47,849         124,627
Accounts receivable - affiliate                                   109,637         103,602
Loan receivable - EFG/Kettle Development LLC                      145,224         176,070
Interest in EFG/Kettle Development LLC                          3,781,524       3,916,771
Interest in EFG Kirkwood LLC                                    2,957,331       3,002,735
Interest in MILPI Holdings, LLC                                10,502,187       8,518,577
Interest in C & D IT LLC                                        1,000,000               -
Investments - other                                               262,787         264,513
Other assets, net of accumulated amortization
  of $82,317 and $47,039 at September 30, 2002
  and December 31, 2001, respectively                             410,923         433,506
Equipment at cost, net of accumulated depreciation
  of $27,316,476 and $27,813,022 at September 30, 2002
  and December 31, 2001, respectively                          18,437,522      23,913,730
                                                           ---------------  --------------

      Total assets                                         $   38,512,194   $  42,170,719
                                                           ===============  ==============

LIABILITIES AND PARTICIPANTS' CAPITAL

Notes payable                                              $   19,263,085   $  22,382,964
Note payable - affiliate                                          719,760               -
Accrued interest                                                  133,111          38,807
Accrued interest - affiliate                                       19,972               -
Accrued liabilities                                               231,158         135,019
Accrued liabilities - affiliates                                   31,905         150,695
Deferred rental income                                              8,062         277,357
Other liabilities                                               1,598,455       1,596,510
                                                           ---------------  --------------
     Total liabilities                                         22,005,508      24,581,352
                                                           ---------------  --------------

Participants' capital (deficit):
   Managing Trustee                                               (25,231)        (56,972)
   Special Beneficiary                                                  -               -
   Class A Beneficiary interests (1,787,153 interests;
     initial purchase price of $25 each)                       18,870,284      19,984,706
   Class B Beneficiary interests (3,024,740 interests;
     initial purchase price of $5 each)                                 -               -
   Treasury interests (223,861 Class A interests at cost)      (2,338,367)     (2,338,367)
                                                           ---------------  --------------
     Total participants' capital                               16,506,686      17,589,367
                                                           ---------------  --------------

     Total liabilities and participants' capital           $   38,512,194   $  42,170,719
                                                           ===============  ==============
</TABLE>






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

<PAGE>

                             AFG INVESTMENT TRUST C

                            STATEMENTS OF OPERATIONS

         FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                        For the Three Months Ended              For the Nine Months Ended
                                                                    September 30,                      September 30,
                                                             2002             2001                2002               2001
                                                   ------------------  -----------------  -----------------  ----------------

<S>                                                <C>                 <C>                <C>                <C>
REVENUES

Lease revenue                                      $       1,333,477   $      1,690,959   $      4,186,474   $     4,941,320
Interest income                                                3,842             22,425             10,272           126,411
Gain on sale of equipment                                      2,506              7,634            106,439           121,633
Loss on sale of equipment                                     (8,028)                 -           (288,661)                -
Other income                                                       -             15,369                  -           100,505
                                                   ------------------  -----------------  -----------------  ----------------
  Total revenues                                           1,331,797          1,736,387          4,014,524         5,289,869
                                                   ------------------  -----------------  -----------------  ----------------

EXPENSES

Depreciation and amortization                                773,043            979,590          2,455,004         2,943,739
Write-down of equipment                                            -                  -            483,648                 -
Interest expense                                             442,070            435,032          1,453,268         1,550,209
Interest expense - affiliate                                   8,059                  -             19,972                 -
Management fees - affiliates                                 104,473             63,959            321,209           280,680
Operating expenses - affiliate                                87,866            248,468            232,317           996,652
Operating expenses                                           328,173                  -            511,648                 -
                                                   ------------------  -----------------  -----------------  ----------------
  Total expenses                                           1,743,684          1,727,049          5,477,066         5,771,280
                                                   ------------------  -----------------  -----------------  ----------------
EQUITY INTERESTS

Equity in net loss of EFG/Kettle Development LLC             (40,031)           (13,455)          (135,247)         (521,998)
Equity in net income (loss) of EFG Kirkwood LLC             (800,332)          (774,605)           (45,404)          212,634
Equity in net income of MILPI Holdings, LLC                   38,891            474,256            560,512           584,314
                                                   ------------------  -----------------  -----------------  ----------------
  Total income (loss) from equity interests                 (801,472)          (313,804)           379,861           274,950
                                                   ------------------  -----------------  -----------------  ----------------

Net loss                                           $      (1,213,359)  $       (304,466)  $     (1,082,681)  $      (206,461)
                                                   ------------------  -----------------  -----------------  ----------------



Net income (loss)
   per Class A Beneficiary Interest                $           (0.67)  $          (0.17)  $          (0.62)  $          0.14
   per Class B Beneficiary Interest                $               -   $              -   $              -   $         (0.11)
                                                   ==================  =================  =================  ================
Cash distributions declared
   per Class A Beneficiary Interest                $               -   $              -   $              -   $             -
   per Class B Beneficiary Interest                $               -   $              -   $              -   $             -
                                                   ==================  =================  =================  ================
Weighted Average Class A Beneficiary
   Interest Outstanding                                    1,787,153          1,787,153          1,787,153         1,787,153
Weighted Average Class B Beneficiary
  Interests Outstanding                                    3,024,740          3,024,740          3,024,740         3,024,740
</TABLE>




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

<PAGE>

                             AFG INVESTMENT TRUST C

                  STATEMENT OF CHANGES IN PARTICIPANTS' CAPITAL

                  FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002

                                   (UNAUDITED)


<TABLE>
<CAPTION>


                                     Managing           Special
                                      Trustee         Beneficiary     Class A Beneficiaries          -
                                                                      ---------------------
                                      Amount             Amount             Interests             Amount
<S>                              <C>                <C>               <C>                    <C>
                                  ---------------    ---------------        ---------------   ---------------
 Balance at December 31, 2001    $        (56,972)  $              -              1,787,153  $     19,984,706

   Net income (loss)                       31,741                  -                      -        (1,114,422)
                                 -----------------  ----------------  ---------------------  -----------------

 Balance at September 30, 2002   $        (25,231)  $              -              1,787,153  $     18,870,284
                                 =================  ================  =====================  =================



                                 Class B Beneficiaries         -              Treasury
                                 ---------------------
                                       Interests             Amount           Interests            Total
<S>                              <C>                    <C>               <C>                <C>
                                       ---------------   ---------------   ---------------    ---------------
 Balance at December 31, 2001                3,024,740  $              -  $     (2,338,367)  $     17,589,367

   Net income (loss)                                 -                 -                 -         (1,082,681)
                                 ---------------------  ----------------  -----------------  -----------------

 Balance at September 30, 2002               3,024,740  $              -  $     (2,338,367)  $     16,506,686
                                 =====================  ================  =================  =================
</TABLE>



















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



<PAGE>
                             AFG INVESTMENT TRUST C

                            STATEMENTS OF CASH FLOWS

              FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001

                                   (UNAUDITED)
<TABLE>
<CAPTION>

                                                              2002            2001
..                                                         ------------    ------------
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES
<S>                                                      <C>             <C>
Net loss                                                 $  (1,082,681)  $    (206,461)
Adjustments to reconcile net loss to net
 cash provided by operating activities:
  Depreciation and amortization                              2,455,004       2,943,739
  Gain on sale of equipment                                   (106,439)       (121,633)
  Loss on sale of equipment                                    288,661               -
  Write-down of equipment                                      483,648               -
  Income from equity interests                                (379,861)       (274,950)
Changes in assets and liabilities:
  Rents receivable                                              76,778          41,441
  Accounts receivable - affiliate                               (6,035)        336,617
  Guarantee fee receivable                                           -         126,000
  Interest receivable                                                -           8,420
  Other assets                                                 (12,695)        (44,904)
  Accrued interest                                              94,304        (159,131)
  Accrued interest - affiliate                                  19,972               -
  Accrued liabilities                                           96,139        (167,758)
  Accrued liabilities - affiliates                            (118,790)         29,740
  Deferred rental income                                      (269,295)          3,899
  Other liabilities                                              1,945          71,269
                                                         --------------  --------------
    Net cash provided by operating activities                1,540,655       2,586,288
                                                         --------------  --------------

CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES

Proceeds from equipment sales                                2,390,612         181,784
Investments - other                                              1,726             500
Loan receivable - EFG/Kettle Development LLC                    30,846               -
Interest in C & D IT LLC                                    (1,000,000)              -
Dividend received from MILPI Holdings, LLC                   1,000,092               -
Acquisition fees paid to affiliate                             (23,991)        (74,037)
Interest in MILPI Holdings, LLC                             (2,399,199)     (6,995,746)
                                                         --------------  --------------
    Net cash provided by (used in) investing activities             86      (6,887,499)
                                                         --------------  --------------

CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES

Proceeds from note payable                                     485,000         471,032
Proceeds from note payable - affiliate                         719,760               -
Principal payments - notes payable                          (3,604,879)     (3,359,342)
                                                         --------------  --------------
    Net cash used in financing activities                   (2,400,119)     (2,888,310)
                                                         --------------  --------------

Net decrease in cash and cash equivalents                     (859,378)     (7,189,521)
Cash and cash equivalents at beginning of period             1,716,588       8,848,816
                                                         --------------  --------------
Cash and cash equivalents at end of period               $     857,210   $   1,659,295
                                                         ==============  ==============

SUPPLEMENTAL INFORMATION

Cash paid during the period for interest                 $   1,358,964   $   1,709,340
                                                         ==============  ==============
</TABLE>


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

<PAGE>

                             AFG INVESTMENT TRUST C

                        NOTES TO THE FINANCIAL STATEMENTS

                               SEPTEMBER 30, 2002

                                   (UNAUDITED)


NOTE  1  -  BASIS  OF  PRESENTATION
-----------------------------------

The  financial  statements  presented  herein  are  prepared  in conformity with
generally accepted accounting principles and the instructions for preparing Form
10-Q  under  Rule  10-01  of  Regulation  S-X  of  the  Securities  and Exchange
Commission  and  are  unaudited.  As  such,  these  financial  statements do not
include  all  information  and  footnote  disclosures  required  under generally
accepted  accounting  principles  for  complete  financial  statements  and,
accordingly, the accompanying financial statements should be read in conjunction
with  the  footnotes  presented  in  the 2001 Annual Report (Form 10-K/A) of AFG
Investment Trust C (the "Trust").  Except as disclosed herein, there has been no
material change to the information presented in the footnotes to the 2001 Annual
Report  included  in  Form  10-K/A.

In  the  opinion  of  management,  all  adjustments  (consisting  of  normal and
recurring  adjustments)  considered  necessary  to  present fairly the financial
position  at September 30, 2002 and December 31, 2001, results of operations for
the  three  and  nine  month  periods  ended September 30, 2002 and 2001 and the
statement  of  changes  in participants capital and statements of cash flows for
the  nine  months  ended  September  30,  2002 have been made and are reflected.
Certain  amounts  previously  reported  have been reclassified to conform to the
September  30,  2002  financial statement presentation.  These reclassifications
did  not  have  any  effect  on  total  assets, total liabilities, participants'
capital,  or  net  income  (loss).

The  table below details the allocation of income (loss) in each of the quarters
for  the  nine  months  ended  September  30,  2002:

<TABLE>
<CAPTION>


..                           Managing      Special         Class A          Class B        Treasury
Participants' Capital       Trustee     Beneficiary    Beneficiaries    Beneficiaries    Interests       Total
<S>                        <C>         <C>            <C>              <C>              <C>           <C>
December 31, 2001          $ (56,972)  $          -   $   19,984,706   $            -   $(2,338,367)  $17,589,367

Net income (restated)         70,806        114,128          989,012          266,392             -     1,440,338
                           ----------  -------------  ---------------  ---------------  ------------  ------------
March 31, 2002 (restated)     13,834        114,128       20,973,718          266,392    (2,338,367)   19,029,705

Net loss (restated)          (26,931)      (114,128)        (902,209)        (266,392)            -    (1,309,660)
                           ----------  -------------  ---------------  ---------------  ------------  ------------
June 30, 2002  (restated)    (13,097)             -       20,071,509                -    (2,338,367)   17,720,045

Net loss                     (12,134)             -       (1,201,225)               -             -    (1,213,359)
                           ----------  -------------  ---------------  ---------------  ------------  ------------
September 30, 2002         $ (25,231)  $          -   $   18,870,284   $            -   $(2,338,367)  $16,506,686
                           ==========  =============  ===============  ===============  ============  ============
</TABLE>




NOTE  2  -  REVENUE  RECOGNITION
--------------------------------

Rents  are  payable  to  the  Trust  monthly,  quarterly or semi-annually and no
significant  amounts  are  calculated on factors other than the passage of time.
The  leases are accounted for as operating leases and are noncancellable.  Rents
received  prior  to  being earned are deferred.  In certain instances, the Trust
may  enter primary-term, renewal or re-lease agreements, which expire beyond the
Trust's anticipated dissolution date of December 31, 2004.  This circumstance is
not  expected  to prevent the orderly wind-up of the Trust's business activities
as  AFG  ASIT  Corporation,  the  managing  trustee  of the Trust (the "Managing
Trustee")  and  the  Trust's  advisor  would  seek  to  sell  the then-remaining
equipment  assets  either  to  the  lessee  or  to  a  third  party, taking into
consideration  the  amount  of  future noncancellable rental payments associated
with the attendant lease agreements.  Future minimum rents of $5,193,451 are due
as  follows:
<TABLE>
<CAPTION>

<S>                                <C>    <C>
For the year ending September 30,   2003  $4,684,769
                                    2004     416,538
                                    2005      92,144
                                          ----------

..                                  Total  $5,193,451
                                          ==========
</TABLE>



NOTE  3  -  EQUIPMENT
---------------------

The  following  is  a  summary  of equipment owned by the Trust at September 30,
2002.  Remaining  Lease  Term  (Months), as used below, represents the number of
months  remaining  from  September  30, 2002 under contracted lease terms and is
presented  as  a  range  when  more than one lease agreement is contained in the
stated  equipment  category.  A  Remaining  Lease  Term  equal  to zero reflects
equipment  either  held for sale or re-lease or being leased on a month-to-month
basis.
<TABLE>
<CAPTION>

                                               Remaining
                                               Lease Term   Equipment
Equipment Type                                    (Months)  at Cost
---------------------------------------------  -----------  -------------
<S>                                            <C>          <C>
Aircraft                                             15-33  $ 32,134,911
Manufacturing                                         0-11     8,857,157
Materials handling                                     0-5     2,848,759
Computer and peripherals                               0-8     1,716,673
Other                                                   11       196,498
                                                            -------------
   Total equipment cost                                  -    45,753,998
   Accumulated depreciation                              -   (27,316,476)
                                                            -------------
   Equipment, net of accumulated depreciation            -  $ 18,437,522
                                                            =============
</TABLE>


Equipment  with  an  approximate original cost of $33,768,000 is proportionately
owned  with  other  affiliated  entities.

All  of  the aircraft and related lease payment streams were used to secure term
loans  with  third-party  lenders.  The  preceding summary of equipment includes
leveraged  equipment  having an original cost of approximately $33,409,000 and a
net  book  value  of  approximately  $17,229,000  at  September  30,  2002.

The  summary above includes equipment held for sale or re-lease with an original
cost  of approximately $2,776,000 and a net book value of approximately $32,000.
The  Managing  Trustee is actively seeking the sale or re-lease of all equipment
not on lease.  In addition, the summary above includes equipment being leased on
a  month-to-month  basis.

The  Trust  accounts  for  impairment  of  long-lived  assets in accordance with
Statement  of  Financial  Accounting Standards ("SFAS") No. 144, "Accounting for
the  Impairment  or  Disposal  of  Long-Lived Assets" which was issued in August
2001.  SFAS  No.  144 requires that long-lived assets be reviewed for impairment
whenever  events or changes in circumstances indicate that the net book value of
the  assets  may not be recoverable from undiscounted future cash flows.  During
the  nine  months  ended  September 30, 2002, the Trust recorded a write-down of
equipment,  representing  an  impairment  to  the  carrying value of the Trust's
interest  in  a  McDonnell  Douglas  MD-87  aircraft.  The  resulting  charge of
$483,648 was based on a comparison of estimated fair value and carrying value of
the Trust's interest in the aircraft.   The estimate of the fair value was based
on  a  current  offer  to  purchase  the  aircraft  and (ii) EFG's assessment of
prevailing  market  conditions  for  similar aircraft.  Aircraft condition, age,
passenger  capacity,  distance  capability,  fuel  efficiency, and other factors
influence  market  demand  and  market  values  for passenger jet aircraft.  The
events  of  September 11, 2001, along with a recession in the United States have
continued to adversely affect the market demand for both new and used commercial
aircraft.


NOTE  4  -  INTEREST  IN  EFG/KETTLE  DEVELOPMENT  LLC
------------------------------------------------------

On March 1, 1999, the Trust and an affiliated trust (collectively, the "Buyers")
formed EFG/Kettle Development LLC, a Delaware limited liability company, for the
purpose  of  acquiring a 49.9% indirect ownership interest (the "Interest") in a
real  estate  development  in  Kelowna, British Columbia in Canada called Kettle
Valley. EFG/Kettle Development LLC, upon receiving the Buyers' contributions for
their  membership  interests,  purchased  the  Interest  from  a special purpose
company  ("SPC")  whose subsidiaries own a 99.9% limited partnership interest in
Kettle  Valley  Development  Limited  Partnership  ("KVD  LP").  The SPC and its
subsidiaries  were  established  by the seller, in part, for income tax purposes
and  have no business interests other than the development of Kettle Valley. KVD
LP is a Canadian Partnership that owns the property, consisting of approximately
280  acres of land. The project is zoned for 1,120 residential units in addition
to  commercial  space.  To date, 123 residential units have been constructed and
sold.  The  seller  is  an unaffiliated third-party company and has retained the
remaining  50.1%  ownership  interest  in  the  SPC.  A newly organized Canadian
affiliate  of  EFG  replaced  the original general partner of KVD LP on March 1,
1999.

The  Trust's  ownership share in EFG/Kettle Development LLC is 50.604% and had a
cost  of  $4,472,129,  including  a  1% acquisition fee of $44,729 paid to Equis
Financial  Group  L.P.,  ("EFG").  The  acquisition  was  funded  with  cash  of
$3,139,648  and  a  non-recourse  note  for  $1,332,481,  which was repaid as of
December  31,  2001.

The  Trust's cost basis in this joint venture was approximately $658,000 greater
than its equity interest in the underlying net assets at December 31, 1999. This
difference  was being amortized using a period of 10 years. The amount amortized
had  been  included  in  amortization  expense as an offset to Interest in EFG /
Kettle  Valley  Development  LLC  and  was  $49,350 during the nine months ended
September  30,  2001.  In  accordance  with  Statement  of  Financial Accounting
Standards No. 142, "Goodwill and Other Intangible Assets" ("SFAS. No. 142"), the
discontinuance  of  goodwill  amortization  was effective as of January 1, 2002.

The  Trust accounts for its interest in Kettle Valley using the equity method of
accounting.  Under  the equity method of accounting, the Trust's interest is (i)
increased (decreased) to reflect the Trust's share of income (loss) of the joint
venture  and (ii) decreased to reflect any distributions the Trust received from
the  joint venture.  The Trust's interest was decreased by $40,031 and decreased
by  $135,247,  respectively,  during  the  three  and  nine  month periods ended
September  30,  2002 and decreased by $13,455 and $521,998, respectively, during
the  same  periods  in  2001,  reflecting  the Trust's share of income/loss from
Kettle  Valley.  No  distributions  were  received from Kettle Valley during the
three  and  nine  months  ended  September  30,  2002  and  2001.

In  addition,  the  seller  of the Trust's interest in Kettle Valley purchased a
residual  sharing  interest in a Boeing 767-300 aircraft owned by the Buyers and
leased  to  Scandinavian Airlines System ("SAS").  The seller paid $3,013,206 to
the  Buyers  ($1,524,803,  or  50.604%  to the Trust) for the residual interest,
which  is  subordinate to certain preferred payments to be made to the Buyers in
connection  with  the  aircraft. Payment of the residual interest is due only to
the extent that the Trust receives net residual proceeds from the aircraft.  The
residual  interest  is  non-recourse  to  the  Buyers  and  is included in Other
Liabilities  on  the  accompanying  Statements  of  Financial  Position  at both
September  30,  2002  and  December  31,  2001.

The  table  below  provides comparative summarized income statement data for KVD
LP.  KVD  LP  has  a  January  31  fiscal year end.  The Trust has a December 31
fiscal  year  end.  The  operating  results  of  KVD  LP  shown  below have been
conformed  to  the  three  and  nine  months  ended September 30, 2002 and 2001.

<TABLE>
<CAPTION>


                    Three Months          Three Months          Nine Months           Nine Months
                       Ended                 Ended                 Ended                 Ended
                 September 30, 2002    September 30, 2001    September 30, 2002    September 30, 2001
                --------------------  --------------------  --------------------  --------------------
<S>             <C>                   <C>                   <C>                   <C>
Total revenues  $         1,004,247   $           766,593   $         2,291,218   $         1,951,907
Total expenses           (1,162,948)          (   798,006)           (2,662,128)           (2,746,612)
                --------------------  --------------------  --------------------  --------------------
Net loss        $          (158,701)             ($31,413)  $          (370,910)            ($794,705)
                ====================  ====================  ====================  ====================
</TABLE>



EFG/Kettle  Development  LLC  owns a 49.9% interest in a company (the "Company")
which,  through  two wholly-owned subsidiaries, owns a 99.9% interest in KVD LP.
For  the  nine  months ended September 30, 2002, in addition to its share of the
loss of KVD LP, the Trust's net loss from EFG/Kettle Development includes a loss
of  $41,818  reflecting the Trust's share of the operating results of one of the
Company's  wholly-owned  subsidiaries.

NOTE  5  -  INTEREST  IN  EFG  KIRKWOOD  LLC
--------------------------------------------

On  May  1,  1999,  the  Trust  and  three  affiliated  trusts (collectively the
"Trusts")  and an affiliated corporation, Semele Group Inc. ("Semele"), formed a
joint  venture,  EFG Kirkwood LLC ("EFG Kirkwood"), for the purpose of acquiring
preferred  and  common stock interests in Kirkwood Associates Inc. ("KAI").  The
Trusts collectively own 100% of the Class A membership interests in EFG Kirkwood
and  Semele  owns 100% of the Class B membership interests in EFG Kirkwood.  The
Class  A  interest  holders  are  entitled to certain preferred returns prior to
distribution payments to the Class B interest holder.   The Trusts' interests in
EFG  Kirkwood  constitute  50% of the voting securities of that entity under the
operating  agreement for the LLC, which gives equal voting rights to Class A and
Class  B  membership  interests.  The  Managing  Trustee  is  the manager of EFG
Kirkwood.

On April 30, 2000, KAI's ownership interests in certain assets and substantially
all  of  its  liabilities  were  transferred  to  Mountain  Resort  Holdings LLC
("Mountain  Resort").  On  May  1,  2000, EFG Kirkwood exchanged its interest in
KAI's common and preferred stock for corresponding pro-rata membership interests
in  Mountain  Resort.  EFG  Kirkwood  holds  approximately 38% of the membership
interests  in  Mountain  Resort.  Mountain  Resort,  through  four  wholly owned
subsidiaries,  owns  and  operates  the  Kirkwood  Mountain Resort, a ski resort
located  in  northern  California,  a  public  utility  that  services the local
community, and land that is held for residential and commercial development. The
Trust  holds  40%  of  EFG  Kirkwood's  Class  A  membership  interests.

On  May  1,  2000,  EFG  Kirkwood  acquired  50%  of the membership interests in
Mountain  Springs  Resorts LLC ("Mountain Springs"). Mountain Springs, through a
wholly owned subsidiary, owns 80% of the common membership interests and 100% of
the  Class B Preferred membership interests in an entity that owns the Purgatory
Ski  Resort  ("Purgatory")  in  Durango,  Colorado.

The  Trust's  ownership  interest  in  EFG  Kirkwood  had  an  original  cost of
$3,994,150;  including  a 1% acquisition fee of $39,546 paid to EFG. The Trust's
ownership interest in EFG Kirkwood is accounted for on the equity method and the
Trust  recorded  a  loss  of  $800,332 and $45,404 for the three and nine months
ended  September  30,  2002,  respectively,  compared  to a loss of $774,605 and
income of $212,634, respectively, for the same periods in 2001, representing its
pro-rata  share of the net income (loss) of EFG Kirkwood.  The operating results
of EFG Kirkwood for the nine months ended September 30, 2002 included additional
equity  income  of $106,700 related to the difference between the purchase price
and  the  fair  value  of  EFG  Kirkwood's  investment  in  Mountain Resort.  No
distributions were received from EFG Kirkwood in the three and nine months ended
September  30,  2002.

The  table  below  provides  comparative  summarized  income  statement data for
Mountain Resort and the Purgatory Ski Resort for the three and nine months ended
September 30, 2002 and 2001.  The operating companies have different fiscal year
end  dates  than  the  Trust.  Therefore, the operating results shown below have
been  conformed  to the three and nine months ended September 30, 2002 and 2001.

<TABLE>
<CAPTION>


                         For the Three    For the Three    For the Nine     For the Nine
                         Months Ended     Months Ended     Months Ended     Months Ended
                         September 30,    September 30,    September 30,    September 30,
                             2002             2001             2002             2001
                        ---------------  ---------------  ---------------  ---------------
<S>                     <C>              <C>              <C>              <C>
Mountain Resort
----------------------
     Total revenues     $    2,081,696   $    1,843,196   $   22,557,778   $   22,412,384
     Total expenses         (4,583,163)      (4,395,043)     (21,147,362)     (21,793,819)
                        ---------------  ---------------  ---------------  ---------------
     Net income (loss)  $   (2,501,467)  $   (2,551,847)  $    1,410,416   $      618,565
                        ---------------  ---------------  ---------------  ---------------

Purgatory Ski Resort
----------------------
     Total revenues     $    1,166,268   $      868,486   $   11,048,152   $   12,014,674
     Total expenses         (3,271,373)      (2,966,166)     (12,555,719)     (11,542,289)
                        ---------------  ---------------  ---------------  ---------------
     Net income (loss)  $   (2,105,105)  $   (2,097,680)  $   (1,507,567)  $      472,385
                        ---------------  ---------------  ---------------  ---------------
</TABLE>




NOTE  6  -  INTEREST  IN  MILPI  HOLDINGS,  LLC
-----------------------------------------------

In  December 2000, the Trusts formed MILPI Holdings, LLC ("MILPI"), which formed
MILPI  Acquisition  Corp.  ("MILPI  Acquisition),  a  wholly owned subsidiary of
MILPI.  The Trusts collectively paid $1.2 million for their membership interests
in  MILPI  ($408,000  for  the  Trust)  and  MILPI purchased the shares of MILPI
Acquisition  for  an  aggregate  purchase  price of $1.2 million at December 31,
2000.  MILPI  Acquisition  entered into a definitive agreement (the "Agreement")
with PLM International, Inc., ("PLM"), an equipment leasing and asset management
company, for the purpose of acquiring up to 100% of the outstanding common stock
of  PLM,  for  an approximate purchase price of up to $27 million. In connection
with the acquisition, on December 29, 2000, MILPI Acquisition commenced a tender
offer  to  purchase  any  and  all  of  PLM's  outstanding  common  stock.

Pursuant  to the cash tender offer, MILPI Acquisition acquired approximately 83%
of PLM's outstanding common stock in February 2001 for a total purchase price of
approximately $21.8 million. The Trust's 34% membership interest in MILPI, prior
to  its  additional  acquisition in February 2002 described below, had a cost of
$7,543,992, including associated fees and capitalized costs.  Under the terms of
the  Agreement,  with  the  approval  of the holders of 50.1% of the outstanding
common  stock of PLM, MILPI Acquisition would merge into PLM, with PLM being the
surviving  entity.  The merger was completed when MILPI obtained approval of the
merger  from  PLM's  shareholders pursuant to a special shareholders' meeting on
February  6,  2002.

On  February  7,  2002,  the  Trust  and  AFG  Investment  Trust  D  ("Trust D")
collectively provided approximately $4.4 million to acquire the remaining 17% of
PLM's  outstanding common stock, of which $2,423,190 (including acquisition fees
of  $23,991  discussed  below)  was  contributed  by  the  Trust. The funds were
obtained  from existing resources and internally generated funds and by means of
a  364  day,  unsecured  loan  from  PLM  evidenced  by a promissory note in the
principal amount of $719,760 that bears interest at LIBOR plus 200 basis points.
Subsequent  to  the merger, the Trust's ownership interest increased from 34% to
37.5%.

Effective  February  2002,  the  Trust  has a 37.5% membership interest in MILPI
having an original cost of $9,967,182. The cost of the Trust's interest in MILPI
reflects MILPI's cost of acquiring the common stock of PLM, including the amount
paid  for  the  shares  tendered of $9,802,945, capitalized transaction costs of
$66,209  and a 1% acquisition fee paid to a wholly-owned subsidiary of Semele of
$98,028.  The  Trust  capitalized  these transaction costs, of which $28,211 was
amortized  during  the  nine  months  ended  September  30,  2001.  Statement of
Financial  Accounting  Standards No. 142, "Goodwill and Other Intangible Assets"
("SFAS  No. 142") was effective for the Trust as of January 1, 2002 and requires
the discontinuance of goodwill amortization as of January 1, 2002.  SFAS No. 142
also  requires  the  Trust  to  complete a transitional goodwill impairment test
within  six  months  from  January  1,  2002,  the  date  of adoption. The Trust
completed  the  goodwill  impairment analysis during the quarter ended September
30,  2002.  There  was no impact on the Trust's financial statements as a result
of  this  analysis.

Equis  II  Corporation  has  voting  control of the Trusts and owns the Managing
Trustee  of  the  Trusts.  Semele  owns Equis II Corporation.  Mr. Engle and Mr.
Coyne,  who  are  directors  and  officers  of the Trust, respectively, are also
officers  and  directors  of, and own significant stock in Semele.  In addition,
Mr.  Engle  and  Mr.  Coyne  are  officers  and  directors  of  MILPI.

The  Trust's  ownership  interest in MILPI is accounted for on the equity method
and  the  Trust  recorded  income $38,891 and $560,512, respectively, during the
three  and  nine months ended September 30, 2002, compared to income of $474,256
and  $584,314, respectively, for the same periods in 2001, which represented its
pro-rata  share of the net income of MILPI.  On March 12, 2002, PLM declared and
paid  a  cash  dividend  to  MILPI  of  approximately  $2.7 million.  MILPI then
declared  and  paid  a cash dividend of approximately $2.7 million, of which the
Trust's  share  was  $1,000,092.

The  table  below  provides  summarized  income statement data for MILPI for the
three  and  nine  months ended September 30, 2002 and 2001.  As discussed above,
approximately  83%  of PLM's common stock was acquired in February 2001 with the
remaining  interest  acquired  in  February  2002.

<TABLE>
<CAPTION>


..                             Three Months         Three Months          Nine Months          Nine Months
..                                 Ended                Ended                Ended                Ended
..                          September 30, 2002   September 30, 2001   September 30, 2002   September 30, 2001
                           -------------------  -------------------  -------------------  -------------------
<S>                        <C>                  <C>                  <C>                  <C>
 Total revenues            $           978,111  $         3,600,074  $         4,356,689  $         9,212,864
 Total costs and expenses              588,073            1,442,123            1,956,162            4,751,908
 Provision for taxes                   286,324              882,565              935,913            1,304,000
                           -------------------  -------------------  -------------------  -------------------
 Net income                $           103,714  $         1,275,386  $         1,464,614  $         3,156,956
                           ===================  ===================  ===================  ===================
</TABLE>



NOTE  7  -  INTEREST  IN  C  &  D  IT  LLC
------------------------------------------

In  March 2002, the Trust and AFG Investment Trust D ("Trust D") formed C & D IT
LLC, a Delaware limited liability company, as a 50%/50% owned joint venture that
is  co-managed  by  each of the Trust and Trust D (the "C & D Joint Venture") to
which each Trust contributed $1 million.  The C & D Joint Venture was formed for
the purpose of making a conditional contribution of $2.0 million to BMLF/BSLF II
Rancho  Malibu  Limited  Partnership  ("Rancho  Malibu  Limited Partnership") in
exchange for 25% of the interests in Rancho Malibu Limited Partnership (the "C &
D  Joint Venture Contribution").  The C & D Joint Venture was admitted to Rancho
Malibu  Limited  Partnership  as  a  co-managing general partner pursuant to the
terms of an amendment to Rancho Malibu Limited Partnership Agreement.  The other
partners  in  Rancho  Malibu Limited Partnership are Semele and its wholly-owned
subsidiary,  Rancho  Malibu  Corp.,  the  other  co-managing  general  partner.

Rancho  Malibu Limited Partnership owns the 274-acre parcel of land near Malibu,
California  and  is  developing  it  as  a  single-family  luxury  residential
subdivision. The conditional C & D Joint Venture Contribution was made to assure
participation  in  the future development of the parcel.  It was made subject to
the future solicitation of the consent of the beneficiaries of each of the Trust
and  Trust  D.  The  C  &  D  Joint Venture Contribution is conditioned upon the
consummation  of  a transaction pursuant to which Semele and Rancho Malibu Corp.
will contribute all of the partnership interests that they hold in Rancho Malibu
Limited  Partnership along with 100% of the membership interests Semele holds in
RM  Financing  LLC  to RMLP, Inc., a newly formed subsidiary of PLM, in exchange
for  $5.5  million  in  cash,  a  $2.5 million promissory note and 182 shares of
common  stock of RMLP, Inc., approximately 21% interest in RMLP, Inc.  (The sole
asset  of  RM Financing LLC is a Note dated December 31, 1990 (the "Note").  The
Note was held by Semele's predecessor when it took a deed in lieu of foreclosure
on  the  property  from  the  original owner.  The unpaid balance of the Note is
$14,250,000  plus  accrued  interest  as  of  September  30,  2002.

The  C & D Joint Venture possesses the right to withdraw the C & D Joint Venture
Contribution from Rancho Malibu Limited Partnership if the transactions have not
taken  place  within  ninety  days  of  the  receipt  by  Rancho  Malibu Limited
Partnership  of  notice from the C & D Joint Venture that the requisite consents
of the beneficiaries of the Trust and Trust D have been received.  This right of
the  C  &  D Joint Venture is secured by a pledge of 50% of the capital stock of
Rancho  Malibu  Corp.  and  50%  of  the  interests  in  Rancho  Malibu  Limited
Partnership  held  by  Semele  and  Rancho  Malibu  Corp.

NOTE  8  -  RELATED  PARTY  TRANSACTIONS
----------------------------------------

Various  operating  expenses  incurred by the Trust are paid by EFG on behalf of
the  Trust and EFG is reimbursed at its actual cost for such expenditures.  Fees
and  other costs incurred during the nine month periods ended September 30, 2002
and  2001, which were paid or accrued by the Trust to EFG or its affiliates, are
as  follows:
<TABLE>
<CAPTION>


                                   2002       2001
                                 --------  ----------
<S>                              <C>       <C>
Acquisition fees                 $ 23,991  $   74,037
Management fees                   321,209     280,680
Administrative charges            232,317     122,751
Reimbursable operating expenses
   due to third parties                 -     873,901
                                 --------  ----------

          Total                  $577,517  $1,351,369
                                 ========  ==========
</TABLE>


All  rents  and  proceeds from the sale of equipment are paid directly to either
EFG  or  to  a  lender.  EFG  temporarily deposits collected funds in a separate
interest-bearing  escrow account prior to remittance to the Trust.  At September
30,  2002,  the  Trust  was owed $109,636 by EFG for such funds and the interest
thereon.  These  funds  were  remitted  to  the  Trust  in  October  2002.

Notes  payable  -  affiliate  at  September  30,  2002  consisted  of a 364 day,
unsecured  loan  from PLM evidenced by a promissory note in the principal amount
of  $719,760,  which  was  entered  into in the first quarter of 2002.  The note
bears  interest  at  LIBOR  plus  200 basis points.  The Trust incurred interest
expense  related  to  this  note of $8,059 and $19,972, respectively, during the
three  and  nine  months  ended  September  30,  2002.

NOTE  9  -  NOTES  PAYABLE
--------------------------

Notes  payable  at  September  30,  2002  consisted  of  installment  notes  of
$19,263,085  payable  to  banks and institutional lenders.  The notes bear fixed
interest  rates ranging between 7.93% and 9.176%.   All of the installment notes
are  non-recourse and are collateralized by certain of the Trust's equipment and
assignment  of  the  related  lease  payments.  These  notes  will  be partially
amortized  by the remaining contracted lease payments.  However, the Trust has a
balloon  payment  obligation  of $16,193,280 at the expiration of the lease term
related  to  its  interest  in  an  aircraft  leased  to  SAS  in December 2003.

The  annual  maturities  of  the  note  are  as  follows:
<TABLE>
<CAPTION>

<S>                                <C>    <C>
For the year ending September 30,   2003  $ 2,646,311
                                    2004   16,524,770
                                    2005       92,004
                                          -----------
..                                  Total  $19,263,085
                                          ===========
</TABLE>


NOTE  10  -  CONTINGENCIES
--------------------------

The  Investment  Company  Act  of  1940  (the  "Act") places restrictions on the
capital  structure  and  business activities of companies registered thereunder.
The  Trust  has  active  business operations in the financial services industry,
primarily  equipment  leasing,  and  in  the  real  estate  industry through its
interests  in EFG Kirkwood LLC, C & D IT LLC and EFG/Kettle Development LLC. The
Trust  does  not  intend to engage in investment activities in a manner or to an
extent  that  would require the Trust to register as an investment company under
the Act. However, it is possible that the Trust may unintentionally engage in an
activity  or  activities  that  may be construed to fall within the scope of the
Act.  The  Managing  Trustee  is  engaged  in  discussions with the staff of the
Securities  and Exchange Commission regarding whether or not the Trust may be an
inadvertent  investment  company by virtue of its recent acquisition activities.
The Managing Trustee has consulted counsel and believes that the Trust is not an
investment  company.  If  the Trust were determined to be an investment company,
its  business  would  be  adversely  affected.  The  Act,  among  other  things,
prohibits  an  unregistered investment company from offering securities for sale
or  engaging  in  any  business or interstate commerce.  If necessary, the Trust
intends to avoid being deemed an investment company by disposing of or acquiring
certain  assets  that  it  might  not  otherwise  dispose  of  or  acquire.

NOTE  11  -  OPERATING  SEGMENTS
--------------------------------

The Trust has two principal operating segments: 1) Equipment Leasing and 2) Real
Estate  Ownership,  Development  &  Management.  The  Equipment  Leasing segment
includes  the  management  of  the  Trust's  equipment portfolio and the Trust's
interest in MILPI Holdings, LLC ("MILPI"), which owns 100% of PLM International,
Inc.,  ("PLM") an equipment leasing and asset management company.  From February
2001  to  February  6,  2002,  MILPI,  through  a wholly owned subsidiary, owned
approximately  83%  of  PLM.  Effective  February 7, 2002, MILPI Acquisition was
merged  into  PLM  and MIPLI owns 100% of PLM.  The Real Estate segment includes
the ownership, management and development of commercial properties, recreational
properties,  condominiums,  interval  ownership  units, townhomes, single family
homes  and  land  sales through the Trust's ownership interests in EFG Kirkwood,
LLC,  C  &  D  IT  LLC  and  EFG  Kettle  Development,  LLC.

The  Trust's  reportable  segments  offer different products or services and are
managed  separately  because  each  requires  different operating strategies and
management  expertise.  There  are  no material intersegment sales or transfers.

Segment  information  for the three and nine months ended September 30, 2002 and
2001  is  summarized  below.

<TABLE>
<CAPTION>
                                        Three Months Ended September 30,  Nine Months Ended September 30,
                                            2002          2001          2002            2001
                                       ---------------  --------------  ------------  -----------
<S>                                    <C>              <C>             <C>           <C>
Total Revenues (1):
   Equipment leasing                   $    1,331,797   $   1,736,387   $ 4,014,524   $5,289,869
   Real estate                                      -               -             -            -
                                       ---------------  --------------  ------------  -----------
     Total                             $    1,331,797   $   1,736,387   $ 4,014,524   $5,289,869
                                       ===============  ==============  ============  ===========

Operating Expenses, Management
Fees and Other Expenses:
   Equipment leasing                   $      498,820   $     272,073   $ 1,000,804   $1,165,107
   Real estate                                 21,692          40,354        64,370      112,225
                                       ---------------  --------------  ------------  -----------
     Total                             $      520,512   $     312,427   $ 1,065,174   $1,277,332
                                       ===============  ==============  ============  ===========

Interest Expense:
   Equipment leasing                   $      450,129   $     431,725   $ 1,473,240   $1,533,048
   Real estate                                      -           3,307             -       17,161
                                       ---------------  --------------  ------------  -----------
     Total                             $      450,129   $     435,032   $ 1,473,240   $1,550,209
                                       ===============  ==============  ============  ===========

Depreciation, Write-down of Equipment
  and Amortization Expense:
   Equipment leasing                   $      773,043   $     963,140   $ 2,938,652   $2,894,389
   Real estate                                      -          16,450             -       49,350
                                       ---------------  --------------  ------------  -----------
     Total                             $      773,043   $     979,590   $ 2,938,652   $2,943,739
                                       ===============  ==============  ============  ===========

 Equity Interests:
   Equipment leasing                   $       38,891   $     474,256   $   560,512   $  584,314
   Real estate                               (840,363)       (788,060)     (180,651)    (309,364)
                                       ---------------  --------------  ------------  -----------
     Total                             $     (801,472)  $    (313,804)  $   379,861   $  274,950
                                       ===============  ==============  ============  ===========

 Net Loss:                             $   (1,213,359)  $    (304,466)  $(1,082,681)  $ (206,461)
                                       ===============  ==============  ============  ===========


 Capital Expenditures:
   Equipment leasing                   $            -   $           -   $ 2,423,190   $7,069,783
   Real estate                                      -               -     1,000,000            -
                                       ---------------  --------------  ------------  -----------
     Total                             $            -   $           -   $ 3,423,190   $7,069,783
                                       ===============  ==============  ============  ===========


 .                                     As of            As of
 .                                     September 30,    December 31,
 .                                          2002            2001
 Assets:
   Equipment leasing                   $   30,773,339   $  35,251,213
   Real estate                              7,738,855       6,919,506
                                       ---------------  --------------
     Total                             $   38,512,194   $  42,170,719
                                       ===============  ==============
</TABLE>


(1)  Includes  equipment  leasing  revenue  of  $1,333,477  and  $4,186,474,
respectively,  for  the three and nine months ended September 30, 2002, compared
to  $1,690,959  and  $4,941,320,  respectively,  for  the  same periods in 2001.

Three  and  Nine  Months Ended September 30, 2002 Compared to the Three and Nine
--------------------------------------------------------------------------------
Months  Ended  September  30,  2001:
------------------------------------

Results  of  Operations
-----------------------

Equipment  Leasing
------------------

For  the  three  and  nine  month  periods  ended  September 30, 2002, the Trust
recognized lease revenue of $1,333,477 and $4,186,474, respectively, compared to
$1,690,959  and  $4,941,320,  respectively,  for  the same periods in 2001.  The
decrease  in  lease  revenue from 2001 to 2002 resulted primarily from a $74,424
early  lease termination fee received during the nine months ended September 30,
2001  (a similar fee was not earned in 2002) and approximately $146,000 decrease
in  revenues  resulting  from  the  sale  of  equipment  and a decrease in lease
revenues  of  approximately  $534,000  resulting  from  lease  term expirations.

The Trust's equipment portfolio includes certain assets in which the Trust holds
a  proportionate ownership interest.  In such cases, the remaining interests are
owned  by  an  affiliated equipment leasing program sponsored by Equis Financial
Group  Limited  Partnership  ("EFG").  Proportionate equipment ownership enables
the  Trust  to further diversify its equipment portfolio by participating in the
ownership of selected assets, thereby reducing the general levels of risk, which
could  result  from  a  concentration  in any single equipment type, industry or
lessee.  The  Trust  and  each  affiliate  individually report, in proportion to
their  respective  ownership  interests,  their  respective  shares  of  assets,
liabilities,  revenues,  and  expenses  associated  with  the  equipment.

Interest  income  for  the three and nine month periods ended September 30, 2002
was  $3,842  and  $10,272,  respectively,  compared  to  $22,425  and  $126,411,
respectively,  for  the  same  periods  in  2001.  Interest  income is typically
generated  from  the temporary investment of rental receipts and equipment sales
proceeds  in  short-term instruments and decreased for the three and nine months
ended  September  30,  2002  in  comparison to the same periods in 2001 due to a
decrease  in  cash  balances  in  2002.

During  the  three  and  nine  months  ended  September 30, 2002, the Trust sold
equipment  having  a  net book value of $14,001 and $2,572,834, respectively, to
existing  lessees  and  third parties.  These sales resulted in a loss of $5,522
and $182,222, respectively. During the three and nine months ended September 30,
2001, the Trust sold fully depreciated equipment and equipment having a net book
value  of  $60,151,  respectively, to existing lessees and third parties.  These
sales  resulted  in  a  gain  of  $7,634  and  $121,633,  respectively.

On March 8, 2000, the Trust and three affiliated trusts entered into a guarantee
agreement  whereby  the  trusts,  jointly  and severally, guaranteed the payment
obligations  under  a  master lease agreement between Echelon Commercial LLC, as
lessee,  and  several  third  party  entities, as lessor.  During the year ended
December  31,  2001,  the  requirements of the guarantee agreement were met, the
Trust  received payment for all outstanding amounts due thereunder and the Trust
has  no  further  obligations  under  the  guarantee agreement.  During the nine
months  ended September 30, 2001, the Trust recognized income of $89,583 related
to  the  guarantee  fee.  The  guarantee fee is reflected as Other Income on the
accompanying  Statement  of  Operations.

Depreciation  expense  was  $761,284 and $2,419,726, respectively, for the three
and  nine  months ended September 30, 2002, compared to $950,418 and $2,866,178,
respectively,  for the same periods in 2001.  During the three months ended June
30,  2002,  the  Trust  also recorded a write-down of equipment, representing an
impairment  to the carrying value of the Trust's interest in a McDonnell Douglas
MD-87  aircraft.  The  resulting charge of $483,648 was based on a comparison of
estimated fair value and carrying value of the Trust's interest in the aircraft.
The  estimate  of  the  fair  value was based on a current offer to purchase the
aircraft  and  (ii) EFG's assessment of prevailing market conditions for similar
aircraft.  Aircraft  condition,  age,  passenger  capacity, distance capability,
fuel efficiency, and other factors influence market demand and market values for
passenger  jet  aircraft.  The  events  of  September  11,  2001,  along  with a
recession  in  the  United  States have continued to adversely affect the market
demand  for  both  new  and  used  commercial  aircraft.

The  Trust recorded amortization expense of $11,759 and $35,278 during the three
and  nine  months ended September 30, 2002 in connection with deferred financing
costs.

Interest  expense  on third party debt was $442,070 and $1,453,268, respectively
for  the three and nine months ended September 30, 2002 compared to $431,725 and
$1,533,048,  respectively,  for  the same periods in 2001.  During the three and
nine  months  ended  September  30,  2002,  the  Trust  also incurred $8,059 and
$19,972, respectively, of interest expense on a note payable to PLM, executed in
conjunction  with  the  purchase  of  the remaining 17% of PLM in February 2002.

Management  fees  related  to  equipment  leasing  were  $82,781  and  $256,839,
respectively, for the three and nine months ended September 30, 2002 compared to
$23,605  and  $168,455, respectively, for same periods in 2001.  Management fees
related  to  equipment  are  based  on  5%  of  gross lease revenue generated by
operating  leases and 2% of gross lease revenue generated by full payout leases,
subject to certain limitations.  Management fees related to the Trust's interest
in  MILPI  are based on 1% of the cost of such interest. Management fees related
to  equipment leasing increased in 2002 due to an increase in the carrying value
of  the  Trust's  interest  in  MILPI.

Operating  expenses  were $416,039 and $743,965, respectively, for the three and
nine  month periods ended September 30, 2002, compared to $248,468 and $996,652,
respectively,  for the same periods in 2001.  In the nine months ended September
30,  2002  and  2001,  operating  expenses  included  approximately $203,000 and
$155,000,  respectively,  for  ongoing legal matters.  Operating expenses during
the nine months ended September 30, 2001 also include approximately $262,000 for
remarketing  costs  related to the re-lease of aircraft to Scandinavian Airlines
System,  and  Aerovias de Mexico, S.A. de C.V.  Operating expenses also included
approximately  $114,000 of costs reimbursed to EFG as a result or the successful
acquisition  of  the PLM common stock by MILPI Acquisition.  In conjunction with
the  acquisition of the PLM common stock, EFG became entitled to recover certain
out  of  pocket  expenses  which  it  had  previously incurred.  Other operating
expenses  consist  primarily  of  administrative  charges,  professional service
costs,  such  as  audit  and  legal  fees, as well as printing, distribution and
remarketing  expenses.

During  the  three  and nine months ended September 30, 2002, the Trust recorded
income  of  $38,891 and $560,512, respectively, during the three and nine months
ended  September  30,  2002,  compared  to  income  of  $474,256  and  $584,314,
respectively,  for  the  same periods in 2001, representing the Trust's share of
net  income  of MILPI recorded under the equity method of accounting.  See below
for  a  discussion  of  the  operating  results  of  MILPI during the respective
periods.   The  Trust's  income from MILPI results from MILPI's ownership of PLM
common stock acquired in February 2001 and February 2002 (see discussion below).
PLM  is  an  equipment  leasing and asset management company. The Trust recorded
$12,722  and  $28,211,  respectively,  of amortization expense for the three and
nine  months ended September 30, 2001, which related to the goodwill recorded at
the  time  of  the  acquisition  of  the  PLM common stock by MILPI Acquisition.
Statement  of  Financial  Accounting  Standards  No.  142,  "Goodwill  and Other
Intangible  Assets"  ("SFAS No. 142"), was effective for the Trust as of January
1,  2002  and requires the discontinuance of goodwill amortization as of January
1,  2002.  SFAS  No.  142  also  requires  the  Trust to complete a transitional
goodwill  impairment  test  within  six months from January 1, 2002, the date of
adoption.  The  Trust  completed  the  goodwill  impairment  analysis during the
quarter  ended September 30, 2002.  There was no impact on the Trust's financial
statements  as  a  result  of  this  analysis.

MILPI  Operating  Results
-------------------------

During  the  three  and  nine  months ended September 30, 2002, MILPI recognized
revenues  of  approximately  $978,000  and $4,357,000, respectively, compared to
approximately  $3,600,000  and $9,213,000, respectively, for the same periods in
2001.  Revenues  for  the  three  and  nine  months ended September 30, 2002 are
comprised  primarily of management fees of approximately $881,000 and 3,619,000,
respectively.  Revenues  for  the three and nine months ended September 30, 2001
are  comprised  primarily  of  management  fees  of approximately $3,222,000 and
$6,394,000,  respectively. The decrease in management fees of MILPI from 2002 to
2001  is  due to the disposition of equipment managed by MILPI.  Acquisition and
lease  negotiation  fees  decreased  in 2002 by $2,031,000 due to less equipment
being  placed  in  PLM  managed  programs.

During  the three and nine months ended September 30, 2002, MILPI incurred total
costs  and  expenses  of  approximately  $588,000  and $1,956,000, respectively,
compared  to  $1,442,000  and  $4,752,000, respectively, for the same periods in
2001.  Operating  expenses  for  the  three  months ended September 30, 2002 are
comprised  of  general and administrative expenses of approximately $587,000 and
depreciation  and  amortization  expense  of approximately $1,000.  For the nine
months ended September 30, 2002, operating expenses are comprised of general and
administrative  expenses  of  approximately  $1,856,000  and  depreciation  and
amortization expense of approximately $100,000. Operating expenses for the three
months  ended  September  30,  2001  are comprised of general and administrative
expenses  of  approximately $1,337,000 and depreciation and amortization expense
of  approximately  $105,000.  For  the  nine  months  ended  September 30, 2001,
operating  expenses  are  comprised  primarily  of  general  and  administrative
expenses  of  approximately $4,233,000 and depreciation and amortization expense
of approximately $519,000. The $2,367,000 decrease in general and administrative
expenses in the nine months ended September 30, 2002 compared to the same period
of  2001  is  primarily due to the relocation and consolidation of the corporate
service  functions  of  MILPI  during  May  2001.  The  $419,000  decrease  in
depreciation and amortization expense during the nine months ended September 30,
2002  compared  to  2001  is  the result of the sale of equipment owned by MILPI
during  the  second  half  of  2001.

During the three and nine months ended September 30, 2002, MILPI incurred income
tax  expense  of  approximately $286,000 and $936,000, respectively, compared to
approximately  $883,000  and  $1,304,000  for  the  same  periods  in  2001.


Real  Estate
------------

Management fees for non-equipment assets were $21,692 and $64,370, respectively,
for  the  three and nine months ended September 30, 2002 compared to $40,354 and
$112,225,  respectively,  for  the  same  periods  in 2001.  Management fees for
non-equipment  assets,  excluding  cash, are 1% of such assets under management.
Management fees decreased for the three and nine months ended September 30, 2002
compared to the same period in 2001 due to the decrease in the carrying value of
the  assets.

Interest  expense  on  a  note payable related to the Trust's acquisition of its
interest  in  Kettle  Valley was $3,307 and $17,161, respectively, for the three
and  nine  months ended September 30, 2001.  This note was repaid as of December
31,  2001.

The  Trust  has  an  approximately  51% ownership interest in Kettle Valley (see
discussion  of Kettle Valley's operating results below).  For the three and nine
months  ended  September  30,  2002,  the  Trust  recorded losses of $40,031 and
$135,247,  respectively,  compared  to  net  losses  of  $13,455  and  $521,998,
respectively,  for  the  same  periods  of  2001, from its ownership interest in
Kettle  Valley.  This  income  and  loss  represent the Trust's share of the net
income  (loss)  of Kettle Valley recorded under the equity method of accounting.
In  addition,  the  Trust  recorded amortization expense of $16,450 and $49,350,
respectively,  during  the  three  and  nine months ended September 30, 2001, in
connection with its interest in Kettle Valley.  In accordance with SFAS No. 142,
no  amortization  was  recorded  in  2002.

The  Trust owns 40% of the Class A membership interests of EFG Kirkwood, a joint
venture  between  the  Trust,  certain  affiliated  trusts,  and  an  affiliated
corporation,  Semele  Group Inc. ("Semele").  AFG ASIT Corporation, the Managing
Trustee  of  the  Trust  and  a subsidiary of Semele, also is the manager of EFG
Kirkwood.

EFG  Kirkwood  owns  membership  interests  in:

      Mountain  Resort  Holdings  LLC  ("Mountain  Resort")  and
 Mountain  Springs  Resort  LLC  ("Mountain  Springs").


Mountain  Resort,  through four wholly owned subsidiaries, owns and operates the
Kirkwood  Mountain Resort, a ski resort located in northern California, a public
utility that services the local community, and land that is held for residential
and commercial development. Mountain Springs, through a wholly owned subsidiary,
owns  a  controlling  interest  in  DSC/Purgatory  LLC ("Purgatory") in Durango,
Colorado.

For  the  three  and  nine months ended September 30, 2002, the Trust recorded a
loss  of  $800,332 and $45,404 for the three and nine months ended September 30,
2002,  respectively,  compared  to  a  loss  of $774,605 and income of $212,634,
respectively,  for  the same periods in 2001, from its ownership interest in EFG
Kirkwood.  This  income  and loss represents the Trust's share of the net income
(loss)  of  EFG Kirkwood recorded under the equity method of accounting.  Due to
the  seasonal  nature of EFG Kirkwood's operations, the financial results of the
three  months  and  nine  months  ended  September  30,  2002  and  2001 are not
indicative  of  future  periods.  The  three  months ended March 31 of each year
include  the  periods  of peak income activity for the resorts.  See below for a
discussion  of  the  operating  results  of  the  resorts.

Mountain  Resort  Operating  Results
------------------------------------

Mountain Resort's primary operating asset is Kirkwood Mountain Resort, a ski and
mountain  recreation  resort  with  more  than  2,000  acres of terrain, located
approximately  32  miles south of Lake Tahoe.  The resort receives approximately
70%  of  its revenues from winter ski operations, primarily ski, lodging, retail
and food and beverage services with the remainder of the revenues generated from
summer  outdoor  activities,  including  mountain  biking,  hiking  and  other
activities.  Other  operations include a real estate development division, which
has  developed  and is managing a 40-unit condominium residential and commercial
building,  an  electric  and  gas utility company, which operates as a regulated
utility  company  and  provides  electric  and  gas  services  to  the  Kirkwood
community,  and  a  real  estate  brokerage  company.

During  the  three  and  nine  months  ended September 30, 2002, Mountain Resort
recorded  total  revenues  of  approximately  $2,082,000  and  $22,558,000,
respectively,  compared  to revenues of approximately $1,844,000 and $22,412,000
for  the same periods in 2001.  The increase in total revenues from 2001 to 2002
for  the  three and nine month periods ended September 30, 2002 compared to 2001
of  approximately  $239,000  and  $145,000,  respectively,  is  the result of an
increase in ski-related revenues offset by a decrease in residential-related and
other  operations  revenues.  Ski-related  revenues  increased  approximately
$2,509,000  in  the  nine  months  ended September 30, 2002 compared to the same
period  of  2001.  The  increase  in ski-related revenues resulted from improved
weather  conditions  during  the  winter  season,  which  attracted more skiers.
Residential-related  and  other  operations  revenues  decreased  approximately
$2,364,000  for the nine months ended 2002 as compared to 2001.  The decrease in
residential-related  and other operations revenues was primarily attributable to
a  reduction  in  the  number of condominium sales during 2002 compared to 2001.

During  the  three  and  nine  months  ended September 30, 2002, Mountain Resort
recorded  total  expenses  of  approximately  $4,583,000  and  $21,147,000
respectively,  compared to expenses of approximately $4,395,000 and $21,794,000,
respectively  for  the  same periods of 2001.  The decrease in total expenses of
$647,000  for  the  nine  months  ended  September 30, 2002 compared to the same
periods  in  2001  is  the result of a decrease in residential-related and other
non-operating  expenses  largely  offset by an increase in ski-related expenses.
Ski-related  expenses  increased  approximately  $1,751,000  as  a result of the
increase  in  ski-related revenues, as discussed above.  Residential-related and
other  operations  expenses  decreased  approximately  $2,398,000 primarily as a
result  of  a  decrease in cost of sales from condominium units sold in the nine
months  ended September 30, 2002 as compared to the same period in 2001, as also
discussed  above.


Non-operating  costs  decreased  approximately  $546,000  (from  $1,872,000  at
September  30,  2002,  to $1,326,000 at September 30, 2001).  The primary reason
for  the  decrease  was due to the capitalization of interest related to capital
projects  and  a  decrease  in  realized  losses  on  the  sale  of  assets.

Mountain  Springs  Operating  Results
-------------------------------------

Mountain Springs, through a wholly owned subsidiary, owns a controlling interest
in  DSC/Purgatory LLC ("Purgatory") in Durango, Colorado. Purgatory is a ski and
mountain recreation resort covering 2,500 acres, situated on 40 miles of terrain
with  75  ski  trails  located  near  Durango,  Colorado. Purgatory receives the
majority  of  its  revenues  from winter ski operations, primarily ski, lodging,
retail  and food and beverage services, with the remainder of revenues generated
from  summer  outdoor  activities,  such  as alpine sliding and mountain biking.

During  the  three  and nine months ended September 30, 2002, Purgatory recorded
total  revenues  of  approximately  $1,166,000  and  $11,048,000,  respectively,
compared  to  revenues  of  approximately  $868,000 and $12,015,000 for the same
periods  of  2001.  Revenues  increased  by  $298,000 for the three months ended
September  30,  2002  as  compared  to the same period in 2001 due to additional
summer  programs  offered  at the resort.  Revenue decreased by $967,000 for the
nine  months ended September 30, 2002 as compared to the same period in 2001 due
to  unfavorable  weather  conditions  during  the winter season, which attracted
fewer  skiers.

Total  expenses  were approximately $3,271,000 and $12,556,000 for the three and
nine  months  ended  September  30,  2002, respectively, compared to expenses of
approximately  $2,966,000  and  $11,542,000  for  the same periods in 2001.  The
increase  in  total  expenses  for the three and nine months ended September 30,
2002  compared  to  the  same  periods  in  2001  of  approximately $305,000 and
$1,014,000  is  primarily  the  result  of  costs  incurred related to increased
airline  subsidies,  which  are  used  to  attract  visitors  to  the  resort.

Kettle  Valley  Operating  Results
----------------------------------

Kettle  Valley  is a real estate development company located in Kelowna, British
Columbia,  Canada.  The  project,  which  is  being  developed  by Kettle Valley
Development  Limited Partnership ("KVD LP"), consists of approximately 280 acres
of  land  that  is  zoned  for 1,120 residential units in addition to commercial
space.  To  date,  123  residential  units  have  been  constructed  and  sold.

During  the  three  and  nine  months  ended September 30, 2002, KVD LP recorded
revenues  of  approximately $1,004,000 and $2,291,000, respectively, compared to
$766,000  and  $1,952,000,  respectively,  for  the  same  periods in 2001.  The
increase  in  revenues  is the result of an increase in the number of lot sales.

KVD LP incurred total expenses of approximately $1,163,000 and $2,662,000 during
the  three  and  nine months ended September 30, 2002, respectively, compared to
expenses  of  approximately  $798,000 and $2,747,000, respectively, for the same
periods  in  2001.  The  decrease in expenses in the nine months ended September
30,  2002  is  the  result of an increase in real estate cost of sales resulting
from  an  increase  in the number of lot sales, as discussed above, offset by an
impairment  in the land carrying value of approximately $500,000 recorded in the
nine  months  ended September 30, 2001.  There was no impairment recorded in the
three  and  nine  months  ended  September  30,  2002.

Kettle  Valley owns a 49.9% interest in a company (the "Company") which, through
two  wholly-owned  subsidiaries,  owns a 99.9% interest in KVD LP.  For the nine
months ended September 30, 2002, in addition to its share of the loss of KVD LP,
the  Trust's  net  loss from Kettle Valley includes a loss of $83,636 reflecting
the  Trust's share of the operating results of one of the Company's wholly-owned
subsidiaries.


NOTE  12  -  SUBSEQUENT  EVENT
------------------------------

In  October  2002,  an  existing member and an unrelated third party contributed
approximately  $2,500,000  to Mountain Springs (See note 8).  As a result of the
capital  contribution,  EFG  Kirkwood's  membership interest in Mountain Springs
decreased  from 50% to 33%.  Proceeds from the capital contribution were used to
exercise  an  existing  option to purchase 51% of Durango Mountain Land Company,
LLC,  a  real  estate  development company owning land in adjacent to Purgatory.


<PAGE>
------

                             AFG INVESTMENT TRUST C

                                    FORM 10-Q

                         PART I.  FINANCIAL INFORMATION


Item 2.  Management's Discussion and Analysis of Financial Condition and Results
--------------------------------------------------------------------------------
of  Operations.
---------------

Certain  statements  in  this  quarterly  report  of AFG Investment Trust C (the
"Trust")  that  are  not historical fact constitute "forward-looking statements"
within  the  meaning of the Private Securities Litigation Reform Act of 1995 and
are  subject  to  a  variety  of risks and uncertainties.  There are a number of
important  factors  that  could  cause  actual results to differ materially from
those  expressed  in  any  forward-looking statements made herein. These factors
include, but are not limited to, the collection of the Trust's contracted rents,
the  realization of residual proceeds for the Trust's equipment, the performance
of  the  Trust's  non-equipment  assets,  and  future  economic  conditions. The
cautionary  statements  made in the Form 10-Q should be read as being applicable
to  all  related  forward-looking  statements  wherever they appear in this Form
10-Q.

The  Investment  Company  Act  of  1940  (the  "Act") places restrictions on the
capital  structure  and  business activities of companies registered thereunder.
The  Trust  has  active  business operations in the financial services industry,
primarily  equipment  leasing,  and  in  the  real  estate  industry through its
interests  in  EFG  Kirkwood  LLC  ("EFG Kirkwood"), C & D IT LLC and EFG/Kettle
Development  LLC  ("Kettle  Valley").  The  Trust  does  not intend to engage in
investment  activities  in a manner or to an extent that would require the Trust
to register as an investment company under the Act. However, it is possible that
the  Trust  may  unintentionally engage in an activity or activities that may be
construed  to  fall within the scope of the Act. The Managing Trustee is engaged
in  discussions  with  the  staff  of  the  Securities  and  Exchange Commission
regarding  whether  or not the Trust may be an inadvertent investment company by
virtue  of its recent acquisition activities. The Managing Trustee has consulted
counsel  and believes that the Trust is not an investment company.  If the Trust
was  determined  to  be  an  investment company, its business would be adversely
affected.  The  Act,  among  other  things, prohibits an unregistered investment
company  from  offering  securities  for  sale  or  engaging  in any business or
interstate  commerce.  If  necessary, the Trust intends to avoid being deemed an
investment company by disposing of or acquiring certain assets that it might not
otherwise  dispose  of  or  acquire.

Critical  Accounting  Policies  and  Estimates
----------------------------------------------

The preparation of financial statements in conformity with accounting principles
generally  accepted  in  the United States requires the Managing Trustee to make
estimates  and  assumptions  that  affect  the amounts reported in the financial
statements. On a regular basis, the Managing Trustee reviews these estimates and
assumptions  including  those  related  to  revenue recognition, asset lives and
depreciation,  impairment of long-lived assets and contingencies and litigation.
These estimates are based on the Managing Trustee's historical experience and on
various  other  assumptions  believed  to be reasonable under the circumstances.
Actual  results  may  differ from these estimates under different assumptions or
conditions.  The  Managing  Trustee  believes,  however,  that  the  estimates,
including  those  for  the  above-listed  items,  are  reasonable.

The  Managing Trustee believes the following critical accounting policies, among
others,  are  subject  to  significant  judgments  and  estimates  used  in  the
preparation  of  these  financial  statements:

Revenue Recognition:  Rents are payable to the Trust monthly or quarterly and no
--------------------
significant  amounts  are  calculated on factors other than the passage of time.
The Trust's leases are accounted for as operating leases and are noncancellable.
Rents  received  prior  to  being  earned  are  deferred.

Asset  Lives and Depreciation Method: The Trust's business includes the purchase
-------------------------------------
and  subsequent  lease of long-lived equipment.  The Trust's depreciation policy
is  intended  to  allocate the cost of equipment over the period during which it
produces  economic  benefit.  The  principal  period  of  economic  benefit  is
considered  to  correspond  to  each asset's primary lease term, which generally
represents  the  period  of  greatest  revenue  potential  for  each  asset.
Accordingly,  to  the  extent  that  an asset is held on primary lease term, the
Trust  depreciates the difference between (i) the cost of the asset and (ii) the
estimated  residual  value of the asset on a straight-line basis over such term.
For  purposes  of  this policy, estimated residual values represent estimates of
equipment  values  at  the  date of the primary lease expiration.  To the extent
that  an  asset  is  held  beyond its primary lease term, the Trust continues to
depreciate  the  remaining  net book value of the asset on a straight-line basis
over  the  asset's  remaining  economic  life.

Impairment  of  Long-Lived  Assets:  In  accordance  with Statement of Financial
-----------------------------------
Accounting  Standards  No.  144,  "Accounting  for the Impairment or Disposal of
----
Long-Lived Assets" ("SFAS No. 144"), the Company evaluates long-lived assets for
----
impairment  whenever events or circumstances indicate that the carrying bases of
such  assets  may not be recoverable.  Losses for impairment are recognized when
the estimated undiscounted cash flows estimated to be realized from a long-lived
asset  are  determined  to  be  less  than the carrying basis of the asset.  The
determination  of  net  realizable value for a given investment requires several
considerations,  including but not limited to, income expected to be earned from
the  asset,  estimated  sales  proceeds,  and  holding costs excluding interest.

Contingencies  and  Litigation:  The  Trust  is  subject  to  legal  proceedings
-------------------------------
involving  ordinary  and  routine claims related to its business.  Estimates for
-------
losses  from  litigation  are  made after consultation with outside counsel.  If
--
estimates  of  potential  losses increase or the related facts and circumstances
--
change  in  the  future, the Trust may be required to adjust amounts recorded in
--
its  financial  statements.
--


Segment  Reporting
------------------

The Trust has two principal operating segments: 1) Equipment Leasing and 2) Real
Estate  Ownership,  Development  &  Management.  The  Equipment  Leasing segment
includes  the  management  of  the  Trust's  equipment portfolio and the Trust's
interest in MILPI Holdings, LLC ("MILPI"), which owns 100% of PLM International,
Inc.,  ("PLM") an equipment leasing and asset management company.  From February
2001  to  February  6,  2002,  MILPI,  through  a wholly owned subsidiary, owned
approximately  83%  of  PLM.  Effective  February 7, 2002, MILPI Acquisition was
merged  into  PLM  and MIPLI owns 100% of PLM.  The Real Estate segment includes
the ownership, management and development of commercial properties, recreational
properties,  condominiums,  interval  ownership  units, townhomes, single family
homes  and  land  sales through the Trust's ownership interests in EFG Kirkwood,
LLC,  C  &  D  IT  LLC  and  EFG  Kettle  Development,  LLC.

The  Trust's  reportable  segments  offer different products or services and are
managed  separately  because  each  requires  different operating strategies and
management  expertise.  There  are  no material intersegment sales or transfers.

Segment  information  for the three and nine months ended September 30, 2002 and
2001  is  summarized  below.

<TABLE>
<CAPTION>
                                      Three Months Ended September 30,  Nine Months Ended September 30,
                                           2002          2001          2002            2001
                                       ---------------  --------------  ------------  -----------
<S>                                    <C>              <C>             <C>           <C>
Total Revenues (1):
   Equipment leasing                   $    1,331,797   $   1,736,387   $ 4,014,524   $5,289,869
   Real estate                                      -               -             -            -
                                       ---------------  --------------  ------------  -----------
     Total                             $    1,331,797   $   1,736,387   $ 4,014,524   $5,289,869
                                       ===============  ==============  ============  ===========

Operating Expenses, Management
Fees and Other Expenses:
   Equipment leasing                   $      498,820   $     272,073   $ 1,000,804   $1,165,107
   Real estate                                 21,692          40,354        64,370      112,225
                                       ---------------  --------------  ------------  -----------
     Total                             $      520,512   $     312,427   $ 1,065,174   $1,277,332
                                       ===============  ==============  ============  ===========

Interest Expense:
   Equipment leasing                   $      450,129   $     431,725   $ 1,473,240   $1,533,048
   Real estate                                      -           3,307             -       17,161
                                       ---------------  --------------  ------------  -----------
     Total                             $      450,129   $     435,032   $ 1,473,240   $1,550,209
                                       ===============  ==============  ============  ===========

Depreciation, Write-down of Equipment
  and Amortization Expense:
   Equipment leasing                   $      773,043   $     963,140   $ 2,938,652   $2,894,389
   Real estate                                      -          16,450             -       49,350
                                       ---------------  --------------  ------------  -----------
     Total                             $      773,043   $     979,590   $ 2,938,652   $2,943,739
                                       ===============  ==============  ============  ===========

 Equity Interests:
   Equipment leasing                   $       38,891   $     474,256   $   560,512   $  584,314
   Real estate                               (840,363)       (788,060)     (180,651)    (309,364)
                                       ---------------  --------------  ------------  -----------
     Total                             $     (801,472)  $    (313,804)  $   379,861   $  274,950
                                       ===============  ==============  ============  ===========

 Net Loss:                             $   (1,213,359)  $    (304,466)  $(1,082,681)  $ (206,461)
                                       ===============  ==============  ============  ===========


 Capital Expenditures:
   Equipment leasing                   $            -   $           -   $ 2,423,190   $7,069,783
   Real estate                                      -               -     1,000,000            -
                                       ---------------  --------------  ------------  -----------
     Total                             $            -   $           -   $ 3,423,190   $7,069,783
                                       ===============  ==============  ============  ===========


 .                                     As of            As of
 .                                     September 30,    December 31,
 .                                          2002            2001
 Assets:
   Equipment leasing                   $   30,773,339   $  35,251,213
   Real estate                              7,738,855       6,919,506
                                       ---------------  --------------
     Total                             $   38,512,194   $  42,170,719
                                       ===============  ==============
</TABLE>


(1)  Includes  equipment  leasing  revenue  of  $1,333,477  and  $4,186,474,
respectively,  for  the three and nine months ended September 30, 2002, compared
to  $1,690,959  and  $4,941,320,  respectively,  for  the  same periods in 2001.

Three  and  Nine  Months Ended September 30, 2002 Compared to the Three and Nine
--------------------------------------------------------------------------------
Months  Ended  September  30,  2001:
------------------------------------

Results  of  Operations
-----------------------

Equipment  Leasing
------------------

For  the  three  and  nine  month  periods  ended  September 30, 2002, the Trust
recognized lease revenue of $1,333,477 and $4,186,474, respectively, compared to
$1,690,959  and  $4,941,320,  respectively,  for  the same periods in 2001.  The
decrease  in  lease  revenue from 2001 to 2002 resulted primarily from a $74,424
early  lease termination fee received during the nine months ended September 30,
2001  (a similar fee was not earned in 2002) and approximately $146,000 decrease
in  revenues  resulting  from  the  sale  of  equipment  and a decrease in lease
revenues  of  approximately  $534,000  resulting  from  lease  term expirations.

The Trust's equipment portfolio includes certain assets in which the Trust holds
a  proportionate ownership interest.  In such cases, the remaining interests are
owned  by  an  affiliated equipment leasing program sponsored by Equis Financial
Group  Limited  Partnership  ("EFG").  Proportionate equipment ownership enables
the  Trust  to further diversify its equipment portfolio by participating in the
ownership of selected assets, thereby reducing the general levels of risk, which
could  result  from  a  concentration  in any single equipment type, industry or
lessee.  The  Trust  and  each  affiliate  individually report, in proportion to
their  respective  ownership  interests,  their  respective  shares  of  assets,
liabilities,  revenues,  and  expenses  associated  with  the  equipment.

Interest  income  for  the three and nine month periods ended September 30, 2002
was  $3,842  and  $10,272,  respectively,  compared  to  $22,425  and  $126,411,
respectively,  for  the  same  periods  in  2001.  Interest  income is typically
generated  from  the temporary investment of rental receipts and equipment sales
proceeds  in  short-term instruments and decreased for the three and nine months
ended  September  30,  2002  in  comparison to the same periods in 2001 due to a
decrease  in  cash  balances  in  2002.

During  the  three  and  nine  months  ended  September 30, 2002, the Trust sold
equipment  having  a  net book value of $14,001 and $2,572,834, respectively, to
existing  lessees  and  third parties.  These sales resulted in a loss of $5,522
and $182,222, respectively. During the three and nine months ended September 30,
2001, the Trust sold fully depreciated equipment and equipment having a net book
value  of  $60,151,  respectively, to existing lessees and third parties.  These
sales  resulted  in  a  gain  of  $7,634  and  $121,633,  respectively.

On March 8, 2000, the Trust and three affiliated trusts entered into a guarantee
agreement  whereby  the  trusts,  jointly  and severally, guaranteed the payment
obligations  under  a  master lease agreement between Echelon Commercial LLC, as
lessee,  and  several  third  party  entities, as lessor.  During the year ended
December  31,  2001,  the  requirements of the guarantee agreement were met, the
Trust  received payment for all outstanding amounts due thereunder and the Trust
has  no  further  obligations  under  the  guarantee agreement.  During the nine
months  ended September 30, 2001, the Trust recognized income of $89,583 related
to  the  guarantee  fee.  The  guarantee fee is reflected as Other Income on the
accompanying  Statement  of  Operations.

Depreciation  expense  was  $761,284 and $2,419,726, respectively, for the three
and  nine  months ended September 30, 2002, compared to $950,418 and $2,866,178,
respectively,  for the same periods in 2001.  During the three months ended June
30,  2002,  the  Trust  also recorded a write-down of equipment, representing an
impairment  to the carrying value of the Trust's interest in a McDonnell Douglas
MD-87  aircraft.  The  resulting charge of $483,648 was based on a comparison of
estimated fair value and carrying value of the Trust's interest in the aircraft.
The  estimate  of  the  fair  value was based on a current offer to purchase the
aircraft  and  (ii) EFG's assessment of prevailing market conditions for similar
aircraft.  Aircraft  condition,  age,  passenger  capacity, distance capability,
fuel efficiency, and other factors influence market demand and market values for
passenger  jet  aircraft.  The  events  of  September  11,  2001,  along  with a
recession  in  the  United  States have continued to adversely affect the market
demand  for  both  new  and  used  commercial  aircraft.

The  Trust recorded amortization expense of $11,759 and $35,278 during the three
and  nine  months ended September 30, 2002 in connection with deferred financing
costs.

Interest  expense  on third party debt was $442,070 and $1,453,268, respectively
for  the three and nine months ended September 30, 2002 compared to $431,725 and
$1,533,048,  respectively,  for  the same periods in 2001.  During the three and
nine  months  ended  September  30,  2002,  the  Trust  also incurred $8,059 and
$19,972, respectively, of interest expense on a note payable to PLM, executed in
conjunction  with  the  purchase  of  the remaining 17% of PLM in February 2002.

Management  fees  related  to  equipment  leasing  were  $82,781  and  $256,839,
respectively, for the three and nine months ended September 30, 2002 compared to
$23,605  and  $168,455, respectively, for same periods in 2001.  Management fees
related  to  equipment  are  based  on  5%  of  gross lease revenue generated by
operating  leases and 2% of gross lease revenue generated by full payout leases,
subject to certain limitations.  Management fees related to the Trust's interest
in  MILPI  are based on 1% of the cost of such interest. Management fees related
to  equipment leasing increased in 2002 due to an increase in the carrying value
of  the  Trust's  interest  in  MILPI.

Operating  expenses  were $416,039 and $743,965, respectively, for the three and
nine  month periods ended September 30, 2002, compared to $248,468 and $996,652,
respectively,  for the same periods in 2001.  In the nine months ended September
30,  2002  and  2001,  operating  expenses  included  approximately $203,000 and
$155,000,  respectively,  for  ongoing legal matters.  Operating expenses during
the nine months ended September 30, 2001 also include approximately $262,000 for
remarketing  costs  related to the re-lease of aircraft to Scandinavian Airlines
System,  and  Aerovias de Mexico, S.A. de C.V.  Operating expenses also included
approximately  $114,000 of costs reimbursed to EFG as a result or the successful
acquisition  of  the PLM common stock by MILPI Acquisition.  In conjunction with
the  acquisition of the PLM common stock, EFG became entitled to recover certain
out  of  pocket  expenses  which  it  had  previously incurred.  Other operating
expenses  consist  primarily  of  administrative  charges,  professional service
costs,  such  as  audit  and  legal  fees, as well as printing, distribution and
remarketing  expenses.

During  the  three  and nine months ended September 30, 2002, the Trust recorded
income  of  $38,891 and $560,512, respectively, during the three and nine months
ended  September  30,  2002,  compared  to  income  of  $474,256  and  $584,314,
respectively,  for  the  same periods in 2001, representing the Trust's share of
net  income  of MILPI recorded under the equity method of accounting.  See below
for  a  discussion  of  the  operating  results  of  MILPI during the respective
periods.   The  Trust's  income from MILPI results from MILPI's ownership of PLM
common stock acquired in February 2001 and February 2002 (see discussion below).
PLM  is  an  equipment  leasing and asset management company. The Trust recorded
$12,722  and  $28,211,  respectively,  of amortization expense for the three and
nine  months ended September 30, 2001, which related to the goodwill recorded at
the  time  of  the  acquisition  of  the  PLM common stock by MILPI Acquisition.
Statement  of  Financial  Accounting  Standards  No.  142,  "Goodwill  and Other
Intangible  Assets"  ("SFAS No. 142"), was effective for the Trust as of January
1,  2002  and requires the discontinuance of goodwill amortization as of January
1,  2002.  SFAS  No.  142  also  requires  the  Trust to complete a transitional
goodwill  impairment  test  within  six months from January 1, 2002, the date of
adoption.  The  Trust  completed  the  goodwill  impairment  analysis during the
quarter  ended September 30, 2002.  There was no impact on the Trust's financial
statements  as  a  result  of  this  analysis.

MILPI  Operating  Results
-------------------------

During  the  three  and  nine  months ended September 30, 2002, MILPI recognized
revenues  of  approximately  $978,000  and $4,357,000, respectively, compared to
approximately  $3,600,000  and $9,213,000, respectively, for the same periods in
2001.  Revenues  for  the  three  and  nine  months ended September 30, 2002 are
comprised  primarily of management fees of approximately $881,000 and 3,619,000,
respectively.  Revenues  for  the three and nine months ended September 30, 2001
are  comprised  primarily  of  management  fees  of approximately $3,222,000 and
$6,394,000,  respectively. The decrease in management fees of MILPI from 2002 to
2001  is  due to the disposition of equipment managed by MILPI.  Acquisition and
lease  negotiation  fees  decreased  in 2002 by $2,031,000 due to less equipment
being  placed  in  PLM  managed  programs.

During  the three and nine months ended September 30, 2002, MILPI incurred total
costs  and  expenses  of  approximately  $588,000  and $1,956,000, respectively,
compared  to  $1,442,000  and  $4,752,000, respectively, for the same periods in
2001.  Operating  expenses  for  the  three  months ended September 30, 2002 are
comprised  of  general and administrative expenses of approximately $587,000 and
depreciation  and  amortization  expense  of approximately $1,000.  For the nine
months ended September 30, 2002, operating expenses are comprised of general and
administrative  expenses  of  approximately  $1,856,000  and  depreciation  and
amortization expense of approximately $100,000. Operating expenses for the three
months  ended  September  30,  2001  are comprised of general and administrative
expenses  of  approximately $1,337,000 and depreciation and amortization expense
of  approximately  $105,000.  For  the  nine  months  ended  September 30, 2001,
operating  expenses  are  comprised  primarily  of  general  and  administrative
expenses  of  approximately $4,233,000 and depreciation and amortization expense
of approximately $519,000. The $2,367,000 decrease in general and administrative
expenses in the nine months ended September 30, 2002 compared to the same period
of  2001  is  primarily due to the relocation and consolidation of the corporate
service  functions  of  MILPI  during  May  2001.  The  $419,000  decrease  in
depreciation and amortization expense during the nine months ended September 30,
2002  compared  to  2001  is  the result of the sale of equipment owned by MILPI
during  the  second  half  of  2001.

During the three and nine months ended September 30, 2002, MILPI incurred income
tax  expense  of  approximately $286,000 and $936,000, respectively, compared to
approximately  $883,000  and  $1,304,000  for  the  same  periods  in  2001.


Real  Estate
------------

Management fees for non-equipment assets were $21,692 and $64,370, respectively,
for  the  three and nine months ended September 30, 2002 compared to $40,354 and
$112,225,  respectively,  for  the  same  periods  in 2001.  Management fees for
non-equipment  assets,  excluding  cash, are 1% of such assets under management.
Management fees decreased for the three and nine months ended September 30, 2002
compared to the same period in 2001 due to the decrease in the carrying value of
the  assets.

Interest  expense  on  a  note payable related to the Trust's acquisition of its
interest  in  Kettle  Valley was $3,307 and $17,161, respectively, for the three
and  nine  months ended September 30, 2001.  This note was repaid as of December
31,  2001.

The  Trust  has  an  approximately  51% ownership interest in Kettle Valley (see
discussion  of Kettle Valley's operating results below).  For the three and nine
months  ended  September  30,  2002,  the  Trust  recorded losses of $40,031 and
$135,247,  respectively,  compared  to  net  losses  of  $13,455  and  $521,998,
respectively,  for  the  same  periods  of  2001, from its ownership interest in
Kettle  Valley.  This  income  and  loss  represent the Trust's share of the net
income  (loss)  of Kettle Valley recorded under the equity method of accounting.
In  addition,  the  Trust  recorded amortization expense of $16,450 and $49,350,
respectively,  during  the  three  and  nine months ended September 30, 2001, in
connection with its interest in Kettle Valley.  In accordance with SFAS No. 142,
no  amortization  was  recorded  in  2002.

The  Trust owns 40% of the Class A membership interests of EFG Kirkwood, a joint
venture  between  the  Trust,  certain  affiliated  trusts,  and  an  affiliated
corporation,  Semele  Group Inc. ("Semele").  AFG ASIT Corporation, the Managing
Trustee  of  the  Trust  and  a subsidiary of Semele, also is the manager of EFG
Kirkwood.

EFG  Kirkwood  owns  membership  interests  in:

      Mountain  Resort  Holdings  LLC  ("Mountain  Resort")  and
 Mountain  Springs  Resort  LLC  ("Mountain  Springs").


Mountain  Resort,  through four wholly owned subsidiaries, owns and operates the
Kirkwood  Mountain Resort, a ski resort located in northern California, a public
utility that services the local community, and land that is held for residential
and commercial development. Mountain Springs, through a wholly owned subsidiary,
owns  a  controlling  interest  in  DSC/Purgatory  LLC ("Purgatory") in Durango,
Colorado.

For  the  three  and  nine months ended September 30, 2002, the Trust recorded a
loss  of  $800,332 and $45,404 for the three and nine months ended September 30,
2002,  respectively,  compared  to  a  loss  of $774,605 and income of $212,634,
respectively,  for  the same periods in 2001, from its ownership interest in EFG
Kirkwood.  This  income  and loss represents the Trust's share of the net income
(loss)  of  EFG Kirkwood recorded under the equity method of accounting.  Due to
the  seasonal  nature of EFG Kirkwood's operations, the financial results of the
three  months  and  nine  months  ended  September  30,  2002  and  2001 are not
indicative  of  future  periods.  The  three  months ended March 31 of each year
include  the  periods  of peak income activity for the resorts.  See below for a
discussion  of  the  operating  results  of  the  resorts.

Mountain  Resort  Operating  Results
------------------------------------

Mountain Resort's primary operating asset is Kirkwood Mountain Resort, a ski and
mountain  recreation  resort  with  more  than  2,000  acres of terrain, located
approximately  32  miles south of Lake Tahoe.  The resort receives approximately
70%  of  its revenues from winter ski operations, primarily ski, lodging, retail
and food and beverage services with the remainder of the revenues generated from
summer  outdoor  activities,  including  mountain  biking,  hiking  and  other
activities.  Other  operations include a real estate development division, which
has  developed  and is managing a 40-unit condominium residential and commercial
building,  an  electric  and  gas utility company, which operates as a regulated
utility  company  and  provides  electric  and  gas  services  to  the  Kirkwood
community,  and  a  real  estate  brokerage  company.

During  the  three  and  nine  months  ended September 30, 2002, Mountain Resort
recorded  total  revenues  of  approximately  $2,082,000  and  $22,558,000,
respectively,  compared  to revenues of approximately $1,844,000 and $22,412,000
for  the same periods in 2001.  The increase in total revenues from 2001 to 2002
for  the  three and nine month periods ended September 30, 2002 compared to 2001
of  approximately  $239,000  and  $145,000,  respectively,  is  the result of an
increase in ski-related revenues offset by a decrease in residential-related and
other  operations  revenues.  Ski-related  revenues  increased  approximately
$2,509,000  in  the  nine  months  ended September 30, 2002 compared to the same
period  of  2001.  The  increase  in ski-related revenues resulted from improved
weather  conditions  during  the  winter  season,  which  attracted more skiers.
Residential-related  and  other  operations  revenues  decreased  approximately
$2,364,000  for the nine months ended 2002 as compared to 2001.  The decrease in
residential-related  and other operations revenues was primarily attributable to
a  reduction  in  the  number of condominium sales during 2002 compared to 2001.

During  the  three  and  nine  months  ended September 30, 2002, Mountain Resort
recorded  total  expenses  of  approximately  $4,583,000  and  $21,147,000
respectively,  compared to expenses of approximately $4,395,000 and $21,794,000,
respectively  for  the  same periods of 2001.  The decrease in total expenses of
$647,000  for  the  nine  months  ended  September 30, 2002 compared to the same
periods  in  2001  is  the result of a decrease in residential-related and other
non-operating  expenses  largely  offset by an increase in ski-related expenses.
Ski-related  expenses  increased  approximately  $1,751,000  as  a result of the
increase  in  ski-related revenues, as discussed above.  Residential-related and
other  operations  expenses  decreased  approximately  $2,398,000 primarily as a
result  of  a  decrease in cost of sales from condominium units sold in the nine
months  ended September 30, 2002 as compared to the same period in 2001, as also
discussed  above.


Non-operating  costs  decreased  approximately  $546,000  (from  $1,872,000  at
September  30,  2002,  to $1,326,000 at September 30, 2001).  The primary reason
for  the  decrease  was due to the capitalization of interest related to capital
projects  and  a  decrease  in  realized  losses  on  the  sale  of  assets.

Mountain  Springs  Operating  Results
-------------------------------------

Mountain Springs, through a wholly owned subsidiary, owns a controlling interest
in  DSC/Purgatory LLC ("Purgatory") in Durango, Colorado. Purgatory is a ski and
mountain recreation resort covering 2,500 acres, situated on 40 miles of terrain
with  75  ski  trails  located  near  Durango,  Colorado. Purgatory receives the
majority  of  its  revenues  from winter ski operations, primarily ski, lodging,
retail  and food and beverage services, with the remainder of revenues generated
from  summer  outdoor  activities,  such  as alpine sliding and mountain biking.

During  the  three  and nine months ended September 30, 2002, Purgatory recorded
total  revenues  of  approximately  $1,166,000  and  $11,048,000,  respectively,
compared  to  revenues  of  approximately  $868,000 and $12,015,000 for the same
periods  of  2001.  Revenues  increased  by  $298,000 for the three months ended
September  30,  2002  as  compared  to the same period in 2001 due to additional
summer  programs  offered  at the resort.  Revenue decreased by $967,000 for the
nine  months ended September 30, 2002 as compared to the same period in 2001 due
to  unfavorable  weather  conditions  during  the winter season, which attracted
fewer  skiers.

Total  expenses  were approximately $3,271,000 and $12,556,000 for the three and
nine  months  ended  September  30,  2002, respectively, compared to expenses of
approximately  $2,966,000  and  $11,542,000  for  the same periods in 2001.  The
increase  in  total  expenses  for the three and nine months ended September 30,
2002  compared  to  the  same  periods  in  2001  of  approximately $305,000 and
$1,014,000  is  primarily  the  result  of  costs  incurred related to increased
airline  subsidies,  which  are  used  to  attract  visitors  to  the  resort.

Kettle  Valley  Operating  Results
----------------------------------

Kettle  Valley  is a real estate development company located in Kelowna, British
Columbia,  Canada.  The  project,  which  is  being  developed  by Kettle Valley
Development  Limited Partnership ("KVD LP"), consists of approximately 280 acres
of  land  that  is  zoned  for 1,120 residential units in addition to commercial
space.  To  date,  123  residential  units  have  been  constructed  and  sold.

During  the  three  and  nine  months  ended September 30, 2002, KVD LP recorded
revenues  of  approximately $1,004,000 and $2,291,000, respectively, compared to
$766,000  and  $1,952,000,  respectively,  for  the  same  periods in 2001.  The
increase  in  revenues  is the result of an increase in the number of lot sales.

KVD LP incurred total expenses of approximately $1,163,000 and $2,662,000 during
the  three  and  nine months ended September 30, 2002, respectively, compared to
expenses  of  approximately  $798,000 and $2,747,000, respectively, for the same
periods  in  2001.  The  decrease in expenses in the nine months ended September
30,  2002  is  the  result of an increase in real estate cost of sales resulting
from  an  increase  in the number of lot sales, as discussed above, offset by an
impairment  in the land carrying value of approximately $500,000 recorded in the
nine  months  ended September 30, 2001.  There was no impairment recorded in the
three  and  nine  months  ended  September  30,  2002.

Kettle  Valley owns a 49.9% interest in a company (the "Company") which, through
two  wholly-owned  subsidiaries,  owns a 99.9% interest in KVD LP.  For the nine
months ended September 30, 2002, in addition to its share of the loss of KVD LP,
the  Trust's  net  loss from Kettle Valley includes a loss of $83,636 reflecting
the  Trust's share of the operating results of one of the Company's wholly-owned
subsidiaries.

Liquidity  and  Capital  Resources  and  Discussion  of  Cash  Flows
--------------------------------------------------------------------

The  Trust  by  its  nature  is  a  limited  life entity.  The Trust's principal
operating  activities  derive  from asset rental transactions.  Accordingly, the
Trust's  principal  source of cash from operations is provided by the collection
of  periodic  rents.  These  cash  inflows  are  used  to  satisfy  debt service
obligations  associated  with  leveraged  leases, and to pay management fees and
operating  costs.  Operating  activities generated net cash inflow of $1,540,655
during  the  nine  months  ended  September  30,  2002.

The  events  of September 11, 2001, along with a recession in the United States,
have  continued  to  adversely  affect  the  market demand for both new and used
commercial  aircraft  and  weakened the financial position of most airlines.  No
direct damage occurred to any of the Trust's assets as a result of these events.
Management  of  the  Trust  believes  that  there is a significant oversupply of
commercial  aircraft  available  and that this oversupply will continue for some
time.  In  addition, management expects that the resulting decline in air travel
will suppress market prices for used aircraft and could inhibit the viability of
some airlines.  At September 30, 2002, the Trust had collected substantially all
rents  owed  from aircraft lessees.  The Trust is monitoring developments in the
airline  industry  and  will  continue to evaluate potential implications to the
Trust's  financial  position  and  future  liquidity.

At  lease  inception,  the  Trust's  equipment  was  leased  by  a  number  of
creditworthy,  investment-grade  companies  and,  to  date,  the  Trust  has not
experienced any material collection problems and has not considered it necessary
to  provide  an  allowance  for  doubtful  accounts.  Notwithstanding a positive
collection  history, there is no assurance that all future contracted rents will
be  collected  or  that  the  credit  quality  of  the  Trust's  leases  will be
maintained.  The credit quality of an individual lease may deteriorate after the
lease  is  entered  into.  Collection  risk  could  increase  in  the  future,
particularly as the Trust remarkets its equipment and enters re-lease agreements
with  different  lessees.  The  Managing  Trustee  will continue to evaluate and
monitor  the  Trust's  experience in collecting accounts receivable to determine
whether  a  future  allowance  for  doubtful  accounts  may  become appropriate.

At September 30, 2002, the Trust was due aggregate future minimum lease payments
of $5,193,451 from contractual lease agreements, a portion of which will be used
to  amortize  the principal balance of notes payable of $19,263,085.  Additional
cash  inflows will be realized from future remarketing activities, such as lease
renewals and equipment sales, the timing and extent of which cannot be predicted
with  certainty.  This  is  because  the timing and extent of equipment sales is
often  dependent  upon  the  needs  and interests of the existing lessees.  Some
lessees  may  choose  to  renew their lease contracts, while others may elect to
return the equipment.  In the latter instances, the equipment could be re-leased
to  another lessee or sold to a third party.  Accordingly, the cash flows of the
Trust  will  become  less  predictable  as  the  Trust  remarkets its equipment.

Cash  expended  for  asset  acquisitions  and  cash realized from asset disposal
transactions  are  reported  under  investing  activities  on  the  accompanying
Statement  of  Cash  Flows.

In  December  2000,  the Trust and three affiliated trusts (the "Trusts") formed
MILPI,  which  formed MILPI Acquisition, a wholly owned subsidiary of MILPI. The
Trusts  collectively  paid  $1.2 million for their membership interests in MILPI
($408,000 for the Trust) and MILPI purchased the shares of MILPI Acquisition for
an  aggregate  purchase  price  of  $1.2  million  at  December  31, 2000. MILPI
Acquisition  entered  into a definitive agreement (the "Agreement") with PLM, an
equipment  leasing and asset management company, for the purpose of acquiring up
to  100%  of  the  outstanding  common stock of PLM, for an approximate purchase
price  of up to $27 million. In connection with the acquisition, on December 29,
2000,  MILPI  Acquisition  commenced  a  tender offer to purchase any and all of
PLM's  outstanding  common  stock.

Pursuant  to the cash tender offer, MILPI Acquisition acquired approximately 83%
of PLM's outstanding common stock in February 2001 for a total purchase price of
approximately $21.8 million. The Trust's 34% membership interest in MILPI, prior
to  its  additional  acquisition in February 2002 described below, had a cost of
$7,543,992, including associated fees and capitalized costs.  Under the terms of
the  Agreement,  with  the  approval  of the holders of 50.1% of the outstanding
common  stock of PLM, MILPI Acquisition would merge into PLM, with PLM being the
surviving  entity.  The merger was completed when MILPI obtained approval of the
merger  from  PLM's  shareholders pursuant to a special shareholders' meeting on
February  6,  2002.

On  February  7, 2002, the Trust and AFG Investment Trust D ("Trust D") provided
approximately  $4.4  million  to  acquire the remaining 17% of PLM's outstanding
common  stock,  of  which  $2,423,190  (including  acquisition  fees  of $23,991
discussed  below)  was  contributed  by  the Trust. The funds were obtained from
existing  resources  and  internally  generated funds and by means of a 364 day,
unsecured  loan  from PLM evidenced by a promissory note in the principal amount
of  $719,760  that bears interest at LIBOR plus 200 basis points.  Subsequent to
the  merger,  the  Trust's  ownership  interest  increased  from  34%  to 37.5%.

Effective  February  2002,  the  Trust  has a 37.5% membership interest in MILPI
having an original cost of $9,967,182. The cost of the Trust's interest in MILPI
reflects MILPI's cost of acquiring the common stock of PLM, including the amount
paid  for  the  shares  tendered of $9,802,945, capitalized transaction costs of
$66,209  and a 1% acquisition fee paid to a wholly-owned subsidiary of Semele of
$98,028.

On  March  12,  2002,  PLM  declared  and  paid  a  cash  dividend  to  MILPI of
approximately  $2.7  million.  MILPI  then  declared and paid a cash dividend of
approximately  $2.7  million,  of  which  the  Trust's  share  was  $1,000,092.

In  March  2002,  the  Trust and Trust D formed C & D IT LLC, a Delaware limited
liability  company,  as a 50%/50% owned joint venture that is co-managed by each
of  the  Trust  and  Trust  D  (the  "C  & D Joint Venture") to which each Trust
contributed  $1  million.  The C & D Joint Venture was formed for the purpose of
making  a conditional contribution of $2.0 million to BMLF/BSLF II Rancho Malibu
Limited Partnership ("Rancho Malibu Limited Partnership") in exchange for 25% of
the  interests  in  Rancho  Malibu Limited Partnership (the "C & D Joint Venture
Contribution").  The  C  & D Joint Venture was admitted to Rancho Malibu Limited
Partnership  as  a  co-managing  general  partner  pursuant  to  the terms of an
amendment to Rancho Malibu Limited Partnership Agreement.  The other partners in
Rancho  Malibu  Limited  Partnership are Semele and its wholly-owned subsidiary,
Rancho  Malibu  Corp.,  the  other  co-managing  general  partner.

Rancho  Malibu Limited Partnership owns the 274-acre parcel of land near Malibu,
California  and  is  developing  it  as  a  single-family  luxury  residential
subdivision. The conditional C & D Joint Venture Contribution was made to assure
participation  in  the future development of the parcel.  It was made subject to
the future solicitation of the consent of the beneficiaries of each of the Trust
and  Trust  D.  The  C  &  D  Joint Venture Contribution is conditioned upon the
consummation  of  a transaction pursuant to which Semele and Rancho Malibu Corp.
will contribute all of the partnership interests that they hold in Rancho Malibu
Limited  Partnership along with 100% of the membership interests Semele holds in
RM  Financing  LLC  to RMLP, Inc., a newly formed subsidiary of PLM, in exchange
for  $5.5  million  in  cash,  a  $2.5 million promissory note and 182 shares of
common  stock of RMLP, Inc.  (The sole asset of RM Financing LLC is a Note dated
December  31, 1990 (the "Note").  The Note was held by Semele's predecessor when
it  took  a deed in lieu of foreclosure on the property from the original owner.
The  unpaid  balance  of  the  Note  is  $14,250,000 plus accrued interest as of
September  30,  2002.

The  C & D Joint Venture possesses the right to withdraw the C & D Joint Venture
Contribution from Rancho Malibu Limited Partnership if the transactions have not
taken  place  within  ninety  days  of  the  receipt  by  Rancho  Malibu Limited
Partnership  of  notice from the C & D Joint Venture that the requisite consents
of the beneficiaries of the Trust and Trust D have been received.  This right of
the  C  &  D Joint Venture is secured by a pledge of 50% of the capital stock of
Rancho  Malibu  Corp.  and  50%  of  the  interests  in  Rancho  Malibu  Limited
Partnership  held  by  Semele  and  Rancho  Malibu  Corp.

During  the  nine  months  ended September 30, 2002, the Trust realized net cash
proceeds  from  equipment  disposals of $2,390,612.  Future inflows of cash from
equipment  disposals  will  vary  in timing and amount and will be influenced by
many  factors  including,  but not limited to, the frequency and timing of lease
expirations, the type of equipment being sold, its condition and age, and future
market  conditions.

The  Trust  and  Trust  D  formed  EFG/Kettle Development LLC for the purpose of
acquiring  a  49.9%  indirect ownership interest in a real estate development in
Kelowna,  British  Columbia  in  Canada  called  Kettle  Valley.

The  Trust  also  has  an ownership interest in EFG Kirkwood.  EFG Kirkwood is a
joint  venture  among  the  Trust,  certain  affiliated Trusts and Semele and is
managed by AFG ASIT Corporation. EFG Kirkwood is a member in two joint ventures,
Mountain  Resort  and  Mountain  Springs.

Mountain  Resort,  through four wholly owned subsidiaries, owns and operates the
Kirkwood  Mountain Resort, a ski resort located in northern California, a public
utility that services the local community, and land that is held for residential
and commercial development. Mountain Springs, through a wholly owned subsidiary,
owns  a  controlling  interest in the Purgatory Ski resort in Durango, Colorado.

The  Trust  obtained financing in connection with certain equipment leases and a
portion  of its interest in MILPI.  The origination of such indebtedness and the
subsequent  repayments  of  principal  are  reported  as components of financing
activities.  At  September  30, 2002, the Trust had third party debt obligations
outstanding totaling $19,263,085.  Generally, each note payable is recourse only
to the specific equipment financed and to the minimum rental payments contracted
to  be  received  during  the  debt  amortization period, which period generally
coincides  with  the  lease  rental term.  The amount of cash used to repay debt
obligations  may  fluctuate  in the future due to the financing of assets, which
may  be  acquired.  The Trust has a balloon payment obligation of $16,193,280 at
the  expiration  of the lease term related to an aircraft leased to Scandinavian
Airlines  System.  Repayment  of  the balloon debt obligations will be dependent
upon  the negotiations of future lease contracts or future sale of these assets.

In  February  2002,  the  Trust  received  debt proceeds of $719,760 from PLM in
connection with the acquisition of the balance of the PLM common stock discussed
above.

No  cash  distributions  have  been declared or paid since January 2000.  In any
given  year,  it is possible that Beneficiaries will be allocated taxable income
in excess of distributed cash. This discrepancy between tax obligations and cash
distributions  may or may not continue in the future, and cash may or may not be
available  for  distribution  to  the  Beneficiaries  adequate  to cover any tax
obligation.  The  Trust Agreement requires that sufficient distributions be made
to  enable  the  Beneficiaries to pay any state and federal income taxes arising
from  any  sale  or  refinancing  transactions,  subject to certain limitations.

Cash  distributions  when  paid  to the Participants generally consist of both a
return  of  and a return on capital. Cash distributions do not represent and are
not  indicative  of  yield  on  investment. Actual yield on investment cannot be
determined  with  any  certainty  until  conclusion  of  the  Trust  and will be
dependent  upon the collection of all future contracted rents, the generation of
renewal and/or re-lease rents, the residual value realized for each asset at its
disposal  date,  and the performance of the Trust's non-equipment assets. Future
market  conditions,  technological  changes,  the  ability  of EFG to manage and
remarket  the  equipment, and many other events and circumstances, could enhance
or  detract from individual yields and the collective performance of the Trust's
equipment  portfolio.  The ability of the Managing Trustee and its affiliates to
develop  and  profitably manage its non-equipment assets and the return from its
interest  in  MILPI  will  impact  the  Trust's  overall  performance.

In  accordance  with the Trust Agreement, upon the dissolution of the Trust, the
Managing  Trustee will be required to contribute to the Trust an amount equal to
any  negative  balance,  which  may  exist in the Managing Trustee's tax capital
account.  At  December 31, 2001, the Managing Trustee had a negative tax capital
account  balance  of  $55,893.  No  such  requirement exists with respect to the
Special  Beneficiary.

Outlook  for  the  Future
-------------------------

Pursuant  to  the  Trust  Agreement,  the  Trust is scheduled to be dissolved by
December  31, 2004.  Upon consummation of the sale of its assets, the Trust will
be  dissolved  and  the  proceeds  thereof  will  be  applied and distributed in
accordance  with  the  terms of the Trust Agreement.  Reasonable reserves may be
withheld  to  pay  any  liabilities  of  the  Trust.

The  events  of September 11, 2001, along with a recession in the United States,
have  continued  to  adversely  affect  the  market demand for both new and used
commercial  aircraft  and  weakened  the  financial  position  of most airlines.
Management  of  the  Trust  believes  that  there is a significant oversupply of
commercial  aircraft  available  and that this oversupply will continue for some
time.  MILPI,  which  has  an  indirect  interest  in  a number of aircraft, has
experienced  significant  delinquencies  in  the  receipt of rents from aircraft
lessees  including  two commuter aircraft leases which were early terminated due
to  bankruptcy.  In  addition, the credit quality of many other aircraft lessees
has  deteriorated.  The Trust is monitoring developments in the airline industry
and  will  continue  to evaluate potential implications to the Trust's financial
position  and  future  liquidity.

The  Trust's  involvement  in  real estate development also introduces financial
risks,  including  the  potential  need  to joint venture and/or borrow funds to
develop  the  real  estate projects.  While the Trust presently does not foresee
any unusual risks in this regard, it is possible that factors beyond the control
of  the  Trust,  its affiliates and joint venture partners, such as a tightening
credit  environment, could limit or reduce its ability to secure adequate credit
facilities  at  a  time  when  they  might  be  needed  in  the  future.

The risks generally associated with real estate include, without limitation, the
existence of senior financing or other liens on the properties, general or local
economic  conditions,  property  values, the sale of properties, interest rates,
real  estate  taxes,  other  operating  expenses,  the  supply  and  demand  for
properties  involved,  zoning  and environmental laws and regulations, and other
governmental  rules.

The Trust's interests in ski resorts are subject to a number of risks, including
weather-related  risks.  The  ski  resort  business  is  seasonal  in nature and
insufficient  snow  during  the  winter  season  can  adversely  affect  the
profitability  of  a  given  resort.  Many operators of ski resorts have greater
resources  and experience in the industry than the Trust, its affiliates and its
joint venture partners.  The events of September 11, 2001 have also continued to
adversely affect the travel industry, which has decreased the number of visitors
to  the  ski  resorts.  The  Trust

Several  other  factors  may affect the Trust's operating performance during the
remainder  of  2002  and  through  the  dissolution  date  including:

changes  in  the  markets  for  the  Trust's  equipment,
changes  in  the  regulatory  environment  in which that equipment operates, and
changes in the real estate markets in which the Trust's has ownership interests.

The  ultimate  realization  of  residual  value  for  any  type  of equipment is
dependent upon many factors, including the condition and type of equipment being
sold  and  its  marketability  at the time of sale.  Changing market conditions,
industry  trends,  technological advances, and many other events can converge to
enhance or detract from asset values at any given time.  EFG attempts to monitor
these  changes  in  order to identify opportunities which may be advantageous to
the  Trust  and  which  will  maximize  total  cash  returns  for  each  asset.

The  ultimate economic return from the sale of the Trust's real estate interests
is  dependent  upon  may  factors, including, without limitation, the general or
local  economic  conditions,  property  values, the sale of properties, interest
rates,  real  estate  taxes, other operating expenses, the supply and demand for
properties  involved,  zoning  and environmental laws and regulations, and other
governmental  rules.

The  Trust's Advisor, EFG, and the Managing Trustee will continue to monitor and
manage  these  events  in  order  to  maximize the residual value of the Trust's
equipment  and  the  return  from  the  Trust's  real estate interests, and will
consider  these factors, in addition to the collection of contractual rents, the
retirement  of  scheduled  indebtedness,  and the Trust's future working capital
requirements,  in  establishing  the  amount  and  timing  of  future  cash
distributions.

The  amount  of  future  operating  expenses cannot be predicted with certainty;
however, such expenses are usually higher during the acquisition and liquidation
phases of a trust.  Other fluctuations typically occur in relation to the volume
and  timing  of  remarketing  activities.

In  the  future,  the  nature of the Trust's operations and principal cash flows
will shift from rental receipts to equipment and non-equipment sale proceeds. As
this  occurs,  the  Trust's  cash  flows  may  become  more  volatile.

Item  3.  Quantitative  and  Qualitative  Disclosures  about  Market  Risk
--------------------------------------------------------------------------

The  Trust's financial statements include financial instruments that are exposed
to  interest  rate  risks.

Approximately  83%  of  the Trust's lease revenues earned during the nine months
ended September 30, 2002 were from lessees located outside of the United States.
All  of  the  Trust's leases require payment in United States (US) currency.  If
the  lessees'  currency  devalues  against  the  US  dollar,  the  lessees could
potentially  encounter  difficulty  in  making  the  US dollar denominated lease
payments.

Item  4.  Controls  and  Procedures
-----------------------------------

Based on their evaluation as of a date within 90 days of the filing of this Form
10-Q,  the  Trust's Principal Executive Officer and Chief Financial Officer have
concluded  that  the Trust's disclosure controls and procedures are effective to
ensure  that  information required to be disclosed in the reports that the Trust
files  or  submits  under  the  Securities  Exchange  Act  of  1934 is recorded,
processed,  summarized  and  reported  within  the time periods specified in the
Securities  and  Exchange  Commission's  rules  and  forms.  There  have been no
significant  changes  in  the Trust's internal controls or in other factors that
could  significantly  affect  those  controls  subsequent  to  the date of their
evaluation.

<PAGE>
                             AFG INVESTMENT TRUST C

                                    FORM 10-Q

                           PART II.  OTHER INFORMATION




     Item  1.     Legal  Proceedings
          Response:  None

     Item  2.     Changes  in  Securities
          Response:  None

     Item  3.     Defaults  upon  Senior  Securities
          Response:  None

     Item  4.     Submission  of  Matters  to  a  Vote  of  Security  Holders
          Response:  None

     Item  5.     Other  Information
          Response:  None

     Item  6(a).     Exhibits
     .     Response:

Exhibit  99.1      Certification Pursuant to 18 U.S. C. Section 1350, as Adopted
Pursuant  to  Section  906  of  the  Sarbanes-Oxley  Act  of  2002

Exhibit  99.2      Certification Pursuant to 18 U.S. C. Section 1350, as Adopted
Pursuant  to  Section  906  of  the  Sarbanes-Oxley  Act  of  2002

     Item  6(b).     Reports  on  Form  8-K
          Response:  None





<PAGE>
                                 SIGNATURE PAGE




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



                             AFG Investment Trust C


     By:     AFG  ASIT  Corporation,  a  Massachusetts
          corporation  and  the  Managing  Trustee  of
          the  Registrant.


     By:     ls/  Richard  K  Brock
             ----------------------
          Richard  K  Brock
          Chief  Financial  Officer  and  Treasurer  of  AFG  ASIT  Corp.
          (Duly  Authorized  Officer  and
          Principal  Financial  and  Accounting  Officer)


     Date:     November  19,  2002






<PAGE>
CERTIFICATION:

I,  Gary  D.  Engle,  certify  that:

1.     I  have  reviewed  this  quarterly  report on Form 10-Q of AFG Investment
Trust  C;

2.     Based  on my knowledge, this quarterly 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 quarterly
report;

3.     Based  on  my  knowledge,  the  financial statements, and other financial
information  included  in  this quarterly 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 quarterly report;

4.     The  registrant's  other  certifying  officers  and I are responsible for
establishing  and  maintaining disclosure controls and procedures (as defined in
Exchange  Act  Rules  13a-14  and  15d-14)  for  the  registrant  and  have:

a)     designed  such disclosure controls and procedures 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  quarterly  report  is  being  prepared;

b)     evaluated  the  effectiveness of the registrant's disclosure controls and
procedures  as  of  a  date  within  90  days  prior  to the filing date of this
quarterly  report  (the  "Evaluation  Date");  and

c)     presented  in  this  quarterly  report  our  conclusions  about  the
effectiveness  of the disclosure controls and procedures based on our evaluation
as  of  the  Evaluation  Date;

5.     The registrant's other certifying officers and I have disclosed, based on
our most recent evaluation, to the registrant's auditors and the audit committee
of  registrant's  board  of  directors  (or  persons  performing  the equivalent
functions):

d)     all  significant  deficiencies  in  the  design  or operation of internal
controls  which  could  adversely  affect  the  registrant's  ability to record,
process,  summarize  and  report  financial  data  and  have  identified for the
registrant's  auditors  any  material  weaknesses  in  internal  controls;  and

e)     any  fraud,  whether  or  not material, that involves management or other
employees who have a significant role in the registrant's internal controls; and


6.     The  registrant's  other certifying officers and I have indicated in this
quarterly  report whether there were significant changes in internal controls or
in other factors that could significantly affect internal controls subsequent to
the  date  of  our most recent evaluation, including any corrective actions with
regard  to  significant  deficiencies  and  material  weaknesses.




                    /s/  Gary  D.  Engle
                    --------------------
                    Gary  D.  Engle
President  of  AFG  ASIT  Corporation,
 the  Managing  Trustee  of  the  Trust
(Principal  Executive  Officer)
                                    November  19,  2002



<PAGE>
------

CERTIFICATION:

I,  Richard  K  Brock,  certify  that:

1.     I  have  reviewed  this  quarterly  report on Form 10-Q of AFG Investment
Trust  C;

2.     Based  on my knowledge, this quarterly 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 quarterly
report;

3.     Based  on  my  knowledge,  the  financial statements, and other financial
information  included  in  this quarterly 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 quarterly report;

4.     The  registrant's  other  certifying  officers  and I are responsible for
establishing  and  maintaining disclosure controls and procedures (as defined in
Exchange  Act  Rules  13a-14  and  15d-14)  for  the  registrant  and  have:

f)     designed  such disclosure controls and procedures 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  quarterly  report  is  being  prepared;

g)     evaluated  the  effectiveness of the registrant's disclosure controls and
procedures  as  of  a  date  within  90  days  prior  to the filing date of this
quarterly  report  (the  "Evaluation  Date");  and

h)     presented  in  this  quarterly  report  our  conclusions  about  the
effectiveness  of the disclosure controls and procedures based on our evaluation
as  of  the  Evaluation  Date;

5.     The registrant's other certifying officers and I have disclosed, based on
our most recent evaluation, to the registrant's auditors and the audit committee
of  registrant's  board  of  directors  (or  persons  performing  the equivalent
functions):

i)     all  significant  deficiencies  in  the  design  or operation of internal
controls  which  could  adversely  affect  the  registrant's  ability to record,
process,  summarize  and  report  financial  data  and  have  identified for the
registrant's  auditors  any  material  weaknesses  in  internal  controls;  and

j)     any  fraud,  whether  or  not material, that involves management or other
employees who have a significant role in the registrant's internal controls; and


6.     The  registrant's  other certifying officers and I have indicated in this
quarterly  report whether there were significant changes in internal controls or
in other factors that could significantly affect internal controls subsequent to
the  date  of  our most recent evaluation, including any corrective actions with
regard  to  significant  deficiencies  and  material  weaknesses.




                    /s/  Richard  K  Brock
                    ----------------------
                    Richard  K  Brock
Chief  Financial  Officer  and  Treasurer  of  AFG  ASIT  Corp.,
the  Managing  Trustee  of  the  Trust
(Principal  Financial  and  Accounting  Officer)
                                     November  19,  2002



<PAGE>
                                  Exhibit Index



99.1  Certificate of Chief Executive Officer pursuant to Section 906 of Sarbanes
-  Oxley  Act

99.2  Certificate of Chief Financial Officer pursuant to Section 906 of Sarbanes
-  Oxley  Act



<PAGE>