----

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**United      States**

**SECURITIES      AND EXCHANGE COMMISSION**

**FORM      10-Q**

**(Mark      One)**

**QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES**

**EXCHANGE      ACT OF 1934**

**TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE      SECURITIES**

**EXCHANGE      ACT OF 1934**

**LEASE      EQUITY APPRECIATION FUND I, L.P.**

| Delaware                                                                      |   | 68-0492247                                          |
|-------------------------------------------------------------------------------|--------|-----------------------------------------------------|
| (State                or other jurisdiction of incorporation or organization) |   | (I.R.S.                Employer Identification No.) |

| Large                accelerated filer  ̈ | Accelerated                filer  ̈ | Non-accelerated                filer x |
|-----------------------------------------------|-----------------------------------------|----------------------------------------|

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**LEASE      EQUITY APPRECIATION FUND I, L.P.**

**INDEX      TO QUARTERLY REPORT**

**ON      FORM 10-Q**

|                       |                                                                                                                                                                                                         | **PAGE** |
|----------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|
| **PART                I**  | **FINANCIAL                INFORMATION**                                                                                                                                                                     |     |
| ITEM                1.     | Financial                Statements                                                                                                                                                                          |     |
|                       | Consolidated                Balance Sheets – June 30, 2007 (unaudited) and                December 31, 2006                                                                                            | 3        |
|                       | Consolidated                Statements of Operations Three                and Six Months Ended June 30, 2007 and 2006                (unaudited)                                                             | 4        |
|                       | Consolidated                Statement of Partners’ Capital and Comprehensive (Loss) Income                For                the Six Months Ended June 30, 2007                (unaudited)   | 5        |
|                       | Consolidated                Statements of Cash Flows For                the Six Months Ended June 30, 2007 and 2006                (unaudited)                                                               | 6        |
|                       | Notes                to Consolidated Financial Statements – June 30, 2007                (unaudited)                                                                                                   | 7        |
| ITEM                2.     | Management’s                Discussion and Analysis of Financial Condition and                Results of Operations                                                                                    | 16       |
| ITEM                3.     | Quantitative                and Qualitative Disclosures about Market                Risk                                                                                                                     | 22       |
| ITEM                4.     | Controls                and Procedures                                                                                                                                                                  | 22       |
| **PART                II** | **OTHER                INFORMATION**                                                                                                                                                                         |     |
| ITEM                6.     | Exhibits                                                                                                                                                                                           |  22 |
| **SIGNATURES **       | 23                                                                                                                                                                                                           |

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*(Back          to Index)*

**PART      I.                      FINANCIAL      INFORMATION**

**Item      1.                 Financial      Statements**

**LEASE      EQUITY APPRECIATION FUND I, L.P.**

**CONSOLIDATED      BALANCE SHEETS**

**(in      thousands)**

|                                                                                                                             |   | **June                30,** |   |   | **December                31,** |   |
|----------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|--------|--------|---------------------------------|--------|
|                                                                                                                             |   | **2007**                    |   |   | **2006**                        |   |
|                                                                                                                             |   | (unaudited)                 |   |   |                            |   |
| **ASSETS**                                                                                                                       |   |                        |   |   |                            |   |
| Cash                                                                                                                             |   | $                           | 795    |   |                            | $      | 4,298 |   |
| Restricted                cash                                                                                                   |   |                        | 5,681  |   |                            |   | 1,739 |   |
| Accounts                receivable                                                                                               |   |                        | 24     |   |                            |   | 76 |   |
| Due                from lockbox                                                                                                  |   |                        | 870    |   |                            |   | 896 |   |
| Investment                in direct financing leases and notes, net                                                              |   |                        | 88,566 |   |                            |   | 87,861 |   |
| Investment                in operating leases, net of accumulated depreciation of $1,027                and $1,378, respectively |   |                        | 751    |   |                            |   | 1,039 |   |
| Fair                value of interest rate swap                                                                                  |   |                        | 498    |   |                            |   | 392 |   |
| Other                assets                                                                                                      |   |                        | 1,096  |   |                            |   | 1,136 |   |
|                                                                                                                             |   | $                           | 98,281 |   |                            | $      | 97,437 |   |
| **LIABILITIES                AND PARTNERS’ CAPITAL**                                                                       |   |                        |   |   |                            |   |   |   |
| **Liabilities:**                                                                                                                 |   |                        |   |   |                            |   |   |   |
| Debt                                                                                                                             |   | $                           | 82,473 |   |                            | $      | 82,364 |   |
| Accounts                payable and accrued                expenses                                                              |   |                        | 296    |   |                            |   | 316 |   |
| Due                to related                parties                                                                             |   |                        | 4,132  |   |                            |   | 3,013 |   |
| Security                deposits                                                                                                 |   |                        | 2,008  |   |                            |   | 1,783 |   |
| Total                liabilities                                                                                                 |   |                        | 88,909 |   |                            |   | 87,476 |   |
| **Partners’                Capital**                                                                                       |   |                        | 9,372  |   |                            |   | 9,961 |   |
|                                                                                                                             |   | $                           | 98,281 |   |                            | $      | 97,437 |   |
|                                                                                                                             |   |                        |   |   |                            |   |   |   |

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**LEASE      EQUITY APPRECIATION FUND I, L.P.**

**CONSOLIDATED      STATEMENTS OF OPERATIONS**

**(in      thousands, except for unit data)**

** (unaudited)**

|                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | **Three                  Months Ended****June                  30,** |    |   | **Six                  Months Ended****June                  30,** |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------|---------|--------|--------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | **2007**                                                             |    |   | **2006**                                                           |   |   | **2007** |   |   | **2006** |   |
| **Income:**                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                 |    |   |                                                               |   |   |   |   |   |   |   |
| Interest                on equipment                financings                                                                 |   | $                                                                    | 1,807   |   |                                                               | $      | 1,569 |   |   | $ | $3,584 |   |   | $ | 3,089 |   |
| Rental                income                                                                                                   |   |                                                                 | 125     |   |                                                               |   | 199 |   |   |   | 273 |   |   |   | 431 |   |
| Gain                on sale of equipment and lease dispositions,                net                                                           |   |                                                                 | 241     |   |                                                               |   | 62 |   |   |   | 340 |   |   |   | 166 |   |
| Other                                                                                                                          |   |                                                                 | 135     |   |                                                               |   | 139 |   |   |   | 309 |   |   |   | 275 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                                                 | 2,308   |   |                                                               |   | 1,969 |   |   |   | 4,506 |   |   |   | 3,961 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                                                 |    |   |                                                               |   |   |   |   |   |   |   |   |   |   |   |
| **Expenses:**                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                                 |    |   |                                                               |   |   |   |   |   |   |   |   |   |   |   |
| Interest                expense                                                                                                |   |                                                                 | 1,259   |   |                                                               |   | 1,086 |   |   |   | 2,466 |   |   |   | 2,158 |   |
| Depreciation                on operating                leases                                                                 |   |                                                                 | 85      |   |                                                               |   | 164 |   |   |   | 206 |   |   |   | 356 |   |
| Provision                for credit                losses                                                                      |   |                                                                 | 167     |   |                                                               |   | 194 |   |   |   | 371 |   |   |   | 339 |   |
| Management                fee to related                party                                                                  |   |                                                                 | 276     |   |                                                               |   | 300 |   |   |   | 565 |   |   |   | 535 |   |
| Administrative                expense reimbursed to related party                                                                                  |   |                                                                 | 161     |   |                                                               |   | 165 |   |   |   | 310 |   |   |   | 269 |   |
| General                and administrative                expenses                                                              |   |                                                                 | 269     |   |                                                               |   | 145 |   |   |   | 589 |   |   |   | 276 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                                                 | 2,217   |   |                                                               |   | 2,054 |   |   |   | 4,507 |   |   |   | 3,933 |   |
| Net                income (loss)                                                                                                                                                                                                                                                                                                                                                                                                                |   | $                                                                    | 91      |   |                                                               | $      | (85 | ) |   | $ | (1 | ) |   | $ | 28 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                                                 |    |   |                                                               |   |   |   |   |   |   |   |   |   |   |   |
| Weighted                average number of limited partner units outstanding                during the period                                                                                                                                                                                                                                                                                                                                    |   |                                                                 | 171,746 |   |                                                               |   | 171,746 |   |   |   | 171,746 |   |   |   | 171,746 |   |
| Net                income (loss) attributed to limited partners per unit                                                                                                                                                                                                                                                                                                                                                                        |   | $                                                                    | 0.52    |   |                                                               | $      | (0.49 | ) |   | $ | (0.01 | ) |   | $ | 0.16 |   |

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**LEASE      EQUITY APPRECIATION FUND I, L.P.**

**CONSOLIDATED      STATEMENT OF PARTNERS’ CAPITAL**

**AND      COMPREHENSIVE (LOSS) INCOME**

**FOR      THE SIX MONTHS ENDED JUNE 30, 2007**

**(in      thousands, except for unit data)**

**(unaudited)**

|                                                                 |   | General                Partner |   |   | Limited                  Partners |   |    | Accumulated                Other Comprehensive |   |   | Partners’                Capital |   |   | Comprehensive                (Loss)                Income |   |
|----------------------------------------------------------------------|--------|--------------------------------|--------|--------|-----------------------------------|--------|---------|------------------------------------------------|--------|--------|----------------------------------------|--------|--------|-----------------------------------------------------------|--------|
|                                                                 |   | Amount                         |   |   | Units                             |   |    | Amount                                         |   |   | Income                                 |   |   | Total                                                     |   |   | Total |   |
| Balance,                January 1, 2007                              |   | $                              | (53    | )      |                              |   | 171,746 |                                           |   | $      | 9,622                                  |   |   | $                                                         | 392    |   |   | $ | 9,961 |   |   |   |   |
| Cash                distributions                paid                |   |                           | (7     | )      |                              |   |    |                                           |   |   | (687                                   | )      |   |                                                      |   |   |   |   | (694 | ) |   |   |   |
| Net                loss                                              |   |                           |   |   |                              |   |    |                                           |   |   | (1                                     | )      |   |                                                      |   |   |   |   | (1 | ) |   | $ | (1 | ) |
| Unrealized                gain on hedging                derivatives |   |                           |   |   |                              |   |    |                                           |   |   |                                   |   |   |                                                      | 106    |   |   |   | 106 |   |   |   | 106 |   |
| Balance,                June 30, 2007                                |   | $                              | (60    | )      |                              |   | 171,746 |                                           |   | $      | 8,934                                  |   |   | $                                                         | 498    |   |   | $ | 9,372 |   |   | $ | 105 |   |

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**LEASE      EQUITY APPRECIATION FUND I, L.P.**

**CONSOLIDATED      STATEMENTS OF CASH FLOWS**

**(in      thousands)**

**(unaudited)**

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | **Six                  Months Ended****June                  30,** |    |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------|---------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | **2007**                                                           |    |   | **2006** |   |
| **Cash                flows from operating activities:**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                               |    |   |   |   |
| Net                (loss)                income                                                                                                                                      |   | $                                                                  | (1      | ) |   | $ | 28 |   |
| Adjustments                to reconcile net (loss) income to net cash provided by operating                activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                                               |    |   |   |   |   |   |
| Gain                on sale of equipment and lease dispositions                net                                                                                                   |   |                                                               | (340    | ) |   |   | (166 | ) |
| Depreciation                                                                                                                                                                         |   |                                                               | 206     |   |   |   | 356 |   |
| Amortization                of deferred financing                costs                                                                                                               |   |                                                               | 56      |   |   |   | 64 |   |
| Provision                for credit losses, net of                recoveries                                                                                                         |   |                                                               | 371     |   |   |   | 339 |   |
| Changes                in operating assets and liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                               |    |   |   |   |   |   |
|  Accounts                receivable                                                                                                                                                            |   |                                                               | 52      |   |   |   | (1 | ) |
| Due                from                lockbox                                                                                                                                                      |   |                                                               | 26      |   |   |   | 798 |   |
| Other                assets                                                                                                                                                                         |   |                                                               | 178     |   |   |   | 49 |   |
| Accounts                payable and accrued                expenses                                                                                                                                 |   |                                                               | (21     | ) |   |   | (104 | ) |
|  Due                to related parties,                net                                                                                                                                     |   |                                                               | 1,119   |   |   |   | 803 |   |
| Net                cash provided by operating                activities                                                                                                                                            |   |                                                               | 1,646   |   |   |   | 2,166 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                               |    |   |   |   |   |   |
| **Cash                flows from investing activities:**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                               |    |   |   |   |   |   |
| Investments                in direct financing                leases and                notes                                                                                        |   |                                                               | (22,389 | ) |   |   | (23,966 | ) |
| Acquisitions                of equipment under                operating                leases                                                                                        |   |                                                               | − |   |   |   | (19 | ) |
| Proceeds                from direct financing                leases and notes, net of earned income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                               | 21,735  |   |   |   | 23,712 |   |
| Security                deposits,                net                                                                                                                                 |   |                                                               | 225     |   |   |   | 79 |   |
| Net                cash used in investing                activities                                                                                                                                                |   |                                                               | (429    | ) |   |   | (194 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                               |    |   |   |   |   |   |
| **Cash                flows from financing activities:**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                               |    |   |   |   |   |   |
| Decrease                in restricted                cash                                                                                                                            |   |                                                               | (3,943  | ) |   |   | (38 | ) |
| Increase                in deferred financing                costs                                                                                                                   |   |                                                               | (193    | ) |   |   | (2 | ) |
| Proceeds                from                debt                                                                                                                                     |   |                                                               | 20,485  |   |   |   | 17,030 |   |
| Repayment                of                debt                                                                                                                                      |   |                                                               | (20,375 | ) |   |   | (17,691 | ) |
| Partners’** **distributions                paid                                                                                                                           |   |                                                               | (694    | ) |   |   | (692 | ) |
| Net                cash used in financing                activities                                                                                                                                                |   |                                                               | (4,720  | ) |   |   | (1,393 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                               |    |   |   |   |   |   |
| (Decrease)                increase in                cash                                                                                                                  |   |                                                               | (3,503  | ) |   |   | 579 |   |
| Cash,                beginning of                period                                                                                                                    |   |                                                               | 4,298   |   |   |   | 3,206 |   |
| Cash,                end of                period                                                                                                                          |   | $                                                                  | 795     |   |   | $ | 3,785 |   |

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*(Back          to Index)*

**LEASE      EQUITY APPRECIATION FUND I, L.P.**

**NOTESTO      CONSOLIDATED FINANCIAL STATEMENTS**

**June      30, 2007**

**(unaudited)**

**NOTE      1- ORGANIZATION      AND NATURE OF BUSINESS**

**NOTE      2 - SUMMARY      OF      SIGNIFICANT ACCOUNTING POLICIES**

**Basis      of Presentation**

**Classification**

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**LEASE      EQUITY APPRECIATION FUND I, L.P.**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS − (Continued)**

**June      30, 2007**

**(unaudited)**

**NOTE      2 - SUMMARY      OF      SIGNIFICANT ACCOUNTING POLICIES -      (Continued)**

**Use      of Estimates**

**Concentration      of Credit Risk**

**Revenue      Recognition**

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**LEASE      EQUITY APPRECIATION FUND I, L.P.**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS − (Continued)**

**June      30, 2007**

**(unaudited)**

**NOTE      2 - SUMMARY      OF      SIGNIFICANT ACCOUNTING POLICIES -      (Continued)**

**Revenue      Recognition − (Continued)**

*Direct      Financing      Leases.  *

*Operating      Leases.  *

*Notes      Receivable.*

**Income      Taxes**

**Supplemental      Disclosure of Cash Flow Information**

|                                                              |   | **2007** |    |   | **2006** |   |
|-------------------------------------------------------------------|--------|----------|---------|--------|----------|--------|
| **Cash                paid for:**                                 |   |     |    |   |     |   |
| Interest                                                          |   | $        | 2,745   |   |     | $      | 2,099 |   |
| **Non-cash                activities:**                           |   |     |    |   |     |   |   |   |
| Purchase                of direct financing                leases |   | $        | − |   |     | $      | 5,373 |   |
| Note                payable to General                Partner     |   | $        | − |   |     | $      | 5,373 |   |

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**LEASE      EQUITY APPRECIATION FUND I, L.P.**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS − (Continued)**

**June      30, 2007**

**(unaudited)**

**NOTE      2 - SUMMARY      OF      SIGNIFICANT ACCOUNTING POLICIES -      (Continued)**

**Recently      Issued Accounting Pronouncements**

**Transfers      of Financial Assets**

**Fair      Value of Financial Instruments**

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**LEASE        EQUITY APPRECIATION FUND I, L.P.**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS − (Continued)**

**June        30, 2007**

**(unaudited)**

**NOTE      3 − RESTRICTED CASH**

**NOTE      4 − DUE FROM LOCKBOX**

**NOTE      5 -INVESTMENT      IN LEASES AND NOTES**

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | **June                  30,****2007** |   |   | **December                  31,****2006** |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|--------|--------|-------------------------------------------|--------|
| Direct                financing                leases                                                                                                 |   | $                                     | 77,395 |   |                                      | $      | 78,470 |   |
| Notes                receivable                                                                                                                       |   |                                  | 11,602 |   |                                      |   | 9,822 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                  | 88,997 |   |                                      |   | 88,292 |   |
| Allowance                for possible                losses                                                                                           |   |                                  | (431   | )      |                                      |   | (431 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | $                                     | 88,566 |   |                                      | $      | 87,861 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | **June                30,** |   |   | **December                31,** |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|--------|--------|---------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | **2007**                    |   |   | **2006**                        |   |
| Total                future minimum lease                payments                                                                                                  |   | $                           | 86,513 |   |                            | $      | 88,238 |   |
| Unearned                income                                                                                                                                     |   |                        | (9,836 | )      |                            |   | (10,651 | ) |
| Residuals,                net of unearned residual                income                                                                                           |   |                        | 718    |   |                            |   | 883 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | $                           | 77,395 |   |                            | $      | 78,470 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | **Six                  Months Ended****June                  30,** |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | **2007**                                                           |   |   | **2006** |   |
| Allowance                for possible losses, beginning of the                period                                                                                             |   | $                                                                  | 431    |   |   | $ | 405 |   |
| Provision                for credit                losses                                                                                                                        |   |                                                               | 371    |   |   |   | 339 |   |
| Net                write-offs                                                                                                                                                    |   |                                                               | (371   | ) |   |   | (444 | ) |
| Allowance                for possible losses, end of the                period                                                                                                   |   | $                                                                  | 431    |   |   | $ | 300 |   |

----

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**LEASE      EQUITY APPRECIATION FUND I, L.P.**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS − (Continued)**

**June      30, 2007**

**(unaudited)**

**NOTE        6− OTHER ASSETS**

**NOTE      7 -      DEBT**

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | **June                  30, 2007** |   |   | **December                  31, 2006** |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------|--------|--------|----------------------------------------|--------|
| WestLB                AG, New York Branch revolving line of credit, with an aggregate borrowing                limit of $125.0 million collateralized by specific lease receivables                and                related equipment, with a 1% credit reserve of the outstanding line                of                credit. As of June 30, 2006 interest on this facility was reduced                to LIBOR                plus .95% per annum from 1.10% per annum.  To mitigate                fluctuations in interest rates the Fund has entered into interest                rate                swap agreements. The interest rate swap agreements terminate at various                dates ranging from February 2010 to May 2014.  As of June 30,                2007, the interest rate swap agreements fix the interest rate on                the                outstanding balance at 5.77% on a weighted average                basis.  Interest and principal are due monthly.  The                line of credit is renewable for a one year period on December 31,                2007 |   | $                                  | 77,492 |   |                                   | $      | 74,589 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                               |   |   |                                   |   |   |   |
| OFC                Capital, a division of ALFA Financial Corporation, collateralized                by                specific lease receivables equal to 93% of the aggregate payments                due                under the related equipment lease or equipment finance transaction,                discounted at an interest rate of 6.9%, funded subject to a credit                reserve                of 3% of the loan amount.  Interest and principal are due                monthly, with a final maturity date of February 15, 2009                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                               | 3,022  |   |                                   |   | 4,408 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                               |   |   |                                   |   |   |   |
| National                City Commercial Capital Corporation f/k/a Information Leasing Corporation,                collateralized by specified lease receivables, generally equal to                the sum                of the receivables, discounted to present value at 5.79%, less a                credit                reserve of 8% after security deposit.  Interest and principal                are due monthly, with a final maturity date of June 10,                2010.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                               | 1,959  |   |                                   |   | 3,367 |   |
| Total                outstanding                debt                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | $                                  | 82,473 |   |                                   | $      | 82,364 |   |

| 2008                                          |   | $      | 36,310 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|
| 2009                                          |   |   | 22,128 |   |
| 2010                                          |   |   | 13,276 |   |
| 2011                                          |   |   | 6,250  |   |
| 2012                                          |   |   | 2,692  |   |
| Thereafter                                    |   |   | 1,817  |   |
|                                                                                                                                                                                                                         |   | $      | 82,473 |   |

----

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**LEASE      EQUITY APPRECIATION FUND I, L.P.**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS − (Continued)**

**June      30, 2007**

**(unaudited)**

**NOTE      8 − EQUIPMENT FINANCE PORTFOLIO ACQUISTION**

**NOTE      9 - DERIVATIVE      INSTRUMENTS**

**NOTE      10 -      TRANSACTIONS WITH AFFILIATES**

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**LEASE      EQUITY APPRECIATION FUND I, L.P.**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS − (Continued)**

**June      30, 2007**

**(unaudited)**

**NOTE      10 -      TRANSACTIONS WITH AFFILIATES – (Continued)**

|                                              |   | **Three                  Months Ended****June                  30,** |   |   | **Six                  Months Ended****June                  30,** |   |
|---------------------------------------------------|--------|----------------------------------------------------------------------|--------|--------|--------------------------------------------------------------------|--------|
|                                              |   | **2007**                                                             |   |   | **2006**                                                           |   |   | **2007** |   |   | **2006** |   |
| Acquisition                fees                   |   | $                                                                    | 229    |   |                                                               | $      | 289 |   |   | $ | 390 |   |   | $ | 412 |   |
| Asset                management fees              |   | $                                                                    | 276    |   |                                                               | $      | 300 |   |   | $ | 565 |   |   | $ | 535 |   |
| Reimbursed                administrative expenses |   | $                                                                    | 161    |   |                                                               | $      | 165 |   |   | $ | 310 |   |   | $ | 269 |   |

**NOTE      11 - ALLOCATION      OF PARTNERSHIP INCOME, LOSS AND CASH DISTRIBUTIONS**

**NOTE      12 -      COMPREHENSIVE (LOSS) INCOME**

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**NOTE      13- NET      INCOME  (LOSS) PER LIMITED PARTNERSHIP UNIT**

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**ITEM      2.                      MANAGEMENT’S      DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION **
**AND      RESULTS OF OPERATIONS  (unaudited)**

**When      used in this Form 10-Q, the words“believes” “anticipates,” “expects” and similar expressions are intended to      identify forward-looking statements.  Such statements are subject to      certain risks and uncertainties more particularly described in Item 1A, under      the caption “Risks Inherent in Our Business,” in our annual report on Form 10-K      for fiscal 2006.  These risks and uncertainties could cause actual      results to differ materially.  Readers are cautioned not to place      undue reliance on these forward-looking statements, which speak only as of      the      date hereof.  We undertake no obligation to publicly release the      results of any revisions to forward-looking statements which we may make to      reflect events or circumstances after the date of this Form 10-Q or to reflect      the occurrence of unanticipated events.**

**Overview**

|   | · | 500                or fewer employees; |
|--------|--------|----------------------------------------|

|   | · | $1.0                billion or less in total assets; or |
|--------|--------|---------------------------------------------------------|

|   | · | $100.0                million or less in total annual                sales. |
|--------|--------|-----------------------------------------------------------------------------|

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**Our      Lease Portfolio**

**Direct      Financing Leases and Notes**

|                                   |   | **June                  30, 2007**  |   |   | **December                  31, 2006** |   |
|----------------------------------------|--------|-------------------------------------|--------|--------|----------------------------------------|--------|
| **Type                  of Equipment** |   | **Net                  Investment** |   |   | **Percentage**                         |   |   | **Net                  Investment** |   |   | **Percentage** |   |
| Medical                Equipment       |   | $                                   | 31,398 |   |                                   |   | 35.3 | % |   | $ | 29,140 |   |   |   | 33.0 | % |
| Industrial                Equipment    |   |                                | 20,728 |   |                                   |   | 23.3 |   |   |   | 19,100 |   |   |   | 21.6 |   |
| Computers                              |   |                                | 11,624 |   |                                   |   | 13.1 |   |   |   | 13,477 |   |   |   | 15.3 |   |
| Office                Equipment        |   |                                | 5,991  |   |                                   |   | 6.7 |   |   |   | 6,944 |   |   |   | 7.9 |   |
| Software                               |   |                                | 4,815  |   |                                   |   | 5.4 |   |   |   | 3,683 |   |   |   | 4.2 |   |
| Communications                         |   |                                | 3,756  |   |                                   |   | 4.2 |   |   |   | 3,172 |   |   |   | 3.6 |   |
| Garment                Care            |   |                                | 2,545  |   |                                   |   | 2.9 |   |   |   | 3,373 |   |   |   | 3.8 |   |
| Restaurant                Equipment    |   |                                | 2,068  |   |                                   |   | 2.3 |   |   |   | 2,432 |   |   |   | 2.7 |   |
| Building                systems        |   |                                | 1,921  |   |                                   |   | 2.2 |   |   |   | 2,048 |   |   |   | 2.3 |   |
| Other                                  |   |                                | 4,151  |   |                                   |   | 4.6 |   |   |   | 4,923 |   |   |   | 5.6 |   |
|                                   |   | $                                   | 88,997 |   |                                   |   | 100.0 | % |   | $ | 88,292 |   |   |   | 100.0 | % |

**Operating      Leases**

|                                   |   | **June                  30, 2007**  |    |   | **December                  31, 2006** |   |
|----------------------------------------|--------|-------------------------------------|---------|--------|----------------------------------------|--------|
| **Type                  of Equipment** |   | **Net                  Investment** |    |   | **Percentage**                         |   |   | **Net                  Investment** |   |   | **Percentage** |   |
| Industrial                Equipment    |   | $                                   | 297     |   |                                   |   | 39.6 | % |   | $ | 266 |   |   |   | 25.6 | % |
| Office                Equipment        |   |                                | 164     |   |                                   |   | 21.8 |   |   |   | 283 |   |   |   | 27.2 |   |
| Communications                         |   |                                | 154     |   |                                   |   | 20.5 |   |   |   | 205 |   |   |   | 19.7 |   |
| Computers                and software  |   |                                | 115     |   |                                   |   | 15.3 |   |   |   | 250 |   |   |   | 24.1 |   |
| Medical                Equipment       |   |                                | 21      |   |                                   |   | 2.8 |   |   |   | 33 |   |   |   | 3.2 |   |
| Restaurant                Equipment    |   |                                | − |   |                                   |   | − |   |   |   | 2 |   |   |   | 0.2 |   |
|                                   |   | $                                   | 751     |   |                                   |   | 100.0 | % |   | $ | 1,039 |   |   |   | 100.0 | % |

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**Direct      Financing Leases and Notes**

|                                         |   | **June                  30, 2007**  |   |   | **December                  31, 2006** |   |
|----------------------------------------------|--------|-------------------------------------|--------|--------|----------------------------------------|--------|
| **Type                  of Business**        |   | **Net                  Investment** |   |   | **Percentage**                         |   |   | **Net                  Investment** |   |   | **Percentage** |   |
| Services                                     |   | $                                   | 50,863 |   |                                   |   | 57.2 | % |   | $ | 51,425 |   |   |   | 58.2 | % |
| Manufacturing                                |   |                                | 8,841  |   |                                   |   | 9.9 |   |   |   | 9,030 |   |   |   | 10.2 |   |
| Retail                Trade                  |   |                                | 7,331  |   |                                   |   | 8.2 |   |   |   | 7,747 |   |   |   | 8.8 |   |
| Wholesale                Trade               |   |                                | 4,737  |   |                                   |   | 5.4 |   |   |   | 4,694 |   |   |   | 5.3 |   |
| Construction                                 |   |                                | 4,611  |   |                                   |   | 5.2 |   |   |   | 4,386 |   |   |   | 5.0 |   |
| Transportation/Communication/Energy          |   |                                | 3,992  |   |                                   |   | 4.5 |   |   |   | 3,409 |   |   |   | 3.9 |   |
| Agriculture/Forestry/Fishing                 |   |                                | 3,280  |   |                                   |   | 3.7 |   |   |   | 2,829 |   |   |   | 3.2 |   |
| Finance/Insurance/Real                Estate |   |                                | 2,970  |   |                                   |   | 3.3 |   |   |   | 2,552 |   |   |   | 2.9 |   |
| Public                Administration         |   |                                | 351    |   |                                   |   | 0.4 |   |   |   | 620 |   |   |   | 0.7 |   |
| Other                                        |   |                                | 2,021  |   |                                   |   | 2.2 |   |   |   | 1,600 |   |   |   | 1.8 |   |
|                                         |   | $                                   | 88,997 |   |                                   |   | 100.0 | % |   | $ | 88,292 |   |   |   | 100.0 | % |

**Operating      Leases**

|                                         |   | **June                  30, 2007**  |    |   | **December                  31, 2006** |   |
|----------------------------------------------|--------|-------------------------------------|---------|--------|----------------------------------------|--------|
| **Type                  of Business**        |   | **Net                  Investment** |    |   | **Percentage**                         |   |   | **Net                  Investment** |   |   | **Percentage** |   |
| Construction                                 |   | $                                   | 344     |   |                                   |   | 45.8 | % |   | $ | 313 |   |   |   | 30.1 | % |
| Services                                     |   |                                | 288     |   |                                   |   | 38.4 |   |   |   | 438 |   |   |   | 42.2 |   |
| Wholesale                Trade               |   |                                | 56      |   |                                   |   | 7.5 |   |   |   | 82 |   |   |   | 7.9 |   |
| Manufacturing                                |   |                                | 25      |   |                                   |   | 3.3 |   |   |   | 63 |   |   |   | 6.1 |   |
| Transportation/Communication/Energy          |   |                                | 23      |   |                                   |   | 3.1 |   |   |   | 61 |   |   |   | 5.9 |   |
| Finance/Insurance/Real                Estate |   |                                | 7       |   |                                   |   | 0.9 |   |   |   | 66 |   |   |   | 6.3 |   |
| Retail                Trade                  |   |                                | − |   |                                   |   | − |   |   |   | 4 |   |   |   | 0.4 |   |
| Public                Administration         |   |                                | 1       |   |                                   |   | 0.1 |   |   |   | 2 |   |   |   | 0.2 |   |
| Other                                        |   |                                | 7       |   |                                   |   | 0.9 |   |   |   | 10 |   |   |   | 0.9 |   |
|                                         |   | $                                   | 751     |   |                                   |   | 100.0 | % |   | $ | 1,039 |   |   |   | 100.0 | % |

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**Results      of Operations**

*Three      Months Ended June 30, 2007 compared to Three Months Ended June 30,      2006*

|   | · | Interest                income on equipment financings increased to $1.8 million for the three                months                ended June 30, 2007 as compared to $1.6 million for the three                months                June 30, 2006 an increase of $238,000 (15%).  This is due to an                increase in our financing assets to $88.6 million as of June 30,                2007 as                compared to $86.2 million as of June 30, 2006, an increase of $2.4                million                (3%). |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Gain                on sale of equipment and lease dispositions increased to $241,000                for the                three months ended June 30, 2007 as compared to $62,000 for the three                months ended June 30, 2006.  Gains and losses from equipment and                lease dispositions may vary significantly from period to                period. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Rental                income decreased to $125,000 for the three                months                ended June 30, 2007 as compared to $199,000 for the three                months                ended June 30, 2006, a decrease of $74,000 (37%).  This decrease                is principally the result of operating leases reaching                term. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Interest                expense increased to $1.3 million for the three                months                ended June 30, 2007 as compared to $1.1 million for the three months                ended                June 30, 2006, an increase of $173,000 (16%).  This increase is                primarily due to the increase of our debt incurred to acquire equipment                financing assets.  Average debt increased to $81.9 million                during the three months ended June 30, 2007 as compared to $75.2                million                during the three months ended June 30, 2006, an increase of $5.7                million                (7.6%). |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Our                  general and administrative expenses increased to $269,000 for the                three                months ended June 30, 2007 as compared to $145,000 for the three                months                ended June 30, 2006, an increase of $124,000 (86%).  This                increase is principally the result of increased legal costs associated                with collection efforts. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Our                provision for credit losses decreased to $167,000 for the three                months                ended June 30, 2007 as compared to $194,000 for the three months                ended                June 30, 2006, a decrease of $27,000 (14%).  This decrease was                within our expectation. We provide for bad debts when losses are                likely to                occur based on a migration analysis of past due payments and economic                conditions. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Depreciation                on operating leases                decreased to $85,000 for                the three months ended June                30, 2007 as compared to $164,000 for the three months ended June                30, 2006,                a decrease of $79,000 (48%).  This decrease is principally the                result of operating leases reaching                term. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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*Six      Months Ended June 30, 2007 compared to Six Months Ended June 30,      2006*

|   | · | Interest                income on equipment financings increased to $3.6 million for the                six                months ended June 30, 2007 as compared to $3.1 million for the six                months                June 30, 2006 an increase of $495,000 (16 %).  This is due to an                increase in our financing assets to $88.6 million as June 30, 2007                as                compared to $86.2 million as of June 30, 2006, an increase of $2.4                million                (3.1%). |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Gain                on sale of equipment and lease dispositions increased to $340,000                for the                six months ended June 30, 2007 as compared to $166,000 for the six                months                ended June 30, 2006, an increase of $174,000 (105%).  Gains and                losses from equipment and lease dispositions may vary significantly                from                period to period. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Rental                income decreased to $273,000 for the six months ended June 30, 2007                as                compared to $431,000 for the six months ended June 30, 2006, a decrease                of                $158,000 (37 %) as a result of operating leases reaching full                term. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Interest                expense increased to $2.5 million for the six months ended June 30,                2007                as compared to $2.2 million for the six months ended June 30, 2006,                an                increase of $308,000 (14%).This increase is primarily due to the                increase                of our debt incurred to acquire equipment financings                assets.  Average debt increased to $82.1 million during the six                months ended June 30, 2007 as compared to $75.5 million during the                six                months ended June 30, 2006, an increase of $6.6 million                (9%). |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Our                provision for credit losses increased to $371,000 for the six months                ended                June 30, 2007 as compared to $339,000 for the six months ended June                30,                2006, an increase of $32,000 (9%).  This increase was within our                expectation.  We provide for bad debts when losses are likely to                occur based on a migration analysis of past due payments and economic                conditions. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Administrative                expenses reimbursed to related party increased to $310,000 for the                six                months ended June 30, 2007 as compared to $269,000 for the six months                ended June 30, 2006, an increase of $41,000 (15%). This increase                is due to                our growth in commercial financing                assets. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Management                fees increased to $565,000 for the six months ended June 30, 2007                as                compared to $535,000 for the six months ended June 30, 2006 , an                increase                of $30,000 (6%).  This increase is directly attributable to our                growth in commercial financing                assets. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | General                and administrative expenses increased to $589,000 for the six months                ended                June 30, 2007 as compared to $ 276,000 for the six months ended June                30,                2006, an increase of $313,000 (113%).  This increase is                principally the result of increased legal costs associated with collection                efforts. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Depreciation                on operating leases decreased to $206,000 for the six months ended                June                30, 2007 as compared to $356,000 for the six months ended June 30,                2006, a                decrease of $150,000 (42%).  This is a result of operating                leases reaching full term. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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*Six      Months Ended June 30, 2007 compared to Six Months Ended June30,      2006*

**Liquidity      and Capital Resources**

|                                                            |   | **June                  30,** |   |
|-----------------------------------------------------------------|--------|-------------------------------|--------|
|                                                            |   | **2007**                      |   |   | **2006** |   |
| Net                cash provided by operating activities        |   | $                             | 1,646  |   |   | $ | 2,166 |   |
| Net                cash used in investing activities            |   |                          | (429   | ) |   |   | (194 | ) |
| Net                cash  used in financing activities |   |                          | (4,720 | ) |   |   | (1,393 | ) |
| (Decrease)                increase in cash                      |   | $                             | (3,503 | ) |   | $ | 579 |   |

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**ITEM        3.                      QUANTITATIVE        AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

**ITEM      4.                      CONTROLS      AND PROCEDURES**

**PART      II – OTHER INFORMATION**

**ITEM      6.                      EXHIBITS**

|   | Exhibit                No. |   | Description                                                                                                                                                         |
|--------|----------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | 3.1                        |   | Amended                and Restated Agreement of Limited Partnership (1)                                                                                            |
|   | 3.2                        |   | Certificate                of Limited Partnership (2)                                                                                                               |
|   | 4.1                        |   | Forms                of letters sent to limited partners confirming their investment (2)                                                                            |
|   | 10.1                       |   | Fourth                Amendment to Secured Loan Agreement with WestLB AG, New York Branch,                dated                March 30, 2007 (3)                   |
|   | 31.1                       |   | Rule                13a-14(a)/Rule 15d-14(a) Certification of Chief Executive                Officer.                                                               |
|   | 31.2                       |   | Rule                13a-14(a)/Rule 15d-14(a) Certification of Chief Financial                Officer.                                                               |
|   | 32.1                       |   | Certification                of Chief Executive Officer pursuant to Section 1350 of Chapter 63                of Title                18 of the United States Code. |
|   | 32.2                       |   | Certification                of Chief Financial Officer pursuant to Section 1350 of Chapter 63                of Title                18 of the United States Code. |

|   | (1) | Filed                previously as Appendix A to our Post-Effective Amendment No. 3 to                our                Registration Statement on Form S-1, filed on January 24, 2004 and                by this                reference incorporated herein. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Filed                previously as an Exhibit to Amendment No. 1 to our Registration Statement                on Form S-1 filed on June 7, 2002 and by this reference incorporated                herein. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | File                    previously as an exhibit to our Quarterly Report on Form 10-Q                    for the                    quarter ended March 31, 2007 and by this reference incorporated                    herein.  |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**SIGNATURES**

|                           | **LEASE                EQUITY APPRECIATION FUND I, L.P.**                                         |
|--------------------------------|---------------------------------------------------------------------------------------------------|
|                           | A                Delaware Limited Partnership                                                     |
|                           | By:  LEAF                Financial Corporation, its General Partner                     |
|                           |                                                                                              |
| August                14, 2007 | /s/                Crit DeMent                                           |
|                           | CRIT                  DEMENT                                                                      |
|                           |  Chairman              and Chief Executive Officer of the General Partner                    |
|                           |                                                                                              |
|                           |                                                                                              |
| August                14, 2007 | /s/                Robert K. Moskovitz                                                            |
|                           | ROBERT                K. MOSKOVITZ                                                                |
|                           |  Chief              Financial Officer and Treasurer of the General              Partner |

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