##### Table of Contents



United States
SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, D.C. 20549
 FORM 10-Q
 (Mark One)
 þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
 For the quarterly period ended March 31, 2008
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
 For the transition period from  to
 Commission file number 333-84730
 LEASE EQUITY APPRECIATION FUND I, L.P.
  Delaware
    
    68-0492247(State or other jurisdiction of 
incorporation or organization)
    
    (I.R.S. Employer Identification No.)
 
 
 þ o
  Large accelerated filer
o
    
    Accelerated filer o
    
    Non-accelerated filer o
    
    Smaller reporting company þ(Do not check if a smaller reporting company)
 o þ




---



##### 



LEASE EQUITY APPRECIATION FUND I, L.P.
INDEX TO QUARTERLY REPORT
ON FORM 10-Q
 PAGEPART I FINANCIAL INFORMATIONITEM 1. Financial StatementsConsolidated Balance Sheets  March 31, 2008 (unaudited) and December 31, 2007
    
    
    3Consolidated Statements of Operations
Three Months Ended March 31, 2008 and 2007 (unaudited)
    
    
    4Consolidated Statement of Partners Capital and Comprehensive Income (Loss)
Three Months Ended March 31, 2008 (unaudited)
    
    
    5Consolidated Statements of Cash Flows
Three Months Ended March 31, 2008 and 2007 (unaudited)
    
    
    6Notes to Consolidated Financial Statements  March 31, 2008 (unaudited)
    
    
    7ITEM 2. Managements Discussion and Analysis of Financial Condition
and Results of Operations
    
    
    16ITEM 3. Quantitative and Qualitative Disclosures about Market Risk
    
    
    21ITEM 4. Controls and Procedures
    
    
    21PART II OTHER INFORMATIONITEM 6. Exhibits
    
    
    22SIGNATURES
    
    
    23CERTIFICATION OF CEO PURSUANT TO RULE 13a-14(a)CERTIFICATION OF CFO PURSUANT TO RULE 13a-14(a)CERTIFICATION OF CEO PURSUANT TO RULE SECTION 1350CERTIFICATION OF CFO PURSUANT TO RULE SECTION 1350




---



##### Table of Contents



PART I. FINANCIAL INFORMATION
 
 Item 1. Financial Statements
 LEASE EQUITY APPRECIATION FUND I, L.P.
 
 CONSOLIDATED BALANCE SHEETS
 (in thousands)
 March 31,
    
    
    December 31,2008
    
    
    2007(unaudited)
    
    
    (audited)ASSETSCash
    
    $
    313
    
    
    $
    573Restricted cash
    
    
    7,351
    
    
    
    8,008Accounts receivable
    
    
    13
    
    
    
    18Investment in direct financing leases and notes, net
    
    
    108,207
    
    
    
    100,954Investment in operating leases, net of accumulated depreciation of
$636 and $702, respectively
    
    
    664
    
    
    
    720Other assets
    
    
    1,151
    
    
    
    1,343$
    117,699
    
    
    $
    111,616LIABILITIES AND PARTNERS CAPITAL
Liabilities:Debt
    
    $
    101,266
    
    
    $
    97,302Accounts payable and accrued expenses
    
    
    376
    
    
    
    774Security deposits
    
    
    2,468
    
    
    
    2,086Fair value of interest rate swaps
    
    
    2,998
    
    
    
    1,162Due to related parties
    
    
    6,011
    
    
    
    3,670Total liabilities
    
    
    113,119
    
    
    
    104,994Partners Capital
    
    
    4,580
    
    
    
    6,622$
    117,699
    
    
    $
    111,616
  3




---



##### Table of Contents



LEASE EQUITY APPRECIATION FUND I, L.P.
 
 CONSOLIDATED STATEMENTS OF OPERATIONS
 (in thousands, except for unit data)
 (unaudited)
 Three Months EndedMarch 31,2008
    
    
    2007Income:Interest on equipment financings
    
    $
    2,594
    
    
    $
    1,777Rental income
    
    
    61
    
    
    
    148Gain on sale of equipment and lease dispositions, net
    
    
    179
    
    
    
    99Other
    
    
    218
    
    
    
    1743,052
    
    
    
    2,198Expenses:Interest expense
    
    
    1,469
    
    
    
    1,207Depreciation on operating leases
    
    
    39
    
    
    
    121Provision for credit losses
    
    
    467
    
    
    
    204Management fees to related party
    
    
    321
    
    
    
    289Administrative expense reimbursed to related party
    
    
    195
    
    
    
    149General and administrative expenses
    
    
    335
    
    
    
    3202,826
    
    
    
    2,290Net income (loss)
    
    $
    226
    
    
    $
    (92
    )Weighted average number of limited partner units
outstanding during the period
    
    
    171,746
    
    
    
    171,746Net income (loss) per weighted average limited partner unit
    
    $
    1.30
    
    
    $
    (0.53
    )
  4




---



##### Table of Contents



LEASE EQUITY APPRECIATION FUND I, L.P.
 
 CONSOLIDATED STATEMENT OF PARTNERS CAPITAL
 AND COMPREHENSIVE INCOME (LOSS)
 FOR THE THREE MONTHS ENDED MARCH 31, 2008
 (in thousands except unit data)
 (unaudited)
 AccumulatedGeneral
    
    
    
    
    
    
    
    
    
    
    Other
    
    
    Partners
    
    
    ComprehensivePartner
    
    
    Limited Partners
    
    
    Comprehensive
    
    
    Capital
    
    
    Income (Loss)Amount
    
    
    Units
    
    
    Amount
    
    
    Loss
    
    
    Total
    
    
    TotalBalance at January 1, 2008
    
    $
    (71
    )
    
    
    171,746
    
    
    $
    7,855
    
    
    $
    (1,162
    )
    
    $
    6,622Cash distributions paid
    
    
    (4
    )
    
    
    
    
    
    
    (428
    )
    
    
    
    
    
    
    (432
    )Net income
    
    
    2
    
    
    
    
    
    
    
    224
    
    
    
    
    
    
    
    226
    
    
    $
    226Unrealized loss on hedging
derivatives
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,836
    )
    
    
    (1,836
    )
    
    
    (1,836
    )Balance at March 31, 2008
    
    $
    (73
    )
    
    
    171,746
    
    
    $
    7,651
    
    
    $
    (2,998
    )
    
    $
    4,580
    
    
    $
    (1,610
    )
  5




---



##### Table of Contents



LEASE EQUITY APPRECIATION FUND I, L.P.
 
 CONSOLIDATED STATEMENTS OF CASH FLOWS
 (in thousands)
 (unaudited)
 Three Months EndedMarch 31,2008
    
    
    2007Cash flows from operating activities:Net income (loss)
    
    $
    226
    
    
    $
    (92
    )Adjustments to reconcile net income (loss) to net cash provided by
operating activities:Gain on sale of equipment and lease dispositions, net
    
    
    (179
    )
    
    
    (99
    )Depreciation
    
    
    39
    
    
    
    121Amortization of deferred financing costs
    
    
    52
    
    
    
    32Provision for credit losses
    
    
    467
    
    
    
    204Changes in operating assets and liabilities:Accounts receivable
    
    
    5
    
    
    
    27Other assets
    
    
    140
    
    
    
    276Accounts payable and accrued expenses
    
    
    (398
    )
    
    
    207Due to related parties, net
    
    
    2,341
    
    
    
    466Net cash provided by operating activities
    
    
    2,693
    
    
    
    1,142Cash flows from investing activities:Investments in direct financing leases and notes
    
    
    (17,269
    )
    
    
    (9,870
    )Proceeds from equipment under operating lease, net
    
    
    17
    
    
    
    Proceeds from direct financing leases and notes, net of earned income
    
    
    9,728
    
    
    
    10,838Security deposits, net
    
    
    382
    
    
    
    19Net cash (used in) provided by investing activities
    
    
    (7,142
    )
    
    
    987Cash flows from financing activities:Borrowings of debt
    
    
    16,620
    
    
    
    9,102Repayment of debt
    
    
    (12,656
    )
    
    
    (10,230
    )Decrease (increase) in restricted cash
    
    
    657
    
    
    
    (3,508
    )Increase in deferred financing costs
    
    
    
    
    
    
    (193
    )Cash distributed to partners
    
    
    (432
    )
    
    
    (342
    )Net cash provided by (used in) financing activities
    
    
    4,189
    
    
    
    (5,171
    )Decrease in cash
    
    
    (260
    )
    
    
    (3,042
    )Cash, beginning of period
    
    
    573
    
    
    
    4,298Cash, end of period
    
    $
    313
    
    
    $
    1,256
  6




---



##### Table of Contents



LEASE EQUITY APPRECIATION FUND I, L.P.
 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 March 31, 2008
 (unaudited)
 NOTE 1  ORGANIZATION AND NATURE OF BUSINESS
     NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 Basis of Presentation
  Reclassifications
  Use of Estimates
   7




---



##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued)
March 31, 2008
(unaudited)
 NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  (Continued)
 Use of Estimates (continued)
     Concentration of Credit Risk
   Revenue Recognition
  Direct Financing Leases.
 Operating Leases.
 8




---



##### Table of Contents



LEASE EQUITY APPRECIATION FUND I, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued)
March 31, 2008
(unaudited)
 NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  (Continued)
 Revenue Recognition  (Continued)
  Notes Receivable.
  Income Taxes
  Supplemental Disclosure of Cash Flow Information
  Recently Issued Accounting Pronouncements
    9




---



##### Table of Contents



LEASE EQUITY APPRECIATION FUND I, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued)
March 31, 2008
(unaudited)
 NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  (Continued)
 Transfers of Financial Assets
  Fair Value of Financial Instruments
   NOTE 3  RESTRICTED CASH
  NOTE 4  INVESTMENT IN DIRECT FINANCING LEASES AND NOTES
  March 31,
    
    
    December 31,2008
    
    
    2007Direct financing leases
    
    $
    87,943
    
    
    $
    80,509Notes receivable
    
    
    20,814
    
    
    
    21,045108,757
    
    
    
    101,554Allowance for credit losses
    
    
    (550
    )
    
    
    (600
    )$
    108,207
    
    
    $
    100,954
 10




---



##### Table of Contents



LEASE EQUITY APPRECIATION FUND I, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued)
March 31, 2008
(unaudited)
 NOTE 4  INVESTMENT IN DIRECT FINANCING LEASES AND NOTES  (Continued)
  March 31,
    
    
    December 31,2008
    
    
    2007Total future minimum lease payments
    
    $
    99,739
    
    
    $
    92,388Unearned rental income
    
    
    (12,861
    )
    
    
    (12,752
    )Residuals, net of unearned residual income
    
    
    1,065
    
    
    
    873$
    87,943
    
    
    $
    80,509
  Three Months EndedMarch 31,2008
    
    
    2007Allowance for credit losses, beginning of the period
    
    $
    600
    
    
    $
    431Provision for credit losses
    
    
    467
    
    
    
    204Net write-offs
    
    
    (517
    )
    
    
    (204
    )Allowance for credit losses, end of the period
    
    $
    550
    
    
    $
    431
 NOTE 5  OTHER ASSETS
  11




---



##### Table of Contents



LEASE EQUITY APPRECIATION FUND I, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued)
March 31, 2008
(unaudited)
 NOTE 6  DEBT
  March 31, 2008
    
    
    December 31, 2007WestLB AG, New York Branch revolving
line of credit, with an aggregate
borrowing limit of $110 million
collateralized by specific lease
receivables and related equipment,
with a 1% credit reserve of the
outstanding line of credit. Interest
on this facility is calculated at
LIBOR plus 0.95% per annum. To
mitigate fluctuations in interest
rates, the Fund has entered into
interest rate swap agreements,
terminating at various dates ranging
from February 2010 to December 2014.
The interest rate swap agreements
fix the interest rate on this
facility at 5.55% on a weighted
average basis. Interest and
principal are due as payments are
received under the financings. The
line expires January 31, 2011
    
    $
    100,103
    
    
    $
    95,571OFC 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. The loan is
repayable as payments are made under
the leases or equipment financing
transactions collateralizing the
loan, with a final maturity date of
February 15,
2009
    
    
    1,163
    
    
    
    1,731Total outstanding debt
    
    $
    101,266
    
    
    $
    97,302
   2009
    
    $
    37,1962010
    
    
    28,4872011
    
    
    17,7012012
    
    
    10,3262013
    
    
    5,380Thereafter
    
    
    2,176$
    101,266
 12




---



##### Table of Contents



LEASE EQUITY APPRECIATION FUND I, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued)
March 31, 2008
(unaudited)
 NOTE 7  DERIVATIVE INSTRUMENTS
      13




---



##### Table of Contents



LEASE EQUITY APPRECIATION FUND I, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued)
March 31, 2008
(unaudited)
 NOTE 8  TRANSACTIONS WITH AFFILIATES
       Three Months EndedMarch 31,2008
    
    2007Acquisition fees
    
    $
    330
    
    
    $
    161Asset management fees
    
    $
    321
    
    
    $
    289Reimbursed administrative expenses
    
    $
    195
    
    
    $
    149
  NOTE 9  ALLOCATION OF PARTNERSHIP INCOME, LOSS AND CASH DISTRIBUTIONS
   14




---



##### Table of Contents



LEASE EQUITY APPRECIATION FUND I, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued)
March 31, 2008
(unaudited)
 NOTE 10  COMPREHENSIVE INCOME (LOSS)
  NOTE 11  NET INCOME (LOSS) PER LIMITED PARTNERSHIP UNIT
  NOTE 12  FIRST QUARTER ADJUSTMENT
  15




---



##### Table of Contents



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 2007. 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 billion or less in total assets; or
    
    $100 million or less in total annual sales.
    16




---



##### Table of Contents



Our Lease Portfolio
  Direct Financing Leases and Notes
 March 31, 2008
    
    
    December 31, 2007Type of Equipment
    
    Net Investment
    
    
    Percentage
    
    
    Net Investment
    
    
    PercentageIndustrial Equipment
    
    $
    28,450
    
    
    
    26.2
    %
    
    $
    28,956
    
    
    
    28.5
    %Medical Equipment
    
    
    26,495
    
    
    
    24.4
    
    
    
    26,001
    
    
    
    25.6Computers
    
    
    12,845
    
    
    
    11.8
    
    
    
    12,501
    
    
    
    12.3Office Equipment
    
    
    9,156
    
    
    
    8.4
    
    
    
    6,248
    
    
    
    6.2Communications
    
    
    5,068
    
    
    
    4.7
    
    
    
    4,338
    
    
    
    4.3Software
    
    
    5,001
    
    
    
    4.6
    
    
    
    4,876
    
    
    
    4.8Restaurant Equipment
    
    
    4,730
    
    
    
    4.3
    
    
    
    5,160
    
    
    
    5.1Agriculture Equipment
    
    
    4,148
    
    
    
    3.8
    
    
    
    4,375
    
    
    
    4.3Water Purification
    
    
    3,411
    
    
    
    3.1
    
    
    
    
    
    
    
    Other
    
    
    9,453
    
    
    
    8.7
    
    
    
    9,099
    
    
    
    8.9$
    108,757
    
    
    
    100.0
    %
    
    $
    101,554
    
    
    
    100.0
    %
 Operating Leases
 March 31, 2008
    
    
    December 31, 2007Type of Equipment
    
    Net Investment
    
    
    Percentage
    
    
    Net Investment
    
    
    PercentageIndustrial Equipment
    
    $
    362
    
    
    
    54.4
    %
    
    $
    344
    
    
    
    47.7
    %Office Equipment
    
    
    123
    
    
    
    18.6
    
    
    
    141
    
    
    
    19.7Communications
    
    
    113
    
    
    
    17.1
    
    
    
    153
    
    
    
    21.3Computers and software
    
    
    52
    
    
    
    7.8
    
    
    
    67
    
    
    
    9.3Agriculture Equipment
    
    
    14
    
    
    
    2.1
    
    
    
    15
    
    
    
    2.0$
    664
    
    
    
    100.0
    %
    
    $
    720
    
    
    
    100.0
    %
 17




---



##### Table of Contents



Direct Financing Leases and Notes
 March 31, 2008
    
    
    December 31, 2007Type of Business
    
    Net Investment
    
    
    Percentage
    
    
    Net Investment
    
    
    PercentageServices
    
    $
    53,214
    
    
    
    48.9
    %
    
    $
    49,004
    
    
    
    48.3
    %Retail Trade
    
    
    12,423
    
    
    
    11.4
    
    
    
    11,491
    
    
    
    11.3Manufacturing
    
    
    10,647
    
    
    
    9.8
    
    
    
    10,242
    
    
    
    10.1Transportation/Communication/Energy
    
    
    7,106
    
    
    
    6.5
    
    
    
    6,515
    
    
    
    6.4Wholesale Trade
    
    
    6,935
    
    
    
    6.4
    
    
    
    6,311
    
    
    
    6.2Agriculture/Forestry/Fishing
    
    
    6,781
    
    
    
    6.2
    
    
    
    6,703
    
    
    
    6.6Construction
    
    
    5,658
    
    
    
    5.2
    
    
    
    5,687
    
    
    
    5.6Finance/Insurance/Real Estate
    
    
    3,154
    
    
    
    2.9
    
    
    
    2,729
    
    
    
    2.7Public Administration
    
    
    502
    
    
    
    0.5
    
    
    
    335
    
    
    
    0.3Other
    
    
    2,337
    
    
    
    2.2
    
    
    
    2,537
    
    
    
    2.5$
    108,757
    
    
    
    100.0
    %
    
    $
    101,554
    
    
    
    100.0
    %
 Operating Leases
 March 31, 2008
    
    
    December 31, 2007Type of Business
    
    Net Investment
    
    
    Percentage
    
    
    Net Investment
    
    
    PercentageConstruction
    
    $
    406
    
    
    
    61.2
    %
    
    $
    391
    
    
    
    54.2
    %Services
    
    
    133
    
    
    
    20.0
    
    
    
    153
    
    
    
    21.3Wholesale Trade
    
    
    64
    
    
    
    9.7
    
    
    
    103
    
    
    
    14.3Agriculture/Forestry/Fishing
    
    
    25
    
    
    
    3.8
    
    
    
    27
    
    
    
    3.8Manufacturing
    
    
    14
    
    
    
    2.2
    
    
    
    15
    
    
    
    2.0Transportation/Communication/Energy
    
    
    6
    
    
    
    0.9
    
    
    
    15
    
    
    
    2.1Retail Trade
    
    
    6
    
    
    
    0.9
    
    
    
    6
    
    
    
    0.9Finance/Insurance/Real Estate
    
    
    5
    
    
    
    0.7
    
    
    
    5
    
    
    
    0.7Other
    
    
    5
    
    
    
    0.6
    
    
    
    5
    
    
    
    0.7$
    664
    
    
    
    100.0
    %
    
    $
    720
    
    
    
    100.0
    %
  18




---



##### Table of Contents



Results of Operations
 Three Months Ended March 31, 2008 Compared to Three Months Ended March 31, 2007
  
    
    Our interest income on equipment financings increased to $2.6 million for the three
months ended March 31, 2008 as compared to $1.8 million for the three months March 31,
2007, an increase of $817,000 (46%). This is due to an increase in our financing assets to
$108.2 million as of March 31, 2008 as compared to $86.8 million as of March 31, 2007, an
increase of $21.4 million (25%). This growth was driven by our General Partners increased
sales to us and marketing efforts supported by lines of financing.
    
    Our gain on sale of equipment increased to $179,000 for the three months ended March 31,
2008 as compared to $99,000 for the three months ended March 31, 2007, an increase of
$80,000 (81%). Gains on sale of equipment may vary significantly from period to period
due to the portfolio maturing. As the portfolio ages, there will be increased activities
from early lease terminations and end of lease dispositions.
    
    Our other income increased to $218,000 for the three months ended March 31, 2008 as
compared to $174,000 for the three months ended March 31, 2007, an increase of $44,000
(25%). Other income consists primarily of late fee income and handling fee income. Late
fee income has increased due to the increase of the financing portfolio and an increase in
payment collection efforts.
  
    
    Our rental income decreased to $61,000 for the three months ended March 31, 2008 as
compared to $148,000 for the three months ended March 31, 2007, a decrease of $87,000
(59%). This decrease is due to operating leases reaching full term.
  
    
    Our interest expense increased to $1.5 million for the three months ended March 31,
2008 as compared to $1.2 million for the three months ended March 31, 2007, an increase
of $262,000 (22%). This increase is due to the increase of our debt incurred to acquire
equipment financing assets. Debt increased to $101.3 million as of March 31, 2008 as
compared to $81.2 million as of March 31, 2007, an increase of $20.1 million (25%).
Generally interest rates on all our debt facilities are based on one month LIBOR and
fluctuate with changes in LIBOR. When we borrow on debt facilities with variable rates,
we generally employ a hedging strategy using derivative financial instruments such as
interest rate swaps, which fixes the interest rates on those borrowings.
    
    Our provision for credit losses increased to $467,000 for the three months ended March
31, 2008 as compared to $204,000 for the three months ended March 31, 2007, an increase
of $263,000 (129%). The increase is the result of the growth of our lease portfolio and
is within our expectations. We provide for credit losses when losses are likely to occur
based on a migration analysis of past due payments and economic conditions.
    
    Our management fees increased to $321,000 for the three months ended March 31, 2008 as
compared to $289,000 for the three months ended March 31, 2007, an increase of $32,000
(11%). This increase is directly attributable to our growth in equipment financing
assets, since management fees are paid based on lease payments received.
    
    Our administrative expenses reimbursed to related party increased to $195,000 for the
three months ended March 31, 2008 as compared to $149,000 for the three months ended
March 31, 2007, an increase of $46,000 (31%). This increase is due to the hiring of additional
collection personnel to minimize any impact on delinquencies resulting from a weakened US economy.
  
    
    Depreciation on operating leases decreased to $39,000 for the three months ended
March 31, 2008 as compared to $121,000 for the three months ended March 31, 2007, a
decrease of $82,000 (68%). This decrease is due to operating leases reaching full term.
 19




---



##### Table of Contents



Liquidity and Capital Resources
    Three Months Ended March 31,2008
    
    
    2007Net cash provided by operating activities
    
    $
    2,693
    
    
    $
    1,142Net cash (used in) provided by investing activities
    
    
    (7,142
    )
    
    
    987Net cash provided by (used in) financing activities
    
    
    4,189
    
    
    
    (5,171
    )Decrease in cash
    
    $
    (260
    )
    
    $
    (3,042
    )
      20




---



##### Table of Contents



ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
  
 ITEM 4. CONTROLS AND PROCEDURES
    21




---



##### Table of Contents



PART II  OTHER INFORMATION
 
 ITEM 6. EXHIBITS
 Exhibit No.
    
    Description3.1
    
    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)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.(2)
    
    Filed previously as an Exhibit to Amendment No. 1 to our
Registration Statement on Form S-1 filed on June 7, 2002. 22




---



##### Table of Contents



SIGNATURES
  LEASE EQUITY APPRECIATION FUND I, L.P.A Delaware Limited PartnershipBy: LEAF Financial Corporation, its General Partner
 May 20, 2008
    /s/ Crit DeMentCRIT DEMENTChairman and Chief Executive Officer May 20, 2008
    /s/ Robert K. MoskovitzROBERT K. MOSKOVITZChief Financial Officer 23