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

Form 10-K

x		Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
		For the year ended December 31, 2013
		For the year ended December 31, 2014
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 000-24175

ATEL Capital Equipment Fund VII, L.P.

(Exact name of registrant as specified in its charter)

California		94-3248318
(State or other jurisdiction of incorporation or organization)		(I. R. S. Employer Identification No.)
(State or other jurisdiction of		(I. R. S. Employer
incorporation or organization)		Identification No.)

The Transamerica Pyramid, 600 Montgomery Street, 9th Floor, San Francisco, California 94111

(Address of principal executive offices)

Registrant’s telephone number, including area code: (415) 989-8800

Securities registered pursuant to section 12(b) of the Act: None

Securities registered pursuant to section 12(g) of the Act: Limited Partnership Units

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.Yes o No x

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Act of 1934. Yes o No x

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

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).Yes x No o

Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).Yes x No o

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. x

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer o Accelerated filer o Non-accelerated filer o~~(Do~~ ~~not check if a smaller reporting company)~~ Smaller reporting company x

(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).Yes o No x

State the aggregate market value of voting stock held by non-affiliates of the registrant: Not applicable

State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was sold, or the average bid and asked price of such common equity, as of a specified date within the past 60 days. (See definition of affiliate in Rule 12b-2 of the Exchange Act.) Not applicable

The number of Limited Partnership Units outstanding as of February 28, ~~2014~~2015 was 14,985,550.

DOCUMENTS INCORPORATED BY REFERENCE

None.

PART I

Item 1. BUSINESS

General Development of Business

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

The Partnership conducted a public offering of 15,000,000 Units of Limited Partnership Interest (“Units”), at a price of $10 per Unit. On January 7, 1997, subscriptions for the minimum number of Units (120,000, $1.2 million) had been received (excluding subscriptions from Pennsylvania investors) and AFS requested that the subscriptions be released to the Partnership. On that date, the Partnership commenced operations in its primary business (acquiring equipment to engage in equipment leasing and sales activities). Gross contributions in the amount of $150 million (15,000,000 units) were received as of November 27, 1998, exclusive of $500 of initial Partners’ capital investment and $100 of AFS’ capital investment. The offering was terminated on November 27, 1998. As of December 31, ~~2013~~2014, 14,985,550 Units were issued and outstanding.

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

Pursuant to the Partnership Agreement, AFS receives compensation and reimbursements for services rendered on behalf of the Partnership (see Note 6 to the financial statements included in Item 8 of this report). The Partnership is required to maintain reasonable cash reserves for working capital, the repurchase of Units and contingencies. The repurchase of Units is solely at the discretion of AFS.

As of December 31, ~~2013~~2014, the Partnership continues in the liquidation phase of its life cycle as defined in the Partnership Agreement.

Narrative Description of Business

The Partnership had acquired various types of equipment to lease pursuant to “Operating” leases and “High Payout” leases, whereby “Operating” leases are defined as being leases in which the minimum lease payments during the initial lease term do not recover the full cost of the equipment and “High Payout” leases recover at least 90% of such cost. It had been the intention of AFS that a majority of the aggregate purchase price of equipment represents equipment leased under “High Payout” leases upon final investment of the Net Proceeds of the Offering and that no more than 20% of the aggregate purchase price of equipment would be invested in equipment acquired from a single manufacturer.

The Partnership only purchased equipment under pre-existing leases or for which a lease was entered into concurrently at the time of the purchase. From inception through December 31, ~~2013~~2014, the Partnership had purchased equipment with a total acquisition price of $306.1 million.

The Partnership’s objective was to lease a minimum of 75% of the equipment acquired with the net proceeds of the offering to lessees that (i) have an average credit rating by Moody’s Investors Service of Baa or better, or the credit equivalent as determined by AFS, with the average rating weighted to account for the original equipment cost for each item leased or (ii) are established hospitals with histories of profitability or municipalities. The balance of the original equipment portfolio may include equipment leased to lessees which, although deemed creditworthy by AFS, would not satisfy the general credit rating criteria for the portfolio. In excess of 75% of the equipment acquired with the net proceeds of the offering (based on original purchase cost) was originally leased to lessees with an average credit rating of Baa or better or to such hospitals or municipalities, as described in (ii) above.

~~During~~which, ~~2013~~although ~~and~~deemed ~~2012~~creditworthy by AFS, ~~certain~~would ~~lessees~~not ~~generated~~satisfy ~~significant~~the ~~portions~~general ~~(defined~~credit asrating ~~greater~~criteria ~~than~~for orthe ~~equal~~portfolio. toIn 10excess of 75%) of the ~~Partnership’s~~equipment ~~total~~acquired ~~lease~~with ~~revenues,~~the ~~excluding~~net ~~gains~~proceeds orof ~~losses~~the ~~from~~offering ~~disposition~~(based on original purchase cost) was originally leased to lessees with an average credit rating of ~~assets~~Baa or better or to such hospitals or municipalities, as ~~follows:~~described in (ii) above.

	Type of Equipment		Percentage of Total Lease Revenues
Lessee			2013			2012
West Range Reclamation, LLC		Transportation		19	%		*
Interstate Commodities		Transportation		15	%		16	%
Ferrous Processing and Trading		Transportation		11	%		*
Nova Scotia Power Incorporated		Transportation		11	%		*
Genesee & Wyoming Inc.		Transportation		11	%		*
AET Offshore Services, Inc.		Marine vessel		*			28	%

During 2014 and 2013, certain lessees generated significant portions (defined as greater than or equal to 10%) of the Partnership’s total lease revenues, excluding gains or losses from disposition of assets, as follows:

* Less than 10%


	Type of Equipment		Percentage of Total Lease Revenues
Lessee	Type of Equipment		2014			2013
West Range Reclamation, LLC		Transportation		22	%		19	%
Interstate Commodities		Transportation		18	%		15	%
Ferrous Processing and Trading		Transportation		13	%		11	%
Nova Scotia Power Inc.		Transportation		13	%		11	%
Genesee & Wyoming Inc.		Transportation		13	%		11	%

These percentages are not expected to be comparable in future periods.

The equipment leasing industry is highly competitive. Equipment manufacturers, corporations, partnerships and others offer users an alternative to the purchase of most types of equipment with payment terms that vary widely depending on the lease term and type of equipment. The ability of the Partnership to keep the equipment leased and/or operating and the terms of the acquisitions, leases and dispositions of equipment depends on various factors (many of which are not in the control of AFS or the Partnership), such as raw material costs to manufacture equipment as well as general economic conditions, including the effects of inflation or recession, and fluctuations in supply and demand for various types of equipment resulting from, among other things, technological and economic obsolescence.

The business of the Partnership is not seasonal.

The Partnership has no full time employees. AFS employees and affiliates provide the services the Partnership requires to effectively operate. The cost of these services is reimbursed by the Partnership to AFS and affiliates per the Partnership Agreement.

Equipment Leasing Activities

The Partnership had acquired a diversified portfolio of equipment. The equipment had been leased to lessees in various industries. The following tables set forth the types of equipment acquired by the Partnership through December 31, ~~2013~~2014 and the industries to which the assets were leased (dollars in thousands):

Asset Types	Purchase Price Excluding Acquisition Fees		Percentage of Total Acquisitions
Transportation	$	126,583		41.35	%
Mining		51,722		16.90	%
Marine vessels		30,814		10.07	%
Materials handling		28,868		9.43	%
Office automation		16,927		5.53	%
Medical		13,206		4.31	%
Manufacturing		13,009		4.25	%
Aircraft		12,261		4.01	%
Other*		12,734		4.15	%
	$	306,124		100.00	%

Individual amounts included in “Other” represent less than 2% of the total.

Industry of Lessee	Purchase Price Excluding Acquisition Fees		Percentage of Total Acquisitions
Transportation, rail	$	73,779		24.10	%
Transportation, other		46,452		15.17	%
Municipalities		45,050		14.72	%
Manufacturing, other		41,296		13.49	%
Electronics		26,062		8.51	%
Mining		17,671		5.77	%
Business services		15,093		4.93	%
Primary metals		13,251		4.33	%
Food		8,346		2.73	%
Health services		7,869		2.57	%
Other*		11,255		3.68	%
	$	306,124		100.00	%

Individual amounts included in “Other” represent less than 2.5% of the total.

Through December 31, ~~2013~~2014, the Partnership had disposed of certain leased assets as set forth below (in thousands):

Asset Types	Original Equipment Cost Excluding Acquisition Fees		Sale Price		Gross Rents
Transportation	$	9697,~~429~~052	$	25,~~591~~764	$	8283,~~205~~314
Mining		51,722		12,464		48,404
Materials handling		28,786		7,717		30,561
Office automation		16,927		1,847		16,238
Marine vessels		1415,~~779~~140		2,207		1415,~~870~~150
Manufacturing		13,624		3,621		13,873
Medical		13,624		3,621		13,873
Medical		13,206		8,422		13,667
Manufacturing		13,206		8,422		13,667
Aircraft		11,322		3,822		10,142
Other		12,002		1,023		29,982
	$	~~258~~259,~~797~~781	$	66,~~714~~887	$	~~259~~261,~~942~~331

Proceeds from sales of lease assets are not expected to be consistent from one period to another. The Partnership is a finite life equipment leasing fund, which had acquired leasing transactions during the period ended six years after completion of its public offering. On the termination of leases, assets may be re-leased or sold. Sales of assets are not scheduled and are created by opportunities within the marketplace. The Partnership sought to acquire and lease a wide variety of assets and to enter into leases on a variety of terms. Some assets will be expected to have little or no value for re-lease or sale upon termination of the initial leases, and the anticipated residual values are a key factor in pricing and terms structured for each lease. The Partnership’s goal is to seek maximum return on its leased assets and will determine when and under what terms to dispose of such assets during the course of its term.

For further information regarding the Partnership’s equipment lease portfolio as of December 31, ~~2013~~2014, see Note 5 to the financial statements, Investments in equipment and leases, as set forth in Part II, Item 8, Financial Statements and Supplementary Data.

Certain of the Partnership’s lessee customers have international operations. In these instances, the Partnership is aware that certain equipment, primarily rail and transportation, may periodically exit the country. However, these lessee customers are US-based, and it is impractical for the Partnership to track, on an asset-by-asset, day-by-day basis, where these assets are deployed. For further information regarding the Partnership’s geographic revenues and assets, and major customers, see Notes 2 and 3 to the financial statements as set forth in Part II, Item 8, Financial Statements and Supplementary Data.

Item 2. PROPERTIES

The Partnership does not own or lease any real property, plant or material physical properties other than the equipment held for lease as set forth in Item 1, Business.

Item 3. LEGAL PROCEEDINGS

In the ordinary course of conducting business, there may be certain claims, suits, and complaints filed against the Partnership. In the opinion of management, the outcome of such matters, if any, will not have a material impact on the Partnership’s financial position or results of operations. No material legal proceedings are currently pending against the Partnership or against any of its assets.

Item 4. MINE SAFETY DISCLOSURES

Not applicable.

PART II

Item 5.

MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

Market Information

There are certain material conditions and restrictions on the transfer of Units imposed by the terms of the Partnership Agreement. Consequently, there is no public market for Units and it is not anticipated that a public market for Units will develop. In the absence of a public market for the Units, there is no currently ascertainable fair market value for the Units.

Holders

As of December 31, ~~2013~~2014, a total of 4,~~936~~945 investors were Unitholders of record in the Partnership.

Unit Valuation

In order to permit custodial fiduciaries who hold Units to satisfy their annual reporting requirements, AFS estimated the value per Unit of the Partnership’s assets as of December 31, ~~2013~~2014. AFS calculated the estimated liquidation proceeds that would be realized by the Partnership, assuming an orderly disposition of all of the Partnership’s assets as of December 31, ~~2013~~2014, by estimating the aggregate net asset value of the Partnership. The valuation does not take into account any future business activity of the Partnership; rather it is a snapshot view of the Fund’s portfolio as of the valuation date.

The estimated values for non-interest bearing items such as any current assets and liabilities, as well as for any investment in securities, were assumed to equal their respective reported balances, which management believes approximate their respective fair values, as adjusted for impairment. And when applicable, the same was applied to loans incurred under the acquisition facility since they also bear variable rates of interest.

A discounted cash flow approach was used to estimate the values of investments in leases. Under such approach, the value of a financial instrument was estimated by calculating the present value of the instrument’s expected cash flows. The present value was determined by discounting the cash flows the instrument is expected to generate by discount rates as deemed appropriate by the Manager. In most cases, the discount rates used were based on U.S. Treasury yields reported as of the reporting date, plus a spread to account for the credit risk difference between the instrument being valued and Treasury securities.

After calculating the aggregate estimated disposition proceeds, AFS then calculated the portion of the aggregate estimated value of the Partnership assets that would be distributed to Unitholders on liquidation of the Partnership, and divided the total so distributable by the number of outstanding Units. As of December 31, ~~2013~~2014, the value of the Partnership’s assets, calculated on this basis, was approximately $0.5963 per Unit. The aforementioned valuation was performed solely for custodial purposes described above. There is no market for the Units, and, accordingly, this value does not represent an estimate of the amount a Unitholder would receive if he were to seek to sell his Units. Furthermore, there can be no assurance as to the amount the Partnership may actually receive if and when it seeks to liquidate its assets or the amount of lease payments and equipment disposition proceeds it will actually receive over the remaining term of the Partnership.

Distributions

The Unitholders of record are entitled to certain distributions as provided under the Partnership Agreement.

AFS has sole discretion in determining the amount of distributions; provided however, that AFS will not reinvest in equipment, but will distribute, subject to payment of any obligations of the Partnership.

Periodic distributions were paid to Limited Partners in December ~~2013~~2014 and ~~2012~~2013. The annualized ~~rate~~rates for these distributions from ~~2013~~2014 and ~~2012~~2013 operations ~~was~~were $0.2513 and $0.1825 per Unit, respectively. The rates and frequency of periodic distributions paid by the Fund during its liquidation phase are solely at the discretion of the General Partner.

Item 6. SELECTED FINANCIAL DATA

A smaller reporting company is not required to present selected financial data in accordance with item 301(c) of Regulation S-K.

Item 7.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Statements contained in this Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” (“MD&A”) and elsewhere in this Form 10-K, which are not historical facts, may be forward-looking statements. Such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. In particular, economic recession and changes in general economic conditions, including, fluctuations in demand for equipment, lease rates, and interest rates, may result in delays in leasing, re-leasing, and disposition of equipment, and reduced returns on invested capital. The Partnership’s performance is subject to risks relating to lessee defaults and the creditworthiness of its lessees. The Fund’s performance is also subject to risks relating to the value of its equipment at the end of its leases, which may be affected by the condition of the equipment, technological obsolescence and the markets for new and used equipment at the end of lease terms. Investors are cautioned not to attribute undue certainty to these forward-looking statements, which speak only as of the date of this Form 10-K. We undertake no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this Form 10-K or to reflect the occurrence of unanticipated events, other than as required by law.

Overview

ATEL Capital Equipment Fund VII, L.P. (the “Partnership” or the “Fund”) is a California partnership that was formed in May 1996 for the purpose of engaging in the sale of limited partnership investment units and acquiring equipment to generate revenues from equipment leasing and sales activities, primarily in the United States.

The Partnership conducted a public offering of 15,000,000 Units of Limited Partnership Interest (“Units”), at a price of $10 per Unit. The offering was terminated in November 1998. During early 1999, the Partnership completed its initial acquisition stage with the investment of the net proceeds from the public offering of Units. Subsequently, throughout the reinvestment period (“Reinvestment Period”) (defined as six full years following the year the offering was terminated), the Partnership reinvested cash flow in excess of certain amounts required to be distributed to the Limited Partners and/or utilized its credit facilities to acquire additional equipment.

The Partnership may continue until December 31, 2017. However, pursuant to the guidelines of the Limited Partnership Agreement (“Partnership Agreement”), the Partnership began to liquidate its assets and distribute the proceeds thereof after the end of the Reinvestment Period which ended in December 2004.

As of December 31, ~~2013~~2014, the Partnership continues in its liquidation phase. Accordingly, assets that mature will be returned to inventory and most likely will be subsequently sold, which will result in decreasing revenue as earning assets decrease. Periodic distributions are paid at the discretion of the General Partner.

Results of Operations

As of December 31, ~~2013~~2014 and ~~2012~~2013, there were concentrations (defined as greater than or equal to 10%) of equipment leased to lessees in certain industries (as a percentage of total equipment cost) as follows:

	2013			2012
	2014			2013
Transportation		5861	%		6158	%
Forestry		2217	%		*22	%
Retail/Food industry		2017	%		*20	%
Marine vessels		*			19	%

* Less than 10%

As previously indicated, certain lessees generated significant portions (defined as greater than or equal to 10%) of the Partnership’s total lease revenues, excluding gains or losses from disposition of assets, during 2013 and 2012 as follows:

Lessee	Type of Equipment		Percentage of Total Lease Revenues
			2013			2012
West Range Reclamation, LLC		Transportation		19	%		*
Interstate Commodities		Transportation		15	%		16	%
Ferrous Processing and Trading		Transportation		11	%		*
Nova Scotia Power Incorporated		Transportation		11	%		*
Genesee & Wyoming Inc.		Transportation		11	%		*
AET Offshore Services, Inc.		Marine vessel		*			28	%

* Less than 10%


Lessee	Type of Equipment		Percentage of Total Lease Revenues
Lessee	Type of Equipment		2014			2013
West Range Reclamation, LLC		Transportation		22	%		19	%
Interstate Commodities		Transportation		18	%		15	%
Ferrous Processing and Trading		Transportation		13	%		11	%
Nova Scotia Power Inc.		Transportation		13	%		11	%
Genesee & Wyoming Inc.		Transportation		13	%		11	%

These percentages are not expected to be comparable in future periods due to the expiration of lessee contracts during the Fund’s liquidation period.

It has been the Partnership’s objective to maintain a 100% utilization rate for all equipment purchased in any given year. All equipment transactions were acquired subject to binding lease commitments, so equipment utilization remained high throughout the reinvestment stage. Initial lease terms of these leases were generally from 36 to 120 months, and as they expired, the Partnership attempted to re-lease or sell the equipment; as such, utilization rates may tend to decrease during the liquidation stage of the Partnership. All of the Partnership’s remaining equipment on lease was acquired in the years 1997 through 1998. The utilization percentage of existing assets under lease was 9792% and 9897% as of December 31, ~~2013~~2014 and ~~2012~~2013, respectively.

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

The Partnership Agreement places an annual limit and a cumulative limit for cost reimbursements to AFS and/or affiliates. Any reimbursable costs incurred by AFS and/or affiliates during the year exceeding the annual and/or cumulative limits cannot be reimbursed in the current year, though such costs may be reimbursable in future years to the extent such amounts may be payable if within the annual and cumulative limits in such future years. For the year ended December 31, ~~2013~~2014, the amount of reimbursable expenses billed to the Fund did not exceed either the annual or the cumulative limitations. It is not anticipated that any further billings to the Fund will equal or exceed the annual or cumulative reimbursable expense limitation. Such is reflective of the continued diminishing Fund asset base over which reimbursements are calculated (see Note 6 to the financial statements, Related party transactions, as set forth in Part II, Item 8, Financial Statements and Supplementary Data).

20132014 versus 20122013

The Partnership had net income of $~~3.8~~473 ~~million~~thousand and $23.18 million for the years ended December 31, ~~2013~~2014 and ~~2012~~2013, respectively. The ~~2013~~2014 results reflect andecreases ~~increase~~ in both total revenues and ~~a reduction in~~ total ~~operating~~ expenses when compared to prior year.

Revenues

Total revenues for ~~2013~~2014 ~~increased~~decreased by $1.3.4 million, or 2857%, as compared to prior year. The net ~~increase~~decrease in total revenues was primarily attributable to ~~increases~~decreases in gain on ~~sale~~sales of assets ~~and other revenue offset~~, inoperating ~~part,~~lease byrevenues ~~decreases in both operating~~ and ~~direct~~other ~~financing lease revenues~~revenue.

Gain on sales of assets ~~increased~~declined by $2.89 million as athe ~~result~~prior year amount included $2.8 million of gains realized from the ~~sale~~sales of 140 railcars subsequent to a lease termination. Operating lease revenues were reduced by $338 thousand mainly due to the termination of a charter relative to one of the Fund’s marine vessels during the ~~current~~second ~~year~~quarter of 2013, the impact of continued run-off and dispositions of lease assets, and a reduction in usage-based rental income. ~~Other~~In addition, other revenue ~~increased~~declined by $7280 thousand ~~primarily~~largely due to ~~additional~~a reduction in billings for excess wear and tear on certain returned equipment coupled with a one-time ~~tax~~$33 ~~refund~~thousand ~~from~~prior ~~the~~year ~~State~~state oftax ~~New~~refund ~~Jersey~~received during 2013.

The aforementioned increases in revenues were partially offset by decreases in both operating and direct financing lease revenues totaling $1.4 million and $136 thousand, respectively. The decrease in operating lease revenues was largely due to the December 2012 and June 2013 termination of leases relative to the Fund’s marine vessels, lower negotiated rates on certain leases which renewed during the first quarter of 2013, a reduction in usage-based rental income, and the impact of continued run-off and dispositions of lease assets. The decrease in direct financing lease revenues was primarily due to run-off of the portfolio. 7

Expenses

Total ~~operating~~ expenses infor ~~2013~~2014 decreased by $~~366~~40 thousand, or 152%, as compared to the prior year period. The net ~~decline~~reduction in expenses was ~~mainly~~primarily due to decreases in depreciation expense, ~~professional fees, equipment~~ and ~~incentive~~marine ~~management~~vessel ~~fees~~maintenance ~~to the General Partner~~ and ~~the~~other ~~provision~~operating ~~for~~costs ~~credit losses. Such decreases in expenses were~~ partially offset by increases in ~~insurance~~railcar ~~costs~~ and ~~marine~~equipment ~~vessel~~ maintenance costs, franchise fees and ~~other~~taxes, ~~operating~~and ~~costs~~professional fees.

The ~~decrease~~reduction in depreciation expense totaled $~~159~~167 thousand and was primarily ~~due~~a toresult of lease asset sales and continued run-off of the lease portfolio.; ~~Professional~~and, ~~fees~~marine ~~decreased~~vessel bymaintenance ~~$132~~and ~~thousand~~other ~~largely~~operating ascosts adecreased ~~result~~by of$61 ~~higher~~thousand ~~legal~~due ~~fees~~to ~~incurred during the~~ prior year. ~~Such~~costs ~~legal~~incurred ~~fees~~to ~~were~~repair ~~associated with the Fund’s claim against its former marine~~ vessel ~~management company due to an alleged under-reporting of revenue~~propellers.

7Partially offsetting the aforementioned decreases in expenses were increases in railcar and equipment maintenance costs, franchise fees and state taxes, and in professional fees totaling $139 thousand, $33 thousand and $31 thousand, respectively. The increase in railcar and equipment maintenance costs was largely attributable to the aging of the Fund’s railcar inventory and incremental wear and tear. Franchise fees and state taxes increased as a result of an increase in the estimated tax liability relative to prior year gains on sales of lease assets; and, professional fees were higher due to increases in allocated audit fees and in legal expenses.

Moreover, equipment and incentive management fees to the General Partner decreased by $105 thousand largely due to the decline in managed assets and related rents. The provision for credit losses also declined by $105 thousand as a result of an increase in collection of accounts receivable amounts previously reserved.

Partially offsetting the aforementioned decreases in expenses were increases in insurance costs and in marine vessel maintenance and other operating costs totaling $116 thousand and $61 thousand, respectively. Insurance costs increased as the responsibility for insurance coverage on the marine vessels was assumed by the Fund with the termination of both vessel charters. Prior to the termination of the leases, all operating expenses were assumed by the lessee under a “bareboat charter” provision which transferred possession and full control of the vessels (but not title), including all legal and financial responsibility, to the lessee. Under this type of arrangement, the lessee pays for all maintenance and operating expenses, including fuel, crew, port expenses and all required insurance coverage. Likewise, marine vessel maintenance and other operating costs increased largely due to costs incurred to repair vessel propellers during 2013. The responsibility for such vessel maintenance and other operating expenses was assumed by the Fund on its marine vessels upon the termination of both vessels’ charters.

Capital Resources and Liquidity

At December 31, ~~2013~~2014 and ~~2012~~2013, the Partnership’s cash and cash equivalents totaled $~~1.7~~261 ~~million~~thousand and $~~686~~1.7 ~~thousand~~million, respectively. The liquidity of the Partnership varies, increasing to the extent cash flows from leases and proceeds from lease asset sales exceed expenses and decreasing as distributions are made to the partners and to the extent expenses exceed cash flows from leases and proceeds from asset sales.

The primary source of liquidity for the Partnership has been its cash flow from leasing activities. As the initial lease terms have expired, the Partnership ventured to re-lease or sell the equipment. Future liquidity will depend on the Partnership’s success in remarketing or selling the equipment as it comes off-rental.

If inflation in the general economy becomes significant, it may affect the Partnership in as much as the residual (resale) values and rates on re-leases of the Partnership’s leased assets may increase as the costs of similar assets increase. However, the Partnership’s revenues from existing leases would not increase; as such rates are generally fixed for the terms of the leases without adjustment for inflation. In addition, if interest rates increase significantly under such circumstances, the lease rates that the Partnership can obtain on future leases will be expected to increase as the cost of capital is a significant factor in the pricing of lease financing. Leases already in place, for the most part, would not be affected by changes in interest rates.

The Partnership currently believes it has available adequate reserves to meet its immediate cash requirements and those of the next twelve months, but in the event those reserves were found to be inadequate, the Partnership would likely be in a position to borrow against its current portfolio to meet such requirements. AFS envisions no such requirements for operating purposes.

Cash Flows

The following table sets forth summary cash flow data (in thousands):

	2013			2012
	2014			2013
Net cash provided by (used in):
Operating activities	$	~~1,249~~452		$	1,~~640~~249
Investing activities		~~3,778~~173			~~528~~3,778
Financing activities		(42,~~051~~026	)		(24,~~836~~051	)
Net increase (decrease) in cash and cash equivalents	$	976		$	(668	)
Net (decrease) increase in cash and cash equivalents	$	(1,401	)	$	976

20132014 versus 20122013

During the years ended December 31, ~~2013~~2014 and ~~2012~~2013, the Partnership’s ~~primary~~sources ~~source~~ of liquidity ~~has~~have been ~~its~~ cash flows from its portfolio of operating lease contracts. Inand ~~addition,~~proceeds ~~the~~from ~~Fund~~sales ~~realized~~of $3lease assets.6 ~~million~~During 2014 and ~~$329~~2013, ~~thousand~~such of proceeds from sales of ~~equipment~~lease ~~during~~assets ~~the~~totaled ~~respective~~$173 ~~years~~thousand ~~ended~~and ~~December~~$3.6 31million, ~~2013 and 2012~~respectively.

~~During the same comparative years, cash was primarily used to pay distributions to both the Limited Partners and the General Partner, totaling a combined $4.1 million and $2.~~8 million, and to pay invoices related to General Partner fees and expenses, and other payables. As the Fund is in its liquidation phase, any future financing activity is anticipated to only include distributions to Partners.

8During the same comparative years, cash was primarily used to pay distributions to both the Limited Partners and the General Partner, totaling a combined $2.0 million and $4.1 million, and to pay invoices related to General Partner fees and expenses, and other payables. As the Fund is in its liquidation phase, any future financing activity is anticipated to only include distributions to Partners.

Distributions

The Partnership commenced periodic distributions, based on cash flows from operations, beginning with the month of January 1997. During its liquidation phase, the rates and frequency of periodic distributions paid by the Fund are solely at the discretion of the General Partner. See Item 5, Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities, for additional information regarding the distributions.

Commitments and Contingencies and Off-Balance Sheet Transactions

Commitments and contingencies

At December 31, ~~2013~~2014, the Partnership had no commitments to purchase lease assets or fund investments in notes receivable and pursuant to the Partnership Agreement, the Partnership will no longer purchase any new lease assets.

Gain Contingencies

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

ATEL filed a claim on behalf of the Partnership and certain affiliated entities in Federal court in New Orleans for the under-reporting of revenue by a fleet manager of three marine vessels, seeking to recover an approximate amount of 10% of gross proceeds, which in the aggregate for all affiliated entities represents $2.8 million for the years 2005 – 2007 (of which the Partnership’s portion is an approximate $1.4 million). The annual allocable portion of the claim is not considered material to the Partnership in any given year. The trial was concluded during the first week of August 2012. In October 2012, the matter was remitted to the Federal Judge to render a decision on both the law and the facts. ~~The~~A decision ofwas ~~the~~rendered ~~Court~~in ~~was~~favor ~~rendered~~of the defendants at the end of June 2013, ~~and~~after ~~the~~which ~~court found in favor of~~ the ~~defendants. The~~ Partnership filed an appeal. ofDuring the ~~court’s~~same ~~decision~~time ~~and~~frame, ~~remains~~the ~~hopeful~~defendants ~~for~~filed a ~~recovery~~claim offor ~~all~~legal orfees ~~portion~~and ofcosts ~~its~~which ~~asserted~~was ~~claims~~denied. AsOn aJune ~~result~~6, ~~of the ruling~~2014, the ~~defendants~~Partnership’s ~~filed~~appeal awas ~~claim~~also ~~for~~denied ~~legal~~by ~~fees~~the ~~and~~Fifth ~~costs,~~Circuit ~~however,~~Appellate ~~this was denied~~Court. ~~The~~As ~~outcome~~such, ofthere ~~the~~is ~~Partnership’s~~currently ~~claim~~no ~~remains~~gain ~~uncertain~~or asloss ~~of this date~~contingency.

Off-Balance Sheet Transactions

None.

Recent Accounting Pronouncements

retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The Partnership has evaluated the impact of the new standard on its financial statements and has determined that such impact is virtually non-existent as the new revenue guideline does not affect revenues from leases, which comprise the majority of the Partnership’s revenues.

In August 2014, the FASB issued Accounting Standards Update 2014-15, Presentation of Financial Statements — Going Concern (subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. The new standard provides guidance relative to management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. Management is currently evaluating the standard and its operational and related disclosure requirements.

Critical Accounting Policies and Estimates

The policies discussed below are considered by management of the Partnership to be critical to understanding the Partnership’s financial statements because their application requires significant complex or subjective judgments, decisions, or assessments, with financial reporting results relying on estimation about the effect of matters that are inherently uncertain. Specific risks for these critical accounting policies are described in the following paragraphs. The Partnership also states these accounting policies in the Notes to the financial statements and in relevant sections in this discussion and analysis. For all of these policies, management cautions that future events rarely develop exactly as forecast, and the best estimates routinely require adjustment.

Use of estimates:

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

Equipment subject to operating leases is stated at cost. Depreciation is recognized on a straight-line method over the terms of the related leases to the equipment’s estimated salvage or residual values. Off-lease equipment is generally not subject to depreciation. ~~Maintenance~~The ~~costs~~Partnership ~~associated~~depreciates all lease assets, in accordance with guidelines consistent with ASC 840-20-35-3, over the ~~Fund~~periods of the lease terms contained in each asset’s ~~portfolio~~respective lease contract to the estimated residual value at the end of ~~leased~~the lease contract. All lease assets are ~~expensed~~purchased asonly ~~incurred~~concurrent with the execution of a lease commitment by the lessee. ~~Major~~Thus, ~~additions~~the original depreciation period corresponds with the term of the original lease. Once the term of an original lease contract is completed, the subject property is typically sold to the existing user, re-leased to the existing user, or, when off-lease, is held for sale. Assets which are re-leased continue to be depreciated using the terms of the new lease agreements and ~~betterments~~the estimated residual values at the end of the new lease terms, adjusted downward as necessary. Assets classified as held-for-sale are ~~capitalized~~carried at the lower of carrying amount, or the fair value less cost to sell (ASC 360-10-35-43).

The Partnership does not use the equipment held in its portfolio, but holds it solely for lease and ultimate sale. In the course of marketing equipment that has come off-lease, management may determine at some point that re-leasing the assets may provide a superior return for investors and would then execute another lease. Upon entering into a new lease contract, management will estimate the residual value once again and resume depreciation. If, and when, the Partnership, at any time, determines that depreciation in value may have occurred with respect to an asset held-for-sale, the Partnership would review the value to determine whether a material reduction in value had occurred and recognize any appropriate impairment. All lease assets, including off-lease assets, are subject to the Partnership’s quarterly impairment analysis, as described below. Maintenance costs associated with the Fund’s portfolio of leased assets are expensed as incurred. Major additions and betterments are capitalized.

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

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

~~The~~Recorded values of the Partnership’s ~~earns~~leased ~~revenues~~asset ~~from~~portfolio ~~its~~are ~~marine~~reviewed ~~vessels~~each ~~based~~quarter onto ~~charter~~confirm ~~utilization~~the reasonableness of ~~the~~established ~~vessels~~residual orvalues aand ~~fixed~~to ~~term~~determine ~~lease~~whether there is indication that an asset impairment might have taken place. ~~When~~The ~~the~~Partnership ~~vessels~~uses ~~are~~a ~~chartered,~~variety ~~contingent~~of ~~rentals~~sources and considers many factors in evaluating whether the ~~associated~~respective ~~expenses~~book ~~are~~values ~~recorded~~of ~~when~~its ~~earned~~assets ~~and/or~~are ~~incurred~~appropriate. ~~From~~In ~~time~~addition, tothe Partnership may direct a residual value review at any time, if it becomes aware of issues regarding the ~~Partnership~~ability ~~incurs~~of ~~“drydocking”~~a ~~costs~~lessee to continue to make payments on its ~~vessels~~lease contract. ~~Drydocking~~An ~~costs~~impairment ~~include~~loss ~~labor~~is measured and ~~material~~recognized only ~~costs~~if ~~related~~the toestimated ~~refurbishing,~~undiscounted ~~overhauling~~future ~~and/or~~cash ~~replacing~~flows ~~engine~~of ~~and~~the ~~other~~asset ~~major~~are ~~mechanical~~less ~~components~~than their net book value. The estimated undiscounted future cash flows are the sum of the ~~vessel,~~residual ~~hull~~value ~~maintenance~~of ~~and~~the ~~other~~asset ~~repairs~~at ~~that~~the ~~bring~~end of the ~~vessel~~asset’s ~~into~~lease ~~seaworthy~~contract ~~compliance~~and ~~with~~undiscounted Ufuture rents from the existing lease contract.S. ~~marine~~The ~~codes~~residual invalue ~~order~~assumes, toamong ~~have~~other itthings, ~~certified~~that ~~as available~~the ~~for~~asset ~~charter~~is utilized normally in an open, unrestricted and stable market. ~~Such~~Short-term ~~drydocking~~fluctuations ~~costs~~in the marketplace are ~~capitalized~~disregarded and ~~added~~it is assumed that there is no necessity either to ~~the~~dispose ~~equipment~~of ~~cost~~a ~~and~~significant ~~depreciated~~number ~~over~~of the ~~period~~assets, ~~between~~if ~~scheduled~~held ~~drydockings~~in quantity, ~~which~~simultaneously ~~generally~~or ~~occur~~to ~~every~~dispose 24of tothe 30asset ~~months~~quickly. ~~One~~Impairment ofis measured as the ~~Partnership’s~~difference ~~two~~between ~~vessels~~the ~~was~~fair ~~placed~~value in(as ~~drydock~~determined ~~for~~by ~~scheduled~~a ~~maintenance~~valuation ~~during~~method ~~the~~using ~~first~~discounted ~~quarter~~estimated offuture ~~2011.~~cash Atflows, ~~the~~third ~~end~~party ofappraisals ~~the~~or ~~first~~comparable ~~quarter~~sales of ~~2011,~~similar ~~the~~assets ~~vessel~~as ~~was~~applicable ~~returned~~based toon ~~service~~asset ~~under~~type) aof ~~fixed-term~~the ~~operating~~asset ~~lease.~~and ~~The~~its ~~Partnership’s~~carrying ~~other~~value ~~vessel~~on isthe ~~awaiting~~measurement ~~drydock~~date. ~~maintenance~~Upward ~~during~~adjustments ~~the~~for impairments ~~first~~recognized ~~half~~in ofprior ~~2014~~periods are not made in any circumstances.

The Partnership earns revenues from its marine vessels based on charter utilization of the vessels or a fixed term lease. When the vessels are chartered, contingent rentals and the associated expenses are recorded when earned and/or incurred. From time to time, the Partnership incurs “drydocking” costs on its vessels. Drydocking costs include labor and material costs related to refurbishing, overhauling and/or replacing engine and other major mechanical components of the vessel, hull maintenance and other repairs that bring the vessel into seaworthy compliance with U.S. marine codes in order to have it certified as available for charter. Such drydocking costs are capitalized and added to the equipment cost and depreciated over the period between scheduled drydockings, which generally occur every 24 to 30 months. The Partnership’s two vessels were last placed in drydock for scheduled maintenance during 2011.

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

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

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

1011

Asset valuation:

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

Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

See the Report of Independent Registered Public Accounting Firm, Financial Statements and Notes to Financial Statements attached hereto at pages 1213 through 2628.

1112

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Partners
ATEL Capital Equipment Fund VII, L.P.

We have audited the accompanying balance sheets of ATEL Capital Equipment Fund VII, L.P. (“Partnership”) as of December 31, ~~2013~~2014 and ~~2012~~2013, and the related statements of income, changes in partners’ capital, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Partnership is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Partnership’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of ATEL Capital Equipment Fund VII, L.P. as of December 31, ~~2013~~2014 and ~~2012~~2013, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

/s/ Moss Adams LLP San Francisco, California March 1127, ~~2014~~2015

1213

ATEL CAPITAL EQUIPMENT FUND VII, L.P. BALANCE SHEETS DECEMBER 31, 20132014 AND 2012 2013(In Thousands)

	2013		2012
	2014		2013
ASSETS
Cash and cash equivalents	$	~~1,662~~261	$	~~686~~1,662
Accounts receivable, net of allowance for doubtful accounts of $150 as of December 31, 2013 and $133 as of December 31, 2012		167		652
Accounts receivable, net of allowance for doubtful accounts of $8 as of December 31, 2014 and $150 as of December 31, 2013		186		167
Investments in equipment and leases, net of accumulated depreciation of $33,625 as of December 31, 2013 and $38,658 as of December 31, 2012		5,643		6,765
Investments in equipment and leases, net of accumulated depreciation of $32,996 as of December 31, 2014 and $33,625 as of December 31, 2013		5,378		5,643
Prepaid expenses and other assets		2217		1722
Total assets	$	75,~~494~~842	$	87,~~120~~494
LIABILITIES AND PARTNERS’ CAPITAL
Accounts payable and accrued liabilities:
General Partner	$	~~190~~114	$	~~420~~190
Other		~~347~~326		~~421~~347
Unearned operating lease income		2826		9828
Total liabilities		~~565~~466		~~939~~565
Commitments and contingencies
Partners’ capital:
General Partner		—		—
Limited Partners		65,~~929~~376		76,~~181~~929
Total Partners’ capital		65,~~929~~376		76,~~181~~929
Total liabilities and Partners’ capital	$	75,~~494~~842	$	87,~~120~~494

See accompanying Notes.

1314

ATEL CAPITAL EQUIPMENT FUND VII, L.P. STATEMENTS OF INCOME FOR THE YEARS ENDED DECEMBER 31, 20132014 AND 20122013 (In Thousands Except for Units and Per Unit Data)

	2013		2012
	2014		2013
Revenues:
Leasing activities:
Operating leases	$	2,~~784~~446	$	42,~~172~~784
Direct financing leases		33—		~~169~~33
Gain on sales of assets		~~2,977~~62		~~224~~2,977
Interest income		—		2
Other		5		85
Other		85		13
Total revenues		2,513		5,879
Total revenues		5,879		4,580
Expenses:
Depreciation of operating lease assets		~~321~~154		~~480~~321
Marine vessel maintenance and other operating costs		61—		—61
Cost reimbursements to General Partner		~~220~~215		~~247~~220
Equipment and incentive management fees to General Partner		~~124~~121		~~229~~124
Railcar and equipment maintenance		~~630~~769		~~659~~630
Professional fees		~~101~~132		~~233~~101
Insurance		~~127~~152		11127
Outside services		8990		8289
Other management fees		9597		~~144~~95
Equipment storage		1027		1310
Franchise fees and state taxes		4376		3543
Freight and shipping		3719		837
Provision for credit losses		171		~~122~~17
Property taxes		3240		2332
Postage		2012		1720
Printing and photocopying		2625		3326
Other		~~127~~110		~~110~~127
Total operating expenses		2,080		2,446
Total expenses		2,040		2,080
Net income	$	~~3,799~~473	$	23,~~134~~799
Net income:
General Partner	$	~~304~~152	$	~~213~~304
Limited Partners		~~3,495~~321		13,~~921~~495
	$	~~3,799~~473	$	23,~~134~~799
Net income per Limited Partnership Unit	$	0.2302	$	0.1323
Weighted average number of Units outstanding		14,985,550		14,985,550

See accompanying Notes.

1415

ATEL CAPITAL EQUIPMENT FUND VII, L.P. STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL FOR THE YEARS ENDED DECEMBER 31, 20132014 AND 20122013 (In Thousands Except for Units and Per Unit Data)

	Limited Partners					~~General Partner~~GeneralPartner			Total
	Units		Amount
Balance December 31, 2011		14,985,550	$	7,883		$	—		$	7,883
Balance December 31, 2012		14,985,550	$	7,181		$	—		$	7,181
Distributions to Limited Partners ($0.18 per Unit)		—		(2,623	)		—			(2,623	)
Distributions to General Partner		—		—			(213	)		(213	)
Net income		—		1,921			213			2,134
Balance December 31, 2012		14,985,550		7,181			—			7,181
Distributions to Limited Partners ($0.25 per Unit)		—		(3,747	)		—			(3,747	)
Distributions to General Partner		—		—			(304	)		(304	)
Net income		—		3,495			304			3,799
Balance December 31, 2013		14,985,550	$	6,929		$	—		$	6,929
Distributions to Limited Partners ($0.13 per Unit)		—		(1,874	)		—			(1,874	)
Distributions to General Partner		—		—			(152	)		(152	)
Net income		—		321			152			473
Balance December 31, 2014		14,985,550	$	5,376		$	—		$	5,376

See accompanying Notes.

1516

ATEL CAPITAL EQUIPMENT FUND VII, L.P. STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 20132014 AND 20122013 (In Thousands)

	2013			2012
	2014			2013
Operating activities:
Net income	$	~~3,799~~473		$	23,~~134~~799
Adjustments to reconcile net income to cash provided by operating activities:
Gain on sales of assets		(~~2,977~~62	)		(~~224~~2,977	)
Depreciation of operating lease assets		~~321~~154			~~480~~321
Provision for credit losses		171			~~122~~17
Changes in operating assets and liabilities:
Accounts receivable		~~468~~(20	)		~~(467~~468	)
Prepaid expenses and other assets		(5	)		(115	)
Accounts payable:
General Partner		(~~230~~76	)		(~~250~~230	)
Other		(7421	)		5(74	)
Unearned lease income		(702	)		(~~149~~70	)
Net cash provided by operating activities		~~1,249~~452			1,~~640~~249
Investing activities:
Proceeds from sales of lease assets		~~3,646~~173			~~329~~3,646
Principal payments received on direct financing leases		~~132~~—			~~199~~132
Net cash provided by investing activities		~~3,778~~173			~~528~~3,778
Financing activities:
Distributions to General Partner		(~~304~~152	)		(~~213~~304	)
Distributions to Limited Partners		(31,~~747~~874	)		(23,~~623~~747	)
Net cash used in financing activities		(42,~~051~~026	)		(24,~~836~~051	)
Net increase (decrease) in cash and cash equivalents		976			(668	)
Net (decrease) increase in cash and cash equivalents		(1,401	)		976
Cash and cash equivalents at beginning of year		~~686~~1,662			~~1,354~~686
Cash and cash equivalents at end of year	$	~~1,662~~261		$	~~686~~1,662
Supplemental disclosures of cash flow information:
Cash paid during the year for taxes	$	4074		$	3940

See accompanying Notes.

1617

ATEL CAPITAL EQUIPMENT FUND VII, L.P.

NOTES TO FINANCIAL STATEMENTS

1. Organization and Limited Partnership matters:

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

As of December 31, ~~2013~~2014, the Partnership continues in the liquidation phase of its life cycle as defined in the Partnership Agreement.

2. Summary of significant accounting policies:

Basis of presentation:

The accompanying balance sheets as of December 31, ~~2013~~2014 and ~~2012~~2013, and the related statements of income, changes in partners’ capital and cash flows for the years then ended, have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the Securities and Exchange Commission. Certain prior year amounts have been reclassified to conform to the current year presentation. These reclassifications had no significant effect on the reported financial position or results from operations.

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

In preparing the accompanying financial statements, the Partnership has reviewed, as determined necessary by the General Partner, events that have occurred after December 31, ~~2013~~2014, up until the issuance of the financial statements. No events were noted which would require disclosure in the footnotes to the financial statements.

Use of estimates:

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

1718

ATEL CAPITAL EQUIPMENT FUND VII, L.P.

NOTES TO FINANCIAL STATEMENTS

2. Summary of significant accounting policies: - (continued)

reporting period. Actual results could differ from those estimates. Such estimates relate primarily to the determination of residual values at the end of the lease term and expected future cash flows used for impairment analysis purposes and determination of the allowance for doubtful accounts.

Cash and cash equivalents:

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

Credit risk:

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

Accounts receivable:

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

~~Operating~~The ~~lease~~Partnership ~~revenue~~does isnot ~~recognized~~use onthe aequipment ~~straight-line~~held ~~basis~~in ~~over~~its portfolio, but holds it solely for lease and ultimate sale. In the ~~term~~course of ~~the~~marketing ~~underlying~~equipment ~~leases.~~that ~~The~~has ~~initial~~come off-lease, ~~terms~~management ~~vary~~may asdetermine toat some point that re-leasing the ~~type~~assets ofmay ~~equipment~~provide ~~subject~~a tosuperior ~~the~~return ~~leases~~for investors and would then execute another lease. Upon entering into a new lease contract, ~~the~~management ~~needs~~will ofestimate the ~~lessees~~residual value once again and resume depreciation. If, and when, the ~~terms~~Partnership, ~~negotiated~~at any time, ~~but~~determines ~~initial~~that ~~leases~~depreciation ~~were~~in ~~generally~~value ~~from~~may 36have occurred with respect to ~~120~~an ~~months.~~asset ~~The~~held-for-sale, ~~difference~~the ~~between~~Partnership ~~rent~~would ~~received~~review the value to determine whether a material reduction in value had occurred and ~~rental~~recognize ~~revenue~~any ~~recognized~~appropriate isimpairment. ~~recorded~~All aslease ~~unearned~~assets, ~~operating~~including off-lease ~~income~~assets, onare subject to the ~~balance~~Partnership’s ~~sheet~~quarterly impairment analysis, as described below. Maintenance costs associated with the Fund’s portfolio of leased assets are expensed as incurred. Major additions and betterments are capitalized.

ATEL CAPITAL EQUIPMENT FUND VII, L.P.

NOTES TO FINANCIAL STATEMENTS

2. Summary of significant accounting policies: - (continued)

Recorded values of the Partnership’s leased asset portfolio are reviewed each quarter to confirm the reasonableness of established residual values and to determine whether there is indication that an asset impairment might have taken place. The Partnership uses a variety of sources and considers many factors in evaluating whether the respective book values of its assets are appropriate. In addition, the Partnership may direct a residual value review at any time if it becomes aware of issues regarding the ability of a lessee to continue to make payments on its lease contract. An impairment loss is measured and recognized only if the estimated undiscounted future cash flows of the asset are less than their net book value. The estimated undiscounted future cash flows are the sum of the residual value of the asset at the end of the asset’s lease contract and undiscounted future rents from the existing lease contract. The residual value assumes, among other things, that the asset is utilized normally in an open, unrestricted and stable market. Short-term fluctuations in the marketplace are disregarded and it is assumed that there is no necessity either to dispose of a significant number of the assets, if held in quantity, simultaneously or to dispose of the asset quickly. Impairment is measured as the difference between the fair value (as determined by a valuation method using discounted estimated future cash flows, third party appraisals or comparable sales of similar assets as applicable based on asset type) of the asset and its carrying value on the measurement date. Upward adjustments for impairments recognized in prior periods are not made in any circumstances.

ATEL CAPITAL EQUIPMENT FUND VII, L.P.

NOTES TO FINANCIAL STATEMENTS

2. Summary of significant accounting policies: - (continued)

reviews the creditworthiness of all direct finance lessees with payments outstanding less than 90 days. Based upon management’s judgment, the related direct financing leases may be placed on non-accrual status. Leases placed on non-accrual status are only returned to an accrual status when the account has been brought current and management believes recovery of the remaining unpaid lease payments is probable. Until such time, all payments received are applied only against outstanding principal balances.

Asset valuation:

Segment reporting:

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

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

However, certain of the Partnership’s lessee customers may have international operations. In these instances, the Partnership is aware that certain equipment, primarily rail and transportation, may periodically exit the country. However, these lessee customers are US-based, and it is impractical for the Partnership to track, on an asset-by-asset and day-by-day basis, where these assets are deployed. The primary geographic regions in which the Partnership sought leasing opportunities were North America and Europe.

19The tables below summarize geographic information relating to the sources, by nation, of the Partnership’s total revenues for the years ended December 31, 2014 and 2013 and long-lived tangible assets as of December 31, 2014 and 2013 (dollars in thousands):


	For The Year Ended December 31,
	2014		% of Total			2013		% of Total
Revenue
United States	$	2,193		87	%	$	5,559		95	%
Canada		320		13	%		320		5	%
Total International		320		13	%		320		5	%
Total	$	2,513		100	%	$	5,879		100	%

ATEL CAPITAL EQUIPMENT FUND VII, L.P.

NOTES TO FINANCIAL STATEMENTS

2. Summary of significant accounting policies: - (continued)

The table below summarizes geographic information relating to the sources, by nation, of the Partnership’s total revenues for the years ended December 31, 2013 and 2012 and long-lived tangible assets as of December 31, 2013 and 2012 (dollars in thousands):


	As of December 31,
	2014		% of Total			2013		% of Total
Long-lived assets
United States	$	5,138		96	%	$	5,403		96	%
Canada		240		4	%		240		4	%
Total International		240		4	%		240		4	%
Total	$	5,378		100	%	$	5,643		100	%

	For The Year Ended December 31,
	2013		% of Total			2012		% of Total
Revenue
United States	$	5,559		95	%	$	4,260		93	%
Canada		320		5	%		320		7	%
Total International		320		5	%		320		7	%
Total	$	5,879		100	%	$	4,580		100	%

	As of December 31,
	2013		% of Total			2012		% of Total
Long-lived assets
United States	$	5,403		96	%	$	6,525		96	%
Canada		240		4	%		240		4	%
Total International		240		4	%		240		4	%
Total	$	5,643		100	%	$	6,765		100	%

Unearned operating lease income:

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

Income taxes:

Pursuant to the provisions of Section 701 of the Internal Revenue Code, a partnership is not subject to federal income taxes. All income and losses of the Partnership are the liability of the individual partners and are allocated to the partners for inclusion in their individual tax returns. Accordingly, the Partnership has provided current income and franchise taxes for only those states which levy taxes on partnerships. For the years ended December 31, ~~2013~~2014 and ~~2012~~2013, the related provision for state income taxes was approximately $4376 thousand and $3543 thousand, respectively. The Partnership does not have any entity level uncertain tax positions. The Partnership files income tax returns in the U.S. federal jurisdiction and various state jurisdictions and is generally subject to examination by U.S. federal (or state and local) income tax authorities for three years from the filing of a tax return.

The tax bases of the Partnership’s net assets and liabilities vary from the amounts presented in these financial statements at December 31, ~~2013~~2014 and ~~2012~~2013 as follows (in thousands):

	2013			2012
	2014			2013
Financial statement basis of net assets	$	65,~~929~~376		$	76,~~181~~929
Tax basis of net assets (unaudited)		(1820,~~671~~109	)		(1918,~~428~~671	)
Difference	$	25,~~600~~485		$	2625,~~609~~600

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

20The following reconciles the net income reported in these financial statements to the income reported on the Partnership’s federal tax return (unaudited) for each of the years ended December 31, 2014 and 2013 (in thousands):


	2014			2013
Net income per financial statements	$	473		$	3,799
Tax adjustments (unaudited):
Adjustment to depreciation expense		147			263
Provision for doubtful accounts		(142	)		16
Adjustments to gain on sales of assets		112			669
Other		(2	)		61
Income per federal tax return (unaudited)	$	588		$	4,808

ATEL CAPITAL EQUIPMENT FUND VII, L.P.

NOTES TO FINANCIAL STATEMENTS

2. Summary of significant accounting policies: - (continued)

The following reconciles the net income reported in these financial statements to the income reported on the Partnership’s federal tax return (unaudited) for each of the years ended December 31, 2013 and 2012 (in thousands):

	2013		2012
Net income per financial statements	$	3,799	$	2,134
Tax adjustments (unaudited):
Adjustment to depreciation expense		263		422
Provision for doubtful accounts		16		122
Adjustments to gain on sales of assets		669		106
Other		61		297
Income per federal tax return (unaudited)	$	4,808	$	3,081

Per Unit data:

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

Recent accounting pronouncements:

~~Recent~~In ~~accounting~~May ~~standards~~2014, ~~updates as issued by~~ the Financial Accounting Standards Board (FASB) ~~were~~issued ~~evaluated~~Accounting ~~and~~Standards ~~determined~~Update No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which amends the existing accounting standards for revenue recognition. ASU 2014-09 is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when products are transferred to customers. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is not ~~applicable~~permitted. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The Partnership has evaluated the impact of the new standard on its financial statements and has determined that such impact is virtually non-existent as the new revenue guideline does not affect revenues from leases, which comprise the majority of the Partnership’s revenues.

3. Concentration of credit risk and major customers:

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

	2013			2012
	2014			2013
Transportation		5861	%		6158	%
Forestry		2217	%		*22	%
Retail/Food industry		2017	%		*20	%
Marine vessels		*			19	%

*During ~~Less~~2014 and 2013, certain lessees generated significant portions (defined as greater than or equal to 10%) of the Partnership’s total lease revenues, excluding gains or losses from disposition of assets, as follows:

During 2013 and 2012, certain lessees generated significant portions (defined as greater than or equal to 10%) of the Partnership’s total lease revenues, excluding gains or losses from disposition of assets, as follows:


Lessee	Type of Equipment		Percentage of Total Lease Revenues
Lessee	Type of Equipment		2014			2013
West Range Reclamation, LLC		Transportation		22	%		19	%
Interstate Commodities		Transportation		18	%		15	%
Ferrous Processing and Trading		Transportation		13	%		11	%
Nova Scotia Power Inc.		Transportation		13	%		11	%
Genesee & Wyoming Inc.		Transportation		13	%		11	%

Lessee	Type of Equipment		Percentage of Total Lease Revenues
			2013			2012
West Range Reclamation, LLC		Transportation		19	%		*
Interstate Commodities		Transportation		15	%		16	%
Ferrous Processing and Trading		Transportation		11	%		*
Nova Scotia Power Incorporated		Transportation		11	%		*
Genesee & Wyoming Inc.		Transportation		11	%		*
AET Offshore Services, Inc.		Marine vessel		*			28	%

* Less than 10%

ATEL CAPITAL EQUIPMENT FUND VII, L.P.

NOTES TO FINANCIAL STATEMENTS

4. Allowance for credit losses:

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

	Accounts Receivable Allowance for Doubtful Accounts						Valuation Adjustments on Financing Receivables		~~TotalAllowance~~Total Allowance for Credit Losses
	Finance Leases			Operating Leases			Finance Leases
Balance December 31, 2011	$	10		$	1		$	—	$	11
Balance December 31, 2012	$	—		$	133		$	—	$	133
(Reversal of provision) provision		(10	)		132			—		122
Balance December 31, 2012		—			133			—		133
Provision		—			17			—		17
Balance December 31, 2013	$	—		$	150		$	—	$	150
Provision		—			1			—		1
Charge-offs and/or recoveries		—			(143	)		—		(143	)
Balance December 31, 2014	$	—		$	8		$	—	$	8

The allowance for credit losses at both December 31, ~~2013~~2014 and ~~December~~2013 ~~31, 2012~~ were related to delinquent operating lease receivables. As of December 31, 2014 and 2013, the Partnership had no financing lease receivables, as its lone remaining finance lease matured on July 1, 2013.

As of December 31, 2013, the Partnership had no financing lease receivables, as its remaining finance lease matured on July 1, 2013. By comparison, at December 31, 2012, finance lease receivables totaled $197 thousand, all of which were current.

5. Investments in equipment and leases:

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

	Balance December 31, 2012		Reclassifications & Additions/ Dispositions			Depreciation/ Amortization Expense or Amortizationof Leases			Balance December 31,2013
	Balance December 31, 2013		Reclassifications & Additions/ Dispositions			Depreciation/ Amortization Expense or Amortization of Leases			Balance December 31, 2014
Net investment in operating leases	$	53,~~284~~162	$	(~~1,817~~108	)	$	(~~305~~154	)	$	32,~~162~~900
Net investment in direct financing leases		197		(65	)		(132	)		—
Assets held for sale or lease, net		2,481		(3	)		—			2,478
Assets held for sale or lease, net		1,284		1,213			(16	)		2,481
Total	$	5,643	$	(111	)	$	(154	)	$	5,378
Total	$	6,765	$	(669	)	$	(453	)	$	5,643

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

~~Management~~Recorded ~~periodically~~values ~~reviews~~of the ~~carrying~~Partnership’s ~~values~~leased ofasset ~~its~~portfolio ~~assets~~are onreviewed ~~leases~~each quarter to confirm the reasonableness of established residual values and ~~assets~~to ~~held~~determine ~~for~~whether ~~lease~~there oris ~~sale~~indication that an asset impairment might have taken place. The ~~fair~~Partnership ~~value~~uses a variety of sources and considers many factors in evaluating whether the respective book values of its assets isare ~~determined~~appropriate. ~~based~~In onaddition, the ~~sum~~Partnership may direct a residual value review at any time if it becomes aware of issues regarding the ~~discounted~~ability of a lessee to continue to make payments on its lease contract. An impairment loss is measured and recognized only if the estimated undiscounted future cash flows of the ~~assets~~asset are less than their net book value. ~~Impairment~~The ~~losses~~estimated undiscounted future cash flows are ~~recorded~~the assum of the residual value of the asset at the end of the asset’s lease contract and undiscounted future rents from the existing lease contract. The residual value assumes, among other things, that the asset is utilized normally in an ~~adjustment~~open, unrestricted and stable market. Short-term fluctuations in the marketplace are disregarded and it is assumed that there is no necessity either to dispose of a significant number of the ~~net~~assets, ~~investment~~if held in ~~operating~~quantity, ~~leases~~simultaneously or to dispose of the asset quickly. NoImpairment ~~impairment~~is ~~losses~~measured ~~were~~as ~~recorded~~the ~~during~~difference ~~2013~~between the fair value (as determined by a valuation method using discounted estimated future cash flows, third party appraisals or comparable sales of similar assets as applicable based on asset type) of the asset and ~~2012~~its carrying value on the measurement date. Upward adjustments for impairments recognized in prior periods are not made in any circumstances.

~~The~~As ~~Partnership utilizes~~ a ~~straight~~result ~~line depreciation method for equipment in all~~ of ~~the~~these ~~categories~~reviews, ~~currently~~management indetermined ~~its~~that ~~portfolio~~no ofimpairment ~~operating~~losses ~~lease~~existed ~~transactions.~~during ~~Depreciation~~2014 ~~expense on the Partnership’s equipment totaled $321 thousand~~ and ~~$480 thousand for the years ended December 31,~~ 2013 ~~and 2012, respectively~~.

~~All~~The Partnership utilizes a straight line depreciation method for equipment in all of the ~~remaining~~categories ~~property~~currently ~~subject~~in toits ~~leases~~portfolio ~~was~~of ~~acquired~~operating inlease transactions. Depreciation expense on the Partnership’s equipment totaled $154 thousand and $321 thousand for the years ~~1997~~ended ~~through~~December ~~1998~~31, 2014 and 2013, respectively.

2224

ATEL CAPITAL EQUIPMENT FUND VII, L.P.

NOTES TO FINANCIAL STATEMENTS

5. Investments in equipment and leases: - (continued)

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

Operating leases:

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

	Balance December 31, 2012			Additions			Reclassifications or Dispositions			Balance December 31, 2013
	Balance December 31, 2013			Additions			Reclassifications or Dispositions			Balance December 31, 2014
Transportation	$	2822,~~689~~757		$	—		$	(51,~~932~~939	)	$	2220,~~757~~818
Materials handling		83			—			—			83
Marine vessels		7,400			—			(7,400	)		—
		22,840			—			(1,939	)		20,901
		36,172			—			(13,332	)		22,840
Less accumulated depreciation		(19,678	)		(154	)		1,831			(18,001	)
Less accumulated depreciation		(30,888	)		(305	)		11,515			(19,678	)
Total	$	3,162		$	(154	)	$	(108	)	$	2,900
Total	$	5,284		$	(305	)	$	(1,817	)	$	3,162

The average estimated residual value for assets on operating leases was 13% ~~and 14%~~ of the assets’ original cost at both December 31, ~~2013~~2014 and ~~2012, respectively~~2013.

The Partnership earns revenues from its marine vessels and/or certain lease assets based on utilization of such assets or through fixed term leases. Contingent rentals (i.e., short-term, operating charter hire payments) and the associated expenses are recorded when earned and/or incurred. The revenues associated with these rentals are included as a component of operating lease revenues. Contingent rentals totaled $6137 thousand and $~~105~~61 thousand for the years ended December 31, ~~2013~~2014 and ~~2012~~2013, respectively.

There were no operating leases in non-accrual status at December 31, ~~2013~~2014 and ~~2012~~2013.

Direct financing leases:

As of December 31, 2014 and 2013, the Partnership had no investment in direct financing leases, as its remaining finance lease matured on July 1, 2013. ~~By comparison, as of December 31, 2012, the net investment in direct financing leases amounted to $197 thousand and consisted primarily of various transportation and manufacturing equipment.~~

At December 31, ~~2013~~2014, the aggregate amounts of future minimum lease payments are as follows (in thousands):

	Operating Leases
Year ending December 31, 2014	$	723
Year ending December 31, 2015	$	997
2015		631
2016		637
2016		337
2017		398
2017		311
2018		157
2018		78
2019		46
	$	2,~~080~~235

The useful lives for each category of lease assets in the Partnership’s portfolio is reviewed at a minimum of once per quarter. As of December 31, 2014 and 2013, the respective useful lives of each category of lease assets in the Partnership’s portfolio are as follows (in years):


Equipment category	Useful Life
Transportation		35 – 40
Materials handling		7 – 10

ATEL CAPITAL EQUIPMENT FUND VII, L.P.

NOTES TO FINANCIAL STATEMENTS

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

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

23Each of ATEL Leasing Corporation (“ALC”) and AFS is a wholly-owned subsidiary of ATEL Capital Group and performs services for the Partnership. Acquisition services, equipment management, lease administration and asset disposition services are performed by ALC; investor relations, communications services and general administrative services are performed by AFS.

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

During the years ended December 31, 2014 and 2013, AFS and/or affiliates earned fees and reimbursements pursuant to the Partnership Agreement as follows (in thousands):


	2014		2013
Cost reimbursements to General Partner	$	215	$	220
Equipment and incentive management fees to General Partner		121		124
	$	336	$	344

The Fund has determined that payment of any amounts in excess of the annual and cumulative limits is not probable, and the date any portion of such amount may be paid, if ever, is uncertain. When the Fund completes its liquidation stage and terminates, any unpaid amount will expire unpaid, with no claim by AFS or its affiliates against any liquidation proceeds or any party for the unpaid balance. For the year ended December 31, 2014, the amount of reimbursable expenses billed to the Fund did not exceed either the annual or the cumulative limitations. It is not anticipated that any further billings to the Fund will equal or exceed the annual or cumulative reimbursable expense limitation. Such is reflective of the continued diminishing Fund asset base over which reimbursements are calculated.

ATEL CAPITAL EQUIPMENT FUND VII, L.P.

NOTES TO FINANCIAL STATEMENTS

6. Related party transactions: - (continued)

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

During the years ended December 31, 2013 and 2012, AFS and/or affiliates earned fees, commissions and reimbursements, pursuant to the Partnership Agreement as follows (in thousands):

	2013		2012
Cost reimbursements to General Partner	$	220	$	247
Equipment and incentive management fees to General Partner		124		229
	$	344	$	476

The Fund’s Limited Partnership Agreement places an annual and cumulative limit for cost reimbursements to AFS and/or its affiliates. Any reimbursable costs incurred by AFS and/or affiliates during the year exceeding the annual and/or cumulative limits cannot be reimbursed in the current year, though such costs may be reimbursable in future years to the extent such amounts may be payable if within the annual and cumulative limits in such future years. The Fund is a finite life and self liquidating entity, and AFS and its affiliates have no recourse against the Fund for the amount of any unpaid excess reimbursable administrative expenses. The Fund will continue to require administrative services from AFS and its affiliates through the end of its term, and will therefore continue to incur reimbursable administrative expenses in each year. The Fund has determined that payment of any amounts in excess of the annual and cumulative limits is not probable, and the date any portion of such amount may be paid, if ever, is uncertain. When the Fund completes its liquidation stage and terminates, any unpaid amount will expire unpaid, with no claim by AFS or its affiliates against any liquidation proceeds or any party for the unpaid balance. For the year ended December 31, 2013, the amount of reimbursable expenses billed to the Fund did not exceed either the annual or the cumulative limitations. It is not anticipated that any further billings to the Fund will equal or exceed the annual or cumulative reimbursable expense limitation. Such is reflective of the continued diminishing Fund asset base over which reimbursements are calculated.

7. Guarantees:

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

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

8. Gain contingencies:

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

24ATEL filed a claim on behalf of the Partnership and certain affiliated entities in Federal court in New Orleans for the under-reporting of revenue by a fleet manager of three marine vessels, seeking to recover an approximate amount of 10% of gross proceeds, which in the aggregate for all affiliated entities represents $2.8 million for the years 2005 – 2007 (of which the Partnership’s portion is an approximate $1.4 million). The annual allocable portion of the claim is not considered material to the Partnership in any given year. The trial was concluded during the first week of August 2012. In October 2012, the matter was remitted to the Federal Judge to render a decision on both the law and the facts. A decision was rendered in favor of the defendants at the end of June 2013, after which the Partnership filed an appeal. During the same time frame, the defendants filed a claim for legal fees and costs which was denied. On June 6, 2014, the Partnership’s appeal was also denied by the Fifth Circuit Appellate Court. As such, there is currently no gain or loss contingency.

ATEL CAPITAL EQUIPMENT FUND VII, L.P. NOTES TO FINANCIAL STATEMENTS

8. Gain contingencies: - (continued)

$2.8 million for loss of revenues during the period of the vessel’s diminished activity commencing at the time of the oil spill and continuing through 2010. The BP claim administrator denied the Partnership’s claim on the basis that the Partnership suffered damages as a result of the President’s moratorium on oil drilling subsequent to the Deep Water Horizon accident. The Partnership believes its claim continues to be of merit, and has opted out of the BP claims fund, and is pursuing a claim in a collective action with other similarly situated plaintiffs. Currently, the amount of any compensation or award from BP is extremely difficult to determine. As such, the potential for compensation or award has not been recorded on the Partnership’s books and records.

ATEL filed a claim on behalf of the Partnership and certain affiliated entities in Federal court in New Orleans for the under-reporting of revenue by a fleet manager of three marine vessels, seeking to recover an approximate amount of 10% of gross proceeds, which in the aggregate for all affiliated entities represents $2.8 million for the years 2005 – 2007 (of which the Partnership’s portion is an approximate $1.4 million). The annual allocable portion of the claim is not considered material to the Partnership in any given year. The trial was concluded during the first week of August 2012. In October 2012, the matter was remitted to the Federal Judge to render a decision on both the law and the facts. The decision of the Court was rendered at the end of June 2013 and the court found in favor of the defendants. The Partnership filed an appeal of the court’s decision and remains hopeful for a recovery of all or portion of its asserted claims. As a result of the ruling, the defendants filed a claim for legal fees and costs, however, this was denied. The outcome of the Partnership’s claim remains uncertain as of this date.

9. Partners’ capital:

As of December 31, ~~2013~~2014 and ~~2012~~2013, 14,985,550 Units were issued and outstanding. The Partnership was authorized to issue up to 15,000,000 Units, in addition to the 50 Units issued to the initial Partners.

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

The Partnership’s Net Profits, Net Losses, and Tax Credits are to be allocated 92.5% to the Limited Partners and 7.5% to AFS. In accordance with the terms of the Partnership Agreement, additional allocations of income were made to AFS in 2013 and 2012. The amounts allocated were determined to bring AFS’s ending capital account balance to zero at the end of each period. 27

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

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

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

ATEL CAPITAL EQUIPMENT FUND VII, L.P.

NOTES TO FINANCIAL STATEMENTS

9. Partners’ capital: - (continued)

distributions made to the Unitholder with respect to the Units. All Units repurchased during a quarter are deemed to be repurchased effective the last day of the preceding quarter, and are not deemed to be outstanding during, or entitled to allocations of net income, net loss or distributions for the quarter in which such repurchase occurs.

The Partnership’s Net Profits, Net Losses, and Tax Credits are to be allocated 92.5% to the Limited Partners and 7.5% to AFS. In accordance with the terms of the Partnership Agreement, additional allocations of income were made to AFS in 2014 and 2013. The amounts allocated were determined to bring AFS’s ending capital account balance to zero at the end of each period.

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

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

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

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

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

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

	2013		2012
	2014		2013
Distributions declared	$	31,~~747~~874	$	23,~~623~~747
Weighted average number of Units outstanding		14,985,550		14,985,550
Weighted average distributions per Unit	$	0.2513	$	0.1825

2628

Item 9.

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURES

None.

Item 9A.

CONTROLS AND PROCEDURES

Evaluation of disclosure controls and procedures

The Partnership’s General Partner’s President and Chief Executive Officer, and Executive Vice President and Chief Financial Officer and Chief Operating Officer (“Management”), evaluated the effectiveness of the Partnership’s disclosure controls and procedures (as defined in Exchange Act Rule 13a-15(e)) as of the end of the period covered by this report. Based on the evaluation of the Partnership’s disclosure controls and procedures, Management concluded that as of the end of the period covered by this report, the design and operation of these disclosure controls and procedures were effective.

The Partnership does not control the financial reporting process, and is solely dependent on the Management of the General Partner, who is responsible for providing the Partnership with financial statements in accordance with generally accepted accounting principles in the United States. The General Partner’s disclosure controls and procedures, as they are applicable to the Partnership, means controls and other procedures of an issuer that are designed to ensure that information required to be disclosed by the issuer in the reports that it files or submits under the Act (15 U.S.C. 78a et seq.) is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Act is accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

Management’s Annual Report on Internal Control over Financial Reporting

The Management of the General Partner is responsible for establishing and maintaining adequate internal control over financial reporting as that term is defined in Exchange Act Rule 13a-15(f) for the Partnership, and for performing an assessment of the effectiveness of internal control over financial reporting as of December 31, ~~2013~~2014. The internal control process of the General Partner, as it is applicable to the Partnership, was designed to provide reasonable assurance to Management regarding the preparation and fair presentation of published financial statements, and includes those policies and procedures that:

(1)

Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles in the United States, and that the Partnership’s receipts and expenditures are being made only in accordance with authorization of the Management of the General Partner; and

(2)

Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Partnership’s assets that could have a material effect on the financial statements.

All internal control processes, no matter how well designed, have inherent limitations. Therefore, even those processes determined to be effective can provide only reasonable assurance with respect to the reliability of financial statement preparation and presentation. Further, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.

Management of the General Partner assessed the effectiveness of its internal control over financial reporting, as it is applicable to the Partnership, as of December 31, ~~2013~~2014. In making this assessment, it used the criteria set forth in Internal Control — Integrated Framework (1992) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on its assessment, Management of the General Partner concluded that the General Partner’s internal control over financial reporting, as it is applicable to the Partnership, was effective as of December 31, ~~2013~~2014.

2729

This annual report does not include an attestation report of the Partnership’s independent registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by the Partnership’s independent registered public accounting firm pursuant to Section 989G of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which exempts non-accelerated filers from Section 404(b) of the Sarbanes-Oxley Act of 2002.

Changes in internal control

There were no changes in the General Partner’s internal control over financial reporting, as it is applicable to the Partnership, during the quarter ended December 31, ~~2013~~2014 that have materially affected, or are reasonably likely to materially affect, the General Partner’s internal control over financial reporting, as it is applicable to the Partnership.

2830

PART III

Item 10.

DIRECTORS AND EXECUTIVE OFFICERS

The registrant is a Limited Partnership and, therefore, has no officers or directors.

All of the outstanding capital stock of ATEL Financial Services, LLC (“AFS”) (the General Partner) is held by ATEL Capital Group (“ACG” or “ATEL”), a holding company formed to control AFS and affiliated companies. The outstanding voting capital stock of ACG is owned 100% by Dean L. Cash.

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

The officers and directors of ATEL and its affiliates are as follows:


Dean L. Cash		President and Chief Executive Officer of ATEL Financial Services, LLC (General Partner)
Paritosh K. Choksi		Executive Vice President and Chief Financial Officer and Chief Operating Officer of ATEL Financial Services, LLC (General Partner)
Vasco H. Morais		Executive Vice President, Secretary and General Counsel of ATEL Financial Services, LLC (General Partner)

Dean L. Cash, age 6364, became chairman, president and chief executive officer of ATEL in April 2001. Mr. Cash joined ATEL as director of marketing in 1980 and served as a vice president since 1981, executive vice president since 1983 and a director since 1984. Prior to joining ATEL, Mr. Cash was a senior marketing representative for Martin Marietta Corporation, data systems division, from 1979 to 1980. From 1977 to 1979, he was employed by General Electric Corporation, where he was an applications specialist in the medical systems division and a marketing representative in the information services division. Mr. Cash was a systems engineer with Electronic Data Systems from 1975 to 1977, and was involved in maintaining and developing software for commercial applications. Mr. Cash received a B.S. degree in psychology and mathematics in 1972 and an M.B.A. degree with a concentration in finance in 1975 from Florida State University. Mr. Cash is an arbitrator with the American Arbitration Association and is qualified as a registered principal with the Financial Industry Regulatory Authority.

Paritosh K. Choksi, age 6061, joined ATEL in 1999 as a director, senior vice president and its chief financial officer. He became its executive vice president and CFO/COO in April 2001. Prior to joining ATEL, Mr. Choksi was chief financial officer at Wink Communications, Inc. from 1997 to 1999. From 1977 to 1997, Mr. Choksi was with Phoenix American Incorporated, a financial services and management company, where he held various positions during his tenure, and was senior vice president, chief financial officer and director when he left the company. Mr. Choksi was involved in all corporate matters at Phoenix and was responsible for Phoenix’s capital market needs. He also served on the credit committee overseeing all corporate investments, including its venture lease portfolio. Mr. Choksi was a part of the executive management team which caused Phoenix’s portfolio to increase from $50 million in assets to over $2 billion. Mr. Choksi is a member of the board of directors of Syntel, Inc. Mr. Choksi received a bachelor of technology degree in mechanical engineering from the Indian Institute of Technology, Bombay; and an M.B.A. degree from the University of California, Berkeley.

Vasco H. Morais, age 5556, joined ATEL in 1989 as general counsel. Mr. Morais manages ATEL’s legal department, which provides legal and contractual support in the negotiating, documenting, drafting, reviewing and funding of lease transactions. In addition, Mr. Morais advises on general corporate law matters, and assists on securities law issues. From 1986 to 1989, Mr. Morais was employed by the BankAmeriLease Companies, Bank of America’s equipment leasing subsidiaries, providing in-house legal support on the documentation of tax-oriented and non-tax oriented direct and leveraged lease transactions, vendor leasing programs and general corporate matters. Prior to the BankAmeriLease Companies, Mr. Morais was with the Consolidated Capital Companies in the Corporate and Securities Legal Department involved in drafting and reviewing contracts, advising on corporate law matters and securities law issues. Mr. Morais received a B.A. degree in 1982 from the University of California in Berkeley, a J.D. degree in 1986 from Golden Gate University Law School; and an M.B.A. (Finance) degree from Golden Gate University in 1997. Mr. Morais, an active member of the State Bar of California since 1986, served as co-chair of the Uniform Business Law Section of the State Bar of California and was inducted as a fellow of the American College of Commercial Finance Lawyers in 2010.

2931

~~Audit~~reviewing ~~Committee~~contracts, advising on corporate law matters and securities law issues. Mr. Morais received a B.A. degree in 1982 from the University of California in Berkeley, a J.D. degree in 1986 from Golden Gate University Law School; and an M.B.A. (Finance) degree from Golden Gate University in 1997. Mr. Morais, an active member of the State Bar of California since 1986, served as co-chair of the Uniform Business Law Section of the State Bar of California and was inducted as a fellow of the American College of Commercial Finance Lawyers in 2010.

~~The~~Audit ~~board~~Committee of directors of the General Partner acts as the audit committee of the Partnership. Dean L. Cash and Paritosh K. Choksi are members of the board of directors of the General Partner and are deemed to be financial experts. They are not independent of the Partnership.

~~Section~~The ~~16(a)~~board ~~Beneficial~~of ~~Ownership~~directors ~~Reporting~~of ~~Compliance~~the General Partner acts as the audit committee of the Partnership. Dean L. Cash and Paritosh K. Choksi are members of the board of directors of the General Partner and are deemed to be financial experts. They are not independent of the Partnership.

~~Based~~Section ~~solely on~~ 16(a) ~~review~~Beneficial ofOwnership ~~Forms~~Reporting 3,Compliance ~~4 and 5, the Partnership is not aware of any failures to file reports of beneficial ownership required to be filed during or for the year ended December 31, 2013.~~

~~Code~~Based solely on a review of ~~Ethics~~Forms 3, 4 and 5, the Partnership is not aware of any failures to file reports of beneficial ownership required to be filed during or for the year ended December 31, 2014.

A Code of Ethics that is applicable to the Partnership, including the Chief Executive Officer and Chief Financial Officer and Chief Operating Officer of its General Partner, AFS, or persons acting in such capacity on behalf of the Partnership, is included as Exhibit 14.1 to this report.

~~Item~~A 11Code of Ethics that is applicable to the Partnership, including the Chief Executive Officer and Chief Financial Officer and Chief Operating Officer of its General Partner, AFS, or persons acting in such capacity on behalf of the Partnership, is included as Exhibit 14.1 ~~EXECUTIVE~~to ~~COMPENSATION~~this report.

~~The~~Item ~~registrant is a Limited Partnership and, therefore, has no officers or directors~~11. EXECUTIVE COMPENSATION

~~Set~~The ~~forth~~registrant ~~hereinafter~~ is a ~~description~~Limited ofPartnership ~~the nature of remuneration paid~~ and to be paid to AFS and its Affiliates. The amount of such remuneration paid in 2013 and 2012 is set forth in Item 8 of this report under the caption “Financial Statements and Supplementary Data — Notes to Financial Statements — Related party transactions,” ~~at Note 6 thereof~~therefore, ~~which~~has ~~information~~no isofficers ~~hereby~~or ~~incorporated by reference~~directors.

~~Equipment~~Set ~~Management~~forth ~~Fees~~hereinafter is a description of the nature of remuneration paid and to be paid to AFS and its Affiliates. The amount of such remuneration paid in 2014 and 2013 is set forth in Item 8 of this report under the caption “Financial Statements and Supplementary Data — Notes to Financial Statements — Related party transactions,” at Note 6 thereof, which information is hereby incorporated by reference.

AsEquipment ~~compensation~~Management ~~for~~Fees its service rendered generally in managing or supervising the management of the Partnership’s equipment and in supervising other ongoing service and activities including, among others, arranging for necessary maintenance and repair of equipment, collecting revenue, paying operating expenses, determining the equipment is being used in accordance with all operative contractual arrangements, property and sales tax monitoring and preparation of financial data, AFS or its affiliates are entitled to receive management fees which are payable for each fiscal quarter and are to be in an amount equal to (i) 3.5% of the gross lease revenues from “operating” leases and (ii) 2% of gross lease revenues from “full payout” leases, as defined, which contain net lease provisions.

~~Incentive~~As ~~Management~~compensation ~~Fees~~for its service rendered generally in managing or supervising the management of the Partnership’s equipment and in supervising other ongoing service and activities including, among others, arranging for necessary maintenance and repair of equipment, collecting revenue, paying operating expenses, determining the equipment is being used in accordance with all operative contractual arrangements, property and sales tax monitoring and preparation of financial data, AFS or its affiliates are entitled to receive management fees which are payable for each fiscal quarter and are to be in an amount equal to (i) 3.5% of the gross lease revenues from “operating” leases and (ii) 2% of gross lease revenues from “full payout” leases, as defined, which contain net lease provisions.

As compensation for its service rendered in establishing and maintaining the composition of the Partnership’s equipment portfolio and its acquisition and debt strategies and supervising fund administration including supervising the preparation of reports and maintenance of financial and operating data of the Partnership, Securities and Exchange Commission and Internal Revenue service filings, returns and reports, AFS is entitled to receive the Incentive ~~management~~Management ~~fee~~Fees ~~which shall be payable for each fiscal quarter.~~

~~See~~As ~~Note~~compensation 6for toits service rendered in establishing and maintaining the composition of the Partnership’s equipment portfolio and its acquisition and debt strategies and supervising fund administration including supervising the preparation of reports and maintenance of financial ~~statements~~and ~~included~~operating indata ~~Item~~of 8the Partnership, ~~Financial~~Securities ~~Statements~~and Exchange Commission and ~~Supplementary~~Internal ~~Data~~Revenue service filings, ofreturns ~~this~~and ~~report~~reports, ~~for~~AFS ~~amounts~~is ~~paid~~entitled ~~for~~to ~~equipment~~receive the Incentive management ~~fees~~fee ~~and~~which ~~incentive~~shall ~~management~~be ~~fees~~payable for each fiscal quarter.

~~Distribution~~See Note 6 to the financial statements included in Item 8, Financial Statements and Supplementary Data, of ~~Cash~~this ~~from~~report ~~Operations~~for amounts paid for equipment management fees and incentive management fees.

~~Available Cash from Operations, as defined in the Partnership Agreement, shall be distributed as follows:~~ 32

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

~~Second,~~Available ~~85%~~Cash tofrom ~~the Limited Partners~~Operations, ~~7.5%~~as todefined ~~AFS~~in ~~and~~the ~~7.5%~~Partnership toAgreement, ~~AFS~~shall orbe ~~its~~distributed ~~affiliate designated~~ as ~~the~~follows: ~~recipient of the Incentive Management Fee.~~

30First, Distributions of Cash from Operations shall be 88.5% to the Limited Partners, 7.5% to AFS and 4% to AFS or its affiliate designated as the recipient of the Incentive Management Fee, until the Limited Partners have received Aggregate Distributions in an amount equal to their Original Invested Capital, as defined, plus a 10% per annum cumulative (compounded daily) return on their Adjusted Invested Capital, as defined in the Partnership Agreement.

~~Distribution~~Second, of85% ~~Cash~~to ~~from~~the ~~Sales~~Limited Partners, 7.5% to AFS and 7.5% to AFS or ~~Refinancing~~its affiliate designated as the recipient of the Incentive Management Fee.

~~Available~~Distribution of Cash from Sales or Refinancing, ~~as defined in the Partnership Agreement, shall be distributed as follows:~~

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

~~Second~~First, ~~85%~~Distributions toof ~~the~~Sales ~~Limited~~or ~~Partners,~~Refinancing 7shall be 92.5% to ~~AFS~~the Limited Partners and 7.5% to AFS, oruntil ~~its~~the ~~affiliate~~Limited ~~designated~~Partners have received Aggregate Distributions in an amount equal to their Original Invested Capital, as ~~the~~defined, ~~recipient~~plus ofa ~~the~~10% ~~Incentive~~per ~~Management~~annum ~~Fee~~cumulative (compounded daily) return on their Adjusted Invested Capital.

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

AsEquipment ~~compensation~~Resale ~~for~~Fees service rendered in connection with the sale of equipment, AFS is entitled to receive an amount equal to the lesser of (i) 3% of the sales price of the equipment, or (ii) one-half the normal competitive equipment sales commission charged by unaffiliated parties for such service. Such fee is payable only after the Limited Partners have received a return of their adjusted invested capital (as defined in the Partnership Agreement) plus 10% of their adjusted invested return of their adjusted invested capital (as defined in the Partnership Agreement) plus 10% of their adjusted invested capital per annum calculated on a cumulative basis, compounded daily, commencing the last day of the quarter in which the Limited Partner was admitted to the Partnership. To date, none have been accrued or paid.

~~Equipment~~As Recompensation for service rendered in connection with the sale of equipment, AFS is entitled to receive an amount equal to the lesser of (i) 3% of the sales price of the equipment, or (ii) one-~~lease~~half ~~Fee~~the normal competitive equipment sales commission charged by unaffiliated parties for such service. Such fee is payable only after the Limited Partners have received a return of their adjusted invested capital (as defined in the Partnership Agreement) plus 10% of their adjusted invested return of their adjusted invested capital (as defined in the Partnership Agreement) plus 10% of their adjusted invested capital per annum calculated on a cumulative basis, compounded daily, commencing the last day of the quarter in which the Limited Partner was admitted to the Partnership. To date, none have been accrued or paid.

AsEquipment ~~compensation for providing re~~Re-leasing service, AFS is entitled to receive fees equal to 2% of the gross rentals or the comparable competitive rate for such service relating to comparable equipment, whichever is less, derived from the re-lease ~~provided~~Fee that (i) AFS or their affiliates have and will maintain adequate staff to render such service to the Partnership, (ii) no such re-lease fee is payable in connection with the re-lease of equipment to a previous lessee or its affiliates, (iii) AFS or its affiliates have rendered substantial re-leasing service in connection with such re-lease and (iv) AFS or its affiliates are compensated for rendering equipment management service.

~~General~~As ~~Partner’s~~compensation ~~Interest~~for providing re-leasing service, AFS is entitled to receive fees equal to 2% of the gross rentals or the comparable competitive rate for such service relating to comparable equipment, whichever is less, derived from the re-lease provided that (i) AFS or their affiliates have and will maintain adequate staff to render such service to the Partnership, (ii) no such re-lease fee is payable in ~~Operating~~connection ~~Proceeds~~with the re-lease of equipment to a previous lessee or its affiliates, (iii) AFS or its affiliates have rendered substantial re-leasing service in connection with such re-lease and (iv) AFS or its affiliates are compensated for rendering equipment management service.

~~Net~~General income, net loss and investment tax credits are allocated 92.5% to the Limited Partners and 7.5% to AFS. In accordance with the terms of the Partnership Agreement, additional allocations of income were made to AFS in 2013 and 2012. The amounts allocated were determined so as to bring AFSPartner’s ~~ending~~Interest ~~capital~~in ~~account~~Operating ~~balance~~Proceeds ~~to zero at the end of each period.~~

~~Item~~Net 12income, net loss and investment tax credits are allocated 92.5% ~~SECURITY~~to ~~OWNERSHIP~~the OFLimited ~~CERTAIN~~Partners ~~BENEFICIAL~~and ~~OWNERS~~7.5% ~~AND~~to ~~MANAGEMENT~~AFS. In accordance with the terms of the Partnership Agreement, additional allocations of income were made to AFS in 2014 and 2013. The amounts allocated were determined so as to bring AFS’s ending capital account balance to zero at the end of each period.

~~Security Ownership of Certain Beneficial Owners~~33

AtItem ~~December~~12. ~~31,~~SECURITY ~~2013,~~OWNERSHIP noOF ~~investor~~CERTAIN isBENEFICIAL ~~known~~OWNERS toAND ~~hold beneficially more than 5% of the issued and outstanding Units.~~ MANAGEMENT

Security Ownership of ~~Management~~Certain Beneficial Owners

~~The~~At ~~parent~~December of31, ~~AFS~~2014, no investor is ~~the~~known ~~beneficial~~to ~~owner~~hold beneficially more than 5% of ~~Limited~~the ~~Partnership~~issued ~~Units~~and asoutstanding ~~follows:~~Units.

(1) Title of Class		(2) Name and Address of Beneficial Owner		(3) Amount and Nature of Beneficial Ownership		(4) Percent of Class
Limited Partnership Units		Dean Cash The Transamerica Pyramid 600 Montgomery Street, 9th Floor San Francisco, CA 94111		Initial Limited Partner Units 25 Units ($250) (owned by wife)		0.0002%

Security Ownership of Management

31The parent of AFS is the beneficial owner of Limited Partnership Units as follows:

Changes in Control


(1) Title of Class	(2) Name and Address of Beneficial Owner	(3) Amount and Nature of Beneficial Ownership	(4) Percent of Class
Limited Partnership Units	Dean Cash The Transamerica Pyramid 600 Montgomery Street, 9th Floor San Francisco, CA 94111	Initial Limited Partner Units 25 Units ($250) (owned by wife)	0.0002%

~~The~~Changes ~~Limited~~in ~~Partners~~Control ~~have the right, by vote of the Limited Partners owning more than 50% of the outstanding Limited Partnership units, to remove a General Partner.~~

~~AFS~~The ~~may at any time call a meeting of the~~ Limited Partners orhave ~~a vote of~~ the ~~Limited Partners without a meeting~~right, onby ~~matters on which they are entitled to~~ vote, ~~and shall call such meeting or for vote without a meeting following receipt~~ of athe ~~written request therefore of~~ Limited Partners ~~holding~~owning ~~10%~~more orthan ~~more~~50% of the ~~total~~ outstanding Limited Partnership units, to remove a General Partner.

~~Item~~AFS ~~13.~~may ~~CERTAIN~~at ~~RELATIONSHIPS~~any ~~AND~~time ~~RELATED~~call ~~TRANSACTIONS~~a meeting of the Limited Partners or a vote of the Limited Partners without a meeting, on matters on which they are entitled to vote, and shall call such meeting or for vote without a meeting following receipt of a written request therefore of Limited Partners holding 10% or more of the total outstanding Limited Partnership units.

~~The responses to~~ Item 113. ofCERTAIN ~~this~~RELATIONSHIPS ~~report~~AND ~~under~~RELATED the caption “Equipment Leasing Activities,” Item 8 of this report under the caption “Financial Statements and Supplementary Data — Notes to Financial Statements — Related party transactions” at Note 6 thereof, and Item 11 of this report under the caption “Executive Compensation,” are hereby incorporated by reference. TRANSACTIONS

The responses to Item ~~14.~~1 ~~PRINCIPAL~~of ~~ACCOUNTING~~this ~~FEES~~report ~~AND~~under ~~SERVICES~~the caption “Equipment Leasing Activities,” Item 8 of this report under the caption “Financial Statements and Supplementary Data — Notes to Financial Statements — Related party transactions” at Note 6 thereof, and Item 11 of this report under the caption “Executive Compensation,” are hereby incorporated by reference.

~~During~~Item ~~the~~14. ~~years~~PRINCIPAL ~~ended~~ACCOUNTING ~~December~~FEES ~~31,~~AND ~~2013 and 2012, the Company incurred audit fees with its principal auditors totaling $41 thousand and $37 thousand, respectively.~~ SERVICES

~~Audit~~During ~~fees~~the ~~consist~~years ofended ~~the~~December ~~aggregate~~31, ~~fees~~2014 and ~~expenses~~2013, ~~billed in connection with~~ the ~~audit of the~~ Partnership’s ~~annual~~incurred ~~financial~~audit ~~statements~~fees ~~and~~with ~~the~~its ~~review~~principal ofauditors ~~the~~totaling ~~financial~~$67 ~~statements~~thousand ~~included~~and in$41 ~~the~~thousand, ~~Partnership’s quarterly reports on Form 10-Q~~respectively.

~~The~~Audit ~~board~~fees ofconsist ~~directors~~ of the ~~General~~aggregate ~~Partner~~fees ~~acts as the audit committee of the Partnership. Engagements for audit services, audit related services~~ and ~~tax~~expenses ~~services~~billed ~~are approved~~ in ~~advance~~connection bywith the ~~Chief~~audit ~~Financial Officer~~ of the ~~General~~Partnership’s ~~Partner~~annual ~~acting~~financial onstatements ~~behalf~~and of the ~~board~~review of ~~directors of~~ the ~~General~~financial ~~Partner~~statements included in ~~its role as~~ the ~~audit~~Partnership’s ~~committee~~quarterly ofreports ~~the~~on ~~Partnership~~Form 10-Q.

32The board of directors of the General Partner acts as the audit committee of the Partnership. Engagements for audit services, audit related services and tax services are approved in advance by the Chief Financial Officer of the General Partner acting on behalf of the board of directors of the General Partner in its role as the audit committee of the Partnership.

PART IV

Item 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

(a)

Financial Statements and Schedules

Financial Statements

Included in Part II of this report:
Report of Independent Registered Public Accounting Firm			1213
Balance Sheets at December 31, 2013 and 2012			13
Balance Sheets at December 31, 2014 and 2013			14
Statements of Income for the years ended December 31, 2013 and 2012			14
Statements of Income for the years ended December 31, 2014 and 2013			15
Statements of Changes in Partners’ Capital for the years ended December 31, 2013 and 2012			15
Statements of Changes in Partners’ Capital for the years ended December 31, 2014 and 2013			16
Statements of Cash Flows for the years ended December 31, 2013 and 2012			16
Statements of Cash Flows for the years ended December 31, 2014 and 2013			17
Notes to Financial Statements			1718

Financial Statement Schedules

All schedules for which provision is made in the applicable accounting regulations of the Securities and Exchange Commission are not required under the related instructions or are inapplicable and, therefore, have been omitted.

(b)

Exhibits

(3) and (4) Agreement of Limited Partnership, included as exhibit B to the Prospectus filed as exhibit 28.1 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 1996 (File No. 333-08879), is hereby incorporated herein by reference

(14.1) Code of Ethics

(31.1) Certification of Dean L. Cash pursuant to Rules 13a-14(a)/15d-14(a)

(31.2) Certification of Paritosh K. Choksi pursuant to Rules 13a-14(a)/15d-14(a)

(32.1) Certification of Dean L. Cash pursuant to 18 U.S.C. section 1350

(32.2) Certification of Paritosh K. Choksi pursuant to 18 U.S.C. section 1350

(101.INS) XBRL Instance Document

(101.SCH) XBRL Taxonomy Extension Schema Document

(101.CAL) XBRL Taxonomy Extension Calculation Linkbase Document

(101.LAB) XBRL Taxonomy Extension Label Linkbase Document

(101.PRE) XBRL Taxonomy Extension Presentation Linkbase Document

(101.DEF) XBRL Taxonomy Extension Definition Linkbase Document

3335

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: March 1130, ~~2014~~2015

ATEL Capital Equipment Fund VII, L.P.
(Registrant)

By:

ATEL Financial Services, LLC
General Partner of Registrant

By:/s/ Dean L. ~~Cash~~CashDean ~~Dean~~ L. Cash, President and Chief Executive Officer of ATEL Financial Services, LLC (General Partner) By:/s/ Paritosh K. ~~Choksi~~ChoksiParitosh ~~Paritosh~~ K. Choksi, Executive Vice President and Chief Financial Officer and Chief Operating Officer of ATEL Financial Services, LLC (General Partner) By:/s/ Samuel ~~Schussler~~SchusslerSamuel ~~Samuel~~ Schussler, Vice President and Chief Accounting Officer of ATEL Financial Services, LLC (General Partner)

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the persons in the capacities and on the dates indicated.

SIGNATURE	CAPACITIES	DATE
/s/ Dean L. Cash Dean L. Cash	President and Chief Executive Officer of ATEL Financial Services, LLC (General Partner)	March 11, 2014
/s/ Dean L. CashDean L. Cash	President and Chief Executive Officer of ATEL Financial Services, LLC (General Partner)	March 30, 2015
/s/ Paritosh K. Choksi Paritosh K. Choksi	Executive Vice President and Chief Financial Officer and Chief Operating Officer of ATEL Financial Services, LLC (General Partner)	March 11, 2014
/s/ Paritosh K. ChoksiParitosh K. Choksi	Executive Vice President and Chief Financial Officer and Chief Operating Officer of ATEL Financial Services, LLC (General Partner)	March 30, 2015
/s/ Samuel Schussler Samuel Schussler	Vice President and Chief Accounting Officer of ATEL Financial Services, LLC (General Partner)	March 11, 2014
/s/ Samuel SchusslerSamuel Schussler	Vice President and Chief Accounting Officer of ATEL Financial Services, LLC (General Partner)	March 30, 2015

No proxy materials have been or will be sent to security holders. An annual report will be furnished to security holders subsequent to the filing of this report on Form 10-K, and copies thereof will be furnished supplementally to the Commission when forwarded to the security holders.

3436

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

Form 10-K

Commission File number 000-24175

ATEL Capital Equipment Fund VII, L.P.

The Transamerica Pyramid, 600 Montgomery Street, 9th Floor, San Francisco, California 94111

DOCUMENTS INCORPORATED BY REFERENCE

PART I

Item 1. BUSINESS

General Development of Business

Narrative Description of Business

Item 2. PROPERTIES

Item 3. LEGAL PROCEEDINGS

Item 4. MINE SAFETY DISCLOSURES

PART II

Market Information

Holders

Unit Valuation

Distributions

Item 6. SELECTED FINANCIAL DATA

Overview

Results of Operations

20132014 versus 20122013

Revenues

Expenses

Capital Resources and Liquidity

Cash Flows

20132014 versus 20122013

Distributions

Commitments and Contingencies and Off-Balance Sheet Transactions

Commitments and contingencies

Off-Balance Sheet Transactions

Recent Accounting Pronouncements

Critical Accounting Policies and Estimates

Use of estimates:

Equipment on operating leases and related revenue recognition:

Direct financing leases and related revenue recognition:

Asset valuation:

Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

ATEL CAPITAL EQUIPMENT FUND VII, L.P. BALANCE SHEETS DECEMBER 31, 20132014 AND 2012 2013(In Thousands)

ATEL CAPITAL EQUIPMENT FUND VII, L.P. STATEMENTS OF INCOME FOR THE YEARS ENDED DECEMBER 31, 20132014 AND 20122013 (In Thousands Except for Units and Per Unit Data)

ATEL CAPITAL EQUIPMENT FUND VII, L.P. STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL FOR THE YEARS ENDED DECEMBER 31, 20132014 AND 20122013 (In Thousands Except for Units and Per Unit Data)

ATEL CAPITAL EQUIPMENT FUND VII, L.P. STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 20132014 AND 20122013 (In Thousands)

ATEL CAPITAL EQUIPMENT FUND VII, L.P. NOTES TO FINANCIAL STATEMENTS

1. Organization and Limited Partnership matters:

2. Summary of significant accounting policies:

Basis of presentation:

Use of estimates:

ATEL CAPITAL EQUIPMENT FUND VII, L.P. NOTES TO FINANCIAL STATEMENTS

2. Summary of significant accounting policies: - (continued)

Cash and cash equivalents:

Credit risk:

Accounts receivable:

Equipment on operating leases and related revenue recognition:

ATEL CAPITAL EQUIPMENT FUND VII, L.P. NOTES TO FINANCIAL STATEMENTS

2. Summary of significant accounting policies: - (continued)

Direct financing leases and related revenue recognition:

ATEL CAPITAL EQUIPMENT FUND VII, L.P. NOTES TO FINANCIAL STATEMENTS

2. Summary of significant accounting policies: - (continued)

Asset valuation:

Segment reporting:

ATEL CAPITAL EQUIPMENT FUND VII, L.P. NOTES TO FINANCIAL STATEMENTS

2. Summary of significant accounting policies: - (continued)

Unearned operating lease income:

Income taxes:

ATEL CAPITAL EQUIPMENT FUND VII, L.P. NOTES TO FINANCIAL STATEMENTS

2. Summary of significant accounting policies: - (continued)

Per Unit data:

Recent accounting pronouncements:

3. Concentration of credit risk and major customers:

ATEL CAPITAL EQUIPMENT FUND VII, L.P. NOTES TO FINANCIAL STATEMENTS

4. Allowance for credit losses:

5. Investments in equipment and leases:

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

ATEL CAPITAL EQUIPMENT FUND VII, L.P. NOTES TO FINANCIAL STATEMENTS

5. Investments in equipment and leases: - (continued)

Operating leases:

Direct financing leases:

ATEL CAPITAL EQUIPMENT FUND VII, L.P. NOTES TO FINANCIAL STATEMENTS

6. Related party transactions:

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

ATEL CAPITAL EQUIPMENT FUND VII, L.P.

NOTES TO FINANCIAL STATEMENTS

ATEL CAPITAL EQUIPMENT FUND VII, L.P.

NOTES TO FINANCIAL STATEMENTS

ATEL CAPITAL EQUIPMENT FUND VII, L.P.

NOTES TO FINANCIAL STATEMENTS

ATEL CAPITAL EQUIPMENT FUND VII, L.P.

NOTES TO FINANCIAL STATEMENTS

ATEL CAPITAL EQUIPMENT FUND VII, L.P.

NOTES TO FINANCIAL STATEMENTS

ATEL CAPITAL EQUIPMENT FUND VII, L.P.

NOTES TO FINANCIAL STATEMENTS

ATEL CAPITAL EQUIPMENT FUND VII, L.P.

NOTES TO FINANCIAL STATEMENTS

ATEL CAPITAL EQUIPMENT FUND VII, L.P.

NOTES TO FINANCIAL STATEMENTS

ATEL CAPITAL EQUIPMENT FUND VII, L.P.

NOTES TO FINANCIAL STATEMENTS

ATEL CAPITAL EQUIPMENT FUND VII, L.P.

NOTES TO FINANCIAL STATEMENTS

ATEL CAPITAL EQUIPMENT FUND VII, L.P.

NOTES TO FINANCIAL STATEMENTS

Filing Compare · ATEL CAPITAL EQUIPMENT FUND VII LP