Collection Policies and Procedures: Collection and Repossession from Non-Responsible Parties

A. Collection from Non-Responsible Parties

Under no circumstances should a person, other than the Debtor or the Debtor's attorney or other authorized agent, be requested to make a payment on an account. Notwithstanding the foregoing prohibition, payments voluntarily offered or made by any person may be accepted. This includes a person who indicates familiarity with the account of the Debtor (e.g. spouse). Be aware, however, that while it is permissible to discuss the status of an account with a third party authorized in writing by the Debtor and to inquire of such person as to why payments have not been made or when a payment on the account may be expected, such persons (including a spouse), are not contractually liable to LGW's creditor client under the credit agreement and may not be requested or compelled to make payments to LGW. See Section D1.

B. Repossession of Merchandise

No person other than the Debtor may be requested to return items (e.g. automobiles, boats, jewelry, etc.) in lieu of or in addition to making payment on an account without the approval of the Managing Attorney. Such approval shall be given only when necessary and only when it is determined that the repossession of such items from the third party is lawful and can be accomplished without a breach of the peace. This includes the surviving spouse of a deceased Debtor.

Arrangements for returning the security for a debt must first be discussed with the creditor client to determine if the creditor desires the return of such item(s) and has determined there is an economic benefit to be derived therefrom. The credit value of such merchandise is to be determined by the creditor in accordance with applicable law and its current practices and such value communicated to the Debtor prior to the voluntary return of such items whenever possible.