Value is confirmed before a claim enters a package, so timing is the primary variable. These are the five factors that can affect timing or value, and how we manage each.
Exhibit 1
Risks and how we manage them
| Risk | What it is | How we manage it |
|---|
| Lien priority | An undiscovered junior lien could reduce net surplus. | Title searches before we acquire a claim. Any shortfall in value is covered by the Asset Value Assurance. |
| Duration | Court processing, documentation or probate can extend timelines. | Claims spread across several states and courts. Each package states an estimated payout window. |
| Owner identification | A claim cannot proceed if the rightful owner cannot be verified. | We acquire the claim from a verified owner before it is listed. |
| Escheatment | If a claim window expires, funds move to the state and are harder to recover. | Claims are listed only within an active claim window. |
| Regulatory | States may change their rules or procedures. | We monitor each state and structure every claim for compliance. |
Purchases involve risk, including the loss of the amount purchased. Review each agreement carefully and consult your own professionals.
Surplus equity, explained
