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HomeMy WebLinkAboutResolution - 2221A - Agreement - Accounts Management Corporation - Financial Collection Service - 01_09_1986Resolution #2221-A January 9, 1986 Agenda Item #36 Prepared by Legal Department for City Council Meeting of January 9, 1986. MH:js RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock a Professional Services Agreement by and between the City of Lubbock and Accounts Manage- ment Corporation, attached herewith, which shall be spread upon the minutes of the Council and as spread upon the minutes of this Council shall constitute and be a part of this Resolution as if fully copied herein in detail. Passed by the City Council this 9th ring of ATTEST: Ranette"Boyd, City Secretary APPROVED AS TO CONTENT: o ert assengale, A istant City Manager for Financial Services APPROVED AS TO FORM: Mich le Hart, Assistant City Attorney January 1004 Resolution #2221-A THE STATE OF TEXAS § § PROFESSIONAL SERVICES AGREEMENT COUNTY OF LUBBOCK § THIS AGREEMENT entered into this day by and between the City of Lubbock, hereinafter called "City", and Accounts Management Corporation, hereinafter called "Corporation;" WITNESSETH: WHEREAS, the City desires to increase collections of delin- quent assessments and delinquent accounts; and WHEREAS, the Corporation has the requisite expertise to assist in increasing such collections and in advising the City in ways to improve its internal collections processes; and WHEREAS, the City desires to engage the Corporation to collect current and delinquent accounts except insufficient funds checks upon the terms stated in Exhibit "A". NOW THEREFORE, the City and the Corporation mutually agree as follows: 1. Corporation agrees to perform collection services for City and City agrees to compensate Corporation as stated in Exhibit "A", attached herewith. Exhibit "A" consists of the City Request For Proposals and the Corporation's Finan- cial Collections Services Response Forms, which are attached herewith and made a part hereof for all purposes. 2. The term of this Agreement shall be one (1) year commencing on January 1, 1986 and ending on December 31, 1986. However, both parties to this Agreement shall meet on or before September 1, 1986 for the purpose of negotiating an optional one (1) year extension of this Agreement. 3. The Corporation shall keep full and complete re- cords of its progress in a form agreeable to City, which form shall be approved by City prior to commencement of collection activities. 4. Corporation shall not assign any interest in this Agreement and shall not transfer any interest in this Agree- ment, whatsoever, without prior consent of the City. 5. Corporation shall save and hold harmless the City from all suits, actions or claims brought on account of any activities engaged in by Corporation pursuant to this Agree- ment. 6. City shall assist Corporation by making available to Corporation all records and dates on file that will as- sist Corporation in the discharge of its duties under this Agreement. 7. Corporation agrees that it will comply with all laws pertaining to collections of this nature, both federal and state. 8. This Agreement may be terminated by either party during its course by delivery of thirty (30) days written notice of intent to the other party at the following addres- ses: ACCOUNTS MANAGEMENT CORP. CITY OF LUBBOCK 709 Parkwood Circle, Suite 200 P.O. Box 2000 Houston, Texas 77036 Lubbock, Texas 79457 EXECUTED this 9th day of January , 1986. ACCOU_WS MANAGEMENT CARP.: ATTEST: Fiecretary Y16! ATTEST: Rane �JBoyd City Secretary APPROVED AS TO CONTENT: Robert Massengale Assistant City Attorney APPROVED :AS TO F RM- Mi le art As istant City Attorney - 2 - 11MMIJIL Executive Offices: , 014 ACCOUNTS MANAGEMENT Corporation 5201 Indiana, Suite 200 North, Lubbock, Texas 79413 (806) 799-3215 Mr. Eads: Attached, please find our response to the City of Lubbock's request for proposals for Financial Collection services (RFP# 8799). We believe quality, blended with excellent service is the basis for a successful business relationship. * AMC has served the City of Lubbock for the past two years with a net return to the City of $348,085 after cost. Many accounts dated back to the 19401s. * AMC has staffing and Automated Data Processing (ADP) equipment to properly service a client such as the City of Lubbock. * AMC can, if the client so desires, have deliquent accounts become a part of a debtor's credit record. * AMC has a National skiptrace network which enables us to locate many debtors who would normally be unfound. This is a basic proposal. However, our experience has been in most government contracting, a best and final offer will be determined through negotiations between the two parties. We appreciate the opportunity to respond. Atlanta, Georgia 0 Corpus Christi, Texas • Dallas, Texas • Houston, Texas • Lubbock, Texas • Memphis, Tennessee • New Orleans, Louisiana • San Antonio, Texas • St. Louis, Missouri BUSINESS & PROFESSIONAL `"TOR•. d U 11 'O d 'yrEAMdT10�► MANAGEMENT CONSULTANTS SYSTEMS ANALYSIS, FORMS DESIGN BALANCE VERIFICATION AUDIT SYSTEMS INVESTIGAZIONS & COLLECTION SPECIALISTS 5201 Indiana Suite 200, North Sincerely, Becky Stevenson Regional Marketing Manager Consultants, Systems Analysis, Forms Design Balance Verification Audit Systems, Investigators & Co'llection Specialists Lubbock, Texas 79413 Offices in (806) 799-3215 eoryla; Corpus Christi, Texas., Dallas, Texas; 'exas; Lubbock, Texas, Memphis, Tennessee; BECKY STEVENSON ouisiana; San Antonio, Texas; St, Louis, Missouri No Text Addendum #1 to Request for Financial Collection Services Please change the following items on the Request for Proposals for Financial_ Collection Services: Page 2, Item 41, Paragraph #1, Sentence #6, The agency will remit to City the total amount collected once a week. Page 3, Item #1, Paragraph #2, Sentence #2, If the agency collects on the check during the 90-day period following the return of the check to the City, the agency shall have the right to retrieve the check from the City and all responsibilities and rights of collection will be restored to the Agency. Page 3, Item #2, There are approximately 680 overdue LP&L accounts per month with an average size of $190. Page 4, Item U , Sentence #3, Current account, collection shall consist of a ten (10) day letter statement and a twenty (20) day collection letter. The twenty (20) day collection letter for Weed mowing charges shall be sent by certi-tied mail return receipt requested. Page 4, Item 10, There are approximately 30 Funeral Home accounts receivables per month at a price ranging from $175 to $300 and 20 Grave Site accounts receivables per month at an amount from $225 to $500. The Weed Mowing Charges average $40 each and there are approximately 3,000 per year. There are approximately 1,000 Paving Assessment accounts averaging approxi-mately $1,000 each set up on yearly installments. In 1985, there were approximately $200,000 Paving Assess-ments assessed on 15 accounts, most of which were collected within 30 days. Page 4, Item #3, Paragraph 2, Sentence 2, The collection agency shall remit to the appropriate City department the gross amount of all monies received on City accounts within five (5) working days after the last day of each month. Page 4, Item #4, Sentence #1, The collection agency shall procure, pay for, and maintain during the term of the contract, with a company authorized to do business in the State of Texas and acceptable to the City, the insurance coverage listed below. Substantial compliance on insurance coverage will be considered acceptable. Page 5, Item #4, Subheading #5, Professional Liability_Insurance including errors and omissions with minimum aggregate limits of $1, 000, 000 per occurrence. Financial Collection Service Response Form, Item #2, Subheading 10, All pertinent agency information, i. e. , - annual financial reports of the agency and insurance information. - 2 - mm ACCOUNTS MANAGEMENT CORPORATION PROPOSAL TO THE CITY OF-LUBBOCK FOR FINANCIAL COLLECTION SERVICES RFP # 8799 DECEMBER 2, 1985 ... TABLE OF CONTENTS 1.0 RATE SCHEDULE 2.0 AGENCY HISTORY AND SIMILAR EXPERIENCE 2.1 Origin and Growth 2.2 Professional Organization 2.3 Facilities 2.4 References 3.0 SUMMARY OF COLLECTION PROCEDURES 3.1 Information System and Computer Capability 3.2 Automated Data Processing Information 3.20 ADP Staff and Uses 3.21 ADP Hardware 3.22 ADP Software 3.3 Comprehensive Training and Supervision 3.4 Collection Procedures 4.0 AGENCY PERSONNEL AND JOB DESCRIPTION 4.1 Summary 4.2 Individual Job Description and Resumes 5.0 CORPORATE INFORMATION 5.1 See Agency History (2.0) 5.2 Financial Statement w, 6.0 BONDING AND INSURANCE INFORMATION 6.1 Summary of Coverage 6.2 Letter of Insurance 6.3 Certificate of Insurance a" Rate Schedule 0% A. 0 '�" 1.0 Rate Schedule A. Check Collection - unit price per check $12.00 1. City will post $15.00 service charged for returned checks. 2. AMC fee will be $12.00 per check. 3. AMC will return face amount of check plus $3.00. 4. If $15.00 service charge is not collected, there will be no charge on face amount collected. B. Lubbock Power & Light 1. Current Accounts - 30 days or less N/A% 2. Accounts - 31-60 days N/A% 61-120 days 39.5% 121-180 days 39.5% 181-1 year 39.5% 1 year - 18 months 48% over 18 months 48% C. Paving Assessments 1. Current Accounts - 30 days or less 10% 2. Accounts - 31-60 days 10% 61-120 days 10% 121-180 days 15% 181-1 year 15% 1 year-18 months 20% over 18 months 25% D. Weed Mowing - AMC proposes a unit price of $5.00 per account for weed mowing charges. 1. A ten (10) day letter statement will be sent on City letterhead. 2. A twenty (20) day collection letter will be sent by registered mail. This also will be on City letterhead. 3. Accounts will be returned at this point back to the City in order for the legal department to file necessary liens. E. Water And Sewer Pro Rata 1. Current Accounts 30 days or less 10% 2. Accounts - 31-60 days 10% 61-120 days 10% 121-180 days 15% 181-1 year 15% ,.�. 1 year-18 months 20 % over 18 months 25% 1.01 F. Funeral Home Accounts Receivable 1. Current Accounts - 30 days or less 2. Accounts - 31-60 days 61-120 days 121-180 days 181-1 year 1 year-18 months over 18 months G. Lot Purchases - Accounts Receivable 1. Current Accounts - 30 days or less 2. Accounts - 31-60 days 61-120 days 121-180 days 181-1 year 1 year-18 months over 18 months 10% 10% 10% 15% 15% 15% 15% 10% 10% 10% 15% 15% 15% 15% !"" 1.02 P"* AGENCY HISTORY AND SIMILAR EXPERIENCE 2.0 ow 2.1 ORIGIN AND GROWTH Accounts Management Corporation was organized in 1961. During the ensuing 24 years, AMC has managed and collected ^, accounts receivable nationwide for consumer, medical, commercial, and governmental creditor clients that are both geographically dispersed and owed debts of virtually every conceivable type. AMC is recognized by the American Collectors Association as one of the five largest debt collection firms in the United States and, as such, has consistently been invited to participate in the prestigious "Top 100 Collectors" annual convention. ... Accounts Management Corporation has an impeccable reputation for producing the absolute best possible collection results for such companies and Government entities as: Xerox Corporation Fed. Deposit Ins. Corp. Texaco Univ. of Missouri Bell Telephone Cols. J. C. Penny MasterCard First Atlanta Bank U. S. Tel. American Medical International Neiman Marcus Loews Hotels Univ. of Texas Gulf Oil Co. Dept. of Human Resources Hertz Rent-A-Car Republic Bank Visa Mercantile Trust Gen. Elect. Credit. Corp. Hosp. Corp. of America American General Ins. �-* AMC now represents more than 1,200 clients through its eleven collections offices across the nation. The Corporation employs approximately 350 persons. In 1984 alone, our clients referred in excess of $200,000,000.00 in accounts receivable to AMC for collection representing only 25% of-AMC's installed and fully operative -ADP capability. While debt collection is AMC's principal accounts management service, the Corporation's professional staff members assist, our clients in many other areas that are crucial to fiscal integrity, ..-, such as management consulting, systems analysis, asset and income verification. In the performance of these services, AMC places primary emphasis on accounts receivable and cash management. The Corporation participates fully in the formulation of the high ethical standards necessary to maintain the prestige of both AMC and the entire debt collection industry. Our senior execu- tives contribute their time and energy to the foremost profes- sional associations for consumer debt collection firms, i.e., the American Collectors Association, American Commercial Collectors Association, International Consumer Credit Association. In P" 2.01 no, tow addition to its participation in this and other consumer credit trade associations, AMC provides credit counselling and similar workshops for consumer credit organizations, in our high ethical standards, and (2) to provide consumer credit -oriented organi- zations with the benefit of the efficient, effective and ethical methods of -accounts receivable management developed by AMC over the past 24 years. AMC has been rewarded for the development of, and rigorous adherence to, high ethical standards. AMC's competitive edge is a collection percentage for bad debt that is one of the very highest in the nation. In addition, our reputation is unblemish- ed by costly and time-consuming litigation. In 24 years, AMC has not had a single claim filed against our $5 million coverage for errors and omissio-ns,-nor have we had any unresolved complaints on file with Federal, -State or local authorities in connection with our collections or other services. TFie success of AMC and our clients is premised on the sound principle that delinquent accounts are collected most effectively from debtors who are treated with consideration and respect. The many years of experience gained by AMC and its seasoned professionals have enabled us to devise innovative solutions to our client's accounts receivable management and debt collection problems. As a result, AMC is ideally situated to serve in all facets of debt collection for all types of delinquent accounts receivable. 2.2 PROFESSIONAL ORGANIZATION AMC's guiding principle is the performance of "complete professional service" for all of our clients. In order to assure the attainment of this goal, AMC engages both in intensive instruction and training, and in rigorous monitoring and super- vision of our employees. Additionally, AMC believes that responsiveness to our client's needs requires our ready accessi- bility and constant communication with each client. Our proce- dures reduce not only our client's financial losses from bad low debt, but also the loss of a commodity at least equally valuable, i.e., the time of our client's key personnel. AMC enjoys high employee morale and very low attrition. The members of AMC's executive management team average 25 years of experience. Branch Managers have an average of 10 years of experience. AMC's average collector has 5 years of experience, which is one of the highest averages in the collection industry. 2.02 AMC's high employee morale and low personnel turnover rate, in relation to the remainder of the consumer collection industry, is attributable to (1) the support provided to our collectors by more than 350 employees, (2) a profit-sharing and pension plan, that is one of the most generous in the industry, which returns 80% of the Corporation's net- rofits to our personnel, and (3) the hands on' support prove ed by the active shareholder (i.e., Mr. H. Grant Lappin, the Corporation's founder who remains the Chairman, President and Chief Executive Officer of the Corpora- tion) and the management of the Corporation. In the area of consumer debt, our collectors are extremely successful. AMC's collectors are imbued with a comprehensive OWN understanding of the extreme sensitivity of the debtor to delinquency. Indeed, when necessary, our collectors assist debtors in the resolution of underlying their credit problems. •�* If our collector is unable to resolve a debtor's credit problems, the collector may refer the debtor to one of the nearly 200 offices of the Consumer Credit Counseling Services (CCCS) throughout the United States. Because the AMC's approach to delinquent debt is consistent with the philosophy and goals of the CCCS, AMC is a long-time supporter of the CCCS and its umbrella organization, i.e., the National Foundation for Consumer Credit, Inc. Additionally, AMC's high collection ratio reflects one of the lowest accounts -per -collector ratios in the industry. AMC does not believe in "skimming the cream," i.e., simply collecting those amounts that can be collected most easily and profitably with minimal effort. Instead, AMC carefully manages the workload of each collector in order to permit that collector to expend the m aximum reasonable effort on each account. While ACA statistics indicate that collection firms assign from 20 to-7;006 accounts per collector, AMC s consumer collectors were,assigned an average only 500 accounts per collector at an given time in" 1984. Thus, AMC is at the lowest end, of the accounts per, collector spectrum for our industry. Due to our collector's devotion of ample individual atten- tion to each account assigned, many of our clients have retained AMC, with considerable success, to "go behind" another collection firm (i.e., to attempt to collect delinquencies initially referred to another collection firm and returned to the client �. uncollected). Our techniques allow AMC to collect accounts that creditors and other collection firms previously classified as uncollectible. r 2.03 i OR 2.3 FACILITIES 1. Lubbock AMC's Lubbock branch was opened in 1979 to assist the then financially troubled Lubbock General Hospital, in reconciling and reducing their accounts receivable. Our Lubbock facility now occupies approximately 2500 square feet of office space and services approximately 100 clients. 2. Headquarters AMC's Houston headquarters occupy approximately 30,000 square feet of modern office space in a new seven -story, 210,000 square foot building in the booming Southwest area of the City of Houston. AMC's modular design offices provide comfort, privacy and flexibility. The headquarters offices occupy the entire second floor of the building and are pleasingly decorated with modern furniture. The offices are subdivided into the Consumer Collections Division, the Commercial Division, Medical Management Services, National Skip -Trace Division, Administrative Services, Automated Data Processing, Accounting, Marketing, and Personnel. The Corporation's other offices, which serve AMC's consumer, commercial, and governmental clients throughout the nation, are located in the cities of Atlanta, Georgia; Dallas, Texas; Lubbock, Texas; New Orleans, Louisiana; San Antonio, Texas; St. Louis, Missouri; Corpus Christi, Texas; Washington, D.C.; and Miami, Florida. 2.4 REFERENCES CITY OF LUBBOCK TEXAS DEPT. OF HUMAN MR. ROBERT MASSENGALE RESOURCES, MR. CLAUDE CONTRACTING OFFICER E. HILL, CONTRACTING P. 0. Box 2000 OFFICER, P. 0. Box 2960 Lubbock, Texas 79457 Suite M/C 180-A 806-762-6411 Austin, Texas, 78769 512-450-3011 am FDIC, MR. TIM PADILLA UNIV. OF MISSOURI, MR. CONTRACTING OFFICER WILLIAM MOODY, CONTRACT- 1910 Pacific, 16th Floor ING OFFICER Dallas, Texas 75201 324 Woodshall 800-527-5810 St. Louis, MO 63121 314-553-5085 2.04 ST. LOUIS UNIVERSITY ST. LOUIS METROPOLITAN MS. MARY DONOBAN SEWER DISTRICT CONTRACTING OFFICER MR. WILLIAM R. STAMM 221 N. Grand Avenue CONTRACTING OFFICER St. Louis, MO 63103 2000 Hampton Avenue 314-658-2399 St. Louis, MO 63139 314-768-6200 UNIVERSITY OF TEXAS CITY OF PASADENA MR. JIM CHAMBERLAIN EMS DIVISION CONTRACTING OFFICER MR. BILL TAYLOR P. 0. Box 20422 CONTRACTING OFFICER Houston, Texas 77025 1218 S. Tatar 713-792-8415 Pasadena, Texas 77502 713-475-7808 DEL MAR COLLEGE NDSL AMERICAN COMM. COLLEGE MR. C.C. KELLY MS. SALLY ADAMS CONTRACTING OFFICER CONTRACTING OFFICER BALDWIN AND AYERS 2007 34th Street Corpus Christi, Texas 78404 Lubbock, Texas 79411 512-881-6264 806-747-4339 TRINITY UNIVERSITY NDSL AND WALTON LOANS MS. JUDITY BUDDEN CONTRACTING OFFICER 715 Stadium Drive San Antonio, Texas 78284 512-736-7333 wM 2.05 o" on .. SUMMARY OF COLLECTION PROCEDURES 3.0 MR ., 3.1 AMC'S INFORMATION SYSTEM & COMPUTER CAPABILITY AMC's information system and computer capabilities are summarized to identify application of our ADP system to meet the City's current and all future needs and to provide additional features to enhance performance and reporting. They are described as follows: * AMC's system interfaces with all major systems. * AMC has current capabilities to provide City with instanta- neous access to account information with a remote CRT screen in City's facility on-line to AMC's information system. * AMC's system automatically post payments to appropriate account files. * Our system contains a sophisticated search feature that vir- tually eliminates unidentified payments. * AMC's system will maintain and update daily record of each account on a routine basis including any changes in name, address or other pertinent data, skip -trace attempts, writ- ten and verbal contacts, payments and other information. * Our system has a word processing package to generate fast and accurate form letters, bills and receipts as proposed. * Our software contains a feature to update daily, any admin- strative costs and penalties, accrued interest and principal on all accounts. * We have Merge feature to combine an account file with other City debts for set-off identification and maximization of debtor contact and collection efficiency. * Our Search feature allows us to identify current or retired City employees placed in error with proper information pro- vided from City. * Our Auto -dial feature increases collector efficiency. * We are on-line with Chilton, a major credit bureau, for in- stantaneous access and retrieval of over 11 million files for skip -tracing, and asset and income verification. * Our system produces management and fiscal reports, to moni- tor AMC's performance, which include sophisticated liquid- ation analysis reports graphically depicting recoveries. 3.01 3.2 AUTOMATED DATA PROCESSING INFORMATION 3.20 ADP -Staff and -Uses AMC's advanced Automated Data Processing (ADP) technology has enabled us to become the industry leader in computerized collection activities. Our unique approach to computerized collections includes the use of multiple processors for fast and �^ efficient account processing; customized batch and on-line systems to provide for the most effective utilization of human and machine resources; specialized reporting for management control; and electronic communications capabilities to provide clients with rapid access to important information. State -of -art ADP hardware and software is espescially crucial for consumer accounts due to the high volumes that must be handled simul- taneously. Our ADP Director has 13 years of experience in the design, �* implementation, and operation of AMC's highly sophisticated billing, 'collection, and reporting systems and is supported by a large, highly trained staff. The ADP Division routinely operates two shifts: 6 a.m. to 3 p.m. and 3 p.m. to 11 p.m. 3.21 ADP -Hardware The hardware utilized by AMC includes the following: Computers One IBM 4331 mainframe computer with 1 megabyte of main me- mory and 1.142 gigabytes, or 1.142 billion bytes, of hard disk storage. Three Zilog Model 32 computers, each with 4 megabytes of main memory and 336 megabytes, or .336 billion bytes, of hard disk storage. Several IBM PC's and XT's connected together using a Novell Local Area Network. Printers Four Xerox 9700 laser printers (8,000 pages per hour) avail- able for use through Compass Macromation. Two IBM 3262 printers. Three Centronics printers. 3.02 Tape Drives Four 9-track high-speed tape drives. Three 1/4" cartridge tape drives. Communications various communications equipment that provides: Remote communications to the IBM mainframe. Remote communications to the Zilog computers. Zilog to IBM mainframe data transfer (and vice and versa). Zilog to IBM PC data transfer (and vice and versa). The above -listed hardware was chosen by AMC because it is the best combination of hardware available to interface with the '^ unique computer systems developed by AMC and used by all of our various clients, The IBM mainframe is an extremely effective "batch" processing machine. AMC uses this capability for initial „ processing and for reporting and billing (all of which are "batch" functions). The Zilog computers, on the other hand, are designed for on-line, interactive processing and are used at AMC for the daily working of accounts. Indeed, the utilization of '" the Zilog computers has increased collection productivity by 250%. Although these various computers use different internal operating systems, AMC has achieved a high degree of standard- ization to their computing activities by using the COBOL develop- ment language for all programming efforts. This standardization provides tremendous flexibility, both for transporting the software to other computers (should advances in technology make other machines more effective), and for easily modifying and enhancing the software for rapid response to the unique require- ments of our clients. With the equipment currently installed, AMC has the follow- ing capabilities: 1. Using 9 track tape as transfer media, AMC can perform -- the initial processing of accounts (including input, sorting, and the generation of the first dunning notice) at a rate of approximately 5000 accounts per hour, 2. Each Zilog computer can support active collection efforts on approximately 6000 accounts per day. 3.03 am 3.22 ADP Software AMC's software has been designed to maximize the utilization •- of our very substantial investment in hardware by permitting the ordering agency or other client, either by tape or wire modem transfer. Thus, our software permits AMC's system to read any computer tape from 800 BPI through 6250 BPI, including the most commonly used mainframe computer tapes such as 9-track 1600 BPI EBCDIC, 9-track 800 BPI EBCDIC, and 9-track BPI ASCII. Similar- ly, AMC's system has wide flexibility to read 5 and 1/4" disk- ettes, 8" diskettes, tape cartridges and computer punchcards. AMC's software will convert to our operating system .in - am formation encoded by an ordering agency on any other computer operating systems, including' -fiB-M mainframe, Digital E ui ment Corporation, Honeywell, Burroughs, Sperry- Univac, AT&T, Data- point, Exxon (including Zilog-,--Quix and Vydec), Xerox, IT&T, Convergent Technologies, Tandy, Apple, NCR, IBM PC, and Hewlett- Packard. Our unique interfacing also permits us to reconvert information in our system (for modem, tape or other medium transfer to the ordering agency) to the operating format in which the information was originally transferred to AMC. Similarly, upon request, we will convert all reports, acknowledgments and statements into the format used by the ordering agency's ADP system. AMC's emphasis on the development of software to permit the PW effective utilization of computing resources has yielded a set of functions that we believe are unique in the collection industry. These functions, which are subsequently discussed in detail, are WR as follows: (i) proprietary programs; ® (ii) remote computer terminal hookup; (iii) cardless collections system; and (iv) special purpose software features. "" 1. Proprietary Programs -These programs provide management with all information necessary for the determination of the effectiveness of all collection activities through .� unique presentations that include collector and project liquidation charts. A manager can instantaneously re- view, from many different perspectives, the performance of a single collector or of all collectors and other personnnel assigned to a particular project. This soft- ware allows management to react promptly to any per- ceived problems that otherwise would not be remedied without delay in the collection process. V1 3.04 2. Remote Computer Terminal Hookup -- By telephone modem computer hookup, AMC can provide any client that so de- sires with instantaneous access to AMC's computer system. This hookup saves both time and money in the transmission and receipt of account information. It also provides the client with access to the information available to AMC management in order to monitor perfor- mance and to provide AMC with any relevant instructions on the basis of that performance without the necessity of a costly on -site visit. 3. Cardiess Collection System -- The cardless system provides, on the collector's CRT screen, all of the in- formation required by the collector. This has resulted in a significant increase in collector productivity. The cardless system also ensures that a client request- ing a terminal hookup will have access to all of the information available to AMC's collectors and to manage- ment because no information will be available on paper that is not already in AMC's ADP system. 4. Special Purposes Software Features -- These special purpose features are incorporated within the propriet- ary collection software. The features provide advanced capabilities, including: automated assignment of accounts to collectors, computeried multiple account history available on-line. The cross-references permit the collector to obtain complete information on debtors from other sources, even though incomplete information was referred by the client. The feature also permits management to obtain, for purposes of comparison, per- formance profiles from single perspective for a number of different collectors and projects. The automated call-back notification actually flashes on the screen so that the collector is not required to review all files manually to determine the timing of scheduled calls. The immediate CRT screen display of each debt- or's complete account history minimizes the computer operating time and maximizes the actual collection time for each collector. r In addition to the above, our software contains numerous other features that combine to greatly improve productivity by �., enhancing data access and maximizing the number of debtor contacts by each collector. These include AMC's automatic call routing which permits us to refer any debtor call on your main switchboard number to the proper collector. Upon receipt of a call, the collector will immediately retrieve the debtor's file and attempt to effect collection. This maximizes the chances for 3.05 payment in full by providing the debtor with access to a collect- or who has all current information on the debt, so that any impediment to payment can be quickly resolved. We find that ... debtors are more likely to maintain contact during our collection effort if they believe that their calls will be accepted and their problems addressed. Our auto -dial feature permits AMC's collectors to schedule their telephone calls in advance. Thus, our collectors can schedule calls at various times to determine when the debtor can be reached and, when a debtor is reached at a certain time, can schedule follow-up calls for the same day of the week, hour, and minute as an earlier successful call. This feature minimizes telephone costs by increasing the success rate in debtor contact, thereby reducing the contingent fee that we must charge ordering agencies. Auto -dial also maximizes recovery ratios by increasing both the number of telephone calls for each collector and the success rate for those calls. Our Notes feature permits the collector to utilize the word processing package that has been incorporated into our software to make any necessary notations in a debtor's computer account, including auto -dial scheduling. AMC's Merge features will pull together in single debtor file all debts referred by other City department's or client's for the same debtor (on the basis of name, tax identification number and other file information that conclusively identifies the debtor as identical for two or more obligations). Thus, a collector can attempt to effect collection on two or more .. obligtions in a single call. The Merge features also permit us to retrieve information from various points in the debtor file and place the information in the designated slot in computer generated collection and attorney letters. The Search feature provides the assigned collector with the updated account file when a debtor inquires as to the account, places all information in the proper account file(s) upon receipt of mail return, skip -trace, receipt of payment or other account action. 3:3 COMPREHENSIVE TRAINING AND SUPERVISION AMC's most outstanding asset is our "professionally trained and supervised emplo ees." Accordingly, AMC's training programs, which are as comprehensive as any in the industry, are constantly updated and refined in light of changes in technology, the needs !�+ of our clients and other developments. In these programs our ` employees are trained and retrained to maintain AMC"s competitive edge. 3.06 Although it is AMC's policy to recruit experienced personnel whenever possible, all personnel, whether experienced or not, are required to attend training sessions regarding AMC's operating procedures and, Federal and State laws governing collection activity. AMC's professionals learn and employ time -proven methods of ethically collecting debts with tact, wisdom, and restraint. The training process includes classroom instruction, use of audio training tapes (basic telephone collecting to advanced telephone �^ collecting), use of video training tapes, on-the-job training, and individual counselling (which includes critiques of un- annouced reviews of collection procedures and techniques). AMC assigns unit managers to the continuous training of collectors and monitoring job telephone collections for each consumer collector. All of AMC's collectors are nevertheless required to learn, to understand, and to comply fully with the following: (1) Privacy Act of 1974; (2) Fair Debt Collection Practices Act of 1977; (3) Debt Collection Act of 1982; (4) Fair Credit Reporting Act; and (5) All other applicable Federal, State, and local laws and regulations pertaining to debt collection practices. Each employee is tested and, if successful, is thereafter required to execute the following acknowledgements: (i) "Collection Procedure and Code of Conduct" and; (ii) "Acknowledgement of Training Relevant to the Privacy Act." Our rigorous, ongoing training programs exemplify our concern for the maintenance of effective, efficient, and ethical collections and accounts receivable services for our clients. VIM 3.4 AMC COLLECTION PROCEDURES Most debt collection contractors simply endeavor to collect the debts assigned to the contractor. Although the performance of these services is absolutely essential to maintian cash flow and liquidity, AMC believes that this short-term "fix" does not adequately address our client's overall credit/accounts receiv- able problem. Accordingly, AMC not only collects the debts assigned, but also consults with our clients to develop effective im- 3.07 r AMC's collection procedures are result -oriented! Thus, upon referral of debt by an ordering agency, AMC immediately attempts both to obtain a reaffirmation of and to collect the debt, or to determine from the debtor any defenses or disputes in connection with the debt. These priorities are pursued initially in writing through dunning notices and letters, and then, if the dunning notice and letters do not effect collection, through telephone. If the debt is reaffirmed, AMC attempts to resolve the problems that have impeded payment of the debt. If collection cannot be effected through conventional means, our collector may recommend litigation or other action to resolve the account. 1. Computer Processing Upon receipt of accounts, AMC's Automated Data Processing Division will immediately process all accounts in the order they are referred. 2. Auto -Dunning: Initial Notice Our auto -dunning software assures that the initial notice with a disclosure statement, which is required on consumer debt by the Federal Debt Collection Practices Act of 1977, will be processed and mailed immediately upon input of the account into the computer system. Once again, the system is management controlled to determine exactly when the collector will receive the account for the initial telephone attempt. We believe a ten (10) day interval allows enough time for the debtor to respond and for us to receive mail return on the account. Therefore, our system ensures that, ten (10) days after the final dunning notice is sent, the collector receives that account in his daily work schedule if payment of another satisfactory response has not been received from the debtor. 3. Mail Response Processing During the ten-day interval period preceding automatic referral to a collector, certain actions could occur. The account could be paid in full, partially paid; a written, verbal or no response could be received; or the notice could be received by AMC in mail return. A paid in full response would be immediately searched in the computer system by an accounting clerk and posted accordingly. The account balance would be reduced to zero ($0.00) and, therefore, the account would never appear in a collector's work schedule. While a partial payment received on an account would be processed, in the same fashion as a paid in full account, through payment posting, the Cardless Collection System would then automatically schedule the account to appear in the appro- priate collector's work schedule the next day. The collector's r-+ OW 3.08 screen would indicate the payment received, so the collector can r contact the debtor immediately to insure acount resolution through payment in full or an approved payment schedule. A written response would be processed immediately by a support clerk and entered into the computer system by use of the "notes" software and screen layout design. The system allows for 180 characters of notes each business day in the collection file screen for each account. It would then be scheduled for the appropriate collector's daily work activity the next day. A verbal response (i.e., a debtor calling in) would be received immediately by the appropriate collector by use of the "Search" software feature within the Cardless Collection System. The search software feature gives each collector immediate access to every account within the system. The system allows a user to search the account by use of the "Search" screens. AMC's search screens greatly improve the efficiency of our collectors, ADP clerks, managers and attoreys. In addition, the search features facilitates frequent and thorough account audits as quality control measures. If no response is received, the Cardless Collection System software automatically assigns the account to the appropriate collector, using the ratio account schedule, at the end of the dunning cycle. Our software fulfills AMC's ofjectives by expeditiously referring every account not resolved by mail to a telephone collector. The account will be in the collector's daily work schedule immediately after the dunning cycle, in the order referred, for the first telephone contact. A If mail return is received on the account during the ten-day period prior to collector a support clerk will enter a status code of "MR" into the computer system on that debtor's account file, which indicates mail return received and that the placement address is incorrect. This code suspends all further mail for that account to control postage and handling expenses and to computer transfer the account from the assigned collector to the Skip -Trace Division (if telephone solicitation determines that the telephone number is also outdated) All mail returns are automatically transferred from the assigned collector to the Skip -Trace Division because AMC has found that collectors optimally spend their time in selling the debtors to make payment in full, not in skip -tracing. 4. Collector Assignment (for all Accounts except Mail Returns) AMC's sophisticated, Cardless Collection Software automatic- ally and systematically assigns all accounts to the appropriate W" 3.09 collectors on a ratio schedule that is controlled by management, not by the system. This automatic assignment system is a major competitive advantage as it permits us to regulate carefully each collector's workload. All collectors do not work the same number of accounts effectively, as some collectors simultaneously collect more accounts than others. This management controlled ratio schedule enables AMC to monitor and to control the work flow of each collector, while nevertheless ensuring that each account is automatically assigned to a collector up to that collector's maximum capability. 5. Responses Both verbal and written responses are computer sorted to expedite the conclusion of the account and are immediately referred to and handled by an assigned collector. AMC has defined the five types of responses and procedures utilized to conclude those responses: a. Payment in -Full - Upon receipt of payment in full, AMC s proprietary software will automatical- ly post the payment to the proper account and schedule it to be returned to the City within 30 days as paid in full. b. Partial Payments - Upon receipt of a partial pay- ment, AMC s proprietary software will automatically post the payment to the proper account and calcu- late the current balance due. Thereafter, the pro- per collection follow-up will be scheduled. c. Written/Verbal, Positive/Negative - All written and verbal responses generated by the dunning no- tice or letter(s) will be handled by the collector selected for account referral (on the basis of ex- perience and workload) by the automated collection system selected during the initial input process- ing. The collection manager may override this func- tion if dictated by the circumstances. d Disputes, Compromises, Legal -Defenses, and Proof - AMC will immediately suspend collection activity and refer the issue to the City if AMC receives a written notice of one or more of the following con- ORR (i) debtor disputes in writing the amount of debt, claiming debt was never incurred, was paid off, or was erroneously computed; 3.010 (ii) debtor raises legal defense against repayment such as statute of limitations, fraud, or for- gery; (iii) debtor requests compromise of amount due or forbearance due to temporary inability to repay. AMC neither-_solici-ts nor acre is compromises with prior- written -aut orization from the client. AMC will apply this longstanaing policy on proposed compromises under this contract. AMC will, first, transfer the account to the Branch manager for review and approval and, second, refer the matter to the City along with recommendations and, if warranted in the particular circumstances, a justification of the appropriate amount of the compromise. " All of the accounts in this category will remain accessible solely to the Branch Manager as an AMC quality control measure. AMC's suspension of activity will remain in effect until the City accepts a com- promise, requests a return of the account for write- off, or orders AMC to pursue collection after resolu- tion of the problem. a e. Bankruptcy Any account which appears to necessi- tate a total write-off, such as bankruptcy, shall be returned to the City with AMC's recommendation for write-off with available documentation to sup- port the debt's status (i.e., bankruptcy court no- tice). FIR 6. No Response Accounts on which no response was received are computer sorted, to expedite conclusion of the accounts, by categorization into one of the following classifications: a. Good Address/No Response - All accounts with no response or mail return upon completion of the dun- ning notices shall be instantaneously computer transferred to AMC's Collection Division for im- mediately for telephone collection attempts. b. Mail Return or'No Address Available - Accounts w th mail return or assigned with no address are computer identified as "unlocatable" and are trans- ferred from AMC's ADP Division to AMC's Skip - Tracing Division via CRT terminal. 3.011 AMC Skip -Trace Division In AMC's Skip -Tracing Division, our highly trained Skip -Trace Technicians utilize proven techniques developed through the experience AMC has gained over the last 24 years. For consumer accounts, the tech- nicians attempt to locate not only the consumer debtor, but also the officers and other principals, and any corporate or personal cosigner or guarantor. These sources and investigative techniques include: AMC's extensive nationwide data base; - Employers; - Landlords; - Neighbors; - Schools; Voter registration; Postal service and tracers; Tax rol ls; Telephone directories; City directories; Criss-cross directories; State license bureaus; State motor vehicle departments; Financial statements; Associations; Public utilities; Military bases; Labor unions; Social organizations; Birth and death certificates; 3. Q12 Former and/or fellow employees; Libraries; Relatives, friends; Clubs; and Banks. All skip -trace activities are conducted within the strictures of Federal, State, and local laws and regulations. All findings are documented on the CRT „ screen. For a competitive edge, AMC employs, bilingual skip -trace techincians (as we as bilingual col- lectors) who greatly enhance the ability to obtain information as to a delinquent debtor's whereabouts. As a result, our success rate is significantly above average. When a debtor is located as a result of our efforts, AMC will re -initiate the mailing of the first notice and transfer the account to AMC's Collection Division (which�is informed of all skip -trace activi- ties) for collection and follow-up. If positive identification is not obtained after reviewing all available data bases and investigational techniques, the account will be transferred to AMC-'s Collection Division for extensive telephone follow-up with leads provided by the skip -•trace division. The collectors employ not only their own telephone techniques, but also the expertise and resources of skip -trace tech- nicians. Collectors will attempt contact with all leads in an attempt to locate the debtor for payment in full. 7. AMC Telephone Contact -- Implementation Methods and Techn q es a. Telephone Collection-Te-chniques - Upon completion of the third -party collection correspondence, or "dunning letter," cycle, AMC will implement the next phase of our state-of-the-art collection program, i.e., telephone contact and follow-up, and asset and income verification. The combination of our advanced telecommunications, electronic CRT screens, and complete professional debt collection training, will ensure the City the highest possible collection ORO results in the most efficient and effective manner. " ' 3.013 No AMC will attempt to contact debtors by telephone after receipt of the account from the City. If it is determined that the last known address given by the City is incorrect, AMC will perform further skip -tracing in an attempt to locate the debtor. Because the collection phase is the most sensitive and ^^ difficult, it is in this phase of a professional engagement that an inexperienced collector could inflict the most financial and other damage on the business of a creditor. Our understanding of the particular debts owed to the client is developed and refined during the consultation phase. AMC accommodates this sensitivity and difficulty with our well -developed understanding of the reasons that debtors become delinquent. AMC's collectors work six days per week throughout the year (with the exception of holi- days). The collectors are assigned to swing -shifts, from 8:00 a.m. to 8:30 p.m. Our collectors are familiar with, and employ, only those techniques that will motivate a debtor to complete payment of all delinquent amounts; actions or attitudes that will increase a debtor's reluc- tance to make payment are assiduously avoided by our collectors. AMC's collectors- are trained to be, first and -foremost, communicators in English and, where necessary ; in S anish. AMC s'professionals rely further upon their Sigh1y developed skills in such diverse areas as information gathering, repayment source counselling, insurance subrogation and reimbursement, arbitration and communications (with client and debtor, and, if a loss is insured, with insurance firms), and accounts receivable ^" management. Upon receipt of accounts, AMC immediately begins to liquidate the receivables. In this process, our collectors are required (a) to arbi- trate disputes, (b) to assist the client in making adjustments, (c) to correct billing errors, (d) to locate misapplied and unidentified payments, and (e) to resolve all outstanding claims. Our insurance specialists are acutely aware of the importance of establishing and maintaining beneficial relations w- between our consumer clients and insurance car- riers. �"" 3.014 b. Consumer Collections Approach - For a quarter century? AMC has successfully collected consumer debts that include retail and other credit extension .�, or loan debt; medical debt; and employee over- payment, double payment and improper reimbursement debt. These debts are collected expeditiously and descretely. Our retail and other consumer credit clients require service consistent with AMC's inflexible corporate policy of exercising extreme sentitivity in the collection of delinquent debt. In the collection of delinquencies attribut- able to consumer credit, counselling is a key element. Upon referral of debt by a client, AMC immediately attempts to obtain a reaffirmation of the debt by the debtor, or to determine from the debtor any defenses or disputes in connection with the debt. If the debt is reaffirmed, AMC attempts to resolve the problems that have impeded payment of the debt. If collection cannot be effected through ^' conventional means, our collector may recommend ligitation or other action to resolve the account. (i). Debtor Information - Gathering -- Upon referral of account to AMC, the clerical, skiptrace and other personnel who support our professional debt col- lectors immediately compile and place the following information in the computer file on the debtor; 1. Client number - the number assigned to the client for all accounts. 2. Debtor number - the number assigned to the debtor in connection with one or more claims. 3. Date - the date the account was received by AMC from the creditor. 4. Name, address and phone number of debtor - the infor- mation received from the client is verified for accuracy and updated as necessary. 5. Marital status - whether single, married, separated, divorced, divorce pending which could affect ability to pay and legal liability .for the debt. 6. Debtor's employment - the name, address and phone num- ber of debtor s employer and, if applicable, the employ- ^' 3.015 er of the debtor's spouse, the position with the employ- er(s), and the annual salary or salaries. 7. Skiptraceresults - the name, address and phone num- ber o-f any of _cTe_btor's relatives, neighbors and current or former employers who have been, or who may be, of assistance in skiptracing for the particular debtor. 8. Credit documentation - the type of credit involved (credit card, medical, improper employee reimburse- ment or other payment, loan, open account) and any cre- dit or payment agreement or any instrument signed by the debtor any co-signer or other guarantor of payment. ••� 9. Legal matters - the status of the debtor (e.g., adult rather than minor, not adjudged incompetent, not incarcerated, pending legal proceedings, judgments and liens). 10. Name, address -and hone -number of debtor's attorney - (if applicable). 11. Plan of payment - details of any plan of payment esta- blished by the client or a collector and the adherence to dates of payments thereunder. 12. Financial information - income, assets, liabilities of debtor, spouse, any businesses, co-signers and guaran- tors; credit history, known liquidated, unliquidated, n. contingent, and disputed liability, judgments, and liens; for large accounts, a complete asset and income statement. (ii) Consumer Collections Methods - Upon referral of a consumer account by a client, AMC immediately mails to debtor a disclosure statement and request for payment in full within 10 days, our proprietary computer soft- ware automatically assigns the account to the appro- priate (on the basis of workload, experience, and area of responsibility) specialized consumer collector for immediate telephone follow-up. In the telephone follow- up, the collector assiduously avoids confrontation with the debtor. w„Instead, the consumer collector establishes a rapport with the debtor. The message is simple and brief, in terms understood by the debtor. The collector judiciously uses pauses to evoke careful thought and response from the debtor. The collector exudes a positive attitude to provide the debtor with confidence that he/she can resolve his/her debt problems. 3.016 iii Accordingly, the collector asks questions to which the debtor will answer positively. Thus, AMC's consumer collector controls the conversation with the debtor. The collector elicits the debtor's active involvement in devising a solution of the problem, i.e., payment of the debt. The collector provides the deTtor with alternatives that are designed to permit the debtor to solve the debt problem. The collector closes the conversation with the debtor's actions necessary to resolve the debt. In this respect, the collector dramatizes her/his instructions to the debtor and requests that the debtor repeat the instruc- tions. First and foremost, AMC's consumer collectors are expert communicators. We teach our collectors that it is not sufficient to communicate with the debtor in a manner that could be understood. The collector must communicate in a manner that cannot be misunderstood. In the course of communication with a debtor, AMC's collector is trained to apply psychology that will motivate the consumer debtor to pay the obligation. The collector is required, based upon her/his average of five years employment by AMC , to exercise professional judgment to determine whether the debtor can be best motivated by an appeal to honor, pride, or anxiety, or some combination thereof. In order to appeal to the debtor's sense of honor, the collector reminds the debtor of his/her desire to live up to society's standards of right and wrong, the desire to do what is right, and the desire to be law-abiding and honest. In the appeal to pride, the collector appeals to the debtor's sense of pride in himself/herself and his/her accomplishments, and to the desire for respect from family, friends and associates. In the appeal to anxiety, the collector reminds the debtor of his/her desire to be free from worry, the desire to avoid a troubled credit rating, and need for security. Payment Source Counselling - On the basis of the infor- mation that AMC and its subcontractors obtain on the consumer debtor, our collectors will counsel the debtor on potentially available sources of funds for payment in full of the debt, including the following: 1. Checking and savings accounts. 2. Sale of stocks and bonds. A., 3.012 Am 3. Income tax refund. 4. Credit union accounts or borrowing. 5. Salary advances or other loans from employer. 6. Bank loans. 7. Finance -company loans. 8. Cash value of insurance policies. 9. Borrowing, gifts -or -advances of inheritances from relatives. 10. Home refinancing through a first, second, or -third mortgage or aline of credit against -home equity. r 11. If the debtor has farm resources, borrowing secured by land equity, -equipment, livestock, stored crops, and crop futures. 12. Borrowing secured by persona,i property, such as equity in automobiles. 13. Proceeds from the sale of personal property. 3.018 AGENCY PERSONNEL AND JOB DESCRIPTIONS 4.0 4.1 SUMMARY Accounts Management Corporation - Lubbock Branch - has a total of thirty-one (31) employees consisting of: 1 Operations Manager 1 Marketing Manager 1 Sales/Service Representative 2 Unit Managers 18 Collectors 1 Clerical Manager and a clerical support staff including 1 Bookkeeper 1 Skip Tracer 5 Research Personnel 4.2 INDIVIDUAL JOB DESCRIPTIONS Operations Manager - Responsible for all daily operations of the collection and clerical staff. Hiring and supervision of development of all employees. Also in charge of coordinating - operations with the sales department for the benefit of clients. Marketing Manager - Responsible for coordinating and maintaining �•+ all duties and performances levels of the marketing department. Training and supervision of all marketing personnel, maintaining an adequate number of new sales per month as well as servicing existing clients. handle all major client communications and all serious client complaints. Communication and coordination of efforts with operations department. '^ Unit Managers - In charge of collector development and the main line of communications between the branch manager and the collectors. Receptionist -Typist - The receptionist is in charge of all typed form correspondence within the branch. She also will greet and write receipts for all payments made by debtors at the office. Central File Supervisor - In charge of all clerical functions within the office. Ma]or concerns are training of new clerical employees and correlating the clerical effort to those of the collection staff. 4.1 Service Representative - Responsible for communication with clie mts with regard to complaints, verification of payment, and additional information. He, or she, maintains and increases volumn of placements through telephone and/or personal contact, maintains client correspondence files. Collectors - The Lubbock office of AMC has eighteen (18) col- lectors. The primary responsibility of the collectors is telephone contact with the debtor. He, or she, must be know- ledgeable of the account, debtor, and client and use this infor- mation to persuade the debtor that it is advantageous to pay in full. Collectors must be knowledgeable of the Fair Debt Col- lection Practices Act, the State Collection Practices Act (when applicable), and our own Code of Contract. Skip Tracers - Will investigate accounts wtih the purpose of obtaining 'location information" as defined in the Fair Debt Collections Practices Act. Any account with a debtor determined as a "skip" will be turned over to the skip tracer. Research - Researchers will transpose any information that may mead to phone contact with a debtor provided by the client. Bookkeeper - The bookkeeper is in charge of daily maintenance of all payments made on accounts. NM '�" 4.10 era Education Resume G. Mark Dove Texas Tech University, Lubbock, Texas; Four years undergraduate study in Business and Journalism. Professional Experience Accounts Management Corporation, Lubbock, Texas. Operations Manager. Primary responsibilities include overseeing daily operations of Lubbock branch. Coordinate effort of unit k, managers and supervisors. Supervision of training of personnel, both clerical and collection, and promotion of personnel to Unit level. Lubbock has received Branch -of -the -Month awards in the last years. Previoulsy served as a collector in February of 1980, promoted to assistant manager in October, 1980. Transferred to Houston in June, 1981 as a collector. Primary responsibilities included implementation of day-to-day procedures and systems, and training ""` within Houston Branch. Promoted to Unit Manager in August, 1981. Primary responsibilities included management of all aspects of the Unit. Promoted to Operations Manager in December, 1981, officially assumed those duties January 1, 1982. 4.2 Resume Rebecca L. Stevenson Education Lubbock High School, Lubbock, Texas; 1969 Honor Graduate. Professional Experience 11-79 - Present Accounts Management Corporation, Lubbock, Texas. Marketing Manager. Primary responsibilities include coordinating and maintaining all duties and performance levels of the entire Sales Department. Training and supervision of all sales per- sonnel, maintain adequate number of new sales per -month as well as servicing existing clients, handle all major client communi- cations and all serious client complaints. Communication and coordination of efforts with operations end of business. Respon- sible for the West Texas territory from Lubbock to Amarillo, San Angelo, Midland, Odessa, Big Spring, and Hobbs, New Mexico. Sales Achievement Awards and President's Achievement Award recipiant. 1977 - 1979 Tupperware Home Parties, Lubbock, Texas. Unit Manager. Training and supervision of 30-35 dealers. Maintain a personal party schedule, selling the Tupperware products; obtained level of #10 in the region out of approxi- mately 2,500 managers. 1969 - 1973 Aetna Life and Casualty, Lubbock, Texas. Unit Supervisor. Train and supervise 8 group claims processors to pay group health claims for Aetna - weekly and monthly progress reports and audits. 4.20 N Resume Joe DeLosSantos Education Texas Tech University, Lubbock, Texas; BS Education Professional Experience 1980 - Present Accounts Management Corporation, Lubbock, Texas. Unit Manager. Primary responsibilities include management of all aspects of the Unit. Previously served as a collector. Primary responsibilities included collection and servicing of all assigned accounts. Progressed to Unit Manager. In charge of special projects. Currently working and supervising accounts from the City of Lubbock. 12-77 - 11-80 Beneficial Finance, Lubbock, Texas. Assistant Manager. Primary responsibilities were to oversee all collections within the office. 4 21 Resume H. Grant Lappin Education St. Louis University, School of Commerce and Finance, Certificate of Completion, 1948. Professional Experience 1961 - Present Accounts Management Corporation, St. Louis, Missouri and Houston, Texas. Founder, Chairman, President, and Chief Executive Officer. Primary responsibilities include cash management; coordination of, and presiding over, Board of Directors; decision making and supervision of profit sharing and pension plan investments; review of all corporate functions and ongoing consultation with executives; and direction of, and personal involvement in, the performance and marketing of services to Government, including legislative liaison, presentation of Congressional testimony, and other efforts to expedite collection of Federal delinquencies. Previously engaged in all marketing, client contacts, training, and operations management. 1950-1961 �• State Loan & Finance Corporation, Washington, D.C. Vice -President, Operations. Primary responsibilities included management of all aspects of the operations of one-third of all of the corporation's offices in the United States; supervision of loans and collections of portfolio in excess of $150 million; hiring, training, and supervision of all personnel for those offices; supervision of all audits; operation of lines of credit with 200 banks; recruitment and training of the corporation's Branch Managers; and contribution to, and participation in, all �., aspects of corporate expansion from 41 offices in 1950 to 871 offices in 1961. Previously served as Supervisor -- Midwest. Previously served as Branch Manager of largest corporate branch in Camden, New Jersey. 4.22 Previously served as startup Branch Manager of branch in St. Louis, Missouri. Departed due to ruinous competition of new sources of consumer credit (e.g., bank and retail credit card �.. issuers) with finance companies. 1947 - 1950 Walsh Loan & Finance Corporation, St. Louis, Missouri. Manager. Primary responsibilities included approval of all loans '^ and collections. Retained initially as Manager Trainee pursuant to Public taw No. 16. Departed to accept opportunity with national corporation. 1943 - 1947 United States Navy Served with the amphibious forces in the South Pacific. Parti- cipated in 19 landings. Wounded in Okinawa. Affiliations American Collectors Association. Member, National Legislative Committee, and Rules and Regulations Committee. International Consumer Credit Association. 4.220 Resume Robert F. Leaumont Education Louisiana State University, B.A., 1968. Major in Management. Professional Experience 1971 - Present Accounts Management Corporation, Houston, Texas. Executive Vice -President. Primary responsibilities include supervision, management, and coordinatin of all aspects of the corporation, including all financial, computer, sales, collection and personnel matters; training and supervision of Vice Presi- dent, Operations; supervision of and extensive instruction in company's marketing, accounting, and manager training school; selection, acquisition and supervision of the integration into corporate operations of expanded computer system; and day-to-day supervision and coordination of activities of more than 400 employees. Previously served as General Operations Manager. Primary responsibilities included management of all aspects of branch offices; development and implementation of a state-of-the-art collections system, systems relating to clerical functions, data compilation, storage, updating and retrieval, skiptracing and collection; and instruction and training of company personnel in relation to new system. 1966 - 1971 Central Adjustment Bureau, New Orleans, Lousiana. District Manager. Primary responsibilities included supervision of all sales and collection personnel in the Dallas -Fort Worth area; and development of corporate policy and procedures. Previously served as Regional Manager. Primary responsibilities included supervision, coordination and management of all aspects of business of five branch offices. Previously served as Branch Manager. Primary responsibilities included personnel supervision, training, auditing, and counsel- ling. W FM 4.23 r, Previously served as Assistant Manager. Primary responsibilities including the training of collectors in skiptracing, collection procedures, and applicable laws. t Previously served as Collector. Primary responsibilities included all aspects of collection activities relating to medical and student loan collections. 1965 - 1966 Grunewald Music Company Credit and Collection Manager. Primary responsibilities included *^ credit decision making and collection. 1964 - 1970 0' U. S. Coast Guard Reserve. 4.230 P" - -- Resume Stephen G. Lappin Education University of Texas at Austin, Bachelor of Art, 1972. Management, minor in Finance. Professional Experience Major in .w 1972 to Present Accounts Management Corporation, Houston, Texas. FOR Vice -President, Operations. Primary responsibilities include supervision and coordination of all branch offices, including Branch Managers and other branch personnel. Previously served as Administrative Assistant, Operation. Primary responsibilities included auditing of branch offices, management of collections, and supervision of clerical personnel. Previously served as Branch Manager in Dallas, Texas. Primary responsibilities included hiring and training of clerical and collection personnel. Previously served as Sales Consultant. Primary responsibilities �• included training of company personnel in sales, client credit and collection systems and consulting with clients on credit and collection systems. Previously served as Collector. Primary responsibilities included all aspects of collection. 1968 - 1972 (Part -Time) .� University of Texas, Intermural Athletic Department, Austin, Texas. Manager of day-to-day operations of department with more than 10,000 participants. 4.24 Resume Mark L. Lappin Education a_ University of Texas at Austin, Bachelor of Arts in Business Administration (B.B.A.), 1979. Major in Marketing, minor in ^" Management. Professional Experience 1974 - Present Accounts Management -Corporation Director of Public Accounts. Primary responsibilities include coordination of collection and other services performed by corporation (including Government Management Services) for government and other public clients; and communication with and *-� preparation of specialized programs and services for public clients. Previously served as DFW Marketing Manager. Primary responsi- bilities included supervision and training of Service Respresent- atives and coordination of services to 110 clients; communi- cations with marketing and operations department on behalf of clients and of branch and marketing of AMC's services. Previously served as Corpus Christi Manager. Primary Responsi- bilities included training and supervision of Service Represent- ative and coordination of services to 50 clients. Previously served as Collector. Responsibilities included all aspects of collections. Previously served as trainee responsible for mail processing, filing, researching, skiptracing, and collection. 4.25 n Nn Education Resume Aaron Baldridge University of Houston, B.A., 1972. Major in Communications with course emphasis in Management. Professional Ex2eri_ence 1975 - Present Accounts Management Corporation, Houston, Texas. Director of Operations. Primary responsibilities include auditing of clerical and collection staff in branch offices; coordination of Marketing Department and Branch Managers; and instruction and training of Branch Managers. Previously served as Assistant Manager. Primary responsibilities include training, auditing and supervision of 25 to 35 collectors and eight clerical personnel. Previously served as Collector. Primary responsibilities included all phases of collection throughtout a three-year -+ period. 1974 - 1975 Exchange Mortgage, Texas Collection Manager. Primary responsibilities included collection of delinquent home mortgages; supervision and coordination of foreclosures; and management of Collection Department staff. �... 1972 - 1974 Fort Worth Mortgage, Fort Worth, Texas. Collector. Primary responsibilities included all aspects of collection procedures and compliance with laws associated with collection of delinquent home mortgages. '" 4.26 Resume Vic York Education Houston Community College, Houston, Texas. Professional Experience 1976 - Present Accounts Management Corporation, Houston, Texas. Vice -President, Marketing. Primary responsibilities include direction of marketing, promotional activities and all marketing personnel; credit consulting and design of collection systems in order to reduce collection costs for vast array of commercial, medical, retail, and governmental clients; and management of 26 marketing personnel and additional support personnel in sales departments of branch offices; and organization and presentation of on -sit acccounts receivalbe management seminars for in-house personnel of clients. Previously served as Director of Marketing. Primary responsi- bilities include management assistance to branches; training, and cultivation of creative sales ability and attitudes in sales personnel; development of new markets; and improvement of productivity of existing collection sales market. Previously served as Regional Sales Manager. Primary responsi- bilities included supervision and development of Houston branch sales; promotion and service to existing clients; service to clients beyond local branch markets; and development of and service to national clients. Previously served as Branch Manager. Primary responsibilities included training and supervision of 35 collectors and of skip -trace personnel. 1972 - 1975 Associated Recovery, Formerly Financial Assistance Corporation, Georgia and Texas. General Manager. Responsibilities included all aspects of Management. 1. 4.27 Previously served as Manager of Houston and Atlanta branches. Trained and supervised staff of 13 in Houston and six in Atlanta. Previously served as Manager, Atlanta Collection. Primary responsibilities included hiring, training, and supervision of personnel; preparation of payroll; and preparation of client's statements. 1970 - 1972 The Richard's Company Collection Manager. Responsibilities included management of collections for regional office covering Georgia, Alabama, and Florida. Previously served as Collector. Primary responsibilities included inside (telephone) and outside collections. 1967 - 1969 United States Army 4.270 Resume Roslyn H. Simon Education Lee Junior College (two years), Baytown, Texas; University of Houston (one year). PrOffessional Experience 1971 - Present Accounts Management Corporation, Houston, Texas. Director of Clerical Support. Primary responsibilities include the development and implementation of up-to-date systems for all clerical functions of the corporation; auditing of clerical departments of all branches; assistance in the training of clerical and supervisory personnel; and development and manage- ment of clerical supervisory personnel. Previously served as Branch Manager of Central File Branch, one of four branches of corporate headquarters. Primary responsi- bilities included continual upgrading of clerical systems and procedures; and training clerical support personnel. Previously served as Clerical Department Manager. Primary responsibilities included training and supervision of clerical personnel incorporate headquarters. Previously served as Sales and Service Representative and as Skiptracer. 1963 - 1971 Guardian Financial Corporation, Texas. Office Manager. Primary responsibilities included supervision of '^ all credit extension, skiptracing and collection personnel; compliance with all applicable laws; training of clerical personnel in bookkeeping procedures; auditing and evaluation of •- all "personnel. Previously served as Assistant Manager with responsibility for training of collection and clerical personnel. Previously served as Cashier with responsibility for the receipt of payments and for all bookkeeping functions. •, 4.28 Resume Richard D. Young Education Austin College, Sherman, Texas; Del Mar College, Corpus Christi, Texas. Professional Experience 1974 - Present .� Accounts .Management Corporation, Houston, Texas. Director of Quality Control. Primary responsibilities include acquisition and development of data base, preparation of studies -' and analyses, and dissemination of information seniorto corporate executives regarding opportunities for corporate growth and the maintenance of flexibility and quality control. Previously served as Corpus Christi Branch Manager and then as Houston Branch Manager. Primary responsibilities included supervision and training of personnel, both clerical and col- lection, and promotion of personnel to a Unit level. Received five Manager -of -the -Month awards and one Branch -of -the -Month award. Previously served as first corporate Unit Manager. Primary responsibilities included management of all aspects of the Unit assigned to the Southwestern Bell Telephone account. Previously served as Assistant Manager. Primary responsibilities included implementation of day-to-day procedures and systems, and training within Houston Branch. Previously served as Large Balance Collector. Primary responsi- bilities included collection and servicing of all assigned large balance accounts. 1971 - 1974 Federated Credit Corporation, Texas. r - Collector. Primary responsibilities included collection of delinquencies for the in-house finance company of a major encyclopedia retailer, i.e., Grolier, Inc. PM 4.29 PM Resume Ed Larson Education University of North Dakota, B.A., Business, 1965. Professional Experience 1983 - Present Accounts Management Corporation, Houston, Texas. Director of Electronic Data Processing. Primary responsibilities include management of all data functions; development and coordination of additions to the existing computer system; and development and implementation of innovative electronic col- lections systems. 1968 - 1983 Houston Data Center,'Inc., Houston, Texas. Vice President. Primary responsibilities included direction of all systems analysis and programming functions for 400 clients. Previously served as Manager of Programming. Primary responsi- "" bilites included training and coordination of the efforts of a staff of 15. �. Previously served as Programmer/Systems Analyst in a service bureau environment. Primary responsibilities included design, implementation, training and maintenance of various accounting program applications, including accounts receivable mamagement systems, accounts payable, collection systems, general ledger and cash management systems, inventory and purchase order systems sales analysis, payroll and personnel systems, time and billing systems, patient billing, insurance premium accounting claims and reserves systems. 1966 -1968 Cameron Iron Works Programming Team Leader. Primary responsibilities included development and training of programmers. sm 4.2001 5.0 r- ACCOUNTS MANAGEMENT CORPORATION OF TEXAS, INC. CONSOLIDATED BALANCE SHEET AS OF JANUARY 31, 1985 ASSETS Current Assets: Petty Cash 1,000.00 Manager's Fund 19,500.00 AMC -TX Legal Fund 5,000.00 Operating Bank Accounts 384,122.57 C. D. Texas Commerce 230,366.33 A/R Affiliates 2,865,422.48 Advance to TIOLI 52,878.21 Notes Receivable 62,500.00 Client Advance 539,512.53 Employee Advance 9,350.91 HGL Condo Advance 45,569.41 Advance - Officers 172,662.56 Prepaid Expense 14,147.47 Prepaid Court Costs 6,118.23 Total Current Assets Fixed Assets: New Orleans Office Other 3,500.00 Office Furniture & Equipment 387,352.95 Accum. Deprec. Off. Furniture 182,509.33- TCB Furn. & Equip. - Wilson's 137,503.06 Corporation Autos 221,942.11 Accum. Deprec. Automobiles 139,172.02- Sweetwater Membership 22,500.00 Total Fixed Assets Other Assets: Investment in Subsidiary 8,520.00 Organization Costs 45.00 Total Other Assets TOTAL ASSETS 4,408,150.70 451,116.77 8,565.00 4,867,832.47 5.2 Page Two Accounts Management Corporation of Texas, Inc. Consolidated Balance Sheet/January 1985 LIABILITIES AND EQUITY Current Liabilities: Client Reserve 1,095,539.64 State Income Tax 2,041.37 Accrued Payroll 133,330.63- Payroll Taxes 13,918.84 Exchange Account 148,817.83- Accounts Payable Affiliates 2,865,363.59 Unidentified Payments 96,204.93 Profit Sharing 2,321.69- Total Current Liabilities 3,788,598.22 Long Term Liabilities: Notes Payable 88,932.23 Note Payable Stafford Bank 129,323.38 Total Long Term Liabilities 218,255.61 Total Liabilities 4,006,853.83 Common Stock 8,000.00 Retained Earning Prior 424,832.03 Net Income (Loss) 428,146.61 Total Stockholders Equity 860,978.64 TOTAL LIABILITIES AND EQUITY 41867,832.47 No Text 6.1 INSURANCE & BONDING COVERAGE N. AMC's extensive liability insurance coverage is as varied and comprehensive as any in the in the industry. This broad coverage, although expensive, is intended to eliminate our client's risk of any liability whatsoever for our efforts after the consumer account is referred to AMC for collection. The aggregate coverage under the corporation's Professional Liability Insurance policy,including Errors and Omissions coverage, is $5,000,000.00 per annum. In addition, AMC has in force broad Worker's Compensation and Employers' Liability and Automobile Liability policies that cover occurrences on AMC's premises or elsewhere (e.g., a client's premises). AMC has a Comprehensive General Liab ity policy in force that covers even AMC's independent contractors. The Corporation effectively bonds all of its employees for the benefit of our clients by main- taining a Blanket Crime and Employee Dishonesty policy that covers AMC against, and protects our clients from any loss as a result of, fraudulent or dishonest employee conduct regardless of whether AMC is legally liable for such conduct. Final y, 1n order to provide against ie highly unlikely event that the aforementioned coverage would be inadequate, AMC maintains an "umbrella" form Excess Liability policy in the amount of $5,000,000.00 In 24 years, AMC has not had a single claim filed against our $5 million coverage for errors and omissions, nor have we had any unresolved complaints on file with Federal, state or local �^+ authorities in connection with our collections or other services. As a result, AMC receives the lowest available rates for the broadest coverage. Because we have scrupulously avoided costly mistakes for which we must charge our clients-, as a competitive edge, AMC protects every client against any loss attributable to our actions and omissions without increasing the rate charged the client. Thus, a consumer c ient can refer an account to AMC in the confidence that the client will not be exposed to any liability as a result of our collection efforts. 6.1 ALBER . KAUFMAN & CO. nsurance THE BIG DIFFERENCE YOUR %WM01M! hOENT ---- �I 7111 HARWIN, SUITE 200 HOUSTON, TEXAS 77038 Col. Albert A. Kaufman, Chairman o/ Board PHONE: (713) 266-6178 1 J Boyce Love President May 10, 1985 Mr. H. Grant Lappin, President Accounts Management Corporation P. O. Box 4687 Houston, Texas 77210 Michael W. Turner, Vice President J. F. Kaufman, Secretary - Treasurer Re: Insurance Program - Accounts Management Corporation Dear Mr. Lappin: To complete your records, we are happy to give you the following summary of your entire insurance program. Named Insureds Under All Policies Accounts Management Corp. of Texas Accounts Management Corp. of Houston, Inc. Accounts Management Corp. of Pasadena, Inc. Accounts Management Corp. of San Antonio, Inc. Accounts Management Corp. of Corpus Christi, Inc. Accounts Management Corp. of Lubbock, Inc. Accounts Management Corp. of Metairie, Inc. Accounts Management Corp. of Atlanta, Inc. It is agreed that all named above may also operate under the assumed names of Accounts Management Corporation and Medical Management Services, both of which are included as named insureds. 7 Worker's Compensation This policy provides coverage for the statutory medical and disability benefits for all employees injured on the job as provided under the state in which they are employed. All executive officers are also protected. The employer's liability limits are $100,000 each accident, $100,000 for disease (each employee) and $500,000 for disease (policy limit). Comprehensive Automobile Liability This policy covers your liability arising out of the use of all owned, non -owned and hired automobiles. The limits provided are $500,000 combined single limit for bodily injury and property damage. $5,000 personal injury protection is provided on all vehicles. Uninsured motorist coverage is provided on all units, and towing and labor in the amount of $40 per disablement is included. r" ALWAYS ASK KAUFMAN 6.2 On your owned automobiles, you have one hundred dollar deductible comprehensive and five hundred dollar deductible collision. Comprehensive General Liability This policy covers your liability for bodily injury and property damage claims arising out of the use of owned or leased premises and business q activities away from the premises. The limits provided are $500,000 combined single limit for bodily injury and property damage. Umbrella Liability This is an excess liability policy providing a single limit of $5,000,000 excess of the limits provided in the automobile, general liability and employer's liability section of the Worker's Compensation policy. As an example, you would have the combined coverage of $5,500,000 bodily injury to one person if one of your automobiles was involved in a serious accident. Comprehensive Dishonesty, Disappearance, Destruction Bond This policy provides insurance in the amount of $650,000 for loss of money or securities due to dishonesty of employees or forgery of outgoing instruments. In addition, $5,000 coverage is provided at each location for loss of money or securities by robbery or theft, both inside and outside the premises. Valuable Papers This policy covers loss or destruction of valuable papers, notes and records. This is an all risk policy (all risk meaning all losses caused by direct damage to the property covered except by those perils specifically excluded) that covers at the premises, in transit, and temporarily at the premises of others. Limits provided at each of your locations are: 7909 Parkwood Circle #200, Houston, Texas $500,000 4204 Woodcock Drive, Suite 280, San Antonio, Texas ........... 250,000 4639 Corona Drive, Suite 72, Corpus Christi, Texas ........... 200,000 1440 Empire Central #250, Dallas, Texas ...................... 500,000 5201 Indiana, Suite 200N, Lubbock, Texas ..................... 200,000 5775A Glenridge Dr., N.E., Atlanta, Georgia .................. 100,000 4300 S. I-10 Service Rd. W., Suite 209, Metairie, Louisiana .. 250,000 Y rs 4Lo J. BoyPresid t ,„ JBL:kar rdrml ISSUE DATE (MM/DD/YY) 11-21-85 PRODUCER THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS j Albert A. Kaufman and Company NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, P.O. Box 36710 EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. COMPANIES AFFORDING COVERAGE Houston, Texas 77236 COMPANY LETTER Zurich American Lloyds Ins. Co. COMPANY LETTER INSURED Zurich Insurance Company COMPANY Accounts Management Corporation P.O. Box 4687 LETTER American Guarantee and Liability Co.' COMPANY a Houston, Texas 77210 LETTER United States Fire Insurance Company COMPANY LETTER e THIS IS TO CERTIFY THAT POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUEDTO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS, AND CONDI- TIONS OF SUCH POLICIES. Co TR TYPE OF INSURANCE POLICY NUMBER DATEYMMIIDDDTNY) DATEY(MM/DDTION NY) LIABILITY LIMITS IN THOUSANDS EACH OCCURRENCE AGGREGATE GENERAL LIABILITY BODILY $ $ X A COMPREHENSIVE FORM TMP303882201 5-10-85 5-10-86 INJURY X PROPERTY $ $ PREMISES/OPERATIONS UNDERGROUND EXPLOSION & COLLAPSE HAZARD DAMAGE PRODUCTS/COMPLETED OPERATIONS CONTRACTUAL COMBINED $ 500 $ 500 X INDEPENDENT CONTRACTORS BROAD FORM PROPERTY DAMAGE PERSONAL INJURY PERSONAL INJURY $ AUTOMOBILE LIABILITY BODILY I $ X C ANY AUTO AL305244801 5-10-85 5-10-86 (P�ER PERSON} X BODILY ALL OWNED AUTOS (PRIV. PASS.) X 1 ALL OWNED AUTOS (OTHERTHAN) INJURY (PER ACCIDENT)PR $ X HIRED AUTOS PROPERTY $ X1 NON -OWNED AUTOS DAMAGE BI & PD COMBINED $500 GARAGE LIABILITY EXCESS LIABILITY m D UMBRELLA FORM 5234398209 6-10-85 5-10-86 COMB NED $5,n00, $ 5,000, OTHER THAN UMBRELLA FORM ® �r� s STATUTORY° WORKERS' COMPENSATION B WC305244701 5-10-85 5-10-86 $ 100 (EACH ACCIDENT) AND (DISEASE -POLICY LIMIT) EMPLOYERS' LIABILITY $ 100 (DISEASE -EACH EMPLOYEE) OTHER Employee Dishonesty & A 3-D Bond TMP303882201 5-10-85 5-10-86 Depositors Forgery DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES/SPECIAL ITEMS Mr. Robert Massingale SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EX- PIRATION DATE THEREOF, THE ISSUING COMPANY WILL ENDEAVOR TO g S' MAIL WRI OTICE TO THE CERT ATE HOLDER NAMED TO THE Director of Finance LEFT, FAILURE O IL CH NOTICE SHALL 1 OSE NO OBLIGATION OR LIABILITY P.O. BOX 2000 OF AN KIND UP T MPANY, ITS A OR REPRESENTATIVES. s Lubbock, Texas 79408 AUTHO ED S T Albe A. Kaufman and omp ny o•� e•e •••e• e i ENDORSEMENT 11 To be attached to and form part of policy no. TMP 30-38-22-01 Issued to Accounts Management Corporation of Texas, et. al. .a IT IS AGREED THAT: 1. The policy also applies to any direct loss which any person, firm, corporation, or association, for which the professional services of the Insured have been engaged, shall sustain of Money, Securities, or other property belonging to such person, firm, corporation or ° —association, or for which such person-;- fi t-m, corporation or - - - association in any capacity whether legally liable therefore or not, through any fraudulent or dishonest act or acts committed by any one or more of the employees as defined in Section 3, acting alone or in collusion with others during the period of the performance of such professional services and while the policy is in force as °^ to the employee or employees causing such loss. 2. Liability under the policy, and the policy as extended by this R., endorsement, shall not exceed the Total Limit of Liability stated in the Declarations, subject nevertheless to Section II. 3. There shall be no liability under the policy as extended by this endorsenent except for the loss of Money, Securities and other property through the fraudulent or dishonest misapplication, misappropriation or conversion thereof by any employee, to his own use or otherwise, acting alone or in collusion with others. 4. This endorsement'is effective as of 12:01 a.m. on May 10,1985 standard time as specified in the policy. Zurich American Lloyds Insurance Co.