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Assume a manager of a subsidiary of your firm in a developing country has asked for advice. As the manager of the subsidiary, a financial company, he has been working at keeping their delinquencies at manageable levels. Recently his collection lawyer requested that he decide on how to proceed against an account with a substantial delinquency, about 20% of the subsidiary’s equity. He has reported that the subsidiary's lawyer (from a law office managing the legal issues related to collections for the subsidiary) has informed him, that if they file a routine request along with the filing fee with the Sheriff’s Office for a writ of seizure (they have done all the preliminary collection procedures, e.g. collection letters, and seizing or foreclosing on the equipment mortgaged by the borrower was the only remaining option), it may take weeks and months before action is taken. Or nothing may come of it. The lawyer added, that If he allows them to give the same request to a Sheriff (in the same Sheriff’s Office) that they know, along with the fee in cash, the seizure could be done in a few days. (The lawyer stated that the Sheriff could very well pocket the cash.) Since the subsidiary was a U.S. company, the lawyer wanted to know how the manager of the subsidiary would allow him to proceed. What would you recommend and why?
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