KEN KIRSCHENBAUM, ESQ ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE You can read all of our articles on our website. Having trouble getting our emails? Change your spam controls and whitelist ken@kirschenbaumesq.com ****************************** When should you cancel monitoring on delinquent account / Register today for diligence webinar September 8, 2022 ************************ When should you cancel monitoring on delinquent account ************************ Ken, In January we signed contracts with three hotels, reprogrammed DACTs for central office and put on line, have been doing service and repair. The hotels are being used to house people being released from prison through a program. Last month they said they were having problems with the program and were ending the contract, we informed them that it is a 10 year contract and that we would try to work with them but email communications stopped, a few weeks later so did the central office signals. Daily tests fail, CS is NOT getting signals. We will be sending these accounts to your office for collection, today's question is, should we cancel the central office accounts or keep them active, will it impact the collection and recovery of whatever we can get from them? Thank you, JS *********************** Response *********************** If communication has been terminated by the subscriber there is no reason to leave the account active at the central station. There are times when it’s best to continue monitoring even after you determine that the subscriber is in default and you are going to pursue collection on the contract [which you should if it makes sense]. Keep in mind that the time frame for commencing a collection proceeding with K&K is only a week or so, so continuing monitoring should not be costly for that time. Continuing monitoring is particularly helpful when the subscriber is complaining that the alarm isn’t working. Showing central station activity report with alarm activity is potent evidence of a working system, or at least one that is communicating with the central station, or in failure that is reported by the central station. Canceling monitoring may make it more difficult to reinstate the subscriber if that’s a possibility. Restoring monitoring may involve cost, time and effort. Also terminated monitoring may push the subscriber to find another dealer to monitor the account. Once the arbitration is commenced we will be in a better position to determine if there is any hope of reinstatement or what defenses the subscriber concocts to justify its breach of the contract. You won’t have to continue monitoring throughout the collection case. Keep in mind that terminating monitoring may require notice to the AHJ. ******************** Registration for Sept 13, 2022 webinar on performing due diligence ********************** We’ve all heard the terminology, due diligence, in connection with a transaction to buy alarm accounts, but what due diligence actually consists of and how you get it done is not as familiar to everyone. In fact, due diligence can run the gamut from a cursory review of records to a comprehensive analysis that comes close to [and sometimes exceeds] a forensic financial audit. Who you can and should engage for due diligence can also be an elusive choice. Jim Wooster, Jr., of AFS [Alarm Financial Services], a lender to the alarm industry collateralized by alarm accounts, is opening a new service to perform Due Diligence. I asked Jim to do a webinar to introduce his new Due Diligence service and it will be presented on September 13, 2022 at noon ET. See you then. ****** Webinar: Due Diligence in alarm industry on buy-sell or loan transaction When: September 13, 2022 12PM ET Topic: Due diligence; what it means, what it involves, how it's performed and who you can get to do it Presented by: Jim Wooster, Jr., President of Alarm Financial Services, Inc Hosted by: Ken Kirschenbaum,Esq Who should attend: Alarm company owners, CFO, buyers and sellers Register: https://attendee.gotowebinar.com/register/7167573789756862478 ******************* To order up to date Standard Form Alarm / Security / Fire and related Agreements click here: www.alarmcontracts.com *************************** To order up to date Standard Form Alarm / Security / Fire and related Agreements click here: www.alarmcontracts.com *************************** CONCIERGE LAWYER SERVICE PROGRAM FOR THE ALARM INDUSTRY - You can check out the program and sign up here: https://www.kirschenbaumesq.com/page/concierge or contact our Program Coordinator Stacy Spector, Esq at 516 747 6700 x 304. *********************** ALARM ARTICLES: You can always read our Articles on our website at ww.kirschenbaumesq.com/page/alarm-articles updated daily ******************** THE ALARM EXCHANGE - the alarm industries leading classified and business exchange - updated daily ************************* Wondering how much your alarm company is worth? Click here: https://www.kirschenbaumesq.com/page/what-is-my-alarm-company-worth ****************************** Getting on our Email List / Email Articles archived: Many of you are forwarding these emails to friends or asking that others be added to the list. Sign up for our daily newsletter here: Sign Up. You can read articles and order alarm contracts on our web site www.alarmcontracts.com ************************** Ken Kirschenbaum,Esq Kirschenbaum & Kirschenbaum PC Attorneys at Law 200 Garden City Plaza Garden City, NY 11530 516 747 6700 x 301 ken@kirschenbaumesq.com www.KirschenbaumEsq.com