Restrictions on Cash

6 Months Ended

Jun. 30, 2020

Cash and Cash Equivalents [Abstract]

Restrictions on Cash

Restrictions on Cash

Under the terms of our second amended and restated senior credit facility with LNV Corporation (“LNV Credit Facility”, discussed further in Note 10), we are required to maintain collection and payment accounts that are used to collect policy benefits from pledged policies, pay annual policy premiums, interest and other charges under the facility, distribute funds to pay down the facility, and distribute excess funds to the borrower (GWG DLP Funding IV, LLC).

The agents for the lender authorize the disbursements from these accounts. At June 30, 2020 and December 31, 2019, there was a balance of $19.1 million and $20.3 million, respectively, in these collection and payment accounts.