Another key point in NexPoint's proposal is the cessation of indemnification payments linked to UDF IV's legal and regulatory history. These payments, which have been directed toward individuals associated with past governance issues, would be stopped under NexPoint's plan. Furthermore, NexPoint intends to recover improperly advanced legal fees and indemnity payments, with the net proceeds being distributed back to shareholders. This move, it argues, would ensure accountability while maximizing financial returns for investors.