§ 1-543.12. Structured settlement payment rights.
§1‑543.12. Structured settlement payment rights.
No direct or indirect transferof structured settlement payment rights shall be effective, and no structuredsettlement obligor or annuity issuer shall be required to make any paymentdirectly or indirectly to any transferee of structured settlement paymentrights unless the transfer has been authorized in advance in a final order of acourt of competent jurisdiction or a responsible administrative authority basedon express findings by such court or responsible administrative authority that:
(1) The transfercomplies with the requirements of this Article [of] law;
(2) Not less than 10days prior to the date on which the payee first incurred any obligation withrespect to the transfer, the transferee has provided to the payee a disclosurestatement in bold type, no smaller than 14 point setting forth:
a. The amounts and duedates of the structured settlement payments to be transferred;
b. The aggregate amountof such payments;
c. The discountedpresent value of such payments;
d. The gross amountpayable to the payee in exchange for such payments;
e. An itemized listingof all brokers' commissions, service charges, application fees, processingfees, closing costs, filing fees, administrative fees, legal fees, notary feesand other commissions, fees, costs, expenses, and charges payable by the payeeor deductible from the gross amount otherwise payable to the payee;
f. The net amountpayable to the payee after deduction of all commissions, fees, costs, expenses,and charges described in sub‑subdivision e. of this subdivision;
g. The quotient(expressed as a percentage) obtained by dividing the net payment amount by thediscounted present value of the payments;
h. The discount rateused by the transferee to determine the net amount payable to the payee for thestructured settlement payments to be transferred; and
i. The amount of anypenalty and the aggregate amount of any liquidated damages (inclusive ofpenalties) payable by the payee in the event of any breach of the transferagreement by the payee;
(3) The transfer is inthe best interest of the payee;
(4) The payee hasreceived independent professional advice regarding the legal, tax, andfinancial implications of the transfer;
(5) The transferee hasgiven written notice of the transferee's name, address, and taxpayeridentification number to the annuity issuer and the structured settlementobligor and has filed a copy of such notice with the court or responsibleadministrative authority;
(6) The discount rate usedin determining the net amount payable to the payee, as provided in subdivision(2) of this section, does not exceed an annual percentage rate of prime plusfive percentage points calculated as if the net amount payable to the payee, asprovided in sub‑subdivision (2)f. of this section, was the principal of aconsumer loan made by the transferee to the payee, and if the structuredsettlement payments to be transferred to the transferee were the payee'spayments of principal plus interest on such loan. For purposes of thissubdivision, the prime rate shall be as reported by the Federal ReserveStatistical Release H.15 on the first Monday of the month in which the transferagreement is signed by both the payee and the transferee, except when thetransfer agreement is signed prior to the first Monday of that month then theprime rate shall be as reported by the Federal Reserve Statistical Release H.15on the first Monday of the preceding month;
(7) Any brokers'commissions, service charges, application fees, processing fees, closing costs,filing fees, administrative fees, notary fees and other commissions, fees,costs, expenses, and charges payable by the payee or deductible from the grossamount otherwise payable to the payee do not exceed two percent (2%) of the netamount payable to the payee;
(8) The transfer ofstructured settlement payment rights is fair and reasonable; and
(9) Notwithstanding aprovision of the structured settlement agreement prohibiting an assignment bythe payee, the court may order a transfer of periodic payment rights providedthat the court finds that the provisions of this Article are satisfied.
If the court or responsibleadministrative authority authorizes the transfer pursuant to this section, thecourt or responsible administrative authority shall order the structuredsettlement obligor to execute an acknowledgment of assignment letter on behalfof the transferee for the amount of the structured settlement payment rights tobe transferred; provided, however, structured settlement payment rights arisingfrom a claim pursuant to Chapter 97 shall not be authorized. (1999‑367,s. 1; 1999‑456, s. 67.)