407.1062. Structured settlement payment transfers, requirements.
Structured settlement payment transfers, requirements.
407.1062. No transfer of structured settlement payment rights shallbe effective and no structured settlement obligor or annuity issuer shallbe required to make any payment directly or indirectly to any transferee ofany transfer of structured settlement payment rights unless the transferhas been approved in advance in an order of a court of competentjurisdiction, based on the court's express findings that:
(1) The transfer complies with the requirements of sections 407.1060to 407.1068 and does not contravene other applicable law;
(2) Not less than ten days prior to the date on which the payeeentered into the transfer agreement, the transferee has provided to thepayee a disclosure statement in bold type, no smaller than fourteen point,setting forth:
(a) The amounts and due dates of the structured settlement paymentsto be transferred;
(b) The aggregate amount of the payments;
(c) The discounted present value of the payments, together with thediscount rate or rates used in determining the discounted present value;
(d) The gross amount payable to the payee in exchange for thepayments; and
(e) An itemized listing of all brokers' commissions, service charges,application or processing fees, closing costs, filing or administrativecharges, legal 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;
(3) The transfer is in the best interest of the payee and the payee'sdependents;
(4) The transferee has given written notice of the transferee's name,address and taxpayer identification number to all interested parties andhas filed a copy of the notice with the court;
(5) The payee has consented in writing to the transfer;
(6) The payee has been represented by disinterested counsel inconnection with the transfer or the payee understands the nature of thetransaction and the economic consequences of the transaction; and
(7) The payment to be made to the payee by the transferee is equal tothe fair market value of the structured settlement rights beingtransferred.
(L. 1999 S.B. 1, et al. § 4)