Not less than three days prior to the day on which a payee is scheduled to sign a transfer agreement, a transferee shall provide the payee with a statement in not less than 14-point type that sets forth:
(1) The amounts and due dates of the structured settlement payments to be transferred.
(2) The aggregate amount of the payments to be transferred.
(3) The discounted present value of the payments and the rate used in calculating the discounted present value. The discounted present value shall be calculated by using the most recently published applicable federal rate for determining the present value of an annuity, as issued by the Internal Revenue Service.
(4) The amount payable to a payee as the result of a transfer. The amount set forth in this subsection shall be calculated before any reductions are made for transfer expenses required to be listed under subsection (5) of this section or any related disbursements.
(5) An itemized listing of all applicable transfer expenses and the transferee’s best estimate of the amount of any attorney fees and disbursements. For the purposes of this subsection, “transfer expenses”:
(a) Includes all expenses of a transfer that are required under the transfer agreement to be paid by the payee or deducted from the amount payable to a payee as the result of a transfer.
(b) Does not include attorney fees and related disbursements payable in connection with the transferee’s application for approval of the transfer or preexisting obligations of the payee payable for the payee’s account from the proceeds of a transfer.
(6) The amount calculated by subtracting the aggregate amount of the actual and estimated transfer expenses required to be listed under subsection (5) of this section from the amount identified in subsection (4) of this section.
(7) The amount of any penalties or liquidated damages payable by the payee in the event of a breach of the transfer agreement by the payee.
(8) A statement that the payee has the right to cancel the transfer agreement, without penalty or further obligation, not later than the third business day after the date the agreement is signed by the payee. [2005 c.173 §3]
Note: See note under 33.850.
Section: Previous 33.510 33.520 33.530 33.610 33.710 33.720 33.810 33.820 33.830 33.850 33.855 33.860 33.865 33.870 33.875 NextLast modified: August 7, 2008