Disclosure Notice; Compliance with in re Structured Settlement Transfers
A brief article on disclosure notice as it pertains to structured settlement transfers
- 10136. Disclosure Notice; Compliance with § 10138
Section 10136 has eighteen subdivisions, and is all about the disclosure notices, and their contents. Let’s take it one subdivision, and disclosure notice at a time.
(a) No direct or indirect transfer of structured settlement payment rights by a payee to which this article applies shall be effective, and no structured settlement obligor or annuity issuer shall be required to make any payment directly or indirectly to a transferee, unless all of the provisions of this section are satisfied.
What does this mean?
Transfers are split into two categories: direct and indirect.
Direct means no liquidation of assets takes place during the transfer. Indirect means the assets are liquidated during the transfer.
Either way, the transfer won’t be good unless it matches all of the requirements listed in the eighteen (18) little sections or subdivisions in 10136, which we will go over one at a time.
The “structured settlement obligor” is the party that has the obligation to make the continuing periodic payments to the holder of the original structured settlement.
The “annuity issuer” is the party that originally drafted the “monetary” documents that generated the structured settlement in the first place, otherwise known as an annuity.
10136(a) simply states that nothing can happen unless everything and everybody plays by the rules stated in the eighteen (18) little sections or subdivisions!
This is the opening of section 10136–10136(a). We show you the disclosure statements and we also explain the other subdivisions of 10136; read on…