Article 2.3 Transfers of Structured Settlement Payment Rights


10136(c)(6)  How do They Come Up With These Calculations?


10136(c)(6) Mandates the transfer company to show you in the Disclosure Statement what the value of all structured settlement payments to be transferred is worth today, using the most recently published applicable federal rate for determining the present value of an annuity, as issued by the United States Internal Revenue Service, otherwise known as the "Discounted Present Value".


First, let's state 10136(c):

10136(c) The transfer agreement shall be written in at least 12-point type and shall be complete and without blank spaces to be completed after the payee's signature. The transfer agreement shall set forth clear and conspicuously, and in no less than 12-point type, all of the following:


10136 (c)(6) is the sixth (6) subdivision of thirteen (13) subdivisions under 10136(c), which states:


(6) The discounted present value of all structured settlement payments to be transferred and a statement that "This is the value of your structured settlement in current dollars." This amount shall be disclosed in the form prescribed in subdivision (b).


This is a critical amount to be disclosed, because this is the very explanation from where the transfer company base their calculations in figuring out what "some" of their cut will be for the transfer.  They base some of their calculations according to what is utilized by the Internal Revenue Service.


Having trouble understanding?  Don't feel bad, or embarrassed.  Contact an independent professional adviser with expertise in this field, which can explain the disclosure statement to you in detail.