By AFG Newswire Nov.13, 2014 4:27 p.m. Block 12.2 Article 2.3 Transfers of Structured Settlement Payment Rights
10136(d) Disclosure Statement Must Promote Lawful Adherence of Transfer Agreement
10136(d) states, ” The contract for transferring the structured settlement payment rights may not violate Section 10138”
10138 has 12 little sections that are prohibited provisions that are NOT allowed in the transfer agreement, THAT’s all.
This statement needs to be in the Disclosure Statement to the consumer. But how does the consumer know what these prohibited provisions are? A few ways to find out:
- Read our future posts and find out
- Call an independent professional adviser and find out
- Read the code and interpret for yourself
We will be covering what section 10138 exactly is, but it is not in the scope of this article. But let it be known, that the transfer company is instructed by law according to code 10136(d) to state in the Disclosure Statement to the consumer that there are prohibited provisions not allowed in the transfer agreement.
This should be a “red flag” for any responsible payee. This is also a “red flag” for the courts to be on the look out in all transfer agreements for any extra wording that should NOT be added in any transfer agreements.
Hiring an independent professional adviser is the safest and easiest way to mitigate your transfer agreement, and the Disclosure Statement as well. Call today for a consultation.