PART II of IV of §10135. "Transfers governed by article; Requirements
- 10135 second subsection is (b), and it is the second out of three types of transfers that fall under this subsection:
- Second type of transfer
"(b) Notwithstanding subdivision (a), the changes to this article made by the act amending this section in the 2001-02 Regular Session shall only be applicable to transfers entered into on or after January 1, 2002.
October 9, 2001 urgency and nonurgency legislation for California Assembly Bill 268 became effective law January 1, 2002, and this was also a game-changer for the structured settlement transfer industry.
Six (6) sections were amended, two (2) sections were added to, and two (1) sections was completely repealed, with another section pending.
What was changed in brief in 2002-and what the 2nd type of transfer will need:
- 10134, (amended) the definitions code amended the definitions of: (a) "BUYERS FIRST RIGHT OF REFUSAL", (b) "DEPENDENTS", (d) "EFFECTIVE EQUIVALENT INTEREST RATE", (f) "INDEPENDENT PROFESIONAL ADVICE", (i) "QUALIFIED ASSIGNMENT AGREEMENT", (k) "STRUCTURED SETTLEMENT OBLIGOR", and (m) "TERMS OF THE STRUCTURED SETTLEMENT", also, (g) added "beneficiary" and (o) effectuation of transfer
- 10135, (amended) we already went over this in PART I. It stated "...transfers entered into on or after January 1,2000 are applicable to this code only" (§10135)
- 10136 (a)(1)(2)(3)(4)(5)(6)(7)(8)(9)(10)(11)(12)(A)(B)(C)(b)(1)(2)(3)(4)(amend-ed) amended about 28 subdivisions of very specific instructions on how to present and draft the Terms, Disclosure, Contract, and the timing of receipt by payee therein. Every subdivision MUST be met, or the transfer WILL NOT go through
- 10137(a)(b)(c)(amended) The amendments clarify what exactly would "void" a transfer of structured settlement payment rights. All litigants must meet all of the conditions.
- 10138 (a)(1)(8)(11)(12)(b) (amended) This protects the payee or consumer from unreasonable, unfair, and overreaching provisions being put in any contract by any company with whom the consumer is dealing. There were only six (6) amendments, but this section powerfully protects the consumer.
- 10139.1 (repealed), and an entirely NEW 10139.1 was added-it is stating that everything must comply with Article 2.3.
- 3 (a)(b)(c)(d)(e) (added) This has to do with non waiving of any of the provisions in this Article, and other closing statements.
- 10139.4 This punishes any company that fails to comply with this article by the authority of Section 17200 of Part 2 of Division 7 of the Business and Professions Code.
- 10139.5 (added) This is essentially a 15 step checklist for the judge.