Article 2.3 Transfers of Structured Settlement Payment Rights
What is 10136(c)(1)?
(In italics and (1) is bolded)
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:
(1) A statement that the agreement is not effective until the date on which a court enters a final order approving the transfer agreement and that payment to the payee pursuant to the transfer agreement will be delayed up to 30 days or more after the date the payee signed the transfer agreement in order for the court to review and approve the transfer agreement.
What Does (1) Mean?
What (1) means is that somewhere obviously placed in the transfer agreement, you will see a statement that states something to the effect: just because you signed the transfer agreement and submitted it to the court, doesn’t mean you’re going to get your money the same day.
(1) means that the transfer company HAS to tell the payee in writing about the delay in time, after the payee has signed the transfer agreement, and possibly has been to court, so the payee has no false expectations, or is not mislead in any way shape or form about when to expect any money, or possibly being denied.
The delay can be more than 30 days, and the reason is that the courts need to review and approve the transfer agreement. The time-frame could be 30-45-60-90 days! Talk to your independent professional adviser to speed things up!
The transfer agreement has a lot of technical information about the transfer company, the casualty insurer, and the life insurer, the annuity issuer, and even the annuity issuer too. Don’t take it personally if the transfer agreement doesn’t go through the first time around. Remember, most transfer cases go through; you get second, third and fourth chances!