Block 9.5 Article 2.3 Transfers of Structured Settlement Payment Rights
10136(c)(4) What are Expenses? Why Do I Pay? How Can I See the Charges?
10136(c)(4) lets you know where to find the total sum of the expenses that are “deducted from the purchase price to be paid to the payee in exchange for the payments to be transferred.” AND, that the judge will review an itemized list of every expense, by type and by amount.
Remember in 10136(c)(3), you got to see the total amount (aggregate) of payments to be transferred in the disclosure statement, now in 10136(c)(4) you get to see the figure, and breakdown of all expenses incurred by the transfer company charged to you.
You’ll find this figure in the “disclosure statement”. Remember, 10136 is all about fairness in the Disclosure statement; and the Transfer agreement; Notice; and, Compliance with Section 10138 (what provisions are prohibited in the Disclosure Statement, the Transfer Agreement, the Notice, and any other contract dealing with the transfers of structured settlement payment rights)
We state 10136(c) immediately below, but we want to look at (4), which is the fourth (4) subdivision out of thirteen (13) under 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:
(4) The aggregate amount of all expenses, if any, to be deducted from the purchase price to be paid to the payee in exchange for the payments to be transferred, and an itemization of all expenses by type and amount.
(4) In other words (4) mandates the transfer company to isolate, and state (in the disclosure statement), the total amount of expenses, or the aggregate expenses that were incurred by the transfer company, and provide an itemized list of the expenses for your viewing.
The payee gets full disclosure with the “Disclosure Statement”! Not sure if some of the expenses are legitimate? Reach out to an independent professional adviser experienced in the field and run it by them.
Originally posted 2015-03-10 13:01:30. Republished by Blog Post Promoter