Article 2.3 Transfers of Structured Settlement Payment Rights
10136(c) The Beginning of a Thirteen (13) Step Subdivision: 10136(c)1-13!
(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:
The italicized paragraph is the third paragraph of California Insurance Code, “Section 10136 Disclosure; Notice; Compliance with Section 10138”. And this “(c)” paragraph has thirteen (13) little paragraphs that go along with it, or, as you see at the end of the italicized paragraph, are the “following”.
In this blog, we will dissect just the “(c)” paragraph.
Remember, in the two previous paragraphs of 10136, (a) and (b), stated adherence to this section is mandatory and that a boiler-plate disclosure statement is provided, and mandatory adherence to it is expected as well, respectively.
Now, in 10136’s third paragraph, (c), the section moves into another critical document, the transfer agreement and it’s parameters.
What is the transfer agreement vs. the disclosure statement? This means the agreement providing for the transfer that is drafted by the transfer company, on the payees’ behalf. It contains all of the payee’s sensitive financial and personal information, amongst all of the other information/documents used to put the transfer into motion before the court. The disclosure statement is a preliminary statement explaining how the financial breakdown happens, in detail.
10136 (c) is stating that the transfer company needs to make sure the size of the font or the type of letter is big enough for a normal person to read, and that all boiler-plate blank places waiting to be filled in, NEED to be filled IN before the payee signs.
In addition to that, the 10136 (c) is stressing to the transfer company that the transfer agreement needs to explain to the payee in very clear and “clearly visible or obvious to the eye or mind, something that will attract the payees attention, “conspicuous” instructions for every party to follow.
In other words, the transfer agreement needs to be as “idiot-proof” as possible, even for professionals, not versed in financial markets.
Originally posted 2014-12-22 22:37:07. Republished by Blog Post Promoter