Colonial pays cash for structured settlements!

Iowa statues regarding Structured Settlements.

This state statute overseeing the sale of structured settlement payments and the buying of annuities is basically the Model Act and complies with Federal Law (Colonial's interpretation)

IOWA CODE ANNOTATED
TITLE XV. JUDICIAL BRANCH AND JUDICIAL PROCEDURES
SUBTITLE 5. SPECIAL ACTIONS
CHAPTER 682. STRUCTURED SETTLEMENT PROTECTION


Current through End of 2002 2nd Ex. Sess.

682.4. Approval of transfers of structured settlement payment rights

1. A transfer of structured settlement payment rights shall not be effective and a structured settlement obligor or
annuity issuer shall not be required to make any payment directly or indirectly to a transferee of structured
settlement payment rights unless the transfer has been approved in advance in a final court order or order of a
responsible administrative authority based on express findings by such court or responsible administrative
authority regarding all of the following:

a. The transfer is in the best interest of the payee, taking into account the welfare and support of the payee's
dependents.

b. The payee has been advised in writing by the transferee to seek independent professional advice regarding the
transfer and has either received such advice or knowingly waived such advice in writing.

c. The transfer does not contravene any applicable statute or the order of any court or other government authority.

2. If the structured settlement agreement or transfer agreement includes a provision requiring the terms of the
structured settlement agreement or transfer agreement to remain confidential, the court or responsible
administrative authority shall conduct in camera proceedings relating to the approval of the transfer agreement
and shall not include any financial terms from the structured settlement agreement or the transfer agreement in
the order required under subsection 1.


682.5. Effects of transfer of structured settlement payment rights

1. The structured settlement obligor and the annuity issuer shall, as to all parties except the transferee, be
discharged and released from any and all liability for the transferred payments.

2. The transferee shall be liable to the structured settlement obligor and the annuity issuer for all of the following:

a. If the transfer contravenes the terms of the structured settlement, any taxes incurred by the structured settlement
obligor and the annuity issuer as a consequence of the transfer.

b. Any other liabilities or costs, including reasonable costs and attorney fees, arising from compliance by such
parties with the order of the court or responsible administrative authority or arising as a consequence of the
transferee's failure to comply with this chapter.

3. An annuity issuer and the structured settlement obligor shall not be required to divide any periodic payment
between the payee and any transferee or assignee or between two or more transferees or assignees.

4. Any further transfer of structured settlement payment rights by the payee may be made only after compliance
with all of the requirements of this chapter.


682.6. Procedure for approval of transfers

1. An application under this chapter for approval of a transfer of structured settlement payment rights shall be
made by the transferee and may be brought in the county in which the payee resides, in the county in which the
structured settlement obligor or the annuity issuer maintains its principal place of business, or in any court or
before any responsible administrative authority which approved the structured settlement agreement.

2. Not less than twenty days prior to the scheduled hearing on any application for approval of a transfer of
structured settlement payment rights under section 682.4, the transferee shall file with the court or responsible
administrative authority and serve on all interested parties a notice of the proposed transfer and the application
for its authorization. All of the following shall be included with the notice:

a. A copy of the transferee's application.

b. A copy of the transfer agreement.

c. A copy of the disclosure statement required under section 682.3.

d. A listing of each of the payee's dependents, together with each dependent's age.

e. Notification that any interested party is entitled to support, oppose, or otherwise respond to the transferee's
application, either in person or by counsel, by submitting written comments to the court or responsible
administrative authority, or by participating in the hearing.

f. Notification of the time and place of the hearing and notification of the manner in which and the time by which
written responses to the application must be filed, which shall not be less than fifteen days after service of the
transferee's notice, in order to be considered by the court or responsible administrative authority.

3. If a structured settlement agreement or transfer agreement includes a provision requiring the terms of the
structured settlement agreement or transfer agreement to remain confidential, the financial terms of the structured
settlement agreement and the transfer agreement shall be made available to the court or responsible administrative
authority for purposes of any in camera proceedings, but shall not be disclosed in the copies of the transfer
agreement and disclosure statement filed as a part of the public record.


682.7. General provisions--construction--penalties

1. The provisions of this chapter shall not be waived by a payee.

2. A transfer agreement entered into on or after the thirtieth day after July 1, 2001, by a payee who resides in this
state shall provide that disputes under the transfer agreement, including any claim that the payee has breached the
agreement, shall be determined under the laws of this state. A transfer agreement shall not authorize the transferee
or any other party to confess judgment or consent to entry of judgment against the payee.

3. A transfer of structured settlement payment rights shall not extend to any payments that are life-contingent
unless, prior to the date on which the payee signs the transfer agreement, the transferee has established and has
agreed to maintain procedures reasonably satisfactory to the annuity issuer and the structured settlement obligor
for both of the following: a. Periodically confirming the payee's survival. b. Giving the annuity issuer and the
structured settlement obligor prompt written notice in the event of the payee's death.

4. A payee who proposes to make a transfer of structured settlement payment rights shall not incur any penalty,
forfeit any application fee or other payment, or otherwise incur any liability to the proposed transferee or any
assignee based on any failure of the transfer to satisfy the conditions of this chapter.

5. This chapter shall not be construed to authorize any transfer of structured settlement payment rights in
contravention of any law or to imply that any transfer under a transfer agreement entered into prior to
July 1, 2001, is valid or invalid.

6. Compliance with the requirements set forth in section 682.3 and fulfillment of the conditions set forth in
section 682.4 shall be solely the responsibility of the transferee in any transfer of structured settlement payment
rights, and neither the structured settlement obligor nor the annuity issuer shall bear any responsibility for, or
any liability arising from, noncompliance with the requirements or failure to fulfill the conditions.

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