Colonial pays cash for structured settlements!
Ohio statues regarding
This state statute
overseeing the sale of structured settlement
payments and the buying of annuities is
not the Model Act but complies with Federal
BALDWIN'S OHIO REVISED CODE
TITLE XXIII. COURTS--COMMON PLEAS
CHAPTER 2323. JUDGMENT
Current through 2002 File 135 of the 124th GA (2001-2002),
As used in this section and sections 2323.581 to 2323.587
of the Revised Code:
(A) "Annuity issuer" means an insurer that
has issued an insurance contract that is used to fund
periodic payments under a structured settlement.
(B) "Applicable law" means any of the following,
as applicable in interpreting the terms of a structured
(1) The laws of the United States;
(2) The laws of this state, including principles
of equity that are applied in the courts of this state;
(3) The laws of any other jurisdiction if any of
the following applies:
(a) The laws of that other jurisdiction govern
the structured settlement.
(b) A court or a responsible administrative authority
approved The structured settlement agreement under
the laws of that other jurisdiction.
(c) The transfer of payments under the structured
settlement is subject to the laws of that other
(C) "Dependent" means a spouse of a payee,
a minor child of a payee, or any other member of the
family of a payee or other person whom, by law or by
court order or decree, the payee is legally obligated
(D) "Discounted present value" means the
fair present value of the future payments under a structured
settlement that is determined by discounting those payments
to the present, using the most recently published applicable
federal rate for determining the present value of an
annuity as issued by the United States internal revenue
(E) "Independent professional advice" means
the advice of an attorney, a certified public accountant,
an actuary, or any other licensed professional adviser
if all of the following apply:
(1) The payee has engaged the services of the licensed
professional adviser to render advice concerning the
legal and other implications of a transfer of structured
settlement payment rights.
(2) The licensed professional adviser has signed
a statement to the effect that the licensed professional
adviser rendered advice to the payee concerning the
legal and other implications of a transfer of structured
settlement payment rights.
(3) The licensed professional adviser is not affiliated
in any manner with, referred by, or compensated in
any manner by the transferee of the structured settlement
(4) The compensation of the licensed professional
adviser is not affected by whether or not a transfer
of structured settlement payment rights occurs.
(F) "Interested party" includes the payee
with respect to a structured settlement, the annuity
issuer, the structured settlement agreement obligor,
and any other party that has continuing rights or obligations
under the structured settlement agreement.
(G) "Payee" means an individual who is receiving
periodic payments under a structured settlement agreement
that are excludable from the individual's gross income
under federal income taxation laws applicable to that
individual and who proposes to make a transfer of the
rights to receive those periodic payments.
(H) "Periodic payments" includes both continuing
monthly or other periodic payments and scheduled future
lump-sum payments under a structured settlement.
(I) "Qualified assignment agreement" means
an agreement that provides for a qualified assignment,
as defined in section 130 of the "Internal Revenue
Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 130(c),
as amended, through an assignment of the liability under
a structured settlement agreement to make periodic payments
as damages, on account of personal injury or sickness.
(J) "Responsible administrative authority"
means any government authority of another state vested
by the law of that state with the original exclusive
jurisdiction over the settled claim resolved by a structured
(K) "Settled claim" means the original tort
claim resolved by a structured settlement.
(L) "Structured settlement" means an arrangement
for periodic payments of damages for injury to a person
that is established by a settlement or a court judgment
in resolution of a tort claim.
(M) "Structured settlement agreement" means
an agreement, judgment, stipulation, or release that
embodies the terms of a structured settlement, including
the rights of a payee to receive periodic payments.
(N) "Structured settlement obligor" means
the party that has the obligation to make continuing
periodic payments to the payee under a structured settlement
agreement or a qualified assignment agreement.
(O) "Structured settlement payment rights"
means the rights under a structured settlement agreement
to receive periodic payments from a structured settlement
obligor or an annuity issuer if either of the following
(1) The payee, the structured settlement obligor,
or the annuity issuer with respect to the structured
settlement agreement is a resident of this state.
(2) The structured settlement agreement was approved
by a court in this state.
(P) "Terms of a structured settlement" includes
the terms of a structured settlement agreement, an insurance
contract, a qualified assignment agreement, and any
order or approval by a court, a responsible administrative
authority, or other government authority authorizing
or approving the structured settlement.
(Q) "Transfer" means a sale, assignment,
pledge, hypothecation, or any other form of alienation
or encumbrance of structured settlement payment rights
made by a payee for consideration.
(R) "Transfer agreement" means an agreement
that provides for the transfer of structured settlement
payment rights from a payee to a transferee.
(S) "Transferee" means a party acquiring
or proposing to acquire structured settlement payment
rights through a transfer of those rights.
2323.581 REQUIREMENTS FOR DIRECT OR INDIRECT TRANSFER
OF PAYMENT RIGHTS
No direct or indirect transfer of structured settlement
payment rights shall be effective, and no structured
settlement obligor or annuity issuer shall be required
to make any payment directly or indirectly to a transferee
of structured settlement payment rights, unless the
transferee has provided the payee and other interested
parties with the disclosures required by section 2323.582
of the Revised Code and the transfer has been approved
in advance in a final order of a court of competent
jurisdiction in accordance with sections 2323.583 and
2323.584 of the Revised Code.
2323.582 DISCLOSURE STATEMENT
Not less than ten days prior to the date on which
a payee becomes obligated under a transfer agreement,
the transferee shall provide to the payee a disclosure
statement, in boldface type of the minimum size of fourteen
points, setting forth all of the following:
(A) The amounts and due dates of the structured settlement
payments that would be transferred under the transfer
(B) The aggregate amount of the payments described
in division (A) of thissection;
(C) The discounted present value of the payments described
in division (A) of this section and the amount of the
applicable federal rate used in determining the discounted
(D) The gross amount payable to the payee in exchange
for or as consideration for the transfer of the structured
settlement payments described in division (A) of this
(E) An itemized listing of all brokers' commissions,
service charges, application fees, processing fees,
closing costs, filing fees, administrative fees, legal
fees, notary fees, and other commissions, fees, costs,
expenses, and charges payable by the payee or deductible
from the gross amount otherwise payable to the payee
as described in division (D) of this section;
(F) The net amount payable to the payee after deduction
from the gross amount payable to the payee as described
in division (D) of this section of all commissions,
fees, costs, expenses, and charges described in division
(E) of this section;
(G) The quotient, expressed as a percentage, obtained
by dividing the net amount payable to the payee as described
in division (F) of this section by the discounted present
value of the payments described in division (C) of this
(H) The amount of any penalty and the aggregate amount
of any liquidated damages, including penalties, payable
by the payee in the event of any breach of the transfer
agreement by the payee.
2323.583 EXPRESS FINDINGS
A court of competent jurisdiction may approve a transfer
of structured settlement payment rights only in a final
order that is based on the express findings of the court,
and the express findings shall include all of the following:
(A) The transferee has provided to the payee a disclosure
statement that complies with section 2323.582 of the
Revised Code, and the payee has confirmed the payee's
receipt of the disclosure statement, as evidenced by
the payee's notarized signature on a copy of the disclosure
(B)(1) Except as provided in division (B)(2) of this
section, the payee has established that the transfer
is fair and reasonable and in the best interests of
the payee and the payee's dependents.
(2) If, on the effective date of the transfer agreement,
a federal hardship standard exists, the payee has established
that the transfer meets that hardship standard.
(C) The payee has received independent professional
advice regarding the legal and other implications of
(D) If the transfer contravenes the terms of the structured
settlement involved, all of the following have been
(1) Each dependent whom the payee is legally obligated
to support by court order or decree, in a written
approval and waiver, approves the transfer and waives
the right to require that the structured settlement
payments be made to the payee in accordance with the
terms of the structured settlement.
(2) Any court or responsible administrative authority
that previously approved the structured settlement,
other than the court from which the approval of the
transfer is sought under sections 2323.58 to 2323.585
of the Revised Code, has expressly approved the transfer
(3) The transferee has provided to the court in
which the application for approval of the transfer
was filed all of the signed original copies of the
approvals required under divisions (D)(1) and (2)
of this section.
(4) The transferee has furnished each interested
party copies of the approvals required under divisions
(D)(1) and (2) of this section.
(E) The transferee has given written notice of the
transferee's name, address, and taxpayer identification
number to the annuity issuer and the structured settlement
obligor and has filed a copy of that notice with the
court in which the application for approval of the transfer
(F) The transfer complies with all of the requirements
of sections 2323.58 to 2323.585 of the Revised Code
and does not contravene any applicable law.
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