Colonial pays cash for structured settlements!

Oregon statues regarding Structured Settlements.

This state statute overseeing the sale of structured settlement payments and the buying of annuities is not the Model Act but complies with Federal Law
(Colonial's interpretation)

STATUTE TAKES EFFECT JANUARY 1, 2006

Oregon S.B. 645

Enacted - June 7, 2005


 

AN ACT Relating to transfers of structured settlement rights.

Be It Enacted by the People of the State of Oregon:

SECTION 1. AS USED IN SECTIONS 1 TO 6 OF THIS 2005 ACT: (1) 'ANNUITY ISSUER' MEANS AN INSURER THAT HAS ENTERED INTO A CONTRACT TO FUND PERIODIC PAYMENTS UNDER A STRUCTURED SETTLEMENT AGREEMENT.

(2) 'OBLIGOR' MEANS A PARTY THAT HAS A CONTINUING OBLIGATION TO MAKE PERIODIC PAYMENTS TO A PAYEE UNDER A STRUCTURED SETTLEMENT AGREEMENT OR AN AGREEMENT THAT PROVIDES FOR A QUALIFIED ASSIGNMENT AS DEFINED IN SECTION 130 OF THE INTERNAL REVENUE CODE, AS OF JANUARY 1, 2006.

(3) 'PAYEE' MEANS AN INDIVIDUAL WHO IS RECEIVING TAX-FREE PAYMENTS UNDER A STRUCTURED SETTLEMENT AGREEMENT AND PROPOSES TO MAKE A TRANSFER OF PAYMENT RIGHTS.

(4) 'PAYMENT RIGHTS' MEANS RIGHTS TO RECEIVE PERIODIC PAYMENTS UNDER A STRUCTURED SETTLEMENT AGREEMENT, WHETHER FROM THE OBLIGOR OR THE ANNUITY ISSUER.

(5) 'PERIODIC PAYMENTS' INCLUDES BOTH RECURRING PAYMENTS AND SCHEDULED FUTURE LUMP SUM PAYMENTS.

(6) 'RESPONSIBLE ADMINISTRATIVE AUTHORITY 1 MEANS A GOVERNMENT AUTHORITY VESTED BY LAW WITH EXCLUSIVE JURISDICTION OVER THE ORIGINAL TORT CLAIM OR WORKERS' COMPENSATION CLAIM THAT WAS RESOLVED IN A STRUCTURED SETTLEMENT AGREEMENT.

(7) 'STRUCTURED SETTLEMENT AGREEMENT' MEANS AN AGREEMENT, JUDGMENT, STIPULATION OR RELEASE EMBODYING THE TERMS OF AN ARRANGEMENT FOR PERIODIC PAYMENT OF DAMAGES FROM AN OBLIGOR OR AN ANNUITY ISSUER FOR:

(A) PERSONAL INJURIES OR SICKNESS ESTABLISHED BY SETTLEMENT OR JUDGMENT IN RESOLUTION OF A TORT CLAIM; OR

(B) PERIODIC PAYMENTS IN SETTLEMENT OF A WORKERS' COMPENSATION CLAIM.

(8) TERMS OF THE STRUCTURED SETTLEMENT AGREEMENT' INCLUDES THE TERMS OF:
(A) A STRUCTURED SETTLEMENT AGREEMENT;
(B) AN ANNUITY CONTRACT;


(C) AN AGREEMENT THAT PROVIDES FOR A QUALIFIED ASSIGNMENT AS DERNED IN SECTION 130 OF THE INTERNAL REVENUE CODE, AS OF JANUARY 1, 2006; AND

(D) ANY ORDER OR OTHER APPROVAL OF ANY COURT, RESPONSIBLE ADMINISTRATIVE AUTHORITY OR OTHER GOVERNMENT AUTHORITY THAT AUTHORIZED OR APPROVED THE STRUCTURED SETTLEMENT AGREEMENT.

(9) TRANSFER' MEANS ANY SALE, ASSIGNMENT, PLEDGE OR OTHER ALIENATION OR ENCUMBRANCE OF PAYMENT RIGHTS MADE BY A PAYEE FOR CONSIDERATION. TRANSFER-DOES NOT INCLUDE THE CREATION OR PERFECTION OF AN UNSPECIFIED SECURITY INTEREST IN ALL OF THE PAYEE'S PAYMENT RIGHTS ENTERED INTO WITH AN INSURED DEPOSITORY INSTITUTION, OR AN AGENT OR SUCCESSOR IN INTERESTS OF THE INSURED DEPOSITORY INSTITUTION, IN THE ABSENCE OF ANY ACTION TO REDIRECT THE PAYMENTS UNDER THE STRUCTURED SETTLEMENT AGREEMENT TO THE INSURED DEPOSITORY INSTITUTION OR OTHERWISE TO ENFORCE A SECURITY INTEREST AGAINST THE PAYMENT RIGHTS.

(10) TRANSFER AGREEMENT MEANS AN AGREEMENT PROVIDING FOR A TRANSFER OF PAYMENT RIGHTS.

(11) TRANSFEREE 1 MEANS A PARTY ACQUIRING OR PROPOSING TO ACQUIRE PAYMENT RIGHTS THROUGH A TRANSFER AGREEMENT.

SECTION 2. (1) A PAYEE MAY TRANSFER PAYMENT RIGHTS UNDER SECTIONS 1 TO 6 OF THIS 2005 ACT IF:

(A) THE PAYEE IS DOMICILED IN THIS STATE;

(B) THE DOMICILE OR PRINCIPAL PLACE OF BUSINESS OF THE OBLIGOR OR THE ANNUITY ISSUER IS LOCATED IN THIS STATE;

(C) THE STRUCTURED SETTLEMENT AGREEMENT WAS APPROVED BY A COURT OR RESPONSIBLE ADMINISTRATIVE AUTHORITY IN THIS STATE; OR

(D) THE STRUCTURED SETTLEMENT AGREEMENT IS EXPRESSLY GOVERNED BY THE LAWS OF THIS STATE.

(2) PRIOR TO TRANSFERRING PAYMENT RIGHTS UNDER SECTIONS 1 TO 6 OF THIS 2005 ACT, THE TRANSFEREE SHALL FILE AN APPLICATION FOR APPROVAL OF THE TRANSFER IN:

(A) THE COUNTY IN WHICH THE PAYEE RESIDES;

(B) THE COUNTY IN WHICH THE OBLIGOR OR THE ANNUITY ISSUER MAINTAINS ITS PRINCIPAL PLACE OF BUSINESS; OR

(C) ANY COURT OR BEFORE ANY RESPONSIBLE ADMINISTRATIVE AUTHORITY THAT APPROVED THE STRUCTURED SETTLEMENT AGREEMENT.

(3) NOT LESS THAN 20 DAYS PRIOR TO THE SCHEDULED HEARING ON AN APPLICATION FOR APPROVAL OF A TRANSFER OF PAYMENT RIGHTS, THE TRANSFEREE SHALL SEND NOTICE OF THE PROPOSED TRANSFER TO:

(A) THE PAYEE;


(B) ANY BENEFICIARY IRREVOCABLY DESIGNATED UNDER THE ANNUITY CONTRACT TO RECEIVE PAYMENTS FOLLOWING THE PAYEE'S DEATH;

(C) THE ANNUITY ISSUER;

(D) THE OBLIGOR; AND

(E) ANY OTHER PARTY THAT HAS CONTINUING RIGHTS OR OBLIGATIONS UNDER THE STRUCTURED SETTLEMENT AGREEMENT THAT IS THE SUBJECT OF THE HEARING.

(4) THE NOTICE SENT UNDER SUBSECTION (3) OF THIS SECTION SHALL INCLUDE:

(A) A COPY OF THE TRANSFEREE'S APPLICATION.

(B) A COPY OF THE TRANSFER AGREEMENT.

(C) A COPY OF THE DISCLOSURE STATEMENT PROVIDED TO THE PAYEE AS REQUIRED UNDER SECTION 3 OF THIS 2005 ACT.

(D) A LISTING OF EACH PERSON FOR WHOM THE PAYEE IS LEGALLY OBLIGATED TO PROVIDE SUPPORT, INCLUDING THE AGE OF EACH OF THOSE PERSONS.

(E) NOTIFICATION THAT ANY PERSON RECEIVING NOTICE UNDER SUBSECTION (3) OF THIS SECTION 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 15 DAYS AFTER SERVICE OF THE TRANSFEREE'S NOTICE, IN ORDER TO BE CONSIDERED BY THE COURT OR RESPONSIBLE ADMINISTRATIVE AUTHORITY.

SECTION 3. NOT LESS THAN THREE DAYS PRIOR TO THE DAY ON WHICH A PAYEE IS SCHEDULED TO SIGN A TRANSFER AGREEMENT, A TRANSFEREE SHALL PROVIDE THE PAYEE WITH A STATEMENT IN NOT LESS THAN 14-POINT TYPE THAT SETS FORTH:

(1) THE AMOUNTS AND DUE DATES OF THE STRUCTURED SETTLEMENT PAYMENTS TO BE TRANSFERRED.

(2) THE AGGREGATE AMOUNT OF THE PAYMENTS TO BE TRANSFERRED.

(3) THE DISCOUNTED PRESENT VALUE OF THE PAYMENTS AND THE RATE USED IN CALCULATING THE DISCOUNTED PRESENT VALUE. THE DISCOUNTED PRESENT VALUE SHALL BE CALCULATED BY USING THE MOST RECENTLY PUBLISHED APPLICABLE FEDERAL RATE FOR DETERMINING THE PRESENT VALUE OF AN ANNUITY, AS ISSUED BY THE INTERNAL REVENUE SERVICE.

(4) THE AMOUNT PAYABLE TO A PAYEE AS THE RESULT OF A TRANSFER. THE AMOUNT SET FORTH IN THIS SUBSECTION SHALL BE CALCULATED BEFORE ANY REDUCTIONS ARE MADE FOR TRANSFER EXPENSES REQUIRED TO BE LISTED UNDER SUBSECTION (5) OF THIS SECTION OR ANY RELATED DISBURSEMENTS.

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