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
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(5) AN ITEMIZED LISTING OF ALL APPLICABLE TRANSFER EXPENSES AND THE TRANSFEREE'S BEST ESTIMATE OF THE AMOUNT OF ANY ATTORNEY FEES AND DISBURSEMENTS. FOR THE PURPOSES OF THIS SUBSECTION,' TRANSFER EXPENSES':

(A) INCLUDES ALL EXPENSES OF A TRANSFER THAT ARE REQUIRED UNDER THE TRANSFER AGREEMENT TO BE PAID BY THE PAYEE OR DEDUCTED FROM THE AMOUNT PAYABLE TO A PAYEE AS THE RESULT OF A TRANSFER.

(B) DOES NOT INCLUDE ATTORNEY FEES AND RELATED DISBURSEMENTS PAYABLE IN CONNECTION WITH THE TRANSFEREE'S APPLICATION FOR APPROVAL OF THE TRANSFER OR PREEXISTING OBLIGATIONS OF THE PAYEE PAYABLE FOR THE PAYEE'S ACCOUNT FROM THE PROCEEDS OF A TRANSFER.

(6) THE AMOUNT CALCULATED BY SUBTRACTING THE AGGREGATE AMOUNT OF THE ACTUAL AND ESTIMATED TRANSFER EXPENSES REQUIRED TO BE LISTED UNDER SUBSECTION (5) OF THIS SECTION FROM THE AMOUNT IDENTIFIED IN SUBSECTION (4) OF THIS SECTION.

(7) THE AMOUNT OF ANY PENALTIES OR LIQUIDATED DAMAGES PAYABLE BY THE PAYEE IN THE EVENT OF A BREACH OF THE TRANSFER AGREEMENT BY THE PAYEE.

(8) A STATEMENT THAT THE PAYEE HAS THE RIGHT TO CANCEL THE TRANSFER AGREEMENT, WITHOUT PENALTY OR FURTHER OBLIGATION, NOT LATER THAN THE THIRD BUSINESS DAY AFTER THE DATE THE AGREEMENT IS SIGNED BY THE PAYEE.

SECTION 4. A TRANSFER OF PAYMENT RIGHTS UNDER SECTIONS 1 TO 6 OF THIS 2005 ACT IS NOT EFFECTIVE AND AN OBLIGOR OR ANNUITY ISSUER IS NOT REQUIRED TO MAKE ANY PAYMENTS DIRECTLY OR INDIRECTLY TO A TRANSFEREE 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 THE COURT OR AUTHORITY THAT:

(1) THE TRANSFER IS IN THE BEST INTEREST OF THE PAYEE, TAKING INTO ACCOUNT THE WELFARE AND SUPPORT OF ALL PERSONS FOR WHOM THE PAYEE IS LEGALLY OBLIGATED TO PROVIDE SUPPORT.

(2) THE PAYEE HAS BEEN ADVISED IN WRITING BY THE TRANSFEREE TO SEEK ADVICE FROM AN ATTORNEY, CERTIFIED PUBLIC ACCOUNTANT, ACTUARY OR OTHER LICENSED PROFESSIONAL ADVISER REGARDING THE TRANSFER, AND THE PAYEE HAS EITHER RECEIVED THE ADVICE OR KNOWINGLY WAIVED ADVICE IN WRITING.

(3) THE TRANSFER DOES NOT CONTRAVENE ANY APPLICABLE STATUTE OR ORDER OF ANY COURT OR OTHER GOVERNMENT AUTHORITY.

SECTION 5. FOLLOWING A TRANSFER OF PAYMENT RIGHTS UNDER SECTIONS 1 TO 6 OF THIS 2005 ACT:

(1) THE OBLIGOR AND THE ANNUITY ISSUER SHALL, AS TO ALL PARTIES EXCEPT THE TRANSFEREE, BE DISCHARGED AND RELEASED FROM ALL LIABILITY FOR THE TRANSFERRED PAYMENTS.

(2) THE TRANSFEREE SHALL BE LIABLE TO THE OBLIGOR AND THE ANNUITY ISSUER:

(A) IF THE TRANSFER CONTRAVENES THE TERMS OF THE STRUCTURED SETTLEMENT AGREEMENT, FOR ANY TAXES INCURRED BY THE PARTIES AS A CONSEQUENCE OF THE TRANSFER; AND

(B) FOR ANY OTHER LIABILITIES OR COSTS, INCLUDING REASONABLE COSTS AND ATTORNEY FEES, ARISING FROM COMPLIANCE BY THE PARTIES WITH THE ORDER OF THE COURT OR RESPONSIBLE ADMINISTRATIVE AUTHORITY OR ARISING AS A CONSEQUENCE OF THE TRANSFEREE'S FAILURE TO COMPLY WITH SECTIONS 1 TO 6 OF THIS 2005 ACT.

(3) AN ANNUITY ISSUER OR AN OBLIGOR MAY NOT BE REQUIRED TO DIVIDE ANY PERIODIC PAYMENTS BETWEEN THE PAYEE AND ANY TRANSFEREE OR ASSIGNEE OR BETWEEN TWO OR MORE TRANSFEREES OR ASSIGNEES.

(4) ANY FURTHER TRANSFER OF PAYMENT RIGHTS BY THE PAYEE MAY BE MADE ONLY AFTER COMPLIANCE WITH ALL OF THE REQUIREMENTS OF SECTIONS 1 TO 6 OF THIS 2005 ACT.

SECTION 6. (1) THE PROVISIONS OF SECTIONS 1 TO 6 OF THIS 2005 ACT MAY NOT BE WAIVED BY ANY PAYEE.

(2) A TRANSFER AGREEMENT ENTERED INTO ON OR AFTER THE EFFECTIVE DATE OF THIS 2005 ACT 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 MAY NOT AUTHORIZE THE TRANSFEREE OR ANY OTHER PARTY TO CONFESS JUDGMENT OR CONSENT TO ENTRY TO JUDGMENT AGAINST THE PAYEE.

(3) A TRANSFER OF PAYMENT RIGHTS MAY 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 OBLIGOR FOR:

(A) PERIODICALLY CONFIRMING THE PAYEE'S SURVIVAL.

(B) GIVING THE ANNUITY ISSUER AND THE OBLIGOR PROMPT WRITTEN NOTICE IN THE EVENT OF THE PAYEE'S DEATH.

(4) A PAYEE WHO PROPOSES TO MAKE A TRANSFER OF PAYMENT RIGHTS DOES NOT INCUR ANY PENALTY, FORFEIT ANY APPLICATION FEE OR OTHER PAYMENT, OR OTHERWISE INCUR ANY LIABILITY TO THE PROPOSED TRANSFEREE OR A ASSIGNEE BASED ON ANY FAILURE OF THE TRANSFER TO SATISFY THE CONDITIONS OF SECTIONS 1 TO 6 OF THIS 2005 ACT.

(5) NOTHING IN SECTIONS 1 TO 6 OF THIS 2005 ACT SHALL BE CONSTRUED TO AUTHORIZE A TRANSFER OF PAYMENT RIGHTS IN CONTRAVENTION OF ANY LAW OR TO IMPLY THAT ANY TRANSFER UNDER A TRANSFER AGREEMENT ENTERED INTO PRIOR TO THE EFFECTIVE DATE OF THIS 2005 ACT IS VALID OR INVALID.

(6) COMPLIANCE WITH THE REQUIREMENTS SET FORTH IN SECTION 3 OF THIS 2005 ACT AND FULFILLMENT OF THE CONDITIONS SET FORTH IN SECTION 2 OF THIS 2005 ACT SHALL BE SOLELY THE RESPONSIBILITY OF THE TRANSFEREE IN ANY TRANSFER OF PAYMENT RIGHTS, AND NEITHER THE 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.

SECTION 7. SECTIONS 1 TO 6 OF THIS 2005 ACT APPLY TO TRANSFER AGREEMENTS ENTERED INTO ON OR AFTER THE EFFECTIVE DATE OF THIS 2005 ACT.

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