Structured settlement payment transfers, requirements
When someone wants to sell their structured settlement payments to another person or company, a court has to approve it first. The court checks several things before saying yes: the deal follows the law, the seller got clear written information about the deal at least 10 days before signing, the deal is in the best interest of the seller and their family, the seller agreed in writing, the seller had a lawyer or understood what they were agreeing to, and the seller is getting a fair price for their payments.
407.1062. payment s, requirements. — No transfer of shall be effective and no or shall be required to make any payment directly or indirectly to any of any transfer of structured settlement payment rights unless the transfer has been approved in advance in an of a , based on the court's express findings that:
(1) The transfer complies with the requirements of sections 407.1060 to 407.1068 and does not contravene other applicable law;
(2) Not less than ten days prior to the date on which the entered into the , the transferee has provided to the payee a disclosure statement in bold type, no smaller than fourteen point, setting forth:
(a) The amounts and due dates of the structured settlement payments to be transferred;
(b) The of the payments;
(c) The of the payments, together with the or rates used in determining the discounted present value;
(d) The gross amount payable to the payee in exchange for the payments; and
(e) An itemized listing of all brokers' , charges, or processing fees, closing costs, or charges, legal fees, fees and other commissions, fees, costs, expenses and charges payable by the payee or from the gross amount otherwise payable to the payee;
(3) The transfer is in the best interest of the payee and the payee's ;
(4) The transferee has given written notice of the transferee's name, address and to all and has filed a copy of the notice with the court;
(5) The payee has consented in writing to the transfer;
(6) The payee has been represented by in connection with the transfer or the payee understands the nature of the transaction and the economic consequences of the transaction; and
(7) The payment to be made to the payee by the transferee is equal to the of the structured settlement rights being transferred.
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Source & history notes
(L. 1999 S.B. 1, et al. § 4)
Legal information, not legal advice. Always confirm with the official source at revisor.mo.gov.