Sec. 10. Required disclosures to payee.

291 words·~1 min read·/il/chapter-215/act-153/10

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Sec. 10. Required disclosures to payee. Not less than 10 days prior to the date on which a payee signs a transfer agreement, the transferee shall provide to the payee a separate disclosure statement, in bold type no smaller than 14 points, setting forth all of the following:

(1)the amounts and due dates of the structured settlement payments to be transferred;

(2)the aggregate amount of the payments;

(3)the discounted present value of the payments to be transferred, which shall be

identified as the "calculation of current value of the transferred structured settlement payments under federal standards for valuing annuities", and the amount of the Applicable Federal Rate used in calculating the discounted present value;

(4)the gross advance amount;

(5)an itemized listing of all applicable transfer expenses, other than attorneys' fees

and related disbursements payable in connection with the transferee's application for approval of the transfer, and the transferee's best estimate of the amount of any such fees and disbursements;

(6)the net advance amount;

(7)the amount of any penalties or liquidated damages payable by the payee in the event

of any 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; and

(9)the effective annual interest rate, which must be disclosed in the following

statement: "Based on the net amount that you will receive from us and the amounts and timing of the structured settlement payments that you are turning over to us, you will, in effect, be paying interest to us at a rate of .... percent per year.".