691.1305 Transfer of structured settlement payment rights; effects.

205 words·~1 min read·/mi/chapter-691/691-1305

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Sec. 5.

A transfer of structured settlement payment rights under this act has all of the following effects:

(a)The structured settlement obligor and the annuity issuer are discharged and released from all liability for the transferred payments as to any person except the transferee.

(b)The transferee is liable to the structured settlement obligor and the annuity issuer for both of the following:

(i)If the transfer contravenes the terms of the structured settlement, the taxes incurred by the structured settlement obligor and the annuity issuer as a consequence of the transfer.

(ii)Other liabilities or costs, including reasonable costs and attorney fees, arising from the structured settlement obligor's and the annuity issuer's compliance with the order of the court or from the transferee's failure to comply with this act.

(c)An annuity issuer or a structured settlement obligor is not required to divide a periodic payment between the payee and a transferee or assignee or between 2 or more transferees or assignees.

(d)A payee may make a further transfer of structured settlement payment rights only after complying with all of the requirements of this act.

History: 2006, Act 296 , Eff. Sept. 1, 2006