32-03.4-03. Approval of transfers of structured settlement payment rights.
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A direct or indirect transfer of structured settlement payment rights is not effective and a structured settlement obligor or annuity issuer may not be required to make any payment directly or indirectly to any transferee of structured settlement payment rights unless the transfer has been approved in advance in a final court order based on the following express findings by the court:
1. The transfer is in the best interest of the payee, taking into account the welfare and
support of the payee's dependents and whether the transaction, including the discount
rate used to determine the gross advance amount and the fees and expenses used to
determine the net advance amount, are fair and reasonable. If the court makes the
findings as outlined in this subsection, there is not a requirement for the court to find
that an applicant is suffering from a hardship to approve the transfer of structured
settlement payments under this subsection; 2. The payee has been advised in writing by the transferee to seek independent
professional advice regarding the transfer and has either received that advice or
knowingly waived the advice in writing; and 3. The transfer does not contravene any applicable statute or the order of any court or
other governmental authority.
32-03.4-04. Effects of transfer of structured settlement payment rights. Following a transfer of structured settlement payment rights under this chapter: 1. The structured settlement obligor and the annuity issuer are discharged and released
from all liability for the transferred payments as to all parties except the transferee; 2. The transferee is liable to the structured settlement obligor and the annuity issuer:
a. If the transfer contravenes the terms of the structured settlement, for any taxes
incurred by those parties as a consequence of the transfer; and
b. For any other liabilities or costs, including reasonable costs and attorney's fees,
arising from compliance by those parties with the order of the court or arising as a
consequence of the transferee's failure to comply with this chapter; 3. Neither the annuity issuer nor the structured settlement obligor may be required to
divide any periodic payment between the payee and any transferee or assignee or
between two or more transferees or assignees; and 4. Any further transfer of structured settlement payment rights by the payee may be
made only after compliance with all of the requirements of this chapter.
32-03.4-05. Procedure for approval of transfers. 1. An application for approval of a transfer of structured settlement payment rights under
this chapter must be made by the transferee and may be brought in the county in
which the payee resides, in the county in which the structured settlement obligor or the
annuity issuer maintains its principal place of business, or in any court that approved
the structured settlement agreement. 2. At least twenty days before the scheduled hearing on any application for approval of a
transfer of structured settlement payment rights under section 32-03.4-03, the
transferee shall file with the court and serve on all interested parties a notice of the
proposed transfer and the application for its authorization. The notice must include:
a. A copy of the transferee's application;
b. A copy of the transfer agreement;
c. A copy of the disclosure statement required under section 32-03.4-02;
d. A list of each of the payee's dependents and each dependent's age;
e. Notification that any interested party 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 by participating in the hearing;
f. Notification of the time and place of the hearing; and
g. Notification of the manner in which and the time by which written responses to the
application must be filed in order to be considered by the court, which may be not
less than fifteen days after service of the transferee's notice.
32-03.4-06. No waiver by payee. The requirements of this chapter may not be waived by any payee.