Browsed by
Tag: “factoring company”

What If A Factoring Company Tries To Buy Payments That Don’t Exist? Court Dismisses Petition By Factoring Company

What If A Factoring Company Tries To Buy Payments That Don’t Exist? Court Dismisses Petition By Factoring Company

A structured settlement factoring company filed a petition for approval of a transfer of the right to receive future structured settlement payments.  The petition alleged that the proposed transfer from the payee to the factoring company would meet the requirements of the New York Structured Settlement Protection Act, which provides that such transactions are not legally effective unless and until a court approves the transfer based on a finding that the transfer meets the requirements of the New York SSPA….

Read More Read More

No Interest In Annuity, So Nothing To Assign

No Interest In Annuity, So Nothing To Assign

Under structured settlement protection acts, a transfer of an individual payee’s right to receive structured settlement payments becomes legally effective only when and if a court approves the transfer. Those forty-eight states with structured settlement protection acts recognize, in those statutes, that the property being transferred by such court approval is the right to receive payments under the structured settlement agreement – and not under the annuity that is the asset that typically funds the payments. That recognition items from…

Read More Read More

Court, In Denying Request For Transfer Approval, Says Purpose Of New York Structured Settlement Protection Act Is To Discourage Factoring Transactions

Court, In Denying Request For Transfer Approval, Says Purpose Of New York Structured Settlement Protection Act Is To Discourage Factoring Transactions

The New York Structured Settlement Protection Act (SSPA) provides that a sale or loan of structured settlement payments is not effective unless a court approves the transfer, based on a finding that the transfer is in the payee’s best interest and that the other provisions of the statute have been complied with. It’s one of four-dozen SSPAs, as forty-eight states have such statutes regulating transfers of structured settlement payment rights. A number of courts have opined on the purpose of…

Read More Read More