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Tag: “Illinois Structured Settlement Protection” “Illinois SSPA” “structured settlement factoring”

Kentucky Supreme Court Joins Other State Appeals Courts In Enforcing Contractual Anti-Assignment Provisions In Structured Settlements

Kentucky Supreme Court Joins Other State Appeals Courts In Enforcing Contractual Anti-Assignment Provisions In Structured Settlements

As discussed here, the Kentucky Supreme Court recently held that that state’s structured settlement protection act does not apply to workers’ compensation settlements. In reversing an opinion of an intermediate appellate court, the Kentucky Supreme Court in American Gen. Life Ins. Co. v. DRB Capital, LLC, 2017-SC-000329-DG, 2018 Ky. LEXIS 535 (Ky. Dec. 13, 2018), also extensively discussed anti-assignment provisions in structured settlements.  In concluding that the anti-assignment clauses in the structured settlement agreement, qualified assignment agreement, and annuity contract were…

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Newly-Revised Illinois Structured Settlement Protection Act Also Includes Express Notice, Payee Information Provisions

Newly-Revised Illinois Structured Settlement Protection Act Also Includes Express Notice, Payee Information Provisions

The newly-revised Illinois Structured Settlement Protection Act contains provisions that are aimed at ending forum-shopping, that address contractual anti-assignment provisions, that require some information about prior transfers be provided to the reviewing court, and that require disclosure of the equivalent interest rate that is being charged.  (See posts here, here, here, here, here, here and here for more about those provisions and other aspects of the revised Illinois SSPA.) Other new parts of the revised Illinois SSPA include an express notice requirement…

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Revised Illinois Structured Settlement Protection Act Recognizes Contractual Anti-Assignment Provisions May Be Waived, Or Not

Revised Illinois Structured Settlement Protection Act Recognizes Contractual Anti-Assignment Provisions May Be Waived, Or Not

Some important provisions of the Illinois Structured Settlement Protection Act deal with contractual anti-assignment provisions, addressing some issues that arose following a 2013 Illinois appellate court opinion. The opinion, Settlement Funding, LLC v. Brenston, 998 N.E.2d 111 (Ill. App. Ct. 2013), said that the trial court that approved certain structured settlement factoring transactions was without authority to approve those transfers of settlement payments because the Illinois Structured Settlement Protection Act did not apply when the settlement agreement contained an enforceable…

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Illinois Joins List of States Whose Statutes Expressly Require Information About Prior Structured Settlement Factoring Transactions

Illinois Joins List of States Whose Statutes Expressly Require Information About Prior Structured Settlement Factoring Transactions

The new Illinois Structured Settlement Protection Act became which law last week (as described in posts here, here, and here) includes provisions requiring that the court reviewing the proposed transfer of structured settlement payment rights be provided with information about certain prior transfers or proposed transfers. In particular, the revised Illinois SSPA provides that a factoring company must provide the reviewing court with a summary of any prior transfers with the transferee or an affiliate, where such transfers were within…

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Illinois Disclosure Statements Must Include The Effective Interest Rate For Structured Settlement Factoring Transactions

Illinois Disclosure Statements Must Include The Effective Interest Rate For Structured Settlement Factoring Transactions

The new Illinois Structured Settlement Protection Act became law last week, as described in this post. The SSPA has a new provision expressly requiring the payee’s personal appearance at the hearing on a proposed transfer (as described here). Another new provision concerns the disclosure statement, and the added requirement that the transferee/factoring company must now disclose the “effective annual interest rate” and must do so in the following language: “Based on the net amount that you will receive from us…

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Payee Personal Appearance Requirement in Illinois – Similar To Mandatory Appearance Requirements In Other States – Underlines Need For Court To Have Sufficient Evidence For Important Fact–Finding

Payee Personal Appearance Requirement in Illinois – Similar To Mandatory Appearance Requirements In Other States – Underlines Need For Court To Have Sufficient Evidence For Important Fact–Finding

The new Illinois Structured Settlement Protection Act became law this week, as described in this post. Among its requirements is a new section expressly stating that “a hearing shall be held” on the request for judicial approval of the proposed sale of structured settlement payment rights, and further providing that the payee who is considering selling their payments must be present at the hearing. The requirement for the payee’s personal appearance provides that “[t]he payee shall appear in person at…

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Illinois – the First State To Enact Structured Settlement Protection Law – Revises Statutory Settlement Protections, Seeks to End Forum-Shopping

Illinois – the First State To Enact Structured Settlement Protection Law – Revises Statutory Settlement Protections, Seeks to End Forum-Shopping

Illinois Governor Bruce Rauner yesterday signed into law Illinois Senate Bill 1268, which revised the Illinois Structured Settlement Protection Act in a number of ways. Illinois in 1998 was the first state to enact a statute requiring court oversight of structured settlement factoring transactions, whereby individuals entitled to receive payments in the future would sell the rights to receive payments to “factoring” companies. The amended statute, which takes effect immediately, is aimed at eliminating forum-shopping by factoring companies within Illinois,…

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