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Tag: “Ohio SSPA” “Ohio Structured Settlement Protection” “structured settlement protection” “structured settlement factoring”

Reardon Scanlon’s Partner Pointed Out, and Judge Agreed: No Independent Professional Advice Where Factoring Company Referred – and Was Going To Pay – Adviser

Reardon Scanlon’s Partner Pointed Out, and Judge Agreed: No Independent Professional Advice Where Factoring Company Referred – and Was Going To Pay – Adviser

As discussed in several recent Secondary Insurance Market Blog posts (here, here, here, and here), “independent professional advice” can be an important concept in the statutory scheme established by structured settlement protection acts for regulation of transfers of future structured settlement payments. While most of the 49 state SSPAs provide that a payee may waive the right to receive such advice, there are some state SSPAs that do not allow for waiver, and instead require that a payee receive such advice…

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Advice From Relatives Is Not ‘Independent Professional Advice’ About A Proposed Transfer Of Settlement Payments

Advice From Relatives Is Not ‘Independent Professional Advice’ About A Proposed Transfer Of Settlement Payments

Some state structured settlement protection acts provide that, for a court to approve a transfer and give legal effectiveness to a transaction, the payee must first receive independent professional advice from a lawyer, accountant, or other professional. The Ohio Structured Settlement Protection Act, before it was revised last year, was one such statute.  One Ohio court had to face the question of whether advice from relatives constituted “independent professional advice” under the Ohio SSPA.  Unsurprisingly, the court rejected that idea,…

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Ohio Revises Structured Settlement Protection Act, Adding Interest Rate Disclosure and Payee Appearance Requirements

Ohio Revises Structured Settlement Protection Act, Adding Interest Rate Disclosure and Payee Appearance Requirements

Ohio Governor John Kasich last week signed into law a bill revising the Ohio Structured Settlement Protection Act, making some fairly extensive revisions that include eliminating the requirement that a payee receive independent professional advice,  doing away with the express mandate that the court that created the structured settlement also approve the transfer, and adding a requirement that the payee must personally appear at the hearing on the transfer. This is the first revision to the Ohio SSPA since it was…

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In Structured Settlement Factoring Proceedings, Ohio Court Rule Requires Same Level of Financial Information As Required in Bankruptcy Matters

In Structured Settlement Factoring Proceedings, Ohio Court Rule Requires Same Level of Financial Information As Required in Bankruptcy Matters

The Probate Division of the Warren County, Ohio, Common Pleas Court has a set of rules that govern proceedings before the court’s judges.  The rules address case management, fees, bonds, and a lot of other issues.  There are also rules for approval of actions by structured settlements.  And there are rules that govern proposed transfers of structured settlement payment rights under the Ohio Structured Settlement Protection Act.  The Ohio SSPA provides that a sale of payment rights is not effective…

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Security Interest Transfers Usually Fall Within The Scope Of Structured Settlement Protection Act Provisions

Security Interest Transfers Usually Fall Within The Scope Of Structured Settlement Protection Act Provisions

As described here, a recent opinion from a federal magistrate judge in Ohio considered whether the Ohio Structured Settlement Protection Act applied to a transfer of both a security interest and the right to collect payments pledged as collateral. Because the transfer of the right to collect the payment was, as well as the transfer of the security interest, were agreed to prior to the effective date of the Ohio SSPA, the SSPA did not apply in that case, the…

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Federal Magistrate: Terms Of Pre-Structured Settlement Protection Act Transaction Gave Factoring Company Right To Collect Payment

Federal Magistrate: Terms Of Pre-Structured Settlement Protection Act Transaction Gave Factoring Company Right To Collect Payment

A loan agreement whereby a payee agreed to give a factoring company a security interest in her structured settlement payments also gave the company the right to collect the payments in the event of a default on the loan – and since the loan agreement pre-dated the statute governing such transactions, the right to enforcement of the agreement via collection of the payments also pre-dated the statute. So concluded a federal magistrate judge, in reviewing the issue of whether enforcement of…

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