Browsed by
Tag: “Texas structured settlement”

What Steps Should Factoring Companies Take to Ensure Non-Contravention Of Court Orders?

What Steps Should Factoring Companies Take to Ensure Non-Contravention Of Court Orders?

Forty-nine states have structured settlement protection acts – laws that say that if a person who is entitled to receive future structured settlement payments wants to sell the right to those payments to a factoring company in exchange for a more immediate (but lower) payment, then the transaction is not legally effective unless a court approves the deal. These SSPAs generally provide that a court can approve a transaction only where the court can find that such a transaction is…

Read More Read More

Texas Amends Structured Settlement Protection Act To Allow Redaction of Payee Names, Other Information

Texas Amends Structured Settlement Protection Act To Allow Redaction of Payee Names, Other Information

The Texas Structured Settlement Protection Act has been amended, and the new provisions are unique about the 49 state SSPAs. Each SSPA provides that an individual payee – the person entitled to receive future payments pursuant to the terms of a structured settlement – can only sell the future payment rights to a purchasing company (usually called a factoring company) when and if a judge reviews the transaction and approves the sale based on a determination that the transfer is in…

Read More Read More

Appeals Court in Texas – In Line with Appellate Rulings in Other States – Upholds Anti-Assignment Provision to Preclude Secondary Market Transaction

Appeals Court in Texas – In Line with Appellate Rulings in Other States – Upholds Anti-Assignment Provision to Preclude Secondary Market Transaction

An anti-assignment provision in a structured settlement agreement is valid and enforceable and precludes a proposed transfer of structured settlement payment rights, in a case where the annuity issuer and structured settlement obligor have asserted their rights under the provision. That was the holding in an opinion issued last week by a panel of the Texas Court of Appeals. The holding is consistent with appellate court rulings in state structured settlement protection act proceedings a number of other states, including California,…

Read More Read More