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New York Structured Settlement Protection Statutes By Jason Rigler-23196 Major Provisions Of New York Protection Statutes
The major provisions of the New York protection statutes were adopted so as to make selling payments in New York fairer to the seller. The state accepts the practice of selling payments as a viable financial management and cash-access tool, but it recognized the need to protect sellers so that it remained a tool of use for the buyer and not one for dishonest buyers to use to only their advantage. With the law behind them, sellers can now be assured that their interests have been accounted for in the transaction.
Major Provisions in New Your Law
There are two major provisions of interest to sellers of structured settlements in New York. They are
• Disclosure
• Approval
Buyer Disclosure In New York Sales And Transfers
One of the most important things the New York transfer protection law does is require buyers to be open with the terms of the sale through full disclosure. The law requires that a written statement be provided to the seller before the seller can be obligated via contract to the sale. The disclosure must come at least ten days before the seller signs the contract for the sale and transfer of payments. It must include
• The amount of payments
being paid to buyer
• The dates and number of payments to be made to buyer
• The present value (discounted value) of payments to buyer
• The gross and net amount of the payment to the seller (before and after fees, etc, are paid)
• The discount rate used in determining purchase values
• Any penalty amount that could be charged to the seller if they breach contract
• Comparable values of annuity purchases from the obligor (annuity fund) or an equivalent
• The right to cancel the contract within three days of signing
Court Approval In NY Sales And Transfers
The court will look to see that all of the above disclosures were made as required and that the purchases are in the best interest of the seller. It will also require an application and package of supporting documents from the seller. When all of this is received the court will rule on approval. Once approval is granted the transfer can move forward and payment can be made to the seller.
Court approval is not a vote of no confidence in the process or act of selling payments; it is nothing more than a security blanket for the seller. This is a law designed to keep selling and transferring NY payments on a level ground, and to retain the integrity of the practice for the benefit of payment holders.
Prosperity Partners provides resources for structured settlement recipients and their attorneys regarding the structured settlement laws and procedures for accelerating the payout of future payments to address immediate financial needs.
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