§ 26-57-1309 — Assignment of funds placed into escrow

(a) (1) Notwithstanding the provisions of § 26-57-261 , a tobacco product manufacturer that elects to place funds into escrow may make an irrevocable assignment of its interest in the funds to the benefit of the state. (2) The assignment shall be permanent and shall apply to all funds in the subject escrow account at the time of assignment or that may subsequently come into such account, including those deposited into the escrow account prior to the assignment's being executed, those deposited into the escrow account after the assignment is executed, and interest or other appreciation on such funds. (3) Any interest or other appreciation withdrawn from the subject escrow account before the time of assignment shall not be a part of the assignment. (4) The tobacco product manufacturer, the Attorney General, and the financial institution where the escrow account is maintained shall make such amendments to the qualified escrow account agreement, title to the account, and the account itself as may be necessary to effectuate an irrevocable assignment of rights executed under this section or a withdrawal or payment of funds from the escrow account under § 26-57-261 . (5) An assignment of rights executed under this section shall be in writing, signed by a duly authorized representative of the tobacco product manufacturer making the assignment, and shall become effective upon delivery of the assignment to the Attorney General and the financial institution where the escrow account is maintained. (b) (1) Any escrow funds assigned to the state under this section shall be available to be withdrawn by the state upon approval of the Attorney General. (2) Any funds withdrawn under subdivision (b)(1) of this section shall be deposited into the Tobacco Settlement Cash Holding Fund under § 19-12-104 and shall be calculated on a dollar-for-dollar basis as a credit against any judgment or settlement in favor of the state as part of the Master Settlement Agreement under § 26-57-261 against the tobacco product manufacturer that has assigned the funds in the subject escrow account. (c) This section does not relieve a tobacco product manufacturer from any past, current, or future obligations that the tobacco product manufacturer may have under this subchapter.

Legislative History

Added by Act 2021, No. 929,§ 9, eff. 7/28/2021.