§ 28A-103 — Required disclosures to payee.

District of Columbia § 28A-103

• Jurisdiction: District of Columbia
• Title 28A: Other Consumer Protections.
• Ch. 1: Structured Settlements Protection.
• Subch. I: General.

Text

Not fewer than 10 days before the date on which the payee signs a transfer agreement, the transferee shall provide to the payee a separate disclosure statement, in bold type no smaller than 14 points, setting forth:

(1) The amounts and due dates of the structured settlement payments to .be transferred;

(2) The aggregate amount of such payments;

(3) The discounted present value of the payments to be transferred, which shall be identified as the "calculation of the current value of the transferred structured settlement payments under federal standards for valuing annuities", and the amount of the applicable federal rate used in calculating the discounted present value;

(4) The gross advance amount;

(5) An itemized listing of all applicable transfer expenses, other than attorney's fees and related disbursements payable in connection with the transferee's application for approval of the transfer, and the transferee's best estimate of the amount of any such fees and disbursements;

(6) The net advance amount;

(7) The effective annual interest rate, which shall be disclosed in a statement in the following form: "On the basis of the net amount that you will receive from us and the amounts and timing of the structured settlement payments that you are transferring to us, you will, in effect, be paying interest to us at a rate of ______ percent per year";

(8) The amount of any penalties or liquidated damages payable by the payee in the event of a breach of the transfer agreement by the payee;

(9) That the payee has the right to cancel the transfer agreement, without penalty or further obligation, at any time before entry of a final court order approving the transfer;

(10) That the purchase price offered by the transferee to the payee in return for the transfer of structured settlement payment rights is negotiable, that the payee may ask the transferee to pay an amount greater than the offered amount, and that the payee may request competing quotes from other potential transferees; and

(11) That the payee has the right to seek and receive independent professional advice regarding the proposed transfer and should consider doing so before agreeing to transfer any structured settlement payment rights.