(a)A person or entity shall not act as a transferee, attempt to acquire structured settlement payment rights through a transfer from a payee who resides in this state, or file a structured settlement transfer proceeding in this state unless the person or entity has registered with the Secretary of State to do business in this state.
(b)(1) An applicant's initial registration application shall be submitted on a form prescribed by the Secretary of State, and shall include a sworn certification by an owner, officer, director, or manager of the applicant, if the applicant is an entity, or by the individual applicant if the applicant is an individual, certifying that the applicant has secured a surety bond, or has been issued a letter of credit, or has posted a cash bond in the amount of $50,
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(a) A person or entity shall not act as a transferee, attempt to acquire structured settlement payment rights through a transfer from a payee who resides in this state, or file a structured settlement transfer proceeding in this state unless the person or entity has registered with the Secretary of State to do business in this state. (b) (1) An applicant's initial registration application shall be submitted on a form prescribed by the Secretary of State, and shall include a sworn certification by an owner, officer, director, or manager of the applicant, if the applicant is an entity, or by the individual applicant if the applicant is an individual, certifying that the applicant has secured a surety bond, or has been issued a letter of credit, or has posted a cash bond in the amount of $50,000.00, relative to its business as a structured settlement purchase company in this state. The surety bond or letter of credit is intended to protect payees who do business with a structured settlement purchase company. (2) The bond shall be payable to the State of Georgia. (3) The bond, letter of credit, or cash bond shall be effective concurrently with the applicant's registration with the Secretary of State and shall remain in effect for not less than three years after expiration or termination of that registration. The bond, letter of credit, or cash bond shall be renewed each year when the registration of the applicant is renewed. (4) The applicant shall submit to the Secretary of State a copy of the bond, letter of credit, or cash bond with its registration or renewal application. (5) The bond, letter of credit, or cash bond is intended to ensure that the structured settlement purchase company will comply with the provisions of this article relative to the payee and perform its obligations to the payee under this article, and to provide a source for recovery for the payee should a payee recover a judgment against a structured settlement purchase company for a violation of this article. (6) The Secretary of State shall be authorized to set and charge a fee to offset the costs of processing and maintaining the registration required by this Code section. (c) Within ten days after a judgment is secured against a structured settlement purchase company by a payee, the structured settlement purchase company shall file a notice with the Secretary of State and the surety providing a copy of the judgment and the name and address of the judgment creditor, and include the status of the matter, including whether the judgment will be appealed, or has been paid or satisfied. (d) The liability of the surety under the bond shall not be affected by any breach of contract, breach of warranty, failure to pay a premium or other act or omission of the bonded structured settlement purchase company, or by any insolvency or bankruptcy of the structured settlement purchase company. (e) Neither the bonded structured settlement purchase company nor the surety shall cancel or modify the bond during the term for which it is issued, except with written notice to the Secretary of State at least 20 days prior to the effective date of such cancellation or modification. (f) In the event of a cancellation of the bond, the registration of the structured settlement purchase company shall automatically expire unless a new surety bond, letter of credit, or cash bond, which complies with this Code section, is filed with the Secretary of State. The cancellation or modification of a bond shall not affect any liability of the bonded surety company incurred before the cancellation or modification of the bond. (g) The applicant shall comply with all of the provisions of this article when acting as a structured settlement purchase company and filing structured settlement transfer proceedings in this state. (h) An assignee shall not be required to register as a structured settlement purchase company in order to acquire structured settlement payment rights or to take a security interest in structured settlement payment rights that were transferred by the payee to a structured settlement purchase company. (i) An employee of a structured settlement purchase company, if acting on behalf of the employer structured settlement purchase company in connection with a transfer, is not required to be registered. (j) A registered structured settlement purchase company shall renew its registration annually, on or before the renewal date, and provide the certifications set forth in this Code section.