§ 5036 — Adjustment of payments

§ 5036. Adjustment of payments. (a) If, at any time after entry of\njudgment, a judgment creditor or successor in interest can establish\nthat the continued payment of the judgment in periodic installments will\nimpose a hardship, the court may, in its discretion, order that the\nremaining payments or a portion thereof shall be made to the judgment\ncreditor in a lump sum. The court shall, before entering such an order,\nfind that: (i) unanticipated and substantial medical, dental or other\nneeds have arisen that warrant the payment of the remaining payments, or\na portion thereof, in a lump sum; (ii) ordering such a lump sum payment\nwould not impose an unreasonable financial burden on the judgment debtor\nor debtors; (iii) ordering such a lump sum payment will accommodate the\nfuture medical and other needs of the judgment creditor; and (iv)\nordering such a lump sum payment would further the interests of justice.\n (b) If a lump sum payment is ordered by the court, such payment shall\nbe made by the medical malpractice insurance association created\npursuant to article fifty-five of the insurance law and shall not be the\nobligation of the insurer providing the initial annuity contract. Such\ninsurer shall thereafter make all future payments due under its annuity\ncontract to the association, except that, if the lump sum payment\nordered by the court is a portion of the remaining periodic payments,\nsuch insurer shall appropriately apportion future payments due under its\nannuity contract between the association and the judgment creditor or\nsuccessor in interest. Such lump sum payment to be paid to the judgment\ncreditor or successor in interest by the association shall be calculated\non the basis of the present value of the annuity contract, which shall\nbe based on its cost at such time, for remaining periodic payments, or\nportions thereof, that are converted into a lump sum payment. In no\nevent shall such lump sum payment be greater than the present value of\nthe annuity contract for the remaining periodic payments.\n