§ 5-1701 — Definitions

New York § 5-1701

• Jurisdiction: New York
• Law GOB: General Obligations
• Title 17: Structured Settlement Protection Act
• Art. 5: Creation, Definition and Enforcement of Contractual Obligations

Text

§ 5-1701. Definitions. For purposes of this title:\n (a) "annuity issuer" means an insurer that has issued an insurance\ncontract used to fund periodic payments under a structured settlement;\n (b) "dependents" include a payee's spouse and minor children and all\nother persons for whom the payee is legally obligated to provide\nsupport, including alimony or maintenance;\n (c) "discounted present value" means the present value of future\npayments, as determined by discounting such payments to the present\nusing the most recently published applicable federal rate for\ndetermining the present value of an annuity, as issued by the United\nStates Internal Revenue Service;\n (d) "gross advance amount" means the sum payable to the payee or for\nthe payee's account as consideration for a transfer of structured\nsettlement payment rights before any reductions for transfer expenses or\nother deductions to be made from such consideration;\n (e) "independent professional advice" means advice of an attorney,\ncertified public accountant, actuary or other licensed professional\nadviser:\n (i) who is engaged by a claimant or payee to render advice concerning\nthe legal, tax and financial implications of a structured settlement or\na transfer of structured settlement payment rights;\n (ii) who is not in any manner affiliated with or compensated by the\ndefendant in such settlement or the transferee of such transfer; and\n (iii) whose compensation for rendering such advice is not affected by\nwhether a settlement or transfer occurs or does not occur;\n (f) "interested parties" means, with respect to any structured\nsettlement, the payee, any beneficiary irrevocably designated under the\nannuity contract to receive payments following the payee's death, the\nannuity issuer, the structured settlement obligor, and any other party\nthat has continuing rights or obligations under such structured\nsettlement;\n (g) "net advance amount" means the gross advance amount less the\naggregate amount of the expenses required to be disclosed under\nsubdivision (f) of section 5-1703 of this title;\n (h) "payee" means an individual who is receiving tax free payments\nunder a structured settlement and proposes to make a transfer of payment\nrights thereunder;\n (i) "periodic payments" includes both recurring payments and scheduled\nfuture lump sum payments;\n (j) "qualified assignment agreement" means an agreement providing for\na qualified assignment within the meaning of section 130 of the United\nStates Internal Revenue Code, United States Code Title 26, as amended\nfrom time to time;\n (k) "settled claim" means the original tort claim resolved by a\nstructured settlement;\n (l) "structured settlement" means an arrangement for periodic payment\nof damages for personal injuries or sickness established by settlement\nor judgment in resolution of a tort claim;\n (m) "structured settlement agreement" means the agreement, judgment,\nstipulation, or release embodying the terms of a structured settlement;\n (n) "structured settlement obligor" means, with respect to any\nstructured settlement, the party that has the continuing obligation to\nmake periodic payments to the payee under a structured settlement\nagreement or a qualified assignment agreement;\n (o) "structured settlement payment rights" means rights to receive\nperiodic payments under a structured settlement, whether from the\nstructured settlement obligor or the annuity issuer, where:\n (i) the payee is domiciled in, or the domicile or principal place of\nbusiness of the structured settlement obligor or the annuity issuer is\nlocated in, this state;\n (ii) the structured settlement agreement was approved by a court in\nthis state; or\n (iii) the structured settlement agreement is expressly governed by the\nlaws of this state;\n (p) "terms of the structured settlement" include, with respect to any\nstructured settlement, the terms of the structured settlement agreement,\nthe annuity contract, any qualified assignment agreement and any order\nor approval of any court authorizing or approving such structured\nsettlement;\n (q) "transfer means any sale, assignment, pledge, hypothecation or\nother alienation or encumbrance of structured settlement payment rights\nmade by a payee for consideration; provided that the term "transfer"\ndoes not include the creation or perfection of a security interest in\nstructured settlement payment rights under a blanket security agreement\nentered into with an insured depository institution, in the absence of\nany action to redirect the structured settlement payments to such\ninsured depository institution, or an agent or successor in interest\nthereof, or otherwise to enforce such blanket security interest against\nthe structured settlement payment rights;\n (r) "transfer agreement" means the agreement providing for transfer of\nstructured settlement payment rights from a payee to a transferee;\n (s) "transfer expenses" means all expenses of a transfer that are\nrequired under the transfer agreement to be paid by the payee or\ndeducted from the gross advance amount, including, without limitation,\ncourt filing fees, attorneys fees, escrow fees, lien recordation fees,\njudgment and lien search fees, finders' fees, commissions, and other\npayments to a broker or other intermediary; "transfer expenses" do not\ninclude preexisting obligations of the payee payable for the payee's\naccount from the proceeds of a transfer; and\n (t) "transferee" means a party acquiring or proposing to acquire\nstructured settlement payment rights through a transfer or\nrestructuring.\n