Arizona Structured Settlement State Laws
If you live in Arizona and are interested in selling your structured settlement for cash, below is a brief overview that can be a good starting point in your research.
Arizona Law: Selling Structured Settlement Payments
If you are considering selling your future structured settlement payments for an immediate lump sum in Arizona, it's important to understand the laws surrounding this type of transfer. In addition to federal law, 50 states have their own laws that govern the process of transferring the rights of a structured settlement annuity.
Arizona Structured Settlement Law
In Arizona, the law surrounding the transfer of rights to future structured settlement payments is Chapter 20 Structured Settlements: 12-2902. Payment rights; transfer conditions.
B. Before issuing a final order pursuant to subsection A, the court or responsible administrative authority shall expressly find that:
1. The transfer complies with the requirements of this chapter and will not contravene any other applicable law.
2. Not less than three days before the date on which the payee signed the transfer agreement, the transferee provided to the payee a disclosure statement in bold type, no smaller than fourteen points, setting forth:
(a) The amounts and due dates of the structured settlement payments to be transferred.
(b) The aggregate amount of the payments.
(c) The discounted present value of the payments to be transferred, which shall be identified as the calculation of 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.
(d) The gross advance amount that is payable to the payee in exchange for the payments.
(e) An itemized listing of all applicable transfer expenses, other than attorney 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 attorney fees and related disbursements.
(f) The net advance amount that is payable to the payee after deduction of all commissions, fees, costs, expenses and charges listed in subdivision (e) of this paragraph.
(g) A statement that the payee has the right to cancel the transfer agreement, without penalty or further obligation, not later than the third business day after the date the agreement is signed by the payee.
(h) The amount of any penalty and the aggregate amount of any liquidated damages inclusive of penalties that are payable by the payee in the event of any breach of the transfer agreement by the payee.
3. The transfer is in the best interest of the payee, taking into account the welfare and support of the payee’s dependents.
4. The payee has been advised in writing by the transferee to seek independent professional advice regarding the transfer and has either received the advice or knowingly waived the advice in writing.
5. If the transfer would contravene any applicable statute or the order of any court or other government authority.
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Structured Settlement Federal Law
To sell your future structured settlement payments, you'll need to comply with both state and federal law. These laws are in place to protect you. Knowing Structured Settlement Federal Law is important as it states the …… 26 U.S. Code 5891 also offers some helpful definitions and other rules for selling structured settlement rights. Read the full law here.