As Reported by House Civil and Commercial Law Committee 1
123rd General Assembly 4
Regular Session Sub. S. B. No. 260 5
1999-2000 6
SENATORS NEIN-PRENTISS-BLESSING-HOTTINGER-CUPP-BRADY-DiDONATO- 8
HERINGTON-WHITE-FINGERHUT-DRAKE-MUMPER-GARDNER-ARMBRUSTER- 9
JOHNSON-SPADA-KEARNS-LATELL-ESPY-LATTA-OELSLAGER-HAGAN- 10
REPRESENTATIVES SALERNO-JERSE-DePIERO 11
_________________________________________________________________ 12
A B I L L
To enact sections 2323.58, 2323.581, 2323.582, 14
2323.583, 2323.584, 2323.585, 2323.586, and 15
2323.587 of the Revised Code to require approval 17
by a court of the transfer of payment rights of a 19
payee under a structured settlement for periodic 20
payments of damages in tort actions upon injury 21
to person and to establish procedures for 23
application for such approval by a transferee of 24
those payment rights.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 26
Section 1. That sections 2323.58, 2323.581, 2323.582, 29
2323.583, 2323.584, 2323.585, 2323.586, and 2323.587 of the 30
Revised Code be enacted to read as follows: 32
Sec. 2323.58. AS USED IN THIS SECTION AND SECTIONS 34
2323.581 TO 2323.587 OF THE REVISED CODE: 35
(A) "ANNUITY ISSUER" MEANS AN INSURER THAT HAS ISSUED AN 38
INSURANCE CONTRACT THAT IS USED TO FUND PERIODIC PAYMENTS UNDER A 39
STRUCTURED SETTLEMENT.
(B) "APPLICABLE LAW" MEANS ANY OF THE FOLLOWING, AS 42
APPLICABLE IN INTERPRETING THE TERMS OF A STRUCTURED SETTLEMENT 43
AGREEMENT:
(1) THE LAWS OF THE UNITED STATES; 46
(2) THE LAWS OF THIS STATE, INCLUDING PRINCIPLES OF EQUITY 49
2
THAT ARE APPLIED IN THE COURTS OF THIS STATE;
(3) THE LAWS OF ANY OTHER JURISDICTION IF ANY OF THE 52
FOLLOWING APPLIES:
(a) THE LAWS OF THAT OTHER JURISDICTION GOVERN THE 54
STRUCTURED SETTLEMENT. 55
(b) A COURT OR A RESPONSIBLE ADMINISTRATIVE AUTHORITY 57
APPROVED THE STRUCTURED SETTLEMENT AGREEMENT UNDER THE LAWS OF 58
THAT OTHER JURISDICTION. 59
(c) THE TRANSFER OF PAYMENTS UNDER THE STRUCTURED 61
SETTLEMENT IS SUBJECT TO THE LAWS OF THAT OTHER JURISDICTION. 63
(C) "DEPENDENT" MEANS A SPOUSE OF A PAYEE, A MINOR CHILD 66
OF A PAYEE, OR ANY OTHER MEMBER OF THE FAMILY OF A PAYEE OR OTHER 67
PERSON WHOM, BY LAW OR BY COURT ORDER OR DECREE, THE PAYEE IS 68
LEGALLY OBLIGATED TO SUPPORT.
(D) "DISCOUNTED PRESENT VALUE" MEANS THE FAIR PRESENT 71
VALUE OF THE FUTURE PAYMENTS UNDER A STRUCTURED SETTLEMENT THAT 72
IS DETERMINED BY DISCOUNTING THOSE PAYMENTS TO THE PRESENT, USING 73
THE MOST RECENTLY PUBLISHED APPLICABLE FEDERAL RATE FOR 74
DETERMINING THE PRESENT VALUE OF AN ANNUITY AS ISSUED BY THE 76
UNITED STATES INTERNAL REVENUE SERVICE. 77
(E) "INDEPENDENT PROFESSIONAL ADVICE" MEANS THE ADVICE OF 80
AN ATTORNEY, A CERTIFIED PUBLIC ACCOUNTANT, AN ACTUARY, OR ANY 81
OTHER LICENSED PROFESSIONAL ADVISER IF ALL OF THE FOLLOWING 82
APPLY:
(1) THE PAYEE HAS ENGAGED THE SERVICES OF THE LICENSED 84
PROFESSIONAL ADVISER TO RENDER ADVICE CONCERNING THE LEGAL AND 86
OTHER IMPLICATIONS OF A TRANSFER OF STRUCTURED SETTLEMENT PAYMENT 87
RIGHTS.
(2) THE LICENSED PROFESSIONAL ADVISER HAS SIGNED A 89
STATEMENT TO THE EFFECT THAT THE LICENSED PROFESSIONAL ADVISER 90
RENDERED ADVICE TO THE PAYEE CONCERNING THE LEGAL AND OTHER 91
IMPLICATIONS OF A TRANSFER OF STRUCTURED SETTLEMENT PAYMENT 92
RIGHTS.
(3) THE LICENSED PROFESSIONAL ADVISER IS NOT AFFILIATED IN 95
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ANY MANNER WITH, REFERRED BY, OR COMPENSATED IN ANY MANNER BY THE
TRANSFEREE OF THE STRUCTURED SETTLEMENT PAYMENT RIGHTS. 98
(4) THE COMPENSATION OF THE LICENSED PROFESSIONAL ADVISER 100
IS NOT AFFECTED BY WHETHER OR NOT A TRANSFER OF STRUCTURED 102
SETTLEMENT PAYMENT RIGHTS OCCURS.
(F) "INTERESTED PARTY" INCLUDES THE PAYEE WITH RESPECT TO 105
A STRUCTURED SETTLEMENT, THE ANNUITY ISSUER, THE STRUCTURED 106
SETTLEMENT AGREEMENT OBLIGOR, AND ANY OTHER PARTY THAT HAS 107
CONTINUING RIGHTS OR OBLIGATIONS UNDER THE STRUCTURED SETTLEMENT 108
AGREEMENT.
(G) "PAYEE" MEANS AN INDIVIDUAL WHO IS RECEIVING PERIODIC 111
PAYMENTS UNDER A STRUCTURED SETTLEMENT AGREEMENT THAT ARE 112
EXCLUDABLE FROM THE INDIVIDUAL'S GROSS INCOME UNDER FEDERAL
INCOME TAXATION LAWS APPLICABLE TO THAT INDIVIDUAL AND WHO 114
PROPOSES TO MAKE A TRANSFER OF THE RIGHTS TO RECEIVE THOSE 115
PERIODIC PAYMENTS.
(H) "PERIODIC PAYMENTS" INCLUDES BOTH CONTINUING MONTHLY 118
OR OTHER PERIODIC PAYMENTS AND SCHEDULED FUTURE LUMP-SUM PAYMENTS 119
UNDER A STRUCTURED SETTLEMENT. 120
(I) "QUALIFIED ASSIGNMENT AGREEMENT" MEANS AN AGREEMENT 123
THAT PROVIDES FOR A QUALIFIED ASSIGNMENT, AS DEFINED IN SECTION 124
130 OF THE "INTERNAL REVENUE CODE OF 1986," 100 STAT. 2085, 26 128
U.S.C.A. 130(c), AS AMENDED, THROUGH AN ASSIGNMENT OF THE 130
LIABILITY UNDER A STRUCTURED SETTLEMENT AGREEMENT TO MAKE 131
PERIODIC PAYMENTS AS DAMAGES, ON ACCOUNT OF PERSONAL INJURY OR 133
SICKNESS.
(J) "RESPONSIBLE ADMINISTRATIVE AUTHORITY" MEANS ANY 135
GOVERNMENT AUTHORITY OF ANOTHER STATE VESTED BY THE LAW OF THAT 137
STATE WITH THE ORIGINAL EXCLUSIVE JURISDICTION OVER THE SETTLED 138
CLAIM RESOLVED BY A STRUCTURED SETTLEMENT. 139
(K) "SETTLED CLAIM" MEANS THE ORIGINAL TORT CLAIM RESOLVED 142
BY A STRUCTURED SETTLEMENT.
(L) "STRUCTURED SETTLEMENT" MEANS AN ARRANGEMENT FOR 145
PERIODIC PAYMENTS OF DAMAGES FOR INJURY TO A PERSON THAT IS 146
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ESTABLISHED BY A SETTLEMENT OR A COURT JUDGMENT IN RESOLUTION OF 147
A TORT CLAIM.
(M) "STRUCTURED SETTLEMENT AGREEMENT" MEANS AN AGREEMENT, 150
JUDGMENT, STIPULATION, OR RELEASE THAT EMBODIES THE TERMS OF A 151
STRUCTURED SETTLEMENT, INCLUDING THE RIGHTS OF A PAYEE TO RECEIVE 152
PERIODIC PAYMENTS.
(N) "STRUCTURED SETTLEMENT OBLIGOR" MEANS THE PARTY THAT 155
HAS THE OBLIGATION TO MAKE CONTINUING PERIODIC PAYMENTS TO THE
PAYEE UNDER A STRUCTURED SETTLEMENT AGREEMENT OR A QUALIFIED 156
ASSIGNMENT AGREEMENT. 157
(O) "STRUCTURED SETTLEMENT PAYMENT RIGHTS" MEANS THE 160
RIGHTS UNDER A STRUCTURED SETTLEMENT AGREEMENT TO RECEIVE 161
PERIODIC PAYMENTS FROM A STRUCTURED SETTLEMENT OBLIGOR OR AN 162
ANNUITY ISSUER IF EITHER OF THE FOLLOWING APPLIES: 163
(1) THE PAYEE, THE STRUCTURED SETTLEMENT OBLIGOR, OR THE 166
ANNUITY ISSUER WITH RESPECT TO THE STRUCTURED SETTLEMENT 167
AGREEMENT IS A RESIDENT OF THIS STATE. 168
(2) THE STRUCTURED SETTLEMENT AGREEMENT WAS APPROVED BY A 170
COURT IN THIS STATE. 171
(P) "TERMS OF A STRUCTURED SETTLEMENT" INCLUDES THE TERMS 174
OF A STRUCTURED SETTLEMENT AGREEMENT, AN INSURANCE CONTRACT, A 175
QUALIFIED ASSIGNMENT AGREEMENT, AND ANY ORDER OR APPROVAL BY A 176
COURT, A RESPONSIBLE ADMINISTRATIVE AUTHORITY, OR OTHER 177
GOVERNMENT AUTHORITY AUTHORIZING OR APPROVING THE STRUCTURED 178
SETTLEMENT.
(Q) "TRANSFER" MEANS A SALE, ASSIGNMENT, PLEDGE, 180
HYPOTHECATION, OR ANY OTHER FORM OF ALIENATION OR ENCUMBRANCE OF 181
STRUCTURED SETTLEMENT PAYMENT RIGHTS MADE BY A PAYEE FOR 182
CONSIDERATION. 183
(R) "TRANSFER AGREEMENT" MEANS AN AGREEMENT THAT PROVIDES 186
FOR THE TRANSFER OF STRUCTURED SETTLEMENT PAYMENT RIGHTS FROM A 187
PAYEE TO A TRANSFEREE.
(S) "TRANSFEREE" MEANS A PARTY ACQUIRING OR PROPOSING TO 189
ACQUIRE STRUCTURED SETTLEMENT PAYMENT RIGHTS THROUGH A TRANSFER 190
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OF THOSE RIGHTS.
Sec. 2323.581. NO DIRECT OR INDIRECT TRANSFER OF 192
STRUCTURED SETTLEMENT PAYMENT RIGHTS SHALL BE EFFECTIVE, AND NO 193
STRUCTURED SETTLEMENT OBLIGOR OR ANNUITY ISSUER SHALL BE REQUIRED 195
TO MAKE ANY PAYMENT DIRECTLY OR INDIRECTLY TO A TRANSFEREE OF 196
STRUCTURED SETTLEMENT PAYMENT RIGHTS, UNLESS THE TRANSFEREE HAS 198
PROVIDED THE PAYEE AND OTHER INTERESTED PARTIES WITH THE 199
DISCLOSURES REQUIRED BY SECTION 2323.582 OF THE REVISED CODE AND 200
THE TRANSFER HAS BEEN APPROVED IN ADVANCE IN A FINAL ORDER OF A 201
COURT OF COMPETENT JURISDICTION IN ACCORDANCE WITH SECTIONS 202
2323.583 AND 2323.584 OF THE REVISED CODE. 203
Sec. 2323.582. NOT LESS THAN TEN DAYS PRIOR TO THE DATE ON 206
WHICH A PAYEE BECOMES OBLIGATED UNDER A TRANSFER AGREEMENT, THE 207
TRANSFEREE SHALL PROVIDE TO THE PAYEE A DISCLOSURE STATEMENT, IN 208
BOLDFACE TYPE OF THE MINIMUM SIZE OF FOURTEEN POINTS, SETTING 209
FORTH ALL OF THE FOLLOWING: 210
(A) THE AMOUNTS AND DUE DATES OF THE STRUCTURED SETTLEMENT 213
PAYMENTS THAT WOULD BE TRANSFERRED UNDER THE TRANSFER AGREEMENT; 214
(B) THE AGGREGATE AMOUNT OF THE PAYMENTS DESCRIBED IN 217
DIVISION (A) OF THIS SECTION; 218
(C) THE DISCOUNTED PRESENT VALUE OF THE PAYMENTS DESCRIBED 221
IN DIVISION (A) OF THIS SECTION AND THE AMOUNT OF THE APPLICABLE 222
FEDERAL RATE USED IN DETERMINING THE DISCOUNTED PRESENT VALUE; 224
(D) THE GROSS AMOUNT PAYABLE TO THE PAYEE IN EXCHANGE FOR 227
OR AS CONSIDERATION FOR THE TRANSFER OF THE STRUCTURED SETTLEMENT
PAYMENTS DESCRIBED IN DIVISION (A) OF THIS SECTION; 228
(E) AN ITEMIZED LISTING OF ALL BROKERS' COMMISSIONS, 231
SERVICE CHARGES, APPLICATION FEES, PROCESSING FEES, CLOSING 232
COSTS, FILING FEES, ADMINISTRATIVE FEES, LEGAL FEES, NOTARY FEES, 233
AND OTHER COMMISSIONS, FEES, COSTS, EXPENSES, AND CHARGES PAYABLE 234
BY THE PAYEE OR DEDUCTIBLE FROM THE GROSS AMOUNT OTHERWISE 235
PAYABLE TO THE PAYEE AS DESCRIBED IN DIVISION (D) OF THIS 237
SECTION;
(F) THE NET AMOUNT PAYABLE TO THE PAYEE AFTER DEDUCTION 240
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FROM THE GROSS AMOUNT PAYABLE TO THE PAYEE AS DESCRIBED IN
DIVISION (D) OF THIS SECTION OF ALL COMMISSIONS, FEES, COSTS, 241
EXPENSES, AND CHARGES DESCRIBED IN DIVISION (E) OF THIS SECTION; 243
(G) THE QUOTIENT, EXPRESSED AS A PERCENTAGE, OBTAINED BY 246
DIVIDING THE NET AMOUNT PAYABLE TO THE PAYEE AS DESCRIBED IN 247
DIVISION (F) OF THIS SECTION BY THE DISCOUNTED PRESENT VALUE OF 248
THE PAYMENTS DESCRIBED IN DIVISION (C) OF THIS SECTION; 250
(H) THE AMOUNT OF ANY PENALTY AND THE AGGREGATE AMOUNT OF 253
ANY LIQUIDATED DAMAGES, INCLUDING PENALTIES, PAYABLE BY THE PAYEE 254
IN THE EVENT OF ANY BREACH OF THE TRANSFER AGREEMENT BY THE 255
PAYEE.
Sec. 2323.583. A COURT OF COMPETENT JURISDICTION MAY 258
APPROVE A TRANSFER OF STRUCTURED SETTLEMENT PAYMENT RIGHTS ONLY 261
IN A FINAL ORDER THAT IS BASED ON THE EXPRESS FINDINGS OF THE 262
COURT, AND THE EXPRESS FINDINGS SHALL INCLUDE ALL OF THE 264
FOLLOWING:
(A) THE TRANSFEREE HAS PROVIDED TO THE PAYEE A DISCLOSURE 266
STATEMENT THAT COMPLIES WITH SECTION 2323.582 OF THE REVISED 268
CODE, AND THE PAYEE HAS CONFIRMED THE PAYEE'S RECEIPT OF THE
DISCLOSURE STATEMENT, AS EVIDENCED BY THE PAYEE'S NOTARIZED 269
SIGNATURE ON A COPY OF THE DISCLOSURE STATEMENT. 270
(B)(1) EXCEPT AS PROVIDED IN DIVISION (B)(2) OF THIS 272
SECTION, THE PAYEE HAS ESTABLISHED THAT THE TRANSFER IS FAIR AND 273
REASONABLE AND IN THE BEST INTERESTS OF THE PAYEE AND THE PAYEE'S 274
DEPENDENTS.
(2) IF, ON THE EFFECTIVE DATE OF THE TRANSFER AGREEMENT, A 276
FEDERAL HARDSHIP STANDARD EXISTS, THE PAYEE HAS ESTABLISHED THAT 277
THE TRANSFER MEETS THAT HARDSHIP STANDARD. 278
(C) THE PAYEE HAS RECEIVED INDEPENDENT PROFESSIONAL ADVICE 280
REGARDING THE LEGAL AND OTHER IMPLICATIONS OF THE TRANSFER. 282
(D) IF THE TRANSFER CONTRAVENES THE TERMS OF THE 284
STRUCTURED SETTLEMENT INVOLVED, ALL OF THE FOLLOWING HAVE BEEN 285
COMPLIED WITH:
(1) EACH DEPENDENT WHOM THE PAYEE IS LEGALLY OBLIGATED TO 287
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SUPPORT BY COURT ORDER OR DECREE, IN A WRITTEN APPROVAL AND 288
WAIVER, APPROVES THE TRANSFER AND WAIVES THE RIGHT TO REQUIRE 290
THAT THE STRUCTURED SETTLEMENT PAYMENTS BE MADE TO THE PAYEE IN 291
ACCORDANCE WITH THE TERMS OF THE STRUCTURED SETTLEMENT. 292
(2) ANY COURT OR RESPONSIBLE ADMINISTRATIVE AUTHORITY THAT 294
PREVIOUSLY APPROVED THE STRUCTURED SETTLEMENT, OTHER THAN THE 296
COURT FROM WHICH THE APPROVAL OF THE TRANSFER IS SOUGHT UNDER 298
SECTIONS 2323.58 TO 2323.585 OF THE REVISED CODE, HAS EXPRESSLY 299
APPROVED THE TRANSFER IN WRITING. 300
(3) THE TRANSFEREE HAS PROVIDED TO THE COURT IN WHICH THE 303
APPLICATION FOR APPROVAL OF THE TRANSFER WAS FILED ALL OF THE 304
SIGNED ORIGINAL COPIES OF THE APPROVALS REQUIRED UNDER DIVISIONS 305
(D)(1) AND (2) OF THIS SECTION.
(4) THE TRANSFEREE HAS FURNISHED EACH INTERESTED PARTY 307
COPIES OF THE APPROVALS REQUIRED UNDER DIVISIONS (D)(1) AND (2) 308
OF THIS SECTION. 309
(E) THE TRANSFEREE HAS GIVEN WRITTEN NOTICE OF THE 311
TRANSFEREE'S NAME, ADDRESS, AND TAXPAYER IDENTIFICATION NUMBER TO 313
THE ANNUITY ISSUER AND THE STRUCTURED SETTLEMENT OBLIGOR AND HAS 314
FILED A COPY OF THAT NOTICE WITH THE COURT IN WHICH THE 316
APPLICATION FOR APPROVAL OF THE TRANSFER WAS FILED.
(F) THE TRANSFER COMPLIES WITH ALL OF THE REQUIREMENTS OF 318
SECTIONS 2323.58 TO 2323.585 OF THE REVISED CODE AND DOES NOT 320
CONTRAVENE ANY APPLICABLE LAW. 321
Sec. 2323.584. (A) A PERSON SHALL FILE AN APPLICATION 323
UNDER SECTIONS 2323.58 TO 2323.585 OF THE REVISED CODE FOR THE 324
APPROVAL IN ADVANCE OF A TRANSFER OF STRUCTURED SETTLEMENT 325
PAYMENT RIGHTS IN EITHER OF THE FOLLOWING: 326
(1) IN THE COURT OF COMMON PLEAS OF THE COUNTY IN WHICH 328
THE PAYEE, THE STRUCTURED SETTLEMENT OBLIGOR, OR THE ANNUITY 329
ISSUER RESIDES; 330
(2) IN THE OHIO COURT THAT APPROVED THE STRUCTURED 332
SETTLEMENT AGREEMENT. 333
(B) THE FOLLOWING PROCEDURES SHALL APPLY TO AN APPLICATION 335
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FOR THE APPROVAL IN ADVANCE BY A COURT OF A TRANSFER OF 337
STRUCTURED SETTLEMENT PAYMENT RIGHTS UNDER DIVISION (A) OF THIS 338
SECTION:
(1) UPON THE FILING OF THE APPLICATION, THE COURT SHALL 341
SET A DATE AND TIME FOR A HEARING ON THE APPLICATION AND SHALL 342
NOTIFY THE TRANSFEREE OF THE DATE, TIME, AND PLACE OF THE 343
HEARING.
(2) NOT LESS THAN TWENTY DAYS PRIOR TO THE DATE SET BY THE 345
COURT FOR THE HEARING ON AN APPLICATION FILED PURSUANT TO THIS 346
SECTION, THE TRANSFEREE SHALL FILE WITH THE COURT AND SHALL SERVE 348
ON THE COURT OR ANY RESPONSIBLE ADMINISTRATIVE AUTHORITY THAT 349
PREVIOUSLY APPROVED THE STRUCTURED SETTLEMENT, ON ALL INTERESTED 350
PARTIES, AND ON THE ANNUITY ISSUER AND THE STRUCTURED SETTLEMENT 351
OBLIGOR, IN THE MANNER PRESCRIBED IN THE RULES OF CIVIL PROCEDURE 352
FOR THE SERVICE OF PROCESS, A NOTICE OF THE PROPOSED TRANSFER AND 353
THE APPLICATION FOR ITS APPROVAL IN ADVANCE. THE NOTICE SHALL 354
INCLUDE ALL OF THE FOLLOWING: 355
(a) A COPY OF THE APPLICATION; 357
(b) A COPY OF THE TRANSFER AGREEMENT; 359
(c) A COPY OF THE DISCLOSURE STATEMENT PROVIDED BY THE 361
TRANSFEREE PURSUANT TO SECTION 2323.582 OF THE REVISED CODE AND 362
SIGNED BY THE PAYEE PURSUANT TO DIVISION (A) OF SECTION 2323.583 363
OF THE REVISED CODE;
(d) NOTIFICATION OF THE DATE, TIME, AND PLACE OF THE 365
HEARING ON THE APPLICATION; 366
(e) NOTIFICATION THAT ANY INTERESTED PARTY MAY SUPPORT, 368
OPPOSE, OR OTHERWISE RESPOND TO THE APPLICATION, EITHER IN PERSON 370
OR BY COUNSEL, BY SUBMITTING TO THE COURT A WRITTEN RESPONSE 371
CONTAINING THE INTERESTED PARTY'S SUPPORT OF, OPPOSITION TO, OR 373
COMMENTS ON THE APPLICATION OR BY PARTICIPATING IN THE HEARING; 374
(f) NOTIFICATION OF THE MANNER OF FILING A WRITTEN 376
RESPONSE TO THE APPLICATION AND THE TIME WITHIN WHICH THE 377
RESPONSE IS REQUIRED TO BE FILED IN ORDER FOR THE COURT TO 379
CONSIDER IT.
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(3) WITHIN FIFTEEN DAYS AFTER RECEIPT OF THE NOTICE 381
DESCRIBED IN DIVISION (B)(2) OF THIS SECTION, ANY INTERESTED 382
PARTY WHO WISHES TO RESPOND TO THE APPLICATION SHALL FILE A 383
WRITTEN RESPONSE WITH THE COURT PERSONALLY OR BY CERTIFIED MAIL, 385
RETURN RECEIPT REQUESTED.
(4) AT THE CONCLUSION OF THE HEARING ON AN APPLICATION 387
UNDER THIS SECTION, THE COURT MAY GRANT OR DENY THE APPROVAL OF 389
THE TRANSFER. THE COURT SHALL ENTER ITS ORDER ACCORDINGLY. IF 390
THE COURT GRANTS THE APPROVAL OF THE TRANSFER, IT SHALL INCLUDE 391
IN ITS ORDER ALL OF THE EXPRESS FINDINGS SPECIFIED IN SECTION 392
2323.583 OF THE REVISED CODE. IF THE COURT DENIES THE APPROVAL 395
OF THE TRANSFER, IT SHALL INCLUDE IN ITS ORDER THE REASONS FOR 396
THE DENIAL.
(5) AN ORDER OF THE COURT MADE UNDER DIVISION (B)(4) OF 400
THIS SECTION IS A FINAL AND APPEALABLE ORDER. 401
Sec. 2323.585. (A) NO PAYEE WHO PROPOSES TO MAKE A 403
TRANSFER OF STRUCTURED SETTLEMENT PAYMENT RIGHTS SHALL INCUR ANY 404
PENALTY, FORFEIT ANY APPLICATION FEE OR OTHER PAYMENT, OR 405
OTHERWISE INCUR ANY LIABILITY TO THE PROPOSED TRANSFEREE BASED ON 407
A FAILURE OF THE TRANSFER TO COMPLY WITH ANY OF THE REQUIREMENTS
OF SECTIONS 2323.581 TO 2323.584 OF THE REVISED CODE. 409
(B) NO PROVISION OF THIS SECTION OR SECTION 2323.581, 412
2323.582, 2323.583, OR 2323.584 OF THE REVISED CODE MAY BE 413
WAIVED.
(C) NO PROVISION OF THIS SECTION OR SECTION 2323.581, 416
2323.582, 2323.583, OR 2323.584 OF THE REVISED CODE AUTHORIZES 417
ANY TRANSFER OF STRUCTURED SETTLEMENT PAYMENT RIGHTS IN 419
CONTRAVENTION OF APPLICABLE LAW OR GIVES EFFECT TO ANY TRANSFER 420
OF STRUCTURED SETTLEMENT PAYMENT RIGHTS THAT IS VOID UNDER ANY 421
APPLICABLE LAW.
Sec. 2323.586. THE STRUCTURED SETTLEMENT OBLIGOR AND THE 425
ANNUITY ISSUER UNDER A TRANSFER OR TRANSFER AGREEMENT ARE IMMUNE 426
FROM LIABILITY BASED UPON ANY CLAIM BY THE PAYEE, OR ANY PARTY, 427
OTHER THAN A TRANSFEREE, CLAIMING THROUGH THE PAYEE, AS TO ANY
10
STRUCTURED SETTLEMENT PAYMENT RIGHTS OR PERIODIC PAYMENTS THAT 428
ARE THE SUBJECT OF THE TRANSFER OR TRANSFER AGREEMENT. 429
Sec. 2323.587. A VIOLATION OF SECTION 2323.581, 2323.582, 431
2323.583, 2323.584, 2323.585, OR 2323.586 OF THE REVISED CODE IS 432
AN UNFAIR OR DECEPTIVE ACT OR PRACTICE IN VIOLATION OF SECTION 435
1345.02 OF THE REVISED CODE.
Section 2. Sections 2323.58, 2323.581, 2323.582, 2323.583, 437
2323.584, 2323.585, 2323.586, and 2323.587 of the Revised Code, 438
as enacted by this act,shall apply to a transfer of structured 440
settlement payment rights under a transfer agreement entered into 441
on or after the effective date of this act. As used in this 442
section, "structured settlement payment rights," "transfer," and 443
"transfer agreement" have the same meanings as in section 2323.58 445
of the Revised Code, as enacted by this act.