As Passed by the House 1
123rd General Assembly 4
Regular Session Am. 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 11
SALERNO-JERSE-DePIERO-TIBERI-WILLAMOWSKI-EVANS-MOTTLEY-
OLMAN-ROBINSON-HOLLISTER-BUEHRER-FLANNERY-BOYD-PERRY-JONES- 12
BENDER-PETERSON-WIDENER-WINKLER-D. MILLER-HARTNETT-STEVENS- 13
SULLIVAN-WOMER BENJAMIN-ROBERTS-CORBIN-AUSTRIA-HOOPS-VERICH- 14
TERWILLEGER-REDFERN-FORD-JOLIVETTE-METTLER-BARNES 15
_________________________________________________________________ 16
A B I L L
To enact sections 2323.58, 2323.581, 2323.582, 18
2323.583, 2323.584, 2323.585, 2323.586, and 19
2323.587 of the Revised Code to require approval 21
by a court of the transfer of payment rights of a 23
payee under a structured settlement for periodic 24
payments of damages in tort actions upon injury 25
to person and to establish procedures for 27
application for such approval by a transferee of 28
those payment rights.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 30
Section 1. That sections 2323.58, 2323.581, 2323.582, 33
2323.583, 2323.584, 2323.585, 2323.586, and 2323.587 of the 34
Revised Code be enacted to read as follows: 36
Sec. 2323.58. AS USED IN THIS SECTION AND SECTIONS 38
2323.581 TO 2323.587 OF THE REVISED CODE: 39
(A) "ANNUITY ISSUER" MEANS AN INSURER THAT HAS ISSUED AN 42
INSURANCE CONTRACT THAT IS USED TO FUND PERIODIC PAYMENTS UNDER A 43
STRUCTURED SETTLEMENT.
2
(B) "APPLICABLE LAW" MEANS ANY OF THE FOLLOWING, AS 46
APPLICABLE IN INTERPRETING THE TERMS OF A STRUCTURED SETTLEMENT 47
AGREEMENT:
(1) THE LAWS OF THE UNITED STATES; 50
(2) THE LAWS OF THIS STATE, INCLUDING PRINCIPLES OF EQUITY 53
THAT ARE APPLIED IN THE COURTS OF THIS STATE;
(3) THE LAWS OF ANY OTHER JURISDICTION IF ANY OF THE 56
FOLLOWING APPLIES:
(a) THE LAWS OF THAT OTHER JURISDICTION GOVERN THE 58
STRUCTURED SETTLEMENT. 59
(b) A COURT OR A RESPONSIBLE ADMINISTRATIVE AUTHORITY 61
APPROVED THE STRUCTURED SETTLEMENT AGREEMENT UNDER THE LAWS OF 62
THAT OTHER JURISDICTION. 63
(c) THE TRANSFER OF PAYMENTS UNDER THE STRUCTURED 65
SETTLEMENT IS SUBJECT TO THE LAWS OF THAT OTHER JURISDICTION. 67
(C) "DEPENDENT" MEANS A SPOUSE OF A PAYEE, A MINOR CHILD 70
OF A PAYEE, OR ANY OTHER MEMBER OF THE FAMILY OF A PAYEE OR OTHER 71
PERSON WHOM, BY LAW OR BY COURT ORDER OR DECREE, THE PAYEE IS 72
LEGALLY OBLIGATED TO SUPPORT.
(D) "DISCOUNTED PRESENT VALUE" MEANS THE FAIR PRESENT 75
VALUE OF THE FUTURE PAYMENTS UNDER A STRUCTURED SETTLEMENT THAT 76
IS DETERMINED BY DISCOUNTING THOSE PAYMENTS TO THE PRESENT, USING 77
THE MOST RECENTLY PUBLISHED APPLICABLE FEDERAL RATE FOR 78
DETERMINING THE PRESENT VALUE OF AN ANNUITY AS ISSUED BY THE 80
UNITED STATES INTERNAL REVENUE SERVICE. 81
(E) "INDEPENDENT PROFESSIONAL ADVICE" MEANS THE ADVICE OF 84
AN ATTORNEY, A CERTIFIED PUBLIC ACCOUNTANT, AN ACTUARY, OR ANY 85
OTHER LICENSED PROFESSIONAL ADVISER IF ALL OF THE FOLLOWING 86
APPLY:
(1) THE PAYEE HAS ENGAGED THE SERVICES OF THE LICENSED 88
PROFESSIONAL ADVISER TO RENDER ADVICE CONCERNING THE LEGAL AND 90
OTHER IMPLICATIONS OF A TRANSFER OF STRUCTURED SETTLEMENT PAYMENT 91
RIGHTS.
(2) THE LICENSED PROFESSIONAL ADVISER HAS SIGNED A 93
3
STATEMENT TO THE EFFECT THAT THE LICENSED PROFESSIONAL ADVISER 94
RENDERED ADVICE TO THE PAYEE CONCERNING THE LEGAL AND OTHER 95
IMPLICATIONS OF A TRANSFER OF STRUCTURED SETTLEMENT PAYMENT 96
RIGHTS.
(3) THE LICENSED PROFESSIONAL ADVISER IS NOT AFFILIATED IN 99
ANY MANNER WITH, REFERRED BY, OR COMPENSATED IN ANY MANNER BY THE
TRANSFEREE OF THE STRUCTURED SETTLEMENT PAYMENT RIGHTS. 102
(4) THE COMPENSATION OF THE LICENSED PROFESSIONAL ADVISER 104
IS NOT AFFECTED BY WHETHER OR NOT A TRANSFER OF STRUCTURED 106
SETTLEMENT PAYMENT RIGHTS OCCURS.
(F) "INTERESTED PARTY" INCLUDES THE PAYEE WITH RESPECT TO 109
A STRUCTURED SETTLEMENT, THE ANNUITY ISSUER, THE STRUCTURED 110
SETTLEMENT AGREEMENT OBLIGOR, AND ANY OTHER PARTY THAT HAS 111
CONTINUING RIGHTS OR OBLIGATIONS UNDER THE STRUCTURED SETTLEMENT 112
AGREEMENT.
(G) "PAYEE" MEANS AN INDIVIDUAL WHO IS RECEIVING PERIODIC 115
PAYMENTS UNDER A STRUCTURED SETTLEMENT AGREEMENT THAT ARE 116
EXCLUDABLE FROM THE INDIVIDUAL'S GROSS INCOME UNDER FEDERAL
INCOME TAXATION LAWS APPLICABLE TO THAT INDIVIDUAL AND WHO 118
PROPOSES TO MAKE A TRANSFER OF THE RIGHTS TO RECEIVE THOSE 119
PERIODIC PAYMENTS.
(H) "PERIODIC PAYMENTS" INCLUDES BOTH CONTINUING MONTHLY 122
OR OTHER PERIODIC PAYMENTS AND SCHEDULED FUTURE LUMP-SUM PAYMENTS 123
UNDER A STRUCTURED SETTLEMENT. 124
(I) "QUALIFIED ASSIGNMENT AGREEMENT" MEANS AN AGREEMENT 127
THAT PROVIDES FOR A QUALIFIED ASSIGNMENT, AS DEFINED IN SECTION 128
130 OF THE "INTERNAL REVENUE CODE OF 1986," 100 STAT. 2085, 26 132
U.S.C.A. 130(c), AS AMENDED, THROUGH AN ASSIGNMENT OF THE 134
LIABILITY UNDER A STRUCTURED SETTLEMENT AGREEMENT TO MAKE 135
PERIODIC PAYMENTS AS DAMAGES, ON ACCOUNT OF PERSONAL INJURY OR 137
SICKNESS.
(J) "RESPONSIBLE ADMINISTRATIVE AUTHORITY" MEANS ANY 139
GOVERNMENT AUTHORITY OF ANOTHER STATE VESTED BY THE LAW OF THAT 141
STATE WITH THE ORIGINAL EXCLUSIVE JURISDICTION OVER THE SETTLED 142
4
CLAIM RESOLVED BY A STRUCTURED SETTLEMENT. 143
(K) "SETTLED CLAIM" MEANS THE ORIGINAL TORT CLAIM RESOLVED 146
BY A STRUCTURED SETTLEMENT.
(L) "STRUCTURED SETTLEMENT" MEANS AN ARRANGEMENT FOR 149
PERIODIC PAYMENTS OF DAMAGES FOR INJURY TO A PERSON THAT IS 150
ESTABLISHED BY A SETTLEMENT OR A COURT JUDGMENT IN RESOLUTION OF 151
A TORT CLAIM.
(M) "STRUCTURED SETTLEMENT AGREEMENT" MEANS AN AGREEMENT, 154
JUDGMENT, STIPULATION, OR RELEASE THAT EMBODIES THE TERMS OF A 155
STRUCTURED SETTLEMENT, INCLUDING THE RIGHTS OF A PAYEE TO RECEIVE 156
PERIODIC PAYMENTS.
(N) "STRUCTURED SETTLEMENT OBLIGOR" MEANS THE PARTY THAT 159
HAS THE OBLIGATION TO MAKE CONTINUING PERIODIC PAYMENTS TO THE
PAYEE UNDER A STRUCTURED SETTLEMENT AGREEMENT OR A QUALIFIED 160
ASSIGNMENT AGREEMENT. 161
(O) "STRUCTURED SETTLEMENT PAYMENT RIGHTS" MEANS THE 164
RIGHTS UNDER A STRUCTURED SETTLEMENT AGREEMENT TO RECEIVE 165
PERIODIC PAYMENTS FROM A STRUCTURED SETTLEMENT OBLIGOR OR AN 166
ANNUITY ISSUER IF EITHER OF THE FOLLOWING APPLIES: 167
(1) THE PAYEE, THE STRUCTURED SETTLEMENT OBLIGOR, OR THE 170
ANNUITY ISSUER WITH RESPECT TO THE STRUCTURED SETTLEMENT 171
AGREEMENT IS A RESIDENT OF THIS STATE. 172
(2) THE STRUCTURED SETTLEMENT AGREEMENT WAS APPROVED BY A 174
COURT IN THIS STATE. 175
(P) "TERMS OF A STRUCTURED SETTLEMENT" INCLUDES THE TERMS 178
OF A STRUCTURED SETTLEMENT AGREEMENT, AN INSURANCE CONTRACT, A 179
QUALIFIED ASSIGNMENT AGREEMENT, AND ANY ORDER OR APPROVAL BY A 180
COURT, A RESPONSIBLE ADMINISTRATIVE AUTHORITY, OR OTHER 181
GOVERNMENT AUTHORITY AUTHORIZING OR APPROVING THE STRUCTURED 182
SETTLEMENT.
(Q) "TRANSFER" MEANS A SALE, ASSIGNMENT, PLEDGE, 184
HYPOTHECATION, OR ANY OTHER FORM OF ALIENATION OR ENCUMBRANCE OF 185
STRUCTURED SETTLEMENT PAYMENT RIGHTS MADE BY A PAYEE FOR 186
CONSIDERATION. 187
5
(R) "TRANSFER AGREEMENT" MEANS AN AGREEMENT THAT PROVIDES 190
FOR THE TRANSFER OF STRUCTURED SETTLEMENT PAYMENT RIGHTS FROM A 191
PAYEE TO A TRANSFEREE.
(S) "TRANSFEREE" MEANS A PARTY ACQUIRING OR PROPOSING TO 193
ACQUIRE STRUCTURED SETTLEMENT PAYMENT RIGHTS THROUGH A TRANSFER 194
OF THOSE RIGHTS.
Sec. 2323.581. NO DIRECT OR INDIRECT TRANSFER OF 196
STRUCTURED SETTLEMENT PAYMENT RIGHTS SHALL BE EFFECTIVE, AND NO 197
STRUCTURED SETTLEMENT OBLIGOR OR ANNUITY ISSUER SHALL BE REQUIRED 199
TO MAKE ANY PAYMENT DIRECTLY OR INDIRECTLY TO A TRANSFEREE OF 200
STRUCTURED SETTLEMENT PAYMENT RIGHTS, UNLESS THE TRANSFEREE HAS 202
PROVIDED THE PAYEE AND OTHER INTERESTED PARTIES WITH THE 203
DISCLOSURES REQUIRED BY SECTION 2323.582 OF THE REVISED CODE AND 204
THE TRANSFER HAS BEEN APPROVED IN ADVANCE IN A FINAL ORDER OF A 205
COURT OF COMPETENT JURISDICTION IN ACCORDANCE WITH SECTIONS 206
2323.583 AND 2323.584 OF THE REVISED CODE. 207
Sec. 2323.582. NOT LESS THAN TEN DAYS PRIOR TO THE DATE ON 210
WHICH A PAYEE BECOMES OBLIGATED UNDER A TRANSFER AGREEMENT, THE 211
TRANSFEREE SHALL PROVIDE TO THE PAYEE A DISCLOSURE STATEMENT, IN 212
BOLDFACE TYPE OF THE MINIMUM SIZE OF FOURTEEN POINTS, SETTING 213
FORTH ALL OF THE FOLLOWING: 214
(A) THE AMOUNTS AND DUE DATES OF THE STRUCTURED SETTLEMENT 217
PAYMENTS THAT WOULD BE TRANSFERRED UNDER THE TRANSFER AGREEMENT; 218
(B) THE AGGREGATE AMOUNT OF THE PAYMENTS DESCRIBED IN 221
DIVISION (A) OF THIS SECTION; 222
(C) THE DISCOUNTED PRESENT VALUE OF THE PAYMENTS DESCRIBED 225
IN DIVISION (A) OF THIS SECTION AND THE AMOUNT OF THE APPLICABLE 226
FEDERAL RATE USED IN DETERMINING THE DISCOUNTED PRESENT VALUE; 228
(D) THE GROSS AMOUNT PAYABLE TO THE PAYEE IN EXCHANGE FOR 231
OR AS CONSIDERATION FOR THE TRANSFER OF THE STRUCTURED SETTLEMENT
PAYMENTS DESCRIBED IN DIVISION (A) OF THIS SECTION; 232
(E) AN ITEMIZED LISTING OF ALL BROKERS' COMMISSIONS, 235
SERVICE CHARGES, APPLICATION FEES, PROCESSING FEES, CLOSING 236
COSTS, FILING FEES, ADMINISTRATIVE FEES, LEGAL FEES, NOTARY FEES, 237
6
AND OTHER COMMISSIONS, FEES, COSTS, EXPENSES, AND CHARGES PAYABLE 238
BY THE PAYEE OR DEDUCTIBLE FROM THE GROSS AMOUNT OTHERWISE 239
PAYABLE TO THE PAYEE AS DESCRIBED IN DIVISION (D) OF THIS 241
SECTION;
(F) THE NET AMOUNT PAYABLE TO THE PAYEE AFTER DEDUCTION 244
FROM THE GROSS AMOUNT PAYABLE TO THE PAYEE AS DESCRIBED IN
DIVISION (D) OF THIS SECTION OF ALL COMMISSIONS, FEES, COSTS, 245
EXPENSES, AND CHARGES DESCRIBED IN DIVISION (E) OF THIS SECTION; 247
(G) THE QUOTIENT, EXPRESSED AS A PERCENTAGE, OBTAINED BY 250
DIVIDING THE NET AMOUNT PAYABLE TO THE PAYEE AS DESCRIBED IN 251
DIVISION (F) OF THIS SECTION BY THE DISCOUNTED PRESENT VALUE OF 252
THE PAYMENTS DESCRIBED IN DIVISION (C) OF THIS SECTION; 254
(H) THE AMOUNT OF ANY PENALTY AND THE AGGREGATE AMOUNT OF 257
ANY LIQUIDATED DAMAGES, INCLUDING PENALTIES, PAYABLE BY THE PAYEE 258
IN THE EVENT OF ANY BREACH OF THE TRANSFER AGREEMENT BY THE 259
PAYEE.
Sec. 2323.583. A COURT OF COMPETENT JURISDICTION MAY 262
APPROVE A TRANSFER OF STRUCTURED SETTLEMENT PAYMENT RIGHTS ONLY 265
IN A FINAL ORDER THAT IS BASED ON THE EXPRESS FINDINGS OF THE 266
COURT, AND THE EXPRESS FINDINGS SHALL INCLUDE ALL OF THE 268
FOLLOWING:
(A) THE TRANSFEREE HAS PROVIDED TO THE PAYEE A DISCLOSURE 270
STATEMENT THAT COMPLIES WITH SECTION 2323.582 OF THE REVISED 272
CODE, AND THE PAYEE HAS CONFIRMED THE PAYEE'S RECEIPT OF THE
DISCLOSURE STATEMENT, AS EVIDENCED BY THE PAYEE'S NOTARIZED 273
SIGNATURE ON A COPY OF THE DISCLOSURE STATEMENT. 274
(B)(1) EXCEPT AS PROVIDED IN DIVISION (B)(2) OF THIS 276
SECTION, THE PAYEE HAS ESTABLISHED THAT THE TRANSFER IS FAIR AND 277
REASONABLE AND IN THE BEST INTERESTS OF THE PAYEE AND THE PAYEE'S 278
DEPENDENTS.
(2) IF, ON THE EFFECTIVE DATE OF THE TRANSFER AGREEMENT, A 280
FEDERAL HARDSHIP STANDARD EXISTS, THE PAYEE HAS ESTABLISHED THAT 281
THE TRANSFER MEETS THAT HARDSHIP STANDARD. 282
(C) THE PAYEE HAS RECEIVED INDEPENDENT PROFESSIONAL ADVICE 284
7
REGARDING THE LEGAL AND OTHER IMPLICATIONS OF THE TRANSFER. 286
(D) IF THE TRANSFER CONTRAVENES THE TERMS OF THE 288
STRUCTURED SETTLEMENT INVOLVED, ALL OF THE FOLLOWING HAVE BEEN 289
COMPLIED WITH:
(1) EACH DEPENDENT WHOM THE PAYEE IS LEGALLY OBLIGATED TO 291
SUPPORT BY COURT ORDER OR DECREE, IN A WRITTEN APPROVAL AND 292
WAIVER, APPROVES THE TRANSFER AND WAIVES THE RIGHT TO REQUIRE 294
THAT THE STRUCTURED SETTLEMENT PAYMENTS BE MADE TO THE PAYEE IN 295
ACCORDANCE WITH THE TERMS OF THE STRUCTURED SETTLEMENT. 296
(2) ANY COURT OR RESPONSIBLE ADMINISTRATIVE AUTHORITY THAT 298
PREVIOUSLY APPROVED THE STRUCTURED SETTLEMENT, OTHER THAN THE 300
COURT FROM WHICH THE APPROVAL OF THE TRANSFER IS SOUGHT UNDER 302
SECTIONS 2323.58 TO 2323.585 OF THE REVISED CODE, HAS EXPRESSLY 303
APPROVED THE TRANSFER IN WRITING. 304
(3) THE TRANSFEREE HAS PROVIDED TO THE COURT IN WHICH THE 307
APPLICATION FOR APPROVAL OF THE TRANSFER WAS FILED ALL OF THE 308
SIGNED ORIGINAL COPIES OF THE APPROVALS REQUIRED UNDER DIVISIONS 309
(D)(1) AND (2) OF THIS SECTION.
(4) THE TRANSFEREE HAS FURNISHED EACH INTERESTED PARTY 311
COPIES OF THE APPROVALS REQUIRED UNDER DIVISIONS (D)(1) AND (2) 312
OF THIS SECTION. 313
(E) THE TRANSFEREE HAS GIVEN WRITTEN NOTICE OF THE 315
TRANSFEREE'S NAME, ADDRESS, AND TAXPAYER IDENTIFICATION NUMBER TO 317
THE ANNUITY ISSUER AND THE STRUCTURED SETTLEMENT OBLIGOR AND HAS 318
FILED A COPY OF THAT NOTICE WITH THE COURT IN WHICH THE 320
APPLICATION FOR APPROVAL OF THE TRANSFER WAS FILED.
(F) THE TRANSFER COMPLIES WITH ALL OF THE REQUIREMENTS OF 322
SECTIONS 2323.58 TO 2323.585 OF THE REVISED CODE AND DOES NOT 324
CONTRAVENE ANY APPLICABLE LAW. 325
Sec. 2323.584. (A) A PERSON SHALL FILE AN APPLICATION 327
UNDER SECTIONS 2323.58 TO 2323.585 OF THE REVISED CODE FOR THE 328
APPROVAL IN ADVANCE OF A TRANSFER OF STRUCTURED SETTLEMENT 329
PAYMENT RIGHTS IN THE OHIO COURT THAT APPROVED THE STRUCTURED 330
SETTLEMENT AGREEMENT. IF THE STRUCTURED SETTLEMENT AGREEMENT WAS 331
8
NOT APPROVED BY AN OHIO COURT, A PERSON SHALL FILE AN APPLICATION 332
UNDER SECTIONS 2323.58 TO 2323.585 OF THE REVISED CODE FOR THE 333
APPROVAL IN ADVANCE OF A TRANSFER OF STRUCTURED SETTLEMENT
PAYMENT RIGHTS IN THE PROBATE DIVISION OF THE COURT OF COMMON 334
PLEAS OF THE COUNTY IN WHICH THE PAYEE, THE STRUCTURED SETTLEMENT 335
OBLIGOR, OR THE ANNUITY ISSUER RESIDES. 336
(B) THE FOLLOWING PROCEDURES SHALL APPLY TO AN APPLICATION 338
FOR THE APPROVAL IN ADVANCE BY A COURT OF A TRANSFER OF 340
STRUCTURED SETTLEMENT PAYMENT RIGHTS UNDER DIVISION (A) OF THIS 341
SECTION:
(1) UPON THE FILING OF THE APPLICATION, THE COURT SHALL 344
SET A DATE AND TIME FOR A HEARING ON THE APPLICATION AND SHALL 345
NOTIFY THE TRANSFEREE OF THE DATE, TIME, AND PLACE OF THE 346
HEARING.
(2) NOT LESS THAN TWENTY DAYS PRIOR TO THE DATE SET BY THE 348
COURT FOR THE HEARING ON AN APPLICATION FILED PURSUANT TO THIS 349
SECTION, THE TRANSFEREE SHALL FILE WITH THE COURT AND SHALL SERVE 351
ON THE COURT OR ANY RESPONSIBLE ADMINISTRATIVE AUTHORITY THAT 352
PREVIOUSLY APPROVED THE STRUCTURED SETTLEMENT, ON ALL INTERESTED 353
PARTIES, AND ON THE ANNUITY ISSUER AND THE STRUCTURED SETTLEMENT 354
OBLIGOR, IN THE MANNER PRESCRIBED IN THE RULES OF CIVIL PROCEDURE 355
FOR THE SERVICE OF PROCESS, A NOTICE OF THE PROPOSED TRANSFER AND 356
THE APPLICATION FOR ITS APPROVAL IN ADVANCE. THE NOTICE SHALL 357
INCLUDE ALL OF THE FOLLOWING: 358
(a) A COPY OF THE APPLICATION; 360
(b) A COPY OF THE TRANSFER AGREEMENT; 362
(c) A COPY OF THE DISCLOSURE STATEMENT PROVIDED BY THE 364
TRANSFEREE PURSUANT TO SECTION 2323.582 OF THE REVISED CODE AND 365
SIGNED BY THE PAYEE PURSUANT TO DIVISION (A) OF SECTION 2323.583 366
OF THE REVISED CODE;
(d) NOTIFICATION OF THE DATE, TIME, AND PLACE OF THE 368
HEARING ON THE APPLICATION; 369
(e) NOTIFICATION THAT ANY INTERESTED PARTY MAY SUPPORT, 371
OPPOSE, OR OTHERWISE RESPOND TO THE APPLICATION, EITHER IN PERSON 373
9
OR BY COUNSEL, BY SUBMITTING TO THE COURT A WRITTEN RESPONSE 374
CONTAINING THE INTERESTED PARTY'S SUPPORT OF, OPPOSITION TO, OR 376
COMMENTS ON THE APPLICATION OR BY PARTICIPATING IN THE HEARING; 377
(f) NOTIFICATION OF THE MANNER OF FILING A WRITTEN 379
RESPONSE TO THE APPLICATION AND THE TIME WITHIN WHICH THE 380
RESPONSE IS REQUIRED TO BE FILED IN ORDER FOR THE COURT TO 382
CONSIDER IT.
(3) WITHIN FIFTEEN DAYS AFTER RECEIPT OF THE NOTICE 384
DESCRIBED IN DIVISION (B)(2) OF THIS SECTION, ANY INTERESTED 385
PARTY WHO WISHES TO RESPOND TO THE APPLICATION SHALL FILE A 386
WRITTEN RESPONSE WITH THE COURT PERSONALLY OR BY CERTIFIED MAIL, 388
RETURN RECEIPT REQUESTED.
(4) AT THE CONCLUSION OF THE HEARING ON AN APPLICATION 390
UNDER THIS SECTION, THE COURT MAY GRANT OR DENY THE APPROVAL OF 392
THE TRANSFER. THE COURT SHALL ENTER ITS ORDER ACCORDINGLY. IF 393
THE COURT GRANTS THE APPROVAL OF THE TRANSFER, IT SHALL INCLUDE 394
IN ITS ORDER ALL OF THE EXPRESS FINDINGS SPECIFIED IN SECTION 395
2323.583 OF THE REVISED CODE. IF THE COURT DENIES THE APPROVAL 398
OF THE TRANSFER, IT SHALL INCLUDE IN ITS ORDER THE REASONS FOR 399
THE DENIAL.
(5) AN ORDER OF THE COURT MADE UNDER DIVISION (B)(4) OF 403
THIS SECTION IS A FINAL AND APPEALABLE ORDER. 404
Sec. 2323.585. (A) NO PAYEE WHO PROPOSES TO MAKE A 406
TRANSFER OF STRUCTURED SETTLEMENT PAYMENT RIGHTS SHALL INCUR ANY 407
PENALTY, FORFEIT ANY APPLICATION FEE OR OTHER PAYMENT, OR 408
OTHERWISE INCUR ANY LIABILITY TO THE PROPOSED TRANSFEREE BASED ON 410
A FAILURE OF THE TRANSFER TO COMPLY WITH ANY OF THE REQUIREMENTS
OF SECTIONS 2323.581 TO 2323.584 OF THE REVISED CODE. 412
(B) NO PROVISION OF THIS SECTION OR SECTION 2323.581, 415
2323.582, 2323.583, OR 2323.584 OF THE REVISED CODE MAY BE 416
WAIVED.
(C) NO PROVISION OF THIS SECTION OR SECTION 2323.581, 419
2323.582, 2323.583, OR 2323.584 OF THE REVISED CODE AUTHORIZES 420
ANY TRANSFER OF STRUCTURED SETTLEMENT PAYMENT RIGHTS IN 422
10
CONTRAVENTION OF APPLICABLE LAW OR GIVES EFFECT TO ANY TRANSFER 423
OF STRUCTURED SETTLEMENT PAYMENT RIGHTS THAT IS VOID UNDER ANY 424
APPLICABLE LAW.
Sec. 2323.586. THE STRUCTURED SETTLEMENT OBLIGOR AND THE 428
ANNUITY ISSUER UNDER A TRANSFER OR TRANSFER AGREEMENT ARE IMMUNE 429
FROM LIABILITY BASED UPON ANY CLAIM BY THE PAYEE, OR ANY PARTY, 430
OTHER THAN A TRANSFEREE, CLAIMING THROUGH THE PAYEE, AS TO ANY
STRUCTURED SETTLEMENT PAYMENT RIGHTS OR PERIODIC PAYMENTS THAT 431
ARE THE SUBJECT OF THE TRANSFER OR TRANSFER AGREEMENT. 432
Sec. 2323.587. A VIOLATION OF SECTION 2323.581, 2323.582, 434
2323.583, 2323.584, 2323.585, OR 2323.586 OF THE REVISED CODE IS 435
AN UNFAIR OR DECEPTIVE ACT OR PRACTICE IN VIOLATION OF SECTION 438
1345.02 OF THE REVISED CODE.
Section 2. Sections 2323.58, 2323.581, 2323.582, 2323.583, 440
2323.584, 2323.585, 2323.586, and 2323.587 of the Revised Code, 441
as enacted by this act,shall apply to a transfer of structured 443
settlement payment rights under a transfer agreement entered into 444
on or after the effective date of this act. As used in this 445
section, "structured settlement payment rights," "transfer," and 446
"transfer agreement" have the same meanings as in section 2323.58 448
of the Revised Code, as enacted by this act.