Connecticut General Statutes 4-28s – Regulation of certain cigarette manufacturers under tobacco settlement agreements: Assignment of escrow funds to the state
(a) Any tobacco product manufacturer that places funds into escrow pursuant to subsection (a) of section 4-28i, or a third party to which a tobacco product manufacturer has transferred such manufacturer’s interests in such funds, may make an assignment to the state of all or part of its interest in any funds in the qualified escrow fund. Such assignment shall (1) be permanent and irrevocable, (2) apply to all assigned funds in the qualified escrow fund, including all assigned funds deposited in such fund prior to and on or after the assignment is executed and all interest or other appreciation on the assigned funds, (3) be in writing and signed by a duly authorized representative of the assignor, and (4) become effective upon delivery of the assignment to the Attorney General and the financial institution where the qualified escrow fund is maintained. The tobacco product manufacturer, its transferee, the Attorney General or the financial institution where the qualified escrow fund is maintained may make such amendments to the qualified escrow fund agreement as may be necessary to effectuate an assignment of funds executed pursuant to this subdivision or a withdrawal of funds from such qualified escrow fund pursuant to subsection (b) of section 4-28i.
Terms Used In Connecticut General Statutes 4-28s
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
(b) Any funds assigned to the state pursuant to subsection (a) of this section shall be deposited in the Tobacco and Health Trust Fund created in section 4-28f.
(c) Any financial institution in which a qualified escrow fund is maintained for which an assignment of funds has been executed pursuant to subsection (a) of this section may file a petition in the Superior Court for an order authorizing a transfer of funds in such qualified escrow fund to the Tobacco and Health Trust Fund. The petition shall state the factual and legal basis for the relief sought. The financial institution shall serve the petition on the Attorney General at the time the petition is filed in the Superior Court.
(d) Nothing in this section shall be construed to (1) waive the right of the state to bring a claim against a tobacco product manufacturer under section 4-28j, or (2) relieve a tobacco product manufacturer from any past, current or future obligations such manufacturer may have pursuant to chapter 47. Any funds assigned to the state pursuant to subsection (a) of this section shall be credited on a dollar-for-dollar basis against any judgment or settlement applicable to the escrow obligation the assigned funds were initially deposited to satisfy.