Iowa Code 682.5 – Effects of transfer of structured settlement payment rights
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Terms Used In Iowa Code 682.5
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- following: when used by way of reference to a chapter or other part of a statute mean the next preceding or next following chapter or other part. See Iowa Code 4.1
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- 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.
682.5 Effects of transfer of structured settlement payment rights.
1. The structured settlement obligor and the annuity issuer shall, as to all parties except
the transferee, be discharged and released from any and all liability for the transferred payments.
2. The transferee shall be liable to the structured settlement obligor and the annuity issuer for all of the following:
a. If the transfer contravenes the terms of the structured settlement, any taxes incurred by the structured settlement obligor and the annuity issuer as a consequence of the transfer. b. Any other liabilities or costs, including reasonable costs and attorney fees, arising from compliance by such parties with the order of the court or responsible administrative authority
or arising as a consequence of the transferee’s failure to comply with this chapter.
3. An annuity issuer and the structured settlement obligor shall not be required to divide any periodic payment between the payee and any transferee or assignee or between two or more transferees or assignees.
4. Any further transfer of structured settlement payment rights by the payee may be made only after compliance with all of the requirements of this chapter.
2001 Acts, ch 85, §5, 8
1. The structured settlement obligor and the annuity issuer shall, as to all parties except
the transferee, be discharged and released from any and all liability for the transferred payments.
2. The transferee shall be liable to the structured settlement obligor and the annuity issuer for all of the following:
a. If the transfer contravenes the terms of the structured settlement, any taxes incurred by the structured settlement obligor and the annuity issuer as a consequence of the transfer. b. Any other liabilities or costs, including reasonable costs and attorney fees, arising from compliance by such parties with the order of the court or responsible administrative authority
or arising as a consequence of the transferee’s failure to comply with this chapter.
3. An annuity issuer and the structured settlement obligor shall not be required to divide any periodic payment between the payee and any transferee or assignee or between two or more transferees or assignees.
4. Any further transfer of structured settlement payment rights by the payee may be made only after compliance with all of the requirements of this chapter.
2001 Acts, ch 85, §5, 8