Montana Code 33-20-1403. Disclosure to payee
33-20-1403. Disclosure to payee. No less than 3 days prior to the date on which a payee signs a transfer agreement, the transferee shall provide to the payee a written disclosure statement separate from the transfer agreement that sets forth in bold type no smaller than 14 points:
Terms Used In Montana Code 33-20-1403
- Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
- Discounted present value: means the present value of future payments determined by discounting the future payments to the present using the most recently published applicable federal rate for determining the present value of an annuity, as issued by the United States internal revenue service. See Montana Code 33-20-1402
- Gross advance amount: means the sum payable to the payee or to the payee's account as consideration for a transfer of a structured settlement payment right before any reduction for a transfer expense or any other deduction is made from the sum. See Montana Code 33-20-1402
- Net advance amount: means the gross advance amount minus the aggregate amount of the actual and estimated transfer expenses required to be disclosed under 33-20-1403(5). See Montana Code 33-20-1402
- 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.
- Payee: means an individual who is receiving tax-free payments under a structured settlement and proposes to make a transfer of the payment rights. See Montana Code 33-20-1402
- 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.
- Structured settlement: means an arrangement for periodic payment of damages for personal injuries or sickness established by settlement or judgment in resolution of a tort claim. See Montana Code 33-20-1402
- Transfer: means a sale, assignment, pledge, hypothecation, or other alienation or encumbrance of a structured settlement payment right made by a payee for consideration. See Montana Code 33-20-1402
- Transfer agreement: means the agreement providing for a transfer of a structured settlement payment right. See Montana Code 33-20-1402
- Transfer expenses: means all expenses of a transfer that are:
(i)required under the transfer agreement to be paid by the payee; or
(ii)deducted from the gross advance amount, including without limitation any court filing fee, attorney fee, escrow fee, lien recordation fee, judgment and lien search fee, finder's fee, commission, and other payments to a broker or other intermediary. See Montana Code 33-20-1402
- Transferee: means a party acquiring or proposing to acquire a structured settlement payment right through a transfer. See Montana Code 33-20-1402
(1)the amounts and the due dates of the structured settlement payment to be transferred;
(2)the aggregate amount of the amounts in subsection (1);
(3)the discounted present value of the payments to be transferred, which must be identified as:
(a)the calculation of the present value of the transferred structured settlement payment under federal standards for valuing annuities; and
(b)the amount of the applicable federal rate used in calculating the discounted present value;
(4)the gross advance amount;
(5)an itemized list of all applicable transfer expenses, other than attorney fees and related disbursements, based on the transferee’s best estimate of the amount of fees and disbursements payable in connection with the transferee’s application for approval of the transfer;
(6)the net advance amount;
(7)the amount of any penalty or liquidated damages payable by the payee in the event of a breach of the transfer agreement by the payee; and
(8)a statement that the payee has the right to cancel the transfer agreement without penalty or further obligation no later than the third business day after the date on which the payee signs the agreement.