Montana Code 33-20-1405. Obligations after transfer
33-20-1405. Obligations after transfer. After the transfer of a structured settlement payment right pursuant to this part:
Terms Used In Montana Code 33-20-1405
- 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.
- Annuity issuer: means an insurer that has issued a contract to fund periodic payments under a structured settlement. See Montana Code 33-20-1402
- 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
- Periodic payment: includes both a recurring payment and any scheduled future lump-sum payments. See Montana Code 33-20-1402
- Responsible administrative authority: means , with respect to a structured settlement, any government authority vested by law with exclusive jurisdiction over the settled claim resolved by the structured settlement. 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
- Structured settlement obligor: means , with respect to a structured settlement, the party that has the continuing obligation to make periodic payments to the payee under a structured settlement agreement or a qualified assignment agreement. See Montana Code 33-20-1402
- Terms of the structured settlement: means , with respect to a structured settlement, the terms of the structured settlement agreement, the annuity contract, a qualified assignment agreement, or any order or other approval of a court or responsible administrative authority or other government authority that authorized or approved the structured settlement. 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
- 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 structured settlement obligor and the annuity issuer are discharged and released from liability for the transferred payments to all parties except to the transferee;
(2)the transferee is liable to the structured settlement obligor and the annuity issuer:
(a)if the transfer contravenes the terms of the structured settlement for any tax incurred by the structured settlement obligor or annuity issuer as a consequence of the transfer; and
(b)for any other liability or cost, including reasonable costs and attorney fees, arising:
(i)from compliance by the structured settlement obligor and annuity issuer with the order of the court or responsible administrative authority; or
(ii)as a consequence of the transferee’s failure to comply with this part; and
(3)neither the structured settlement obligor nor the annuity issuer may be required to divide a periodic payment between a payee and a transferee or assignee or between two or more transferees or assignees.