Structured Settlement Protection Act; applications for approval of transfer. (SB633)

Introduced By

Sen. Jeremy McPike (D-Dale City)

Progress

Introduced
Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law

Description

Structured Settlement Protection Act. Requires an application for approval of a transfer of structured settlement payment rights to be brought in the circuit court for the city or county in which the payee resides, if the payee resides in Virginia. The measure prohibits a circuit court from approving such an application if the payee fails to appear in person at the hearing unless the payee is represented at the hearing by counsel and the failure to appear is due to circumstances that prevent the payee's personal appearance. The measure requires that the Attorney General be served with a copy of the application and proposed agreement and provides that the Attorney General has standing to appear and be heard on matters relating to the application. The measure requires disclosure to the court of information regarding prior transfers and proposed transfers for which an application for approval was denied. The measure also incorporates provisions of North Carolina's Structured Settlement Protection Act that (i) bar the discount rate used in determining the net amount payable to the payee from exceeding an annual percentage rate of prime plus five percentage points; (ii) cap any transfer expenses at two percent of the net amount payable to the payee; (iii) require disclosure of the quotient, expressed as a percentage, obtained by dividing the net payment amount by the discounted present value of the payments and of the discount rate used by the transferee to determine the net amount payable to the payee for the structured settlement payments to be transferred; (iv) require the court to find that the transfer of structured settlement payment rights is fair and reasonable; and (v) authorize a payee to initiate an action to recover actual damages or $5,000, whichever is greater, in the event of a violation by a transferee. Read the Bill »

Status

01/25/2016: Incorporated into Another Bill

History

DateAction
01/15/2016Presented and ordered printed 16103485D
01/15/2016Referred to Committee on Commerce and Labor
01/25/2016Incorporated by Commerce and Labor (SB621-Stanley) (13-Y 0-N) (see vote tally)