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SCHEDULE 1
DISCLOSURE STATEMENT
PLEASE BE ADVISED THAT THE PROPOSED TRANSACTION IS A SALE,
NOT A LOAN. YOU ARE SELLING ALL OF YOUR RIGHTS, TITLE AND
INTEREST TO THE ASSIGNED ANNUITY PAYMENTS UPON
COMPLETION OF THIS TRANSACTION. THIS TRANSACTION MAY
SUBJECT YOU TO ADVERSE FEDERAL AND STATE INCOME TAX. YOU
SHOULD CONSULT WITH AN ATTORNEY, ACCOUNTANT, OR
FINANCIAL ADVISOR REGARDING ANY FEDERAL OR STATE INCOME
TAX IMPLICATIONS FROM THE PROPOSED TRANSACTION.
YOUR PURCHASE PRICE WAS CALCULATED AT A DISCOUNT RATE
SIGNIFICANTLY HIGHER THAN THE PRIME INTEREST RATES
CHARGED BY COMMERCIAL BANKS, THEREFORE, YOU SHOULD
EXPLORE ALTERNATIVE FINANCIAL OPTIONS.
WE WILL PURCHASE FROM YOU: 119 MONTHLY PAYMENTS IN THE
AMOUNT OF $526.00 BEGINNING NOVEMBER 8, 2020 THROUGH AND
INCLUDING SEPTEMBER 8, 2030.
THE AGGREGATE AMOUNT OF THE PURCHASED PAYMENTS IS
$62,594.00.
THE GROSS AMOUNT PAYABLE TO SELLER IS: $43,000.00.
THE FOLLOWING EXPENSES ARE INCURRED BY THE SELLER (YOU)
AND WILL BE DEDUCTED FROM THE PURCHASE PRICE:
COMPLIANCE AND ADMINISTRATIVE FEE: $0.00
FILING AND RELATED EXPENSES FEE: $0.00
THE NET AMOUNT PAYABLE TO THE SELLER (YOU) IS: $43,000.00.
NO OTHER EXPENSESAREINCURRED BY YOU.
THE DISCOUNTED PRESENT VALUE OF PAYMENTS SHALL BE
CALCULATED AS FOLLOWS: THE APPLICABLE FEDERAL RATE USED
IN CALCULATING THE DISCOUNTED PRESENT VALUE IS 0.4%.
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THE DISCOUNTED PRESENT VALUE OF THE AGGREGATE
PAYMENTS AT 0.4% IS $61,327.18. THE DISCOUNTED PRESENT
VALUE IS THE CALCULATION OF THE CURRENT VALUE OF THE
TRANSFERRED STRUCTUREDSETTLEMENTPAYMENTSUNDER
FEDERAL STANDARDS FOR VALUING ANNUITIES.
THE EFFECTIVE ANNUAL DISCOUNT RATE FOR THIS TRANSACTION
IS 8.1%. THE CASH PAYMENT YOU RECEIVE IN THIS TRANSACTION
FROM US WAS DETERMINED BY APPLYING THE SPECIFIED
EFFECTIVE ANNUAL DISCOUNT RATE, COMPOUNDED MONTHLY, TO
THE TOTAL AMOUNT OF FUTURE PAYMENTS TO BE RECEIVED BY
US, LESS THE TOTAL AMOUNT OF COMMISSIONS, FEES, COSTS,
EXPENSES AND OTHER CHARGES PAYABLE BY YOU.
THE NET AMOUNT THAT YOU WILL RECElVE FROM US IN EXCHANGE
FORYOURFUTURE STRUCTUREDSETTLEMENT
PAYMENTS REPRESENTS 70.11% OF THE ESTIMATED CURRENT
VALUE OF THE PAYMENTS BASED UPON THE DISCOUNTED VALUE
USING THE APPLICABLE FEDERAL RATE.
THE QUOTIENT OBTAINED BY DIVIDING THE NET PAYMENT BY THE
DISCOUNTED PRESENT VALUE IS .70.
BASED ON THE NET AMOUNT THAT YOU WILL RECEIVE FROM US
AND THE AMOUNTS AND TIMING OF THE STRUCTURED-
SETTLEMENT PAYMENTS THAT YOU ARE TURNING OVER TO US,
YOU WILL, IN EFFECT, BE PAYING INTEREST TO US AT A RATE OF
8.1% PER YEAR. THE NET AMOUNT PAID TO YOU (THE
TRANSFEROR)BY US(THE TRANSFEREE)REPRESENTSAN
ESTIMATE OF THE FAIR MARKET VALUE OF THE FUTURE PERIODIC
PAYMENTSTRANSFERRED UNDER THESTRUCTURED SETTLEMENT
AGREEMENT.
IF YOU WERE TO PURCHASE AN ANNUITY WITH COMPARABLE
PAYMENTS TO THOSE BEING PURCHASED BY US, THE PREMIUM
COST FOR SUCH COMPARABLE WOULD BE AS FOLLOWS:
B++ RATED CARRIER: $52,460.85
B++ RATED CARRIER: $53,583.85
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NOTICE OF CANCELLATION RIGHTS:
YOU MAY CANCEL THIS TRANSACTION NO LATER THAN THE TENTH
(10th) DAY FOLLOWING THE DATE YOU EXECUTE THE DISCLOSURE
STATEMENT OR PURCHASE AGREEMENT, WITHOUT PENALTY OR
FURTHER OBLIGATION.
THIS CANCELLATION RIGHT CANNOT BE WAIVED IN ANY MANNER.
IN ORDER FOR THE CANCELLATION TO BE EFFECTIVE, YOU MUST
PROVIDE WRITTEN NOTICE OF CANCELLATION TO US:
181 WASHINGTON ST., SUITE 375
CONSHOHOCKEN, PA 19428
ATTENTION: UNDERWRITING DEPARTMENT
IMPORTANT NOTICE: YOU ARE STRONGLY URGED TO CONSULT
WITH AN ATTORNEY WHO CAN ADVISE YOU OF THE POTENTIAL TAX
CONSEQUENCES OF THIS TRANSACTION.
YOU WILL BE RESPONSIBLE FOR LOSSES OR ACTUAL DAMAGES WE
SUFFERASARESULT OF:YOUR BREACH OF THE CONTRACT,
BECAUSE YOU MADE A FALSE OR INCOMPLETE REPRESENTATION
OR WARRANTY. THERE ARE NO BROKERS COMMISSIONS, SERVICE
CHARGES, APPLICATION FEES, PROCESSING FEES, CLOSING
COSTS, FILING FEES, ADMINISTRATIVE FEES, LEGAL FEES, NOTARY
FEES AND OTHER COMMISSIONS, FEES, COSTS, EXPENSES AND
CHARGES PAYABLE BY YOU OR DEDUCTED FROM GROSS AMOUNT
OTHERWISE PAYABLE TO YOU OTHER THAN THE COMPLIANCE AND
ADMINISTRATIVE FEE AND THE FILING AND RELATED EXPENSES
FEE. THESE DAMAGES SHALL NOT EXCEED $2,500.00.
IF YOU BELIEVE YOU WERE TREATED UNFAIRLY OR WERE MISLED
AS TO THE NATURE OF THE OBLIGATIONS YOU ASSUMED UPON
ENTERING INTO THIS AGREEMENT, YOU SHOULD REPORT THOSE
CIRCUMSTANCES TO YOUR LOCAL DISTRICT ATTORNEY OR THE
OFFICE OF THE ATTORNEY GENERAL.
THE EFFECTIVE DATE OF THE TRANSFER AGREEMENT SHALL BE
DEEMED TO BE THE DATE THAT THE AGREEMENT WAS SIGNED BY
THE YOU (PAYEE).
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PLEASE BE ADVISED THAT PAYMENT TO YOU PURSUANT TO THE
TRANSFER AGREEMENT IS CONTINGENT UPON COURT APPROVAL
OFTHE TRANSFERAGREEMENT.
PLEASE BE ADVISED THAT PAYMENT TO YOU WILL BE DELAYED UP
TO 30 DAYS OR MORE IN ORDER FOR THE COURT TO REVIEW AND
APPROVETHETRANSFERAGREEMENT.
BY SIGNING BELOW YOU ARE CONFIRMING RECEIPT OF THIS
DISCLOSURE AT LEAST 10 DAYS PRIOR TO RECEIPT OF THIS
CONTRACT.
35ETEEDBAEdD4E7... summm
Date: 8/2o/202o
G Brown aka G Senical
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NEW YORK SUPREME COURT - COUNTY OF BRONX
- ...._.
-- --..-.
. ....
.
Case Disposed O
SUPREME COURT OF THE STATE OF NEW YORK Settle Order O
COUNTY OF BRONX: Schedule Appearance O
MEDINA,CHERLEE Index Ne. 0363/2008
-agains*- NDER W. HUNTER. JR. .
. Justice.
.---._____---------------.----------...-----X
The following papersnumbered 1 to Read on thismotion MISCELLANEOUS
Noticed dar of
PAPERS NUMBERED
Notice ofMotion - OrdertoShow Cause - Exhibitsand Afiidavits
Annexed --
/ //
Answering Affidavitand Exhibits
Replying Affidavitand Exhibits
Affidavitsand Exhibits
Pleadings- Exhibit
S• - Referee's - Minute
par!=(s) Report REC _______ _____
FiledPapers 0FFig
Memoranda ofLaw
7
Upon the foregoing papers this
Jated: O
Hon.
ALEXANDER W. ER, JR., J.S.C.
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SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF BRONX: PART IA23
___________..___________.._____..______---------------------X
In Re: the Matter of the Sale and Transfer of Index No.: 260363/08
Structured Settlement Payment Rights of Cherlee
Medina, Pursuant to and inAccordance with Decision/Order
Gen. Oblig. Law §5-1701, et seq.
___________________________.........------------------X
HON. ALEXANDER W. HUNTER, JR
The motion by petitioner, Structured Asset Funding, LLC, for an order seeking approval
of the sale and transfer of certain structured settlement payment rights due under a structured
settlement agreement obtained on behalf of respondent/payee, Cherlee Medina. isdenied without
prejudice.
The only details provided by Ms. Medina with respect to the structured settlement that is
the subject of thisapplication isthat said structured settlement entitled her tothe following
payments: twelve (12) annual payments, each inthe amount of $1,000 beginning on September
1, 1993 through to and including September 1, 2004; four (4) annual payments, each in the
amount of S16,900 beginning with the payment on June 5, 2005 through to and including June 5,
2008; one (1) lump sum payment in the amount of $55,000 due and payable on June 5, 2012; one
lump sum payment in the amount of $87,500 due and payable on June 5, 2017.
According to the Disclosure Statement that was signed by Ms. Medina, which isannexed
to petitioncr'smotion as Exhibit E, the discounted present value of the aggregate payments tobe
transferred is$47,296.71. The annual discount rate forthis transaction is 13.92%. The
discounted present value is calculated by using the applicable federal rate of 3.6%. The
petitioner isnot charging any commissions, fees,costs or expenses to the payee, Ms. Medina.
The Structured Settlement Protection Act (SSPA) codified under General Obligations
Law , Title17, was enacted in July of 2002 because of the concern that "...agrowing number of
factoring companies have used aggressive advertising, plus the allure of quick and easy cash, to
induce settlement recipients to cash out future payments, often at substantial discounts, depriving
victims and their famihes of the long-term financial security their structured settlements were
designed to provide. Although transfers of structured settlements payments are generally
prohibited by contract...factoriñg companies have builta rapidly expanding business around
prohibitions."
circumventing these (NY Spons. Memo., 2002 Ch. 537). A determination would
be made by a Supreme Court judge as towhether thetransfer is "in compliance with applicable
law, that key terms have been disclosed, that the transfermeets a hardship standard, and that
obtained."
independent professional advice has been (NY Bill Jacket, 2002 A.B. 6936, Ch. 537).
In 2004, the SSPA was amended in thatthe hardship requirement was "eliminated as a
end'
precondition to transfers and the requirement that disclosures be made 'atthe front was
added."
(NY Spons. Memo., 2004 Ch. 480).
The procedural requirements thatmust be met for approval of a transfer are found under
General Obligations Law §5-1705. The requirements are that a copy of the notice of petition and
petition by order to show cause be served upon allinterested parties at least twenty days before
the time at which the petition isnoticed to be heard, the petition must include a copy of the
transfer agreement, a copy of the disclosure statement and proof of notice of thatstatement as
dependents'
well as a listingof each of the payee's depeñdcnts along with the age. Procedurally,
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the petitioner herein has met allof the aforementioned requirements.
Pursuant to General Obligations Law §5-1706, the court must make the following
fmdings before a transfer can be effectuated. These are that: "(a)the transfer complies with the
requirements of this title;(b) the transfer isin the best interestof the payee, taking into account
the welfare and suppon of the payee's dependants; and whether the transaction, including the
discount rate used to determine the gross advance amount and the fees and expenses used to
determine the net advance amount, are fair and reasonable. Provided the court makes the
fmdings as outlined in thissubdivision, there isno requirement for the court to find that an
applicant issuffering from a hardship to approve the transfer of structured settlement payments
under thissubdivision, ( c)the payee has been advised in writing by the transferee to seek
iñdepcñdent professional advice regarding the transfer and has eitherreceived stich advice or
knowingly waived such advice in wnting; (d) the transfer does not contravene any applicable
statuteor the order of any court or other government authority; and (e) iswritten inplain
article."
language and incompliance with section 5-702 of this
In the case at bar,Ms. Roman was advised in writing to seek independent professional
advice, which she claims to have sought from an attorney by the name of Jed Marcus, Esq.
(Exhibit G).
The two most important components of the SSPA are whether or not the transaction,
including the discount rate and the amoüñt of fees and expenses, is fairand reasonable and
whether the transaction is inthe best interestof the payee. The trialcourts have ruled on what is
detemained to be fair and reasonable and whether the transferisin the best interestof the payee
on a case by case basis viewing the totality of the circumstances. Matter of Settlement Capital
Corp. v. Yates, 12 Misc. 3d 1198(A) [2006).
This court finds thatthe transaction herein is fairtaking into account the totality of the
circumstances and the interestrate of 13.92% isreasonable. However, this court cannot state
with any certainty whether or not the transaction isin the best interestof the payee.
Ms. Medina states in her affidavit that she seeks to transfer to the payor, the lump sum
payment of $55,000 that ispayable to her on June 5, 2012. In her affidavit in support of the
petition,Ms. Medina states that she is twenty (20) years old, she is unmarried and has two (2)
depcndcnts one is four (4) years old and the other isthree (3) months old. Ms. Medina states that
she intends to use the money that she receives from the transfer to finda place of her own as she
and her children are currently living at her aunt's house and she wishes to relieve her aunt of the
burden. She also plans to use some ofthe proceeds to purchase furniture for herself and her
children and to pay for the livmg expenses ofher children.
However, Ms. Medina does not indicate whether or not she is employed or otherwise
receives a monthly income in order to enable her to pay her monthly rent, utilities
and other
household expenses. Moreover, she does not indicate how long she intends to live offof the
$31,500 she will be receiving from said transfer. She also recently received an annual payment
of $16,900 on June 5, 2008 that could have been applied toward relocating to a place ofher own.
Accordingly, the application for the transfer of the structured settlement payment is
denied without prejudice and with leave to renew upon submission of a more detailed affidavit
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from Ms. Medina with respect to her manthly household income and the amount of rent she
intends to pay on a monthly basis in order for this courtto dctcrmine whether or not the transfer
s inthe best interest of the payee taking into account the welfare and support of her dependents
This constitutes the decision and order of this court.
Dated: December 12. 2008
J.S.C.
3
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At an All Purpose Term of the Supreme
Court of the State of New York, held in
and for the County of Ulster, Kingston,
New York, on the 4th day of December,
2008.
PRESENT: HON. HENRY F. ZWACK
Acting Supreme Court Justice
STATE OF NEW YORK
SUPREME COURT COUNTY OF ULSTER
In Re: t he Matter ofthe Sale and Transfer of Structured Settlement DECISION
Payment Rights of Kimberly Whispell, pursuant to and in
accordance with General Obligation Law § 5-1701, et. seq. Index No. 08-4095
Structured Asset Funding, LLC (petitioner) is seeking approval of the sale and transfer
of certain structured settlement payment rights due Kimberly Whispell (Whispell) under a
structured settlement ay,1ocutono. Whispell has consented to and joined in this application by
petitioner.
The Court has received and considered the verified petition, with exhibits A through J,
the testimony of Whispell at the hearing held on December 4, 2008, and the post hearing
submission by Whispell dated December 29, 2008.
Whispell, who is 32 years ofage and has custody and care of four minor children ranging
in ages one through thirteen, is requesting to transfer 121 monthly payment portions of $745.00
each to petitioner. In exchange, petitioner would provide a gross advance of $47,000.00. The
aggregate amount of payments to be transferred by Whispell is $90,145.00, the discounted
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present value of the payments to be transferred is $75,017.24, and the annual discount rate,
compounded monthly, used to determine the gross advance amount is 15.66%.
Whispell presently receives $2,121.80 monthly under the structured settlement¹.
Whispell's other income includes rents of $400.00 per month, and either rents or resumption of
mortgage payments from a mortgage held by her. In her affidavit, she stated her intention was to
use the proceeds from petitioner to "make a large down payment on a house for me and my
children."
At the hearing, Whispell testified she was at risk of mortgage foreclosure of her present
home in Ulster County, and that her original plan to sellher home in Ulster County and purchase a
more affordable home in Washington County had changed. Whispell's post hearing submission
dated December 29, 2008 recites an offer from her present mortgage holder to modify the terms of
the mortgage, in exchange for a lump sum payment, that would reduce the interest rate from 9.25%
to 5.2%, with a monthly escrow for tax and insurance.
The Settlement Protection Act requires court approval of all transfers of structured
settlements after July 1, 2002 (General Obligations Law § 5-1706). This legislation was enacted,
in part,to provide protection to those individuals seeking to transfer payments under a structured
settlement agreement (In re Settlement Capital Corp. [Ballos], 1 Misc3d 446, 455 [Sup. Ct. Queens
Co. 2003]). In analyzing the transfer, courts consider whether the transfer is in the best interest of
the payee, whether the transfer isfair and reasonable, whether the payee has been advised in writing
to seekindependent professional advice and has received or waived such advice, whether thetransfer
is written in plain language, and whether the transfer complies with the other provisions of the
such as disclosure requirements (General Obligations Law 5-1706 - [e]).
statute, § [b]
'In relevant part, Whispell is entitled under the structured settlement to monthly payments
of $2,000.00, beginning November 1, 2006, increasing at 3% annually, guaranteed through
October 1, 2036 and continuing for life thereafter.
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To determine whether the transfer is inthe best interest of the payee, the court must analyze
each transfer on a case-by-case basis (In re Settlement Capital Corp. [Ballos], 1 Misc3d 450).
Factors for the court to consider may include:
(a) the physical age, level of maturity, physical and mental capacity of the
beneficiary;
(b) the beneficiary's ability to earn a living and support his or her depéñdents; (c) the
beneficiary's intended usage of the proceeds;
(d) the beneficiary's present financial situation and whether he or she is laboring
under such a hardship as to be in dire and immediate need of the proceeds;
(e) whether the beneficiary has obtained independent counsel regarding the financial
consequences of the proposed transfer;
the level of finan cial or lack of the and the
(f) sophistication, thereof, beneficiary; (g)
timing of the application with other scheduled payments.
(In re Symetra Assigned Benefits Service Co. [McGuire], 13 Misc3d 1208[A] [Sup. Ct. Suffolk Co.
2006]).
Courts have held transfers to be in the best interests of beneficiary when the beneficiary has
pursued alternatives to the transfer, has researched other potential purchasers of the structured
settlement, and has a clear plan for use ofthe proceeds ( In re Settlement Funding of NY [Platt], 2
Misc3d 872, 879 [Sup. Ct. Lewis Co. 2003]). However, in the absence of these factors, transfers of
structured settlements generally are not in the best interests of the beneficiary. Specifically, courts
need"
deny the transfer when the beneficiary does not have a "pressing for the proceeds, does not
have a plan for the proceeds, or has not pursued alternatives to the transfer (see e.g., In re Settlement
Capital Corp. [Yates], 12 Misc3d 1198[A] [Sup. Ct. Kings Co. 2006] [denying transfer of structured
settlement where funds would be used to further support five children because adequate monthly
income already existed]; In re 321 Héñderson Receivables, 11 Misc.3d 892 [Sup. Ct. NY Co. 2006]
[denying transfer of strüetüred settlement where beneficiary would like to start a barbershop, but has
not demonstrated any commitment to the endeavor]).
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To determine whether the transfer isfairand reasonable, the court must evaluate the discount
rate used to compute the gross advance amomt and the fees and expenses charged, ifany (General
Obligations Law § 5-1706). To make a determination regarding whether the discount rate isfair and
reasoñable, courts have compared discount rates to current credit card and unsecured loan rates, and
transfer fees to closing costs (In re Settlement Funding of New York, LLC [Cunningham), 195
Misc2d 721 [Sup. Ct. Renss. Co. 2003]). As noted in several decisions, it is more financially
advantageous for the beneficiary to obtain an unsecured loan or a home equity loan, when available
(id.). Currently, with the prime rate below 10 percent, unsecured loan rates are approximately 13
percent, and home equity loan rates range up to approximately 10 percent, based on a cursory review
of local market rates. The Court is alsomindful that discount rates as high as 20 percent have been
court approved ( In re Settlement Funding ofNY [Platt], 2 Misc3d 872 [Sup. Ct. Lewis Co. 2003]).
When the transfer appears to be in the best interest of the beneficiary, but the court finds that
the transfer is not fair and reasonable, a balancing test determines whether the transfer will be
approved. An analysis of the best interest of the beneficiary may warrant approval of a higher
discount rate (In re Settlement Capital Corp. [Yates), 12 Misc3d 1198[A]) .
The Act also requires the transferee to advise the beneficiary to obtain independent legal or
financial advice (General Obligations Law § 5-1706). The beneficiary must acknowledge obtaining
this advice or waive the advice in writing (id.). The advisor is required to attest to the fact that
advice was provided, but is not required to attestto his support or opposition to the transaction.
Generally, transfers should have express support of advisor; there is a presumption of no support
unless the independent advisor submits an affidavit stating otherwise and the rationale for such
support (In re Settlement Funding of New York, LLC [Cunningham], 195 Misc2d 721 [Sup. Ct.
Renss. Co. 2003]).
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The transfer must also comply with the remaining requirements of the Structured Settlement
Protection Act (General Obligations Law § 5-1706[a]). These requirements include adequate and
timely disclosure of the terms of the transfer, including the discount rate used, a price quote
reflecting the cost of purchasing a comparable annuity, and the federal discount rate and the
discounted present value under that rate (General Obligations Law § 5-1703). Such disclosures must
be received and signed no lessthan 10 days prior to the transfer (General Obligations Law § 5-1703)
Finally, the court notes that the Act does not permit the transferee to collect attorney's fees
or other costs ifthe transfer agreement is not completed (General Obligations Law § 5-1704[c]).
Whispell has ultimately made a compelling argument that the proposed transfer isin her best
interests. While as originally presented there was some doubt as to whether the transfer was in her
best interest, given her imminent risk of foreclosure of one home and insufficient other moneys to
pay the carrying costs of a planned replacement home and provide forherself and her four children,
the proposed plan contained in the post hearing submission sets forth a use of the proposed transfer
thataddresses Whispell's present financial situation, affords her an opportunity to avoid the direand
lasting conseqwnees of a mortgage foreclosure, and permits her to restructure family debt in a more
manageable and sustainable way. The Court finds the proposed transfer isin Whispell's best interest,
is fairand reasonable, and petitioner has otherwise complied with the provisions of Settlement
Protection Act.
Accordingly, for the reasons set forth above, the Court approves the sale and transfer by
Whispell to petitioner as stated in the Order Approving Transfer dated this date.
DATED: January 9, 2009
ENTER
Henry F. Zwack
Acting Supreme Court Justice
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FILED: ONONDAGA COUNTY CLERK 08/24/2020 01:41 PM INDEX NO. 005272/2020 NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 08/24/2020 "C" EXHIBIT FILED: ONONDAGA COUNTY CLERK 08/24/2020 01:41 PM INDEX NO. 005272/2020 DocuSign NYSCEF DOC. NO.ID: 5F81C2E75-CC49-41C6-8EF6-3CEC5B14B4DC Envelope RECEIVED NYSCEF: 08/24/2020 CBC File # 39648 Page 14 SCHEDULE 1 DISCLOSURE STATEMENT PLEASE BE ADVISED THAT THE PROPOSED TRANSACTION IS A SALE, NOT A LOAN. YOU ARE SELLING ALL OF YOUR RIGHTS, TITLE AND INTEREST TO THE ASSIGNED ANNUITY PAYMENTS UPON COMPLETION OF THIS TRANSACTION. THIS TRANSACTION MAY SUBJECT YOU TO ADVERSE FEDERAL AND STATE INCOME TAX. YOU SHOULD CONSULT WITH AN ATTORNEY, ACCOUNTANT, OR FINANCIAL ADVISOR REGARDING ANY FEDERAL OR STATE INCOME TAX IMPLICATIONS FROM THE PROPOSED TRANSACTION. YOUR PURCHASE PRICE WAS CALCULATED AT A DISCOUNT RATE SIGNIFICANTLY HIGHER THAN THE PRIME INTEREST RATES CHARGED BY COMMERCIAL BANKS, THEREFORE, YOU SHOULD EXPLORE ALTERNATIVE FINANCIAL OPTIONS. WE WILL PURCHASE FROM YOU: 119 MONTHLY PAYMENTS IN THE AMOUNT OF $526.00 BEGINNING NOVEMBER 8, 2020 THROUGH AND INCLUDING SEPTEMBER 8, 2030. THE AGGREGATE AMOUNT OF THE PURCHASED PAYMENTS IS $62,594.00. THE GROSS AMOUNT PAYABLE TO SELLER IS: $43,000.00. THE FOLLOWING EXPENSES ARE INCURRED BY THE SELLER (YOU) AND WILL BE DEDUCTED FROM THE PURCHASE PRICE: COMPLIANCE AND ADMINISTRATIVE FEE: $0.00 FILING AND RELATED EXPENSES FEE: $0.00 THE NET AMOUNT PAYABLE TO THE SELLER (YOU) IS: $43,000.00. NO OTHER EXPENSESAREINCURRED BY YOU. THE DISCOUNTED PRESENT VALUE OF PAYMENTS SHALL BE CALCULATED AS FOLLOWS: THE APPLICABLE FEDERAL RATE USED IN CALCULATING THE DISCOUNTED PRESENT VALUE IS 0.4%. FILED: ONONDAGA COUNTY CLERK 08/24/2020 01:41 PM INDEX NO. 005272/2020 DocuSignDOC. NYSCEF NO.ID: 5F81C2E75-6049-41C6-8EF6-3CEC5B14B4DC Envelope RECEIVED NYSCEF: 08/24/2020 CBC File# 39648 Page 15 THE DISCOUNTED PRESENT VALUE OF THE AGGREGATE PAYMENTS AT 0.4% IS $61,327.18. THE DISCOUNTED PRESENT VALUE IS THE CALCULATION OF THE CURRENT VALUE OF THE TRANSFERRED STRUCTUREDSETTLEMENTPAYMENTSUNDER FEDERAL STANDARDS FOR VALUING ANNUITIES. THE EFFECTIVE ANNUAL DISCOUNT RATE FOR THIS TRANSACTION IS 8.1%. THE CASH PAYMENT YOU RECEIVE IN THIS TRANSACTION FROM US WAS DETERMINED BY APPLYING THE SPECIFIED EFFECTIVE ANNUAL DISCOUNT RATE, COMPOUNDED MONTHLY, TO THE TOTAL AMOUNT OF FUTURE PAYMENTS TO BE RECEIVED BY US, LESS THE TOTAL AMOUNT OF COMMISSIONS, FEES, COSTS, EXPENSES AND OTHER CHARGES PAYABLE BY YOU. THE NET AMOUNT THAT YOU WILL RECElVE FROM US IN EXCHANGE FORYOURFUTURE STRUCTUREDSETTLEMENT PAYMENTS REPRESENTS 70.11% OF THE ESTIMATED CURRENT VALUE OF THE PAYMENTS BASED UPON THE DISCOUNTED VALUE USING THE APPLICABLE FEDERAL RATE. THE QUOTIENT OBTAINED BY DIVIDING THE NET PAYMENT BY THE DISCOUNTED PRESENT VALUE IS .70. BASED ON THE NET AMOUNT THAT YOU WILL RECEIVE FROM US AND THE AMOUNTS AND TIMING OF THE STRUCTURED- SETTLEMENT PAYMENTS THAT YOU ARE TURNING OVER TO US, YOU WILL, IN EFFECT, BE PAYING INTEREST TO US AT A RATE OF 8.1% PER YEAR. THE NET AMOUNT PAID TO YOU (THE TRANSFEROR)BY US(THE TRANSFEREE)REPRESENTSAN ESTIMATE OF THE FAIR MARKET VALUE OF THE FUTURE PERIODIC PAYMENTSTRANSFERRED UNDER THESTRUCTURED SETTLEMENT AGREEMENT. IF YOU WERE TO PURCHASE AN ANNUITY WITH COMPARABLE PAYMENTS TO THOSE BEING PURCHASED BY US, THE PREMIUM COST FOR SUCH COMPARABLE WOULD BE AS FOLLOWS: B++ RATED CARRIER: $52,460.85 B++ RATED CARRIER: $53,583.85 FILED: ONONDAGA COUNTY CLERK 08/24/2020 01:41 PM INDEX NO. 005272/2020 DocuSignDOC. NYSCEF Envelope F81C2E75-6049-41C6-8EF6-3CEC5B14B4DC NO.ID: 5 RECEIVED NYSCEF: 08/24/2020 CBC File # 39648 Page 16 NOTICE OF CANCELLATION RIGHTS: YOU MAY CANCEL THIS TRANSACTION NO LATER THAN THE TENTH (10th) DAY FOLLOWING THE DATE YOU EXECUTE THE DISCLOSURE STATEMENT OR PURCHASE AGREEMENT, WITHOUT PENALTY OR FURTHER OBLIGATION. THIS CANCELLATION RIGHT CANNOT BE WAIVED IN ANY MANNER. IN ORDER FOR THE CANCELLATION TO BE EFFECTIVE, YOU MUST PROVIDE WRITTEN NOTICE OF CANCELLATION TO US: 181 WASHINGTON ST., SUITE 375 CONSHOHOCKEN, PA 19428 ATTENTION: UNDERWRITING DEPARTMENT IMPORTANT NOTICE: YOU ARE STRONGLY URGED TO CONSULT WITH AN ATTORNEY WHO CAN ADVISE YOU OF THE POTENTIAL TAX CONSEQUENCES OF THIS TRANSACTION. YOU WILL BE RESPONSIBLE FOR LOSSES OR ACTUAL DAMAGES WE SUFFERASARESULT OF:YOUR BREACH OF THE CONTRACT, BECAUSE YOU MADE A FALSE OR INCOMPLETE REPRESENTATION OR WARRANTY. THERE ARE NO BROKERS COMMISSIONS, SERVICE CHARGES, APPLICATION FEES, PROCESSING FEES, CLOSING COSTS, FILING FEES, ADMINISTRATIVE FEES, LEGAL FEES, NOTARY FEES AND OTHER COMMISSIONS, FEES, COSTS, EXPENSES AND CHARGES PAYABLE BY YOU OR DEDUCTED FROM GROSS AMOUNT OTHERWISE PAYABLE TO YOU OTHER THAN THE COMPLIANCE AND ADMINISTRATIVE FEE AND THE FILING AND RELATED EXPENSES FEE. THESE DAMAGES SHALL NOT EXCEED $2,500.00. IF YOU BELIEVE YOU WERE TREATED UNFAIRLY OR WERE MISLED AS TO THE NATURE OF THE OBLIGATIONS YOU ASSUMED UPON ENTERING INTO THIS AGREEMENT, YOU SHOULD REPORT THOSE CIRCUMSTANCES TO YOUR LOCAL DISTRICT ATTORNEY OR THE OFFICE OF THE ATTORNEY GENERAL. THE EFFECTIVE DATE OF THE TRANSFER AGREEMENT SHALL BE DEEMED TO BE THE DATE THAT THE AGREEMENT WAS SIGNED BY THE YOU (PAYEE). FILED: ONONDAGA COUNTY CLERK 08/24/2020 01:41 PM INDEX NO. 005272/2020 DocuSign NYSCEF Envelope DOC. NO.ID: 5F81C2E75-6049-41C6-8EF6-3CEC5B14B4DC RECEIVED NYSCEF: 08/24/2020 CBC File # 39648 Page 17 PLEASE BE ADVISED THAT PAYMENT TO YOU PURSUANT TO THE TRANSFER AGREEMENT IS CONTINGENT UPON COURT APPROVAL OFTHE TRANSFERAGREEMENT. PLEASE BE ADVISED THAT PAYMENT TO YOU WILL BE DELAYED UP TO 30 DAYS OR MORE IN ORDER FOR THE COURT TO REVIEW AND APPROVETHETRANSFERAGREEMENT. BY SIGNING BELOW YOU ARE CONFIRMING RECEIPT OF THIS DISCLOSURE AT LEAST 10 DAYS PRIOR TO RECEIPT OF THIS CONTRACT. 35ETEEDBAEdD4E7... summm Date: 8/2o/202o G Brown aka G Senical FILED: ONONDAGA COUNTY CLERK 08/24/2020 01:41 PM INDEX NO. 005272/2020 NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 08/24/2020 NEW YORK SUPREME COURT - COUNTY OF BRONX - ...._. -- --..-. . .... . Case Disposed O SUPREME COURT OF THE STATE OF NEW YORK Settle Order O COUNTY OF BRONX: Schedule Appearance O MEDINA,CHERLEE Index Ne. 0363/2008 -agains*- NDER W. HUNTER. JR. . . Justice. .---._____---------------.----------...-----X The following papersnumbered 1 to Read on thismotion MISCELLANEOUS Noticed dar of PAPERS NUMBERED Notice ofMotion - OrdertoShow Cause - Exhibitsand Afiidavits Annexed -- / // Answering Affidavitand Exhibits Replying Affidavitand Exhibits Affidavitsand Exhibits Pleadings- Exhibit S• - Referee's - Minute par!=(s) Report REC _______ _____ FiledPapers 0FFig Memoranda ofLaw 7 Upon the foregoing papers this Jated: O Hon. ALEXANDER W. ER, JR., J.S.C. Filed On - 12/17/2008 2:16:08 PM Bronx Clerk County FILED: ONONDAGA COUNTY CLERK 08/24/2020 01:41 PM INDEX NO. 005272/2020 NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 08/24/2020 SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF BRONX: PART IA23 ___________..___________.._____..______---------------------X In Re: the Matter of the Sale and Transfer of Index No.: 260363/08 Structured Settlement Payment Rights of Cherlee Medina, Pursuant to and inAccordance with Decision/Order Gen. Oblig. Law §5-1701, et seq. ___________________________.........------------------X HON. ALEXANDER W. HUNTER, JR The motion by petitioner, Structured Asset Funding, LLC, for an order seeking approval of the sale and transfer of certain structured settlement payment rights due under a structured settlement agreement obtained on behalf of respondent/payee, Cherlee Medina. isdenied without prejudice. The only details provided by Ms. Medina with respect to the structured settlement that is the subject of thisapplication isthat said structured settlement entitled her tothe following payments: twelve (12) annual payments, each inthe amount of $1,000 beginning on September 1, 1993 through to and including September 1, 2004; four (4) annual payments, each in the amount of S16,900 beginning with the payment on June 5, 2005 through to and including June 5, 2008; one (1) lump sum payment in the amount of $55,000 due and payable on June 5, 2012; one lump sum payment in the amount of $87,500 due and payable on June 5, 2017. According to the Disclosure Statement that was signed by Ms. Medina, which isannexed to petitioncr'smotion as Exhibit E, the discounted present value of the aggregate payments tobe transferred is$47,296.71. The annual discount rate forthis transaction is 13.92%. The discounted present value is calculated by using the applicable federal rate of 3.6%. The petitioner isnot charging any commissions, fees,costs or expenses to the payee, Ms. Medina. The Structured Settlement Protection Act (SSPA) codified under General Obligations Law , Title17, was enacted in July of 2002 because of the concern that "...agrowing number of factoring companies have used aggressive advertising, plus the allure of quick and easy cash, to induce settlement recipients to cash out future payments, often at substantial discounts, depriving victims and their famihes of the long-term financial security their structured settlements were designed to provide. Although transfers of structured settlements payments are generally prohibited by contract...factoriñg companies have builta rapidly expanding business around prohibitions." circumventing these (NY Spons. Memo., 2002 Ch. 537). A determination would be made by a Supreme Court judge as towhether thetransfer is "in compliance with applicable law, that key terms have been disclosed, that the transfermeets a hardship standard, and that obtained." independent professional advice has been (NY Bill Jacket, 2002 A.B. 6936, Ch. 537). In 2004, the SSPA was amended in thatthe hardship requirement was "eliminated as a end' precondition to transfers and the requirement that disclosures be made 'atthe front was added." (NY Spons. Memo., 2004 Ch. 480). The procedural requirements thatmust be met for approval of a transfer are found under General Obligations Law §5-1705. The requirements are that a copy of the notice of petition and petition by order to show cause be served upon allinterested parties at least twenty days before the time at which the petition isnoticed to be heard, the petition must include a copy of the transfer agreement, a copy of the disclosure statement and proof of notice of thatstatement as dependents' well as a listingof each of the payee's depeñdcnts along with the age. Procedurally, Filed On - 12/17/2008 2:16:08 PM Bronx Clerk County FILED: ONONDAGA COUNTY CLERK 08/24/2020 01:41 PM INDEX NO. 005272/2020 NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 08/24/2020 the petitioner herein has met allof the aforementioned requirements. Pursuant to General Obligations Law §5-1706, the court must make the following fmdings before a transfer can be effectuated. These are that: "(a)the transfer complies with the requirements of this title;(b) the transfer isin the best interestof the payee, taking into account the welfare and suppon of the payee's dependants; and whether the transaction, including the discount rate used to determine the gross advance amount and the fees and expenses used to determine the net advance amount, are fair and reasonable. Provided the court makes the fmdings as outlined in thissubdivision, there isno requirement for the court to find that an applicant issuffering from a hardship to approve the transfer of structured settlement payments under thissubdivision, ( c)the payee has been advised in writing by the transferee to seek iñdepcñdent professional advice regarding the transfer and has eitherreceived stich advice or knowingly waived such advice in wnting; (d) the transfer does not contravene any applicable statuteor the order of any court or other government authority; and (e) iswritten inplain article." language and incompliance with section 5-702 of this In the case at bar,Ms. Roman was advised in writing to seek independent professional advice, which she claims to have sought from an attorney by the name of Jed Marcus, Esq. (Exhibit G). The two most important components of the SSPA are whether or not the transaction, including the discount rate and the amoüñt of fees and expenses, is fairand reasonable and whether the transaction is inthe best interestof the payee. The trialcourts have ruled on what is detemained to be fair and reasonable and whether the transferisin the best interestof the payee on a case by case basis viewing the totality of the circumstances. Matter of Settlement Capital Corp. v. Yates, 12 Misc. 3d 1198(A) [2006). This court finds thatthe transaction herein is fairtaking into account the totality of the circumstances and the interestrate of 13.92% isreasonable. However, this court cannot state with any certainty whether or not the transaction isin the best interestof the payee. Ms. Medina states in her affidavit that she seeks to transfer to the payor, the lump sum payment of $55,000 that ispayable to her on June 5, 2012. In her affidavit in support of the petition,Ms. Medina states that she is twenty (20) years old, she is unmarried and has two (2) depcndcnts one is four (4) years old and the other isthree (3) months old. Ms. Medina states that she intends to use the money that she receives from the transfer to finda place of her own as she and her children are currently living at her aunt's house and she wishes to relieve her aunt of the burden. She also plans to use some ofthe proceeds to purchase furniture for herself and her children and to pay for the livmg expenses ofher children. However, Ms. Medina does not indicate whether or not she is employed or otherwise receives a monthly income in order to enable her to pay her monthly rent, utilities and other household expenses. Moreover, she does not indicate how long she intends to live offof the $31,500 she will be receiving from said transfer. She also recently received an annual payment of $16,900 on June 5, 2008 that could have been applied toward relocating to a place ofher own. Accordingly, the application for the transfer of the structured settlement payment is denied without prejudice and with leave to renew upon submission of a more detailed affidavit 2 Filed On - 12/17/2008 2:16:08 PM Bronx Clerk County FILED: ONONDAGA COUNTY CLERK 08/24/2020 01:41 PM INDEX NO. 005272/2020 NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 08/24/2020 from Ms. Medina with respect to her manthly household income and the amount of rent she intends to pay on a monthly basis in order for this courtto dctcrmine whether or not the transfer s inthe best interest of the payee taking into account the welfare and support of her dependents This constitutes the decision and order of this court. Dated: December 12. 2008 J.S.C. 3 Filed On - 12/17/2008 2:16:08 PM Bronx Clerk County FILED: ONONDAGA COUNTY CLERK 08/24/2020 01:41 PM INDEX NO. 005272/2020 NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 08/24/2020 At an All Purpose Term of the Supreme Court of the State of New York, held in and for the County of Ulster, Kingston, New York, on the 4th day of December, 2008. PRESENT: HON. HENRY F. ZWACK Acting Supreme Court Justice STATE OF NEW YORK SUPREME COURT COUNTY OF ULSTER In Re: t he Matter ofthe Sale and Transfer of Structured Settlement DECISION Payment Rights of Kimberly Whispell, pursuant to and in accordance with General Obligation Law § 5-1701, et. seq. Index No. 08-4095 Structured Asset Funding, LLC (petitioner) is seeking approval of the sale and transfer of certain structured settlement payment rights due Kimberly Whispell (Whispell) under a structured settlement ay,1ocutono. Whispell has consented to and joined in this application by petitioner. The Court has received and considered the verified petition, with exhibits A through J, the testimony of Whispell at the hearing held on December 4, 2008, and the post hearing submission by Whispell dated December 29, 2008. Whispell, who is 32 years ofage and has custody and care of four minor children ranging in ages one through thirteen, is requesting to transfer 121 monthly payment portions of $745.00 each to petitioner. In exchange, petitioner would provide a gross advance of $47,000.00. The aggregate amount of payments to be transferred by Whispell is $90,145.00, the discounted Q:\Ulster\Whispell\Decision.wpd FILED: ONONDAGA COUNTY CLERK 08/24/2020 01:41 PM INDEX NO. 005272/2020 NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 08/24/2020 present value of the payments to be transferred is $75,017.24, and the annual discount rate, compounded monthly, used to determine the gross advance amount is 15.66%. Whispell presently receives $2,121.80 monthly under the structured settlement¹. Whispell's other income includes rents of $400.00 per month, and either rents or resumption of mortgage payments from a mortgage held by her. In her affidavit, she stated her intention was to use the proceeds from petitioner to "make a large down payment on a house for me and my children." At the hearing, Whispell testified she was at risk of mortgage foreclosure of her present home in Ulster County, and that her original plan to sellher home in Ulster County and purchase a more affordable home in Washington County had changed. Whispell's post hearing submission dated December 29, 2008 recites an offer from her present mortgage holder to modify the terms of the mortgage, in exchange for a lump sum payment, that would reduce the interest rate from 9.25% to 5.2%, with a monthly escrow for tax and insurance. The Settlement Protection Act requires court approval of all transfers of structured settlements after July 1, 2002 (General Obligations Law § 5-1706). This legislation was enacted, in part,to provide protection to those individuals seeking to transfer payments under a structured settlement agreement (In re Settlement Capital Corp. [Ballos], 1 Misc3d 446, 455 [Sup. Ct. Queens Co. 2003]). In analyzing the transfer, courts consider whether the transfer is in the best interest of the payee, whether the transfer isfair and reasonable, whether the payee has been advised in writing to seekindependent professional advice and has received or waived such advice, whether thetransfer is written in plain language, and whether the transfer complies with the other provisions of the such as disclosure requirements (General Obligations Law 5-1706 - [e]). statute, § [b] 'In relevant part, Whispell is entitled under the structured settlement to monthly payments of $2,000.00, beginning November 1, 2006, increasing at 3% annually, guaranteed through October 1, 2036 and continuing for life thereafter. 2 Q:\Ulster\Whispell\Decision.wpd FILED: ONONDAGA COUNTY CLERK 08/24/2020 01:41 PM INDEX NO. 005272/2020 NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 08/24/2020 To determine whether the transfer is inthe best interest of the payee, the court must analyze each transfer on a case-by-case basis (In re Settlement Capital Corp. [Ballos], 1 Misc3d 450). Factors for the court to consider may include: (a) the physical age, level of maturity, physical and mental capacity of the beneficiary; (b) the beneficiary's ability to earn a living and support his or her depéñdents; (c) the beneficiary's intended usage of the proceeds; (d) the beneficiary's present financial situation and whether he or she is laboring under such a hardship as to be in dire and immediate need of the proceeds; (e) whether the beneficiary has obtained independent counsel regarding the financial consequences of the proposed transfer; the level of finan cial or lack of the and the (f) sophistication, thereof, beneficiary; (g) timing of the application with other scheduled payments. (In re Symetra Assigned Benefits Service Co. [McGuire], 13 Misc3d 1208[A] [Sup. Ct. Suffolk Co. 2006]). Courts have held transfers to be in the best interests of beneficiary when the beneficiary has pursued alternatives to the transfer, has researched other potential purchasers of the structured settlement, and has a clear plan for use ofthe proceeds ( In re Settlement Funding of NY [Platt], 2 Misc3d 872, 879 [Sup. Ct. Lewis Co. 2003]). However, in the absence of these factors, transfers of structured settlements generally are not in the best interests of the beneficiary. Specifically, courts need" deny the transfer when the beneficiary does not have a "pressing for the proceeds, does not have a plan for the proceeds, or has not pursued alternatives to the transfer (see e.g., In re Settlement Capital Corp. [Yates], 12 Misc3d 1198[A] [Sup. Ct. Kings Co. 2006] [denying transfer of structured settlement where funds would be used to further support five children because adequate monthly income already existed]; In re 321 Héñderson Receivables, 11 Misc.3d 892 [Sup. Ct. NY Co. 2006] [denying transfer of strüetüred settlement where beneficiary would like to start a barbershop, but has not demonstrated any commitment to the endeavor]). 3 o:vuister\whispeiitoecision.wpd FILED: ONONDAGA COUNTY CLERK 08/24/2020 01:41 PM INDEX NO. 005272/2020 NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 08/24/2020 To determine whether the transfer isfairand reasonable, the court must evaluate the discount rate used to compute the gross advance amomt and the fees and expenses charged, ifany (General Obligations Law § 5-1706). To make a determination regarding whether the discount rate isfair and reasoñable, courts have compared discount rates to current credit card and unsecured loan rates, and transfer fees to closing costs (In re Settlement Funding of New York, LLC [Cunningham), 195 Misc2d 721 [Sup. Ct. Renss. Co. 2003]). As noted in several decisions, it is more financially advantageous for the beneficiary to obtain an unsecured loan or a home equity loan, when available (id.). Currently, with the prime rate below 10 percent, unsecured loan rates are approximately 13 percent, and home equity loan rates range up to approximately 10 percent, based on a cursory review of local market rates. The Court is alsomindful that discount rates as high as 20 percent have been court approved ( In re Settlement Funding ofNY [Platt], 2 Misc3d 872 [Sup. Ct. Lewis Co. 2003]). When the transfer appears to be in the best interest of the beneficiary, but the court finds that the transfer is not fair and reasonable, a balancing test determines whether the transfer will be approved. An analysis of the best interest of the beneficiary may warrant approval of a higher discount rate (In re Settlement Capital Corp. [Yates), 12 Misc3d 1198[A]) . The Act also requires the transferee to advise the beneficiary to obtain independent legal or financial advice (General Obligations Law § 5-1706). The beneficiary must acknowledge obtaining this advice or waive the advice in writing (id.). The advisor is required to attest to the fact that advice was provided, but is not required to attestto his support or opposition to the transaction. Generally, transfers should have express support of advisor; there is a presumption of no support unless the independent advisor submits an affidavit stating otherwise and the rationale for such support (In re Settlement Funding of New York, LLC [Cunningham], 195 Misc2d 721 [Sup. Ct. Renss. Co. 2003]). Q:\Ulster\Whispell\Decision.wpd FILED: ONONDAGA COUNTY CLERK 08/24/2020 01:41 PM INDEX NO. 005272/2020 NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 08/24/2020 The transfer must also comply with the remaining requirements of the Structured Settlement Protection Act (General Obligations Law § 5-1706[a]). These requirements include adequate and timely disclosure of the terms of the transfer, including the discount rate used, a price quote reflecting the cost of purchasing a comparable annuity, and the federal discount rate and the discounted present value under that rate (General Obligations Law § 5-1703). Such disclosures must be received and signed no lessthan 10 days prior to the transfer (General Obligations Law § 5-1703) Finally, the court notes that the Act does not permit the transferee to collect attorney's fees or other costs ifthe transfer agreement is not completed (General Obligations Law § 5-1704[c]). Whispell has ultimately made a compelling argument that the proposed transfer isin her best interests. While as originally presented there was some doubt as to whether the transfer was in her best interest, given her imminent risk of foreclosure of one home and insufficient other moneys to pay the carrying costs of a planned replacement home and provide forherself and her four children, the proposed plan contained in the post hearing submission sets forth a use of the proposed transfer thataddresses Whispell's present financial situation, affords her an opportunity to avoid the direand lasting conseqwnees of a mortgage foreclosure, and permits her to restructure family debt in a more manageable and sustainable way. The Court finds the proposed transfer isin Whispell's best interest, is fairand reasonable, and petitioner has otherwise complied with the provisions of Settlement Protection Act. Accordingly, for the reasons set forth above, the Court approves the sale and transfer by Whispell to petitioner as stated in the Order Approving Transfer dated this date. DATED: January 9, 2009 ENTER Henry F. Zwack Acting Supreme Court Justice 5 q:\uister\whispell!Decision.wpd