Preview
FILED: YATES COUNTY CLERK 09/16/2021 03:31 PM INDEX NO. 2021-5237
DocuSign EnvelopeID: 28EOABF9-0090-4C32-A9A1-2CO2A96DFBDS
NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 09/16/2021
NEW YORK DISCLOSURE STATEMENT
Payee: B. Buckle
This Disclosure Statement is being provided by DRB Capital LLC and its
"Purchaser" ("Payee"
affiliates the or "Us") to B. Buckle or
(collectively,
"You") in connection with Payee's agreement to transfer and sell to the
Purchaser certain structured settlement payment rights due Payee. This
Disclosure Statement is being provided pursuant to New York Structured
Settlement Protection Act.
1. Schedule of Payments Transferred. The Payee intends to transfer or sell to
the Purchaser all of Payee's right, title and interest in and to the following
payments:
12 monthly payments of $748.87 commencing on or
about October 31, 2032 and ending on or about
September 30, 2033
2. Aggregate Amount of Payments Transferred. The aggregate amount of
payments to be sold and transferred to the Purchaser totals $ 8,986.44.
3. Calculation of the Current Value of the Transferred Structured Settlement
Payments under Federal Standards for Valuing Annuities. The discounted
present value of the payments transferred is $ 8,005.o6. The discounted
present value is the calculation of current value of the transferred structured
settlement payments under federal standards for valuing annuities. The
applicable federal rate used in calculating the discounted present value is
1.oo%. THIS IS NOT THE RATE USED TO CALCULATE YOUR PURCHASE
PRICE.
4. Two (2) Price Quotes. The following represents two quotes from two
annuity issuers (other than the original Annuity issuer that issued Payee's
structured settlement payments). The quotes reflect the current cost of
purchasing a comparable annuity for the aggregate amount of payments to
be transferred: $6,373.90 from Liberty Bankers Life Insurance Company
Bankers Elite gyr and $6,231-80 from Atlantic Coast Life Insurance Company
* EXHIBIT
[D-GSS-NY 7/l8] Page 1 of 4
I 8
FILED: YATES COUNTY CLERK 09/16/2021 03:31 PM INDEX NO. 2021-5237
DocuSign EnvelopeID: 28EOABF9-0090-4C32-A9A1-2CO2A96DFBDS
NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 09/16/2021
Safe Haven soyr Two comparable annuity price quotes are used here, since a
quote from the original Annuity issuer is not readily available.
5. Gross Advance Amount. In exchange for these payments, the Payee will
receive the gross amount of $ 3,301-71 which represents a nominal annual
discount rate of 8.65% assuming monthly compounding and an assumed
fundingdateofSeptemberos,2021.
6. Fees and Expenses. The Payee will be responsible for the following
approximate commissions, charges, fees, expenses, and costs in connection
with the closing of this transaction:
Legal Fees - $ o.oo
Fees - NONE
Processing
Insurance Company Administration Fee to be paid by the Purchaser,
NOT payee: $1,250.oo
7. Net Advance Amount. The net cash payment the Payee will receive in this
transaction from the Purchaser, was determined by applying the specified
discount rate to the amount of future payments received by the Purchaser,
less the total amount of commissions, fees, costs, expenses and charges
payable by you. The net amount is $ 3,301-71.
8. Penalty in the Event of Breach of Contract. The amount of any penalty and
the aggregate amount of any liquidated damages (inclusive of penalties),
payable to the Purchaser, by the Payee in the event of the Payee's breach of
the transfer agreement is, to the extent that it also a breach to the
cooperation agreement with the Purchaser: a sum equal to the out-of-pocket
expenses incurred by the Purchaser in connection with the transfer
agreement plus a sum equal to 40% of the difference between (a) the
aggregate amount of the payments to be transferred and (b) the gross
amount payable.
9. Right to Cancel. The Payee shall have the right to cancel the Absolute Sale
and Security Agreement without penalty or further obligation not later than
[D-GSS-NY 7/ l 8] Page 2 of 4
FILED: YATES COUNTY CLERK 09/16/2021 03:31 PM INDEX NO. 2021-5237
DocuSignDOC.
NYSCEF EnvelopeID: 28EOABF9-0090-4C32-A9A1-2CO2A96DFBD5
NO. 5 RECEIVED NYSCEF: 09/16/2021
the third buSineSS after the date the Absolute Sale and Security
(3rd) day
Agreement is signed by the Payee.
so. Independent Professional Advice. The Payee has been advised to consult
with Payee's own certified public accountant, actuary, or other
attorney,
professional adviser the and financial implications of a
concerning legal, tax,
sale and transfer of structured settlement payment rights, including the
federal and state income tax consequences of a sale and transfer. The
Purchaser has further advised that it will not provide You with any financial,
legal or tax advice and that You should not on any such advice from the
rely
Purchaser.
11. Remarks on Discount Rates. A structured settlement transfer is not like a
home mortgage or auto loan; in fact, these transactions are not loans, but
sales, so You won't owe anyone any money. Comparing the discount rate for
these transactions with those for a mortgage or auto loan is like comparing
apples and oranges. Structured settlement transfer transactions are costly
and require going to court, hiring an attorney and managing a lengthy
complex process.
In addition, banks won't lend to people without substantial collateral and a
strong credit score. Banks don't lend against structured settlement payments
so comparing what a bank would hypothetically charge is meaningless.
And, structured settlement payments are only as good as the insurance
company that has to make the payments. In 2008, AlG International, one of
the largest insurance companies in the world came within a few days of
insolvent and under - it was a gigantic loan of some
becoming going only
$178 billion dollars from the US Treasury that saved the company. The same
couldn't be said for Lehman Brothers, a multi-billion dollar global financial
firm that filed for bankruptcy around the same time. Lehman Brothers could
trace its roots back to the late 18oo's but, in just a week, became insolvent
and filed for bankruptcy. In a structured settlement transaction, that kind of
risk is passed from You to purchasers like the Purchaser.
Also consider that virtually all state structure settlement transfer statutes,
rate"
require the use of the "applicable federal for valuing annuities (Internal
[D-GSS-NY 7/ I 8] Page 3 of 4
FILED: YATES COUNTY CLERK 09/16/2021 03:31 PM INDEX NO. 2021-5237
DocuSign EnvelopeID: 28EOABF9-0090-4C32-A9A1-2CO2A96DFBD5
NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 09/16/2021
value"
Revenue Code 752o rate) in the "present of the transferred
§ disclosing
payments. This IRS rate is --with no bearing on the true market
truly arbitrary
value of the payments sold-- and is due to
being presently exceptionally low,
actions of the Federal Reserve. In fact, virtually no firm,
extraordinary
regardless of credit quality, can borrow long term at the IRS rate and no one
would use such a valuation in an actual transaction.
As with most things, the true market value of the payments is based on what
a buyer is to pay. While there are other alternatives in the marketplace
willing
for those who need but lack the credit score and assets to for a
money qualify
traditional loan, these come at a significant expense that far exceed the what
loans"
the Purchaser charges. These include "pay-day (with effective rates
loans"
ranging from 300%-1000% yearly), and "auto title (some with effective
rates ranging 100%-300% yearly). Even credit cards carry significant financing
cost to consumers, who are routinely charged rates of over 22%, with penalty
rates closer to 30%. An analysis of the credit card rates of the 36 biggest
retailers in the nation show an average annual percentage rate of 23.23%,
with some charging rates of up to approximately 29%.
By signing below, You certify having read and understanding everything set
forth in this Disclosure Statement.
DocuSigned
by:
7D8172E4DB...
[D-GSS-NY 7/ I 8] Page 4 of 4
FILED: YATES COUNTY CLERK 09/16/2021 03:31 PM INDEX NO. 2021-5237
DocuSignDOC.
NYSCEF EnvelopeID: 28EOABF9-0090-4C32-A9A1-2CO2A96DFBDS
NO. 5 RECEIVED NYSCEF: 09/16/2021
NEW YORK DISCLOSURE STATEMENT
Payee: B. Buckle
This Disclosure Statement is being
provided by DRB Capital LLC and its
"Purchaser" ("Payee"
affiliates the or "Us") to B. Buckle or
(collectively,
in connection with Payee's agreement to transfer and sell to the
"You")
Purchaser certain structured settlement payment rights due Payee. This
Disclosure Statement is being provided pursuant to New York Structured
Settlement Protection Act, (the "New York Transfer Statute").
1. Schedule of Payments Transferred. The Payee intends to transfer or sell to
the Purchaser all of Payee's right, title and interest in and to the following
payments:
147 life contingent monthly payments of $748.87
on or about October 31, 2033 and on or
commencing ending
aboutDecember 31, 2045
2. Aaareaate Amount of Payments Transferred. The aggregate amount of
payments to be sold and transferred to the Purchaser totals $ 110,o83.89.
3. Calculation of the Current Value of the Transferred Structured Settlement
Payments under Federal Standards for Valuina Annuities. The discounted
present value of the payments transferred is $ 91,862.32. The discounted
present value is the calculation of current value of the transferred structured
settlement payments under federal standards for valuing annuities. The
applicable federal rate used in calculating the discounted present value is
1.oo%. THIS IS NOT THE RATE USED TO CALCULATE YOUR PURCHASE
PRICE.
4. Two (2) Price Quotes. The following represents two quotes from two
annuity issuers (other than the original Annuity issuer that issued Payee's
structured settlement payments). The quotes reflect the current cost of
purchasing a comparable annuity for the aggregate amount of payments to
be transferred: $64,542.75 from Liberty Bankers Life Insurance Company
Bankers Elite gyr and $62,344-15 from Atlantic Coast Life Insurance Company
[D-LCSS-NY 7/I8] Pagelof 4
FILED: YATES COUNTY CLERK 09/16/2021 03:31 PM INDEX NO. 2021-5237
DocuSign DOC.
NYSCEF ID: 28EOABF9-0090-4C32-A9A1-2CO2A96DFBD5
EnvelopeNO. 5 RECEIVED NYSCEF: 09/16/2021
Safe Haven soyr. Two comparable annuity price quotes are used here, since a
quote from the original issuer is not readily available.
Annuity
5. Gross Advance Amount. In exchange for these payments, the Payee will
receive the gross amount of $ 12,991.11 which represents a nominal annual
discount rate of 12.28% monthly compounding and an assumed
assuming
funding date of September os, 2021.
6. Fees and Expenses. The Payee will be responsible for the following
approximate charges, fees, expenses, and costs in connection
commissions,
with the of this transaction:
closing
Legal Fees - $ o.oo
Fees - NONE
Processing
Insurance Company Administration Fee to be paid by the Purchaser,
NOT payee: $1,250.00
7. Net Advance Amount. The net cash payment the Payee will receive in this
transaction from the Purchaser, was determined by applying the specified
discount rate to the amount of future payments received by the Purchaser,
less the total amount of commissions, fees, costs, expenses and charges
payable by you. The net amount is $ 12,991.11.
8. Penalty in the Event of Breach of Contract. The amount of any penalty and
the aggregate amount of any liquidated damages (inclusive of penalties),
payable to the Purchaser, by the Payee in the event of the Payee's breach of
the transfer agreement is, to the extent that it also a breach to the
cooperation agreement with the Purchaser: a sum equal to the out-of-pocket
expenses incurred by the Purchaser in connection with the transfer
agreement plus a sum equal to 40% of the difference between (a) the
aggregate amount of the payments to be transferred and (b) the gross
amount payable.
9. Right to Cancel. The Payee shall have the right to cancel the Absolute Sale
and Security Agreement without penalty or further obligation not later than
[D-LCSS-NY 7/I8] Page 2 of 4
FILED: YATES COUNTY CLERK 09/16/2021 03:31 PM INDEX NO. 2021-5237
DocuSignDOC.
NYSCEF Envelope
NO.ID: 28EOABF9-0090-4C32-A9A1-2CO2A96DFBD5
5 RECEIVED NYSCEF: 09/16/2021
the third (3rd) business day after the date the Absolute Sale and Security
Agreement is signed by the Payee.
so. Independent Professional Advice. The Payee has been advised to consult
with Payee's own certified public accountant, actuary, or other
attorney,
professional adviser the legal, tax, and financial implications of a
concerning
sale and transfer of structured settlement payment rights, including the
federal and state income tax consequences of a sale and transfer. The
Purchaser has further advised that it will not provide You with any financial,
legal or tax advice and that You should not rely on any such advice from the
Purchaser.
11. Remarks on Discount Rates. A structured settlement transfer is not like a
home mortgage or auto loan; in fact, these transactions are not loans, but
sales, so You won't owe anyone any money. Comparing the discount rate for
these transactions with those for a mortgage or auto loan is like comparing
apples and oranges. Structured settlement transfer transactions are costly
and require going to court, hiring an attorney and managing a lengthy
complex process.
In addition, banks won't lend to people without substantial collateral and a
strong credit score. Banks don't lend against structured settlement payments
so comparing what a bank would hypothetically charge is meaningless.
And, structured settlement payments are only as good as the insurance
company that has to make the payments. in 2008, AlG International, one of
the largest insurance companies in the world came within a few days of
insolvent and under - it was a gigantic loan of some
becoming going only
$178 billion dollars from the US Treasury that saved the company. The same
couldn't be said for Lehman Brothers, a multi-billion dollar global financial
firm that filed for around the same time. Lehman Brothers could
bankruptcy
trace its roots back to the late 18oo's but, in just a week, became insolvent
and filed for bankruptcy. In a structured settlement that kind of
transaction,
risk is passed from You to purchasers like the Purchaser.
Also consider that virtually all state structure settlement transfer statutes,
rate"
require the use of the "applicable federal for annuities (Internal
valuing
[D-LCSS-NY 7/I8] Page 3 of 4
FILED: YATES COUNTY CLERK 09/16/2021 03:31 PM INDEX NO. 2021-5237
DocuSignDOC.
NYSCEF EnvelopeID: 28EOABF9-0090-4C32-A9A1-2CO2A96DFBD5
NO. 5 RECEIVED NYSCEF: 09/16/2021
value"
Revenue Code § 752o rate) in disclosing the "present of the transferred
payments. This IRS rate is arbitrary --with no bearing on the true market
truly
value of the payments sold-- and is due to
being presently exceptionally low,
extraordinary actions of the Federal Reserve. In fact, virtually no firm,
regardless of credit quality, can borrow long term at the IRS rate and no one
would use such a valuation in an actual transaction.
As with most things, the true market value of the payments is based on what
a buyer is willing to pay. While there are other alternatives in the marketplace
for those who need money but lack the credit score and assets to qualify for a
traditional loan, these come at a significant expense that far exceed the what
loans"
the Purchaser charges. These include "pay-day (with effective rates
loans"
ranging from 300%-1000% yearly), and "auto title (some with effective
rates ranging 100%-300% yearly). Even credit cards carry significant financing
cost to consumers, who are routinely charged rates of over 22%, with penalty
rates closer to 30%. An analysis of the credit card rates of the 36 biggest
retailers in the nation show an average annual percentage rate of 23.23%,
with some charging rates of up to approximately 29%.
By signing below, You certify having read and understanding everything set
forth in this Disclosure Statement.
DocuSigned
by:
9 9 67D8172E4DB...
[D-LCSS-NY 7/I8] Page 4 of 4
FILED:- USPS YATES INDEX NO. 2021-5237
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03:31 PM
NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 09/16/2021
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FILED:- USPS YATES INDEX NO. 2021-5237
USPS.com® Tracking® COUNTY
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Preview
FILED: YATES COUNTY CLERK 09/16/2021 03:31 PM INDEX NO. 2021-5237 DocuSign EnvelopeID: 28EOABF9-0090-4C32-A9A1-2CO2A96DFBDS NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 09/16/2021 NEW YORK DISCLOSURE STATEMENT Payee: B. Buckle This Disclosure Statement is being provided by DRB Capital LLC and its "Purchaser" ("Payee" affiliates the or "Us") to B. Buckle or (collectively, "You") in connection with Payee's agreement to transfer and sell to the Purchaser certain structured settlement payment rights due Payee. This Disclosure Statement is being provided pursuant to New York Structured Settlement Protection Act. 1. Schedule of Payments Transferred. The Payee intends to transfer or sell to the Purchaser all of Payee's right, title and interest in and to the following payments: 12 monthly payments of $748.87 commencing on or about October 31, 2032 and ending on or about September 30, 2033 2. Aggregate Amount of Payments Transferred. The aggregate amount of payments to be sold and transferred to the Purchaser totals $ 8,986.44. 3. Calculation of the Current Value of the Transferred Structured Settlement Payments under Federal Standards for Valuing Annuities. The discounted present value of the payments transferred is $ 8,005.o6. The discounted present value is the calculation of current value of the transferred structured settlement payments under federal standards for valuing annuities. The applicable federal rate used in calculating the discounted present value is 1.oo%. THIS IS NOT THE RATE USED TO CALCULATE YOUR PURCHASE PRICE. 4. Two (2) Price Quotes. The following represents two quotes from two annuity issuers (other than the original Annuity issuer that issued Payee's structured settlement payments). The quotes reflect the current cost of purchasing a comparable annuity for the aggregate amount of payments to be transferred: $6,373.90 from Liberty Bankers Life Insurance Company Bankers Elite gyr and $6,231-80 from Atlantic Coast Life Insurance Company * EXHIBIT [D-GSS-NY 7/l8] Page 1 of 4 I 8 FILED: YATES COUNTY CLERK 09/16/2021 03:31 PM INDEX NO. 2021-5237 DocuSign EnvelopeID: 28EOABF9-0090-4C32-A9A1-2CO2A96DFBDS NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 09/16/2021 Safe Haven soyr Two comparable annuity price quotes are used here, since a quote from the original Annuity issuer is not readily available. 5. Gross Advance Amount. In exchange for these payments, the Payee will receive the gross amount of $ 3,301-71 which represents a nominal annual discount rate of 8.65% assuming monthly compounding and an assumed fundingdateofSeptemberos,2021. 6. Fees and Expenses. The Payee will be responsible for the following approximate commissions, charges, fees, expenses, and costs in connection with the closing of this transaction: Legal Fees - $ o.oo Fees - NONE Processing Insurance Company Administration Fee to be paid by the Purchaser, NOT payee: $1,250.oo 7. Net Advance Amount. The net cash payment the Payee will receive in this transaction from the Purchaser, was determined by applying the specified discount rate to the amount of future payments received by the Purchaser, less the total amount of commissions, fees, costs, expenses and charges payable by you. The net amount is $ 3,301-71. 8. Penalty in the Event of Breach of Contract. The amount of any penalty and the aggregate amount of any liquidated damages (inclusive of penalties), payable to the Purchaser, by the Payee in the event of the Payee's breach of the transfer agreement is, to the extent that it also a breach to the cooperation agreement with the Purchaser: a sum equal to the out-of-pocket expenses incurred by the Purchaser in connection with the transfer agreement plus a sum equal to 40% of the difference between (a) the aggregate amount of the payments to be transferred and (b) the gross amount payable. 9. Right to Cancel. The Payee shall have the right to cancel the Absolute Sale and Security Agreement without penalty or further obligation not later than [D-GSS-NY 7/ l 8] Page 2 of 4 FILED: YATES COUNTY CLERK 09/16/2021 03:31 PM INDEX NO. 2021-5237 DocuSignDOC. NYSCEF EnvelopeID: 28EOABF9-0090-4C32-A9A1-2CO2A96DFBD5 NO. 5 RECEIVED NYSCEF: 09/16/2021 the third buSineSS after the date the Absolute Sale and Security (3rd) day Agreement is signed by the Payee. so. Independent Professional Advice. The Payee has been advised to consult with Payee's own certified public accountant, actuary, or other attorney, professional adviser the and financial implications of a concerning legal, tax, sale and transfer of structured settlement payment rights, including the federal and state income tax consequences of a sale and transfer. The Purchaser has further advised that it will not provide You with any financial, legal or tax advice and that You should not on any such advice from the rely Purchaser. 11. Remarks on Discount Rates. A structured settlement transfer is not like a home mortgage or auto loan; in fact, these transactions are not loans, but sales, so You won't owe anyone any money. Comparing the discount rate for these transactions with those for a mortgage or auto loan is like comparing apples and oranges. Structured settlement transfer transactions are costly and require going to court, hiring an attorney and managing a lengthy complex process. In addition, banks won't lend to people without substantial collateral and a strong credit score. Banks don't lend against structured settlement payments so comparing what a bank would hypothetically charge is meaningless. And, structured settlement payments are only as good as the insurance company that has to make the payments. In 2008, AlG International, one of the largest insurance companies in the world came within a few days of insolvent and under - it was a gigantic loan of some becoming going only $178 billion dollars from the US Treasury that saved the company. The same couldn't be said for Lehman Brothers, a multi-billion dollar global financial firm that filed for bankruptcy around the same time. Lehman Brothers could trace its roots back to the late 18oo's but, in just a week, became insolvent and filed for bankruptcy. In a structured settlement transaction, that kind of risk is passed from You to purchasers like the Purchaser. Also consider that virtually all state structure settlement transfer statutes, rate" require the use of the "applicable federal for valuing annuities (Internal [D-GSS-NY 7/ I 8] Page 3 of 4 FILED: YATES COUNTY CLERK 09/16/2021 03:31 PM INDEX NO. 2021-5237 DocuSign EnvelopeID: 28EOABF9-0090-4C32-A9A1-2CO2A96DFBD5 NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 09/16/2021 value" Revenue Code 752o rate) in the "present of the transferred § disclosing payments. This IRS rate is --with no bearing on the true market truly arbitrary value of the payments sold-- and is due to being presently exceptionally low, actions of the Federal Reserve. In fact, virtually no firm, extraordinary regardless of credit quality, can borrow long term at the IRS rate and no one would use such a valuation in an actual transaction. As with most things, the true market value of the payments is based on what a buyer is to pay. While there are other alternatives in the marketplace willing for those who need but lack the credit score and assets to for a money qualify traditional loan, these come at a significant expense that far exceed the what loans" the Purchaser charges. These include "pay-day (with effective rates loans" ranging from 300%-1000% yearly), and "auto title (some with effective rates ranging 100%-300% yearly). Even credit cards carry significant financing cost to consumers, who are routinely charged rates of over 22%, with penalty rates closer to 30%. An analysis of the credit card rates of the 36 biggest retailers in the nation show an average annual percentage rate of 23.23%, with some charging rates of up to approximately 29%. By signing below, You certify having read and understanding everything set forth in this Disclosure Statement. DocuSigned by: 7D8172E4DB... [D-GSS-NY 7/ I 8] Page 4 of 4 FILED: YATES COUNTY CLERK 09/16/2021 03:31 PM INDEX NO. 2021-5237 DocuSignDOC. NYSCEF EnvelopeID: 28EOABF9-0090-4C32-A9A1-2CO2A96DFBDS NO. 5 RECEIVED NYSCEF: 09/16/2021 NEW YORK DISCLOSURE STATEMENT Payee: B. Buckle This Disclosure Statement is being provided by DRB Capital LLC and its "Purchaser" ("Payee" affiliates the or "Us") to B. Buckle or (collectively, in connection with Payee's agreement to transfer and sell to the "You") Purchaser certain structured settlement payment rights due Payee. This Disclosure Statement is being provided pursuant to New York Structured Settlement Protection Act, (the "New York Transfer Statute"). 1. Schedule of Payments Transferred. The Payee intends to transfer or sell to the Purchaser all of Payee's right, title and interest in and to the following payments: 147 life contingent monthly payments of $748.87 on or about October 31, 2033 and on or commencing ending aboutDecember 31, 2045 2. Aaareaate Amount of Payments Transferred. The aggregate amount of payments to be sold and transferred to the Purchaser totals $ 110,o83.89. 3. Calculation of the Current Value of the Transferred Structured Settlement Payments under Federal Standards for Valuina Annuities. The discounted present value of the payments transferred is $ 91,862.32. The discounted present value is the calculation of current value of the transferred structured settlement payments under federal standards for valuing annuities. The applicable federal rate used in calculating the discounted present value is 1.oo%. THIS IS NOT THE RATE USED TO CALCULATE YOUR PURCHASE PRICE. 4. Two (2) Price Quotes. The following represents two quotes from two annuity issuers (other than the original Annuity issuer that issued Payee's structured settlement payments). The quotes reflect the current cost of purchasing a comparable annuity for the aggregate amount of payments to be transferred: $64,542.75 from Liberty Bankers Life Insurance Company Bankers Elite gyr and $62,344-15 from Atlantic Coast Life Insurance Company [D-LCSS-NY 7/I8] Pagelof 4 FILED: YATES COUNTY CLERK 09/16/2021 03:31 PM INDEX NO. 2021-5237 DocuSign DOC. NYSCEF ID: 28EOABF9-0090-4C32-A9A1-2CO2A96DFBD5 EnvelopeNO. 5 RECEIVED NYSCEF: 09/16/2021 Safe Haven soyr. Two comparable annuity price quotes are used here, since a quote from the original issuer is not readily available. Annuity 5. Gross Advance Amount. In exchange for these payments, the Payee will receive the gross amount of $ 12,991.11 which represents a nominal annual discount rate of 12.28% monthly compounding and an assumed assuming funding date of September os, 2021. 6. Fees and Expenses. The Payee will be responsible for the following approximate charges, fees, expenses, and costs in connection commissions, with the of this transaction: closing Legal Fees - $ o.oo Fees - NONE Processing Insurance Company Administration Fee to be paid by the Purchaser, NOT payee: $1,250.00 7. Net Advance Amount. The net cash payment the Payee will receive in this transaction from the Purchaser, was determined by applying the specified discount rate to the amount of future payments received by the Purchaser, less the total amount of commissions, fees, costs, expenses and charges payable by you. The net amount is $ 12,991.11. 8. Penalty in the Event of Breach of Contract. The amount of any penalty and the aggregate amount of any liquidated damages (inclusive of penalties), payable to the Purchaser, by the Payee in the event of the Payee's breach of the transfer agreement is, to the extent that it also a breach to the cooperation agreement with the Purchaser: a sum equal to the out-of-pocket expenses incurred by the Purchaser in connection with the transfer agreement plus a sum equal to 40% of the difference between (a) the aggregate amount of the payments to be transferred and (b) the gross amount payable. 9. Right to Cancel. The Payee shall have the right to cancel the Absolute Sale and Security Agreement without penalty or further obligation not later than [D-LCSS-NY 7/I8] Page 2 of 4 FILED: YATES COUNTY CLERK 09/16/2021 03:31 PM INDEX NO. 2021-5237 DocuSignDOC. NYSCEF Envelope NO.ID: 28EOABF9-0090-4C32-A9A1-2CO2A96DFBD5 5 RECEIVED NYSCEF: 09/16/2021 the third (3rd) business day after the date the Absolute Sale and Security Agreement is signed by the Payee. so. Independent Professional Advice. The Payee has been advised to consult with Payee's own certified public accountant, actuary, or other attorney, professional adviser the legal, tax, and financial implications of a concerning sale and transfer of structured settlement payment rights, including the federal and state income tax consequences of a sale and transfer. The Purchaser has further advised that it will not provide You with any financial, legal or tax advice and that You should not rely on any such advice from the Purchaser. 11. Remarks on Discount Rates. A structured settlement transfer is not like a home mortgage or auto loan; in fact, these transactions are not loans, but sales, so You won't owe anyone any money. Comparing the discount rate for these transactions with those for a mortgage or auto loan is like comparing apples and oranges. Structured settlement transfer transactions are costly and require going to court, hiring an attorney and managing a lengthy complex process. In addition, banks won't lend to people without substantial collateral and a strong credit score. Banks don't lend against structured settlement payments so comparing what a bank would hypothetically charge is meaningless. And, structured settlement payments are only as good as the insurance company that has to make the payments. in 2008, AlG International, one of the largest insurance companies in the world came within a few days of insolvent and under - it was a gigantic loan of some becoming going only $178 billion dollars from the US Treasury that saved the company. The same couldn't be said for Lehman Brothers, a multi-billion dollar global financial firm that filed for around the same time. Lehman Brothers could bankruptcy trace its roots back to the late 18oo's but, in just a week, became insolvent and filed for bankruptcy. In a structured settlement that kind of transaction, risk is passed from You to purchasers like the Purchaser. Also consider that virtually all state structure settlement transfer statutes, rate" require the use of the "applicable federal for annuities (Internal valuing [D-LCSS-NY 7/I8] Page 3 of 4 FILED: YATES COUNTY CLERK 09/16/2021 03:31 PM INDEX NO. 2021-5237 DocuSignDOC. NYSCEF EnvelopeID: 28EOABF9-0090-4C32-A9A1-2CO2A96DFBD5 NO. 5 RECEIVED NYSCEF: 09/16/2021 value" Revenue Code § 752o rate) in disclosing the "present of the transferred payments. This IRS rate is arbitrary --with no bearing on the true market truly value of the payments sold-- and is due to being presently exceptionally low, extraordinary actions of the Federal Reserve. In fact, virtually no firm, regardless of credit quality, can borrow long term at the IRS rate and no one would use such a valuation in an actual transaction. As with most things, the true market value of the payments is based on what a buyer is willing to pay. While there are other alternatives in the marketplace for those who need money but lack the credit score and assets to qualify for a traditional loan, these come at a significant expense that far exceed the what loans" the Purchaser charges. These include "pay-day (with effective rates loans" ranging from 300%-1000% yearly), and "auto title (some with effective rates ranging 100%-300% yearly). Even credit cards carry significant financing cost to consumers, who are routinely charged rates of over 22%, with penalty rates closer to 30%. An analysis of the credit card rates of the 36 biggest retailers in the nation show an average annual percentage rate of 23.23%, with some charging rates of up to approximately 29%. By signing below, You certify having read and understanding everything set forth in this Disclosure Statement. DocuSigned by: 9 9 67D8172E4DB... [D-LCSS-NY 7/I8] Page 4 of 4 FILED:- USPS YATES INDEX NO. 2021-5237 USPS.com® Tracking® COUNTY Results CLERK 09/16/2021https://tools-usps.com/go/TrackConfirmAction?qtc_tLabels1=94055036... 03:31 PM NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 09/16/2021 Tracking® *°* USPS Track Another Package + Remove X Tracking Number: 9405503699300491479490 Your item was delivered in or at the mailbox at 10:13 am on September 4, 2021 in RUSHVILLE, NY 14544. Plus™ USPS Tracking Available v Delivered, In/At Mailbox September 4, 2021 at 10:13 am RUSHVILLE, NY 14544 Get Updates v Text & Email Updates Tracking History PlusTM USPS Tracking Product Information See Less A Can't find what you're looking for? 1 of2 9/8/2021,9:24 AM FILED:- USPS YATES INDEX NO. 2021-5237 USPS.com® Tracking® COUNTY Results CLERK 09/16/2021https://tools.usps.com/go/TrackConfirmAction?qtc_tLabelsl=94055036... 03:31 PM NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 09/16/2021 Go to our FAQs section to find answers to your tracking questions. FAQs 2of2 9/8/2021,9:24 AM