Preview
FILED: ONEIDA COUNTY CLERK 03/16/2021 02:30 PM INDEX NO. EFCA2021-000590
NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 03/16/2021
"C"
EXHIBIT
FILED: ONEIDA COUNTY CLERK 03/16/2021 02:30 PM INDEX NO. EFCA2021-000590
NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 03/16/2021
DISCLOSURE STATEMENT PURSUANT TO
NEW YORK LAW
DATE RECEIVED: March 03, 2021
PAYEE:
This Disclosure Statement is being rovided by Active Receivables, LLC
Receivables" ("Payee"
("Active or "Us") to or "You") in
connection with Payee's agreement to transfer and assign to Active Receivables
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 assign,
transfer or sell to Active Receivables all of Payee's right, title and interestin
andto the following payments:
One lump sum payment of $10,000.00 due and payable on December 31,
2022
One lump sum payment of $45,000.00 due and payable on December 31,
2027
One lump sum payment of $30,000.00 due and payable on December 31,
2032
One lump sum payment of $50,000.00 due and payable on December 31
2037
2. Aggregate Amount of Payments Transferred. The aggregate
amount of payments to be transferred to Active Receivables, LLC totals
$135,000.00.
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 at 0.8% is $123,461.26.
The discounted present value is the calculation of current value of the
transferred structured settlement payments under federal standards for
FILED: ONEIDA COUNTY CLERK 03/16/2021 02:30 PM INDEX NO. EFCA2021-000590
NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 03/16/2021
valuing annuities. THIS 18 NOT THE RATE USED TO CALCULATE THE
PURCHASE PRICE.
4. Calculation of Discounted Present Value. The discounted present
value of payments shall be calculated as follows: The applicable federal rate
used in calculating the discounted present value is 0.8%.
5. 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: $120,765.18. from.
Symetrai and $118,140.18 from AIG. Two
comparable annuity price quotes are used here, since a quote from the original
Annuity issuer is not readily available
6. Gross Advance Amount. In exchange for these payments, the
Payee will receive the gross amount of $40,010.27 which represents a nominal
annual discount rate of 12.58% assuming monthly compounding and
an assumed funding date of March 3, 2021. Funding will not occur
until everything necessary under the Assignment Agreement has taken place.
7. 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 - $ 0.00
Fees - $ 0.00
Processing
8. Net Advance Amount. The net cash payment the Payee will receive
in this transaction from Active Receivables, was determined by applying the
specified discount rate to the amount of future payments received by Active
Receivables, less the total amount of commissions, fees, costs, expenses and
charges payable by you. The net amount is $40,010.27.
9. 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 Active Receivables, by the Payee in the event of the
Payee's breach of the transfer agreement are NONE.
2
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NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 03/16/2021
10. Right To Cancel. The Payee shall have the right to cancel the
Assignment Agreement without penalty or further obligation not later than the
third (3rd) business day after the date the Assignment Agreement is signed by
the Payee.
11. Independent Professional Advice. The Payee anderstands that the
Payee should consult with the Payee's own attorney, certified public
or other licensed professional adviser
accountant, actuary regarding any
federal and state income tax consequences arising from the proposed transfer
of payments.
Ihave read and understand everything in this Disclosure Statement.
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FILED: ONEIDA COUNTY CLERK 03/16/2021 02:30 PM INDEX NO. EFCA2021-000590
NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 03/16/2021
DISCLOSURE STATEMENT
ILLINOIS
DATE RECEIVED: March 03, 2021
PAYEE: R 1
This Disclosure Statement is being provided by Active Receivables, LLC
Receivables" ("Payee"
("Active or "Us") to R or "You") in
connection with Payee's agreement to transfer and assign to Active Receivables,
LLC certain structured settlement payment rights due Payee.
1. Schedule of Payments Transferred. The Payee intends to assign,
transfer or sell to Active Receivables, LLC all of Payee's rights, title and interest
in the following payments:
One lump sum payment of $10,000.00 due and payable on December 31,
2022
One lump sum payment of $45,000.00 due and payable on December 31,
2027
One lump sum payment of $30,000.00 due and payable on December 31,
2032
One lump sum payment of $50,000.00 due and payable on December 31,
2037
2. Aggregate Amount of Payments Transferred. The aggregate
amount of payments to be transferred to Active Receivables, LLC totals
$135,000.00.
3. Discounted Present Value. The discounted present value of the
aggregate payments transferred at 0.8% is $123,461.26. The discounted present
value is the calculation of current value of the transferred structured settlement
payments under federal standards for valuing annuities. THIS IS NOT THE
RATE USED TO CALCULATE THE PURCHASE PRICE.
4. Calculation of Discounted Present Value. The discounted present
value of payments shall be calculated as follows: The applicable federal rate
used in calculating the discounted present value is 0.8%.
FILED: ONEIDA COUNTY CLERK 03/16/2021 02:30 PM INDEX NO. EFCA2021-000590
NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 03/16/2021
5. Gross Amount Pavable. In EXCHANGE for these payments, the
Payee will receive the gross amount of $40,010.27. Funding will not occur until
everything necessary under the Assignment Agreement has taken place.
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 - $ 0.00
Fees - $ 0.00
Processing
7. Net Amount Payable. The net amount payable to Payee after the
deduction of all commissions, fees, costs, expenses and charges described in
paragraph 6 of this disclosure is $40,010.27.
8. The Effective Annual Rate. 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 12.58% per year.
9. Right To Cancel. The Payee shall have the right to cancel the
Assignment'ÃgrêéinenÇwithout penalty or further obligation, not later than
3"I
the business day, after the Assignment Agreement is signed by the Payee.
10. Penalty In The Event Of Breach Of Contract. The amount of any
penalties), payable to Active Receivables, LLC by the Payee in the event of the
Payee's breach of the transfer agreement are NONE.
11. Independent Professional Advice. The Payee understands that
actuary, or other professional adviser concerning the legal, tax, and financial
implications of a transfer of structured settlement payment rights, including
the federal and state income tax consequences of a transfer if he/she or the
Settlement Obligor/Issuer is domiciled in a State that requires the payee to
receive such consultation.
I have read and understand everything set forth in this Disclosure Statement.
2
FILED: ONEIDA COUNTY CLERK 03/16/2021 02:30 PM INDEX NO. EFCA2021-000590
NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 03/16/2021
3
FILED: ONEIDA COUNTY CLERK 03/16/2021 02:30 PM INDEX NO. EFCA2021-000590
NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 03/16/2021
SUPREMB COURT - COUNTY OF BRONX
NEW YORK
PART 23
Settle Order Q
SOPREMB COURT OF THE STATE OF NEW YORK
Schedule Appemance O
COUNTY OF BRONX:
X .. _.. .. .. -
MEDNA,CHERLEE m m, 8
NDER W. HUNTER.J& .
Justice.
.
X
The following papers munbered 1 to _ _ Reed on this motion. MISCEERANEOUS
of
submitted asNo. on the Motion Calendar
Notict t on and
PAPERS NUMBERBD
tqodeswasotion- Onter to Sims Cause - Exhthh and AfEdavits Ammuni
Alligathand Exhibits ..
Answalng
Replying AfBearkand Exhtim
Amdayh adExhibb
Pleadings - Exhibit
Stipanion(s) - Refimwa Reput- Mh== R
PitedPapes
m...aneson,aw
E017ygg
POR&ef0tegDin8 Papem
.5
Hon.
ALEXANDER We JR., J.S.C.
.
Filed On - 12/17/2008 2:16:08 PM Bronx County Clerk
FILED: ONEIDA COUNTY CLERK 03/16/2021 02:30 PM INDEX NO. EFCA2021-000590
NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 03/16/2021
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 Charlee
Medina, Pursuant to and in Accordance 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. is denied without
prejudice.
.
The only details provided by Ms. Medina with respect to the structured settlement that is
the subject of this application is that said structured settlement entitled her to the following
payments: twelve
(12) annual payments, each in the 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 S t 6,900 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 .lune 5, 2012; one
tump 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 is annexed
to petitioncr's motion as Exhibit B. the discounted present value of the aggregate payments to be
transferred is $47,296.71. The annual discount rate for this transaction is 13.92%. The
discounted present value is calculated by using the applicable federal rate of 3.6%. The
petitioner is not charging any commissions, fees, costs or expenses to the payee, Ms. Medina
The Structured Settlement Protection Act (SSPA) codified under General Obligations .
1..aw ,Title 17, was enacted in July of 2002 because of the concem that "...a growing number of
factoring companies have used aggressive advertising, plus the allure of quick and easy cash, to
induce settlement recipicnts to cash out future payments, often at substantial discounts, depriving
victims and their famines of the long-term financial security their structured settlements were
designed to provide. Although nransfers of structured payments
settlements are generally
prohibited by contract...factoring companies have built
a rapidly expanding business around
prohibitions."
circumventing these (NY Spons. Memo., 2002 Ch. 537). A determination would
be made by a Supreme Court judge as to whether the transfer is "in compliance with applicable
law, that key terms have been disclosed, that the transfer meets 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 that the hardship requirement was "eliminated as a
end'
precondition to transfers and the requirement that disclosures be made 'at the Gont was
added."
(NY Spons. Memo., 2004 Ch. 480).
The procedural requirements that must be met for approval of a transfer are found under
General Obligations Law §5-1705. are that a copy of the notice of petition
The requirements and
petition by order to show cause be served upon all interested parties at least twenty days before
the time at which the petition is noticed to be heard, the petition must include a copy of the
transfer agreement, a copy of the disclosure statement and proof of notice of that statement as
dependents'
well as a listing of cach of the payee's dependents along with the age. Procedurally.
Filed On - 12/17/2008 2:·l6:08 PM Bronx County Clerk
FILED: ONEIDA COUNTY CLERK 03/16/2021 02:30 PM INDEX NO. EFCA2021-000590
NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 03/16/2021
the petitioner herein has met all of the afommentioned requirements.
Pursuant to General Obligations the court must make the following
Law §5-1706,
findings before a transfer can be effectuated.
are that•"(a) the transfer complies
These with the
requirements of this titic; (b) the transfer is in the best interest of the payee, taking into account
the welfare and support of the payee's dependants; and whether the transaction, including the
discount rate used to determine the gmss advance amount and the fecs and expenses used to
determinc the net advance amount, are fair and reasonable. Provided the court makes the
findings as outlined in this subdivision, there is no requirement for the court to find that an
applicant is suffering from
a hardship to approve the transfer of structured settlement payments
under this subdivision; ( c) the payee has been advised in writing by the transfercc to scck
independent professional advice regarding the transfer and has either received such advice or
knowingly waived such advice
(d) the transfer does not contravene
in wnting; any applicabic
statute or the order of any court or other government authority; and (c) is written in plain
article."
language and in compliance 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 amount of fees and expenses, is fair and reasonable and
whether the transaction is in the best interest of the payee. The trial courts have ruled on what is
detennined to be fair and reasonable and whether the transfer is in the best interest of 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 fmds that the transaction is fair taking into account the totality of the
herein
circumstances and the interest rate of 13.92% is reasonable. However, this court cannot state
with any certainty whether or not the transaction is in the best interest of the payee.
Ms. Medina states in her affidavit that she seeks to transfer to the payor, the lump sum
payment of $55,000 that is payable to her on June 5, 2011 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)
dependents one is four (4) years old and the other is three (3) months old. Ms. Medina states that
she intends to use the money that she receives from the transfer to find a 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 fbmiture for herself and her
children and to pay for the livmg expenses of her children.
However, Ms. Medina does not indicate whether or not she is employed or otherwisc
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 off of 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 placc of her 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
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FILED: ONEIDA COUNTY CLERK 03/16/2021 02:30 PM INDEX NO. EFCA2021-000590
NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 03/16/2021
from Ms. Medina with respect to her monthly household incomo and the amount of rent she
intends to pay on a monthly basis in order for this court to determine whether or not the transfer
is in the best interest of the payee taking into account the welfare and support o f her dependents
This constitutes the decision and orderof this court
Dated: December 112008 -
3.S.C.
.
3
Filed On-12/17/2008 2:16:08 PM Bronx County Clark
FILED: ONEIDA COUNTY CLERK 03/16/2021 02:30 PM INDEX NO. EFCA2021-000590
NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 03/16/2021
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 ofStructured Settlément DECISION
Payment Rights of Kimberly Whispell, pursuant to and in
accordance with General Obligation Law et. seq. index No. 08-4095
§ 5-1701,
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 agreement. Whispell has consented to and joined in this application by
petitioner.
Preview
FILED: ONEIDA COUNTY CLERK 03/16/2021 02:30 PM INDEX NO. EFCA2021-000590 NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 03/16/2021 "C" EXHIBIT FILED: ONEIDA COUNTY CLERK 03/16/2021 02:30 PM INDEX NO. EFCA2021-000590 NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 03/16/2021 DISCLOSURE STATEMENT PURSUANT TO NEW YORK LAW DATE RECEIVED: March 03, 2021 PAYEE: This Disclosure Statement is being rovided by Active Receivables, LLC Receivables" ("Payee" ("Active or "Us") to or "You") in connection with Payee's agreement to transfer and assign to Active Receivables 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 assign, transfer or sell to Active Receivables all of Payee's right, title and interestin andto the following payments: One lump sum payment of $10,000.00 due and payable on December 31, 2022 One lump sum payment of $45,000.00 due and payable on December 31, 2027 One lump sum payment of $30,000.00 due and payable on December 31, 2032 One lump sum payment of $50,000.00 due and payable on December 31 2037 2. Aggregate Amount of Payments Transferred. The aggregate amount of payments to be transferred to Active Receivables, LLC totals $135,000.00. 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 at 0.8% is $123,461.26. The discounted present value is the calculation of current value of the transferred structured settlement payments under federal standards for FILED: ONEIDA COUNTY CLERK 03/16/2021 02:30 PM INDEX NO. EFCA2021-000590 NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 03/16/2021 valuing annuities. THIS 18 NOT THE RATE USED TO CALCULATE THE PURCHASE PRICE. 4. Calculation of Discounted Present Value. The discounted present value of payments shall be calculated as follows: The applicable federal rate used in calculating the discounted present value is 0.8%. 5. 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: $120,765.18. from. Symetrai and $118,140.18 from AIG. Two comparable annuity price quotes are used here, since a quote from the original Annuity issuer is not readily available 6. Gross Advance Amount. In exchange for these payments, the Payee will receive the gross amount of $40,010.27 which represents a nominal annual discount rate of 12.58% assuming monthly compounding and an assumed funding date of March 3, 2021. Funding will not occur until everything necessary under the Assignment Agreement has taken place. 7. 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 - $ 0.00 Fees - $ 0.00 Processing 8. Net Advance Amount. The net cash payment the Payee will receive in this transaction from Active Receivables, was determined by applying the specified discount rate to the amount of future payments received by Active Receivables, less the total amount of commissions, fees, costs, expenses and charges payable by you. The net amount is $40,010.27. 9. 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 Active Receivables, by the Payee in the event of the Payee's breach of the transfer agreement are NONE. 2 FILED: ONEIDA COUNTY CLERK 03/16/2021 02:30 PM INDEX NO. EFCA2021-000590 NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 03/16/2021 10. Right To Cancel. The Payee shall have the right to cancel the Assignment Agreement without penalty or further obligation not later than the third (3rd) business day after the date the Assignment Agreement is signed by the Payee. 11. Independent Professional Advice. The Payee anderstands that the Payee should consult with the Payee's own attorney, certified public or other licensed professional adviser accountant, actuary regarding any federal and state income tax consequences arising from the proposed transfer of payments. Ihave read and understand everything in this Disclosure Statement. [1he remainder of this page intentionally left blank] 3 FILED: ONEIDA COUNTY CLERK 03/16/2021 02:30 PM INDEX NO. EFCA2021-000590 NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 03/16/2021 DISCLOSURE STATEMENT ILLINOIS DATE RECEIVED: March 03, 2021 PAYEE: R 1 This Disclosure Statement is being provided by Active Receivables, LLC Receivables" ("Payee" ("Active or "Us") to R or "You") in connection with Payee's agreement to transfer and assign to Active Receivables, LLC certain structured settlement payment rights due Payee. 1. Schedule of Payments Transferred. The Payee intends to assign, transfer or sell to Active Receivables, LLC all of Payee's rights, title and interest in the following payments: One lump sum payment of $10,000.00 due and payable on December 31, 2022 One lump sum payment of $45,000.00 due and payable on December 31, 2027 One lump sum payment of $30,000.00 due and payable on December 31, 2032 One lump sum payment of $50,000.00 due and payable on December 31, 2037 2. Aggregate Amount of Payments Transferred. The aggregate amount of payments to be transferred to Active Receivables, LLC totals $135,000.00. 3. Discounted Present Value. The discounted present value of the aggregate payments transferred at 0.8% is $123,461.26. The discounted present value is the calculation of current value of the transferred structured settlement payments under federal standards for valuing annuities. THIS IS NOT THE RATE USED TO CALCULATE THE PURCHASE PRICE. 4. Calculation of Discounted Present Value. The discounted present value of payments shall be calculated as follows: The applicable federal rate used in calculating the discounted present value is 0.8%. FILED: ONEIDA COUNTY CLERK 03/16/2021 02:30 PM INDEX NO. EFCA2021-000590 NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 03/16/2021 5. Gross Amount Pavable. In EXCHANGE for these payments, the Payee will receive the gross amount of $40,010.27. Funding will not occur until everything necessary under the Assignment Agreement has taken place. 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 - $ 0.00 Fees - $ 0.00 Processing 7. Net Amount Payable. The net amount payable to Payee after the deduction of all commissions, fees, costs, expenses and charges described in paragraph 6 of this disclosure is $40,010.27. 8. The Effective Annual Rate. 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 12.58% per year. 9. Right To Cancel. The Payee shall have the right to cancel the Assignment'ÃgrêéinenÇwithout penalty or further obligation, not later than 3"I the business day, after the Assignment Agreement is signed by the Payee. 10. Penalty In The Event Of Breach Of Contract. The amount of any penalties), payable to Active Receivables, LLC by the Payee in the event of the Payee's breach of the transfer agreement are NONE. 11. Independent Professional Advice. The Payee understands that actuary, or other professional adviser concerning the legal, tax, and financial implications of a transfer of structured settlement payment rights, including the federal and state income tax consequences of a transfer if he/she or the Settlement Obligor/Issuer is domiciled in a State that requires the payee to receive such consultation. I have read and understand everything set forth in this Disclosure Statement. 2 FILED: ONEIDA COUNTY CLERK 03/16/2021 02:30 PM INDEX NO. EFCA2021-000590 NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 03/16/2021 3 FILED: ONEIDA COUNTY CLERK 03/16/2021 02:30 PM INDEX NO. EFCA2021-000590 NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 03/16/2021 SUPREMB COURT - COUNTY OF BRONX NEW YORK PART 23 Settle Order Q SOPREMB COURT OF THE STATE OF NEW YORK Schedule Appemance O COUNTY OF BRONX: X .. _.. .. .. - MEDNA,CHERLEE m m, 8 NDER W. HUNTER.J& . Justice. . X The following papers munbered 1 to _ _ Reed on this motion. MISCEERANEOUS of submitted asNo. on the Motion Calendar Notict t on and PAPERS NUMBERBD tqodeswasotion- Onter to Sims Cause - Exhthh and AfEdavits Ammuni Alligathand Exhibits .. Answalng Replying AfBearkand Exhtim Amdayh adExhibb Pleadings - Exhibit Stipanion(s) - Refimwa Reput- Mh== R PitedPapes m...aneson,aw E017ygg POR&ef0tegDin8 Papem .5 Hon. ALEXANDER We JR., J.S.C. . Filed On - 12/17/2008 2:16:08 PM Bronx County Clerk FILED: ONEIDA COUNTY CLERK 03/16/2021 02:30 PM INDEX NO. EFCA2021-000590 NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 03/16/2021 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 Charlee Medina, Pursuant to and in Accordance 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. is denied without prejudice. . The only details provided by Ms. Medina with respect to the structured settlement that is the subject of this application is that said structured settlement entitled her to the following payments: twelve (12) annual payments, each in the 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 S t 6,900 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 .lune 5, 2012; one tump 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 is annexed to petitioncr's motion as Exhibit B. the discounted present value of the aggregate payments to be transferred is $47,296.71. The annual discount rate for this transaction is 13.92%. The discounted present value is calculated by using the applicable federal rate of 3.6%. The petitioner is not charging any commissions, fees, costs or expenses to the payee, Ms. Medina The Structured Settlement Protection Act (SSPA) codified under General Obligations . 1..aw ,Title 17, was enacted in July of 2002 because of the concem that "...a growing number of factoring companies have used aggressive advertising, plus the allure of quick and easy cash, to induce settlement recipicnts to cash out future payments, often at substantial discounts, depriving victims and their famines of the long-term financial security their structured settlements were designed to provide. Although nransfers of structured payments settlements are generally prohibited by contract...factoring companies have built a rapidly expanding business around prohibitions." circumventing these (NY Spons. Memo., 2002 Ch. 537). A determination would be made by a Supreme Court judge as to whether the transfer is "in compliance with applicable law, that key terms have been disclosed, that the transfer meets 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 that the hardship requirement was "eliminated as a end' precondition to transfers and the requirement that disclosures be made 'at the Gont was added." (NY Spons. Memo., 2004 Ch. 480). The procedural requirements that must be met for approval of a transfer are found under General Obligations Law §5-1705. are that a copy of the notice of petition The requirements and petition by order to show cause be served upon all interested parties at least twenty days before the time at which the petition is noticed to be heard, the petition must include a copy of the transfer agreement, a copy of the disclosure statement and proof of notice of that statement as dependents' well as a listing of cach of the payee's dependents along with the age. Procedurally. Filed On - 12/17/2008 2:·l6:08 PM Bronx County Clerk FILED: ONEIDA COUNTY CLERK 03/16/2021 02:30 PM INDEX NO. EFCA2021-000590 NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 03/16/2021 the petitioner herein has met all of the afommentioned requirements. Pursuant to General Obligations the court must make the following Law §5-1706, findings before a transfer can be effectuated. are that•"(a) the transfer complies These with the requirements of this titic; (b) the transfer is in the best interest of the payee, taking into account the welfare and support of the payee's dependants; and whether the transaction, including the discount rate used to determine the gmss advance amount and the fecs and expenses used to determinc the net advance amount, are fair and reasonable. Provided the court makes the findings as outlined in this subdivision, there is no requirement for the court to find that an applicant is suffering from a hardship to approve the transfer of structured settlement payments under this subdivision; ( c) the payee has been advised in writing by the transfercc to scck independent professional advice regarding the transfer and has either received such advice or knowingly waived such advice (d) the transfer does not contravene in wnting; any applicabic statute or the order of any court or other government authority; and (c) is written in plain article." language and in compliance 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 amount of fees and expenses, is fair and reasonable and whether the transaction is in the best interest of the payee. The trial courts have ruled on what is detennined to be fair and reasonable and whether the transfer is in the best interest of 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 fmds that the transaction is fair taking into account the totality of the herein circumstances and the interest rate of 13.92% is reasonable. However, this court cannot state with any certainty whether or not the transaction is in the best interest of the payee. Ms. Medina states in her affidavit that she seeks to transfer to the payor, the lump sum payment of $55,000 that is payable to her on June 5, 2011 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) dependents one is four (4) years old and the other is three (3) months old. Ms. Medina states that she intends to use the money that she receives from the transfer to find a 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 fbmiture for herself and her children and to pay for the livmg expenses of her children. However, Ms. Medina does not indicate whether or not she is employed or otherwisc 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 off of 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 placc of her 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 County Clerk FILED: ONEIDA COUNTY CLERK 03/16/2021 02:30 PM INDEX NO. EFCA2021-000590 NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 03/16/2021 from Ms. Medina with respect to her monthly household incomo and the amount of rent she intends to pay on a monthly basis in order for this court to determine whether or not the transfer is in the best interest of the payee taking into account the welfare and support o f her dependents This constitutes the decision and orderof this court Dated: December 112008 - 3.S.C. . 3 Filed On-12/17/2008 2:16:08 PM Bronx County Clark FILED: ONEIDA COUNTY CLERK 03/16/2021 02:30 PM INDEX NO. EFCA2021-000590 NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 03/16/2021 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 ofStructured Settlément DECISION Payment Rights of Kimberly Whispell, pursuant to and in accordance with General Obligation Law et. seq. index No. 08-4095 § 5-1701, 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 agreement. Whispell has consented to and joined in this application by petitioner.