Motion to Amend in In Re:| Trellis.Law

On February 12, 2021 a Request,Application was filed involving a dispute between J.G. Wentworth Originatios, Llc, and for Other Civil in the District Court of Fort Bend County.

Preview
NO. 21-DCV-280860

IN RE IN THE DISTRICT COURT OF

FORT BEND COUNTY, TEXAS

JUDICIAL DISTRICT

AMENDED APPLICATION FOR APPROVAL OF
TRANSFER OF STRUCTURED ANNUITY BENEFITS

TO THE HONORABLE JUDGE OF THE COURT:

COMES NOW, “Applicant", by and through its

attorney, Julie Pi Evans, and presents the following:

discovery control plan is not required for the adjudication of this application. discovery

control plan is not required for the adjudication of this application. This application is filed in

accordance with HB3356, effective date June 15, 2017. Per the newly enacted law, Applicant has

redacted all identifiable information about the Payee.

("Annuitant" or "Payee"), who resides FORT BEND County, currently is

the recipient of structured annuity benefits.

is the issuer of the annuity. is the owner

of the annuity.

3 This Court has jurisdiction of this matter because the Payee resides in this county, or the

action from which the annuity arose was, or could have been, brought in this county. The

Court further has jurisdiction of this matter under the Texas Structured Settlement

Protection Act, Chapter 141, Texas Civil Practice and Remedies Code.

the Annuity Issuer, is an insurance

company domiciled in the State of Virginia. The Annuity Issuer shall be given notice of

this application by Commercial Deliver Service, concurrently with notice of hearing, at
3100 Albert Lankford Drive, Lynchburg, VA 24501, Attn. Legal Dept/structured

Settlements.

6 , the Annuity Owner, shall be given notice of this

application by Commercial Deliver Service concurrently with notice of hearing, at 6604

Broad Street, Richmond, VA 23230, Attn. Legal Dept./structured Settlements.

7 The annuity provides for periodic payments including, but not limited to, A)

8 entered into a transfer agreement with J.G. Wentworth Originations, LLC,

pursuant to the terms of which she agreed to sell and assign A)

A true and correct copy of the Purchase

Agreement is attached hereto as Exhibit "1" and is incorporated herein by reference.

9 In exchange for the sale and assignment of the aforesaid payments, is to

receive a lump sum cash payment in the amount of less compliance and

administrative fees and filing and related expense fees, resulting in an actual payment of

$ .

10 Applicant is not aware of any statutory or case law in Texas restricting the sale or

assignment of structured annuity payments.

11 The transfer complies with the requirements of the Structured Settlement Protection Act,

Chapter 141, Texas Civil Practice and Remedies Code, as enacted on May 11, 2001 (the

"Act").

12 The Payee has the following dependents, as that term is defined in the Act:

12.1 residing with Payee: -

12.2 Dependents not residing with Payee:

2
13 The Transfer is in the best interests of the Payee, taking into account the welfare and

support of the Payee's dependents, if any.

14 J.G. Wentworth Originations, LLC, has given written notice of the Applicant's name,

address and taxpayer identification number to Annuity Issuer and Annuity Owner. A true

copy of the notice is attached as Exhibit "2" and incorporated herein by reference.

15 All interest parties are hereby noticed that they are entitled to support, oppose, or otherwise

respond to this Application, either in person or by counsel, by submitting written comments

to the Court or by participating in the hearing.

16 Annuitant has received a disclosure statement that provides the amounts and due dates of

the structured settlement payments to be transferred; the aggregate amount of the

payments; the discounted present value of the payments, with the discount rate used in

determining the discounted present value; the gross amount payable to Annuitant in

exchange for the payments; and itemized listing of all commissions, fees, costs, expenses,

and charges payable by Annuitant or deductible form the gross amount otherwise payable

to Annuitant; the net amount payable to Annuitant after deduction of all commissions, fees,

costs, expenses, and charges; and the amount of any penalty and the aggregate amount of

any liquidated damages, inclusive of penalties, payable by Annuitant in the event of any

breach of the transfer agreement by Annuitant. A true and correct copy of the Disclosure

Statement is attached hereto as Exhibit "3" and incorporated herein by reference.

17 Attached as Exhibit 4 is the Payee’s request that all identifiable information be redacted

pursuant to HB3356. Applicant will serve the Court and all interested parties with a copy

of the application with non-redacted exhibits.

3
18 has been advised in writing by the Applicant to seek independent professional

advice regarding the transfer and has received such advice or has declined such advice in

writing. See Exhibit 5.

PRAYER

WHEREFORE, J.G. Wentworth Originations, LLC, prays that the Court enter an order

allowing the sale and assignment of the structured annuity payments for A)

Respectfully submitted,

JULIE PI EVANS LAW FIRM, PLLC
1218 E. EUCLID AVE.
SAN ANTONIO, TEXAS 78212
(281) 846-6252 (TELEPHONE)
(888) 598-3598 (FACSIMILE)
JULIE@JPELAWFIRM.COM

BY: ____________________________
Julie Pi Evans
State Bar No. 24037280

ATTORNEY FOR APPLICANT

4
DocuSign Envelope ID: 10237D2E-F787-423C-BEB2-5326F48D8999

Account ID: 1693499

PURCHASE CONTRACT

This is a Purchase Contract (“Contract”) for the sale of structured settlement payments between
(You, Your), and J.G. Wentworth Originations, LLC (We, Us, Our)
3993 Howard Hughes Parkway, Suite 250, Las Vegas, NV 89169-6754.

BACKGROUND
A. In connection with the resolution of a personal injury claim, You or someone acting for You, signed a
Settlement Agreement that entitles You to receive certain future payments (“Settlement Payments”),
according to a set schedule.

B. Those Settlement Payments are being paid to You from an annuity policy (“Annuity Policy”) purchased by the Person
responsible for making the Settlement Payments to You (“Obligor”).

C. Rather than wait for the Settlement Payments to be made to You in the future, You want to sell all or some of those
Settlement Payments (“Purchased Payments”) to Us now for a lump sum.

D. THIS CONTRACT CONTAINS AN ARBITRATION PROVISION WHICH YOU SHOULD READ
CAREFULLY, AS IT WILL HAVE A SUBSTANTIAL IMPACT ON HOW DISPUTES BETWEEN YOU AND
US ARE RESOLVED.

DEFINED WORDS

Certain words used in this Contract have specific meanings, shown below.

Affiliate An entity controlled by, controlling, or under common control with, another entity.

Annuity Policy The policy purchased by the Obligor to ensure that the Settlement Payments are made to You as
required by the Settlement Agreement.

Closing Documents Any documents necessary to carry out the purchase of the Purchased Payments, other
than the “Contract or Contract Documents” as defined below.

Contract or Contract
Documents Collectively, only this Contract and the Disclosure Statement.

Contract Date The date Your signature at the end of this Contract is E-signed and date stamped.
However, if You happen to sign this Contract before the number of days stated at the end
of Your Disclosure Statement for waiting has passed, You will have no obligation under
Your Contract until that time has passed.

Court Order A legally binding ruling issued by a judge or properly empowered administrative officer,
approving the sale of the Purchased Payments to Us (“Court Approval”).

Disclosure Statement The document which identifies for You, the Purchased Payments, expenses, Purchase Price
and various other disclosures.

Encumbrance Any claim, right, lien, policy loan, or restriction. In addition, this includes any
limits on rights of ownership (such as the use, voting, transfer, receipt of income, etc.).

Funding Date The date We pay You the Net Purchase Price.

Issuer The insurance company that issued the Annuity Policy.

Page 1
07/12/12 © 2011 J.G. Wentworth Originations, LLC

EX 1
DocuSign Envelope ID: 10237D2E-F787-423C-BEB2-5326F48D8999

Account ID: 1693499

Obligor The Person who is obligated to make payments to You under the Settlement Agreement.

Party One of You or Us. Parties means both You and Us.

Person Any natural person or legal entity.

Purchased Payments Only those certain payments that We are purchasing from You under this Contract.

Purchase Price:

Gross Purchase Price The amount shown as the “gross amount payable to the seller (You)” on the Disclosure
Statement. This is the sum We have agreed to pay You before any deductions as set
forth in the Contract Documents.

Net Purchase Price The amount shown as the “net amount payable to the seller (You)” on the Disclosure
Statement. This is the sum We have agreed to pay You after any deductions as set forth
in the Contract Documents.

Settlement Agreement The agreement that You and the Obligor signed to resolve Your personal injury claim.

Settlement Payments All of the payments that the Obligor has agreed to make to You in the Settlement
Agreement.

We, Our, or Us J.G. Wentworth Originations, LLC, along with any of its successors, assigns,
and designees. Some of the Contract Documents or Closing Documents may refer to Us
as the purchaser.

You or Your The Person named on this Contract’s first page. Some of the Contract Documents or
Closing Documents may refer to You as the seller.

You and We agree as follows:

1. SALE OF THE PURCHASED PAYMENTS

A. Upon the signing of this Contract and subject to certain conditions including Court Approval, You sell, transfer
and assign to Us the right to receive the Purchased Payments specifically identified in the Disclosure Statement.

B. We will pay You the Net Purchase Price as agreed to in the Contract Documents, subject to certain conditions,
including meeting Our underwriting requirements, Court Approval and satisfactory completion of the Closing
Documents. We will do this in exchange for You:

 selling the Purchased Payments to Us;

 changing the beneficiary of the Annuity Policy to Your estate and not changing it again until We have
been paid all of the Purchased Payments;

 having any current beneficiaries waive their rights to the Purchased Payments; and

 fulfilling Your promises under this Contract.

C.
If We are buying only a portion of Your payments, this will have no effect upon Your rights in the unsold portion.
You will continue to receive the unsold portion unless You have already sold or encumbered that portion.
However, sometimes the Issuer, the Obligor or the court may require Us to receive the entire amount of Your
payment. If so, We will then forward the portion of the payment still due to You and You hereby agree to this
payment servicing arrangement.
2. PURCHASE PRICE

A. The Gross and Net Purchase Prices are shown on the Disclosure Statement and are fair and acceptable to You and Us.
Page 2
07/12/12 © 2011 J.G. Wentworth Originations, LLC
DocuSign Envelope ID: 10237D2E-F787-423C-BEB2-5326F48D8999

Account ID: 1693499

B. We will pay You the Net Purchase Price in the manner You designate for Us.

C. Before we pay You, You agree that We will adjust for the following amounts, if applicable:

 Purchased Payments Owed to Us – The Issuer may have already paid You some of the Purchased
Payments before We have paid You for them. If that happens, We will deduct the amount of those
Purchased Payments.

 Holdbacks – Due to possible delays in the Issuer beginning to make the Purchased Payments to Us
instead of You, We will hold back an amount equal to any Purchased Payments that the Issuer owes Us
post Court Approval, that are due within 90 days of the Funding Date. If We subsequently receive those
particular Purchased Payments directly, We will return the amount of any related holdback to You.

 Payment of Debts Owed – If You owe any past due child support, bankruptcy payoffs or taxes, or have
any judgments or liens against You or Your assets, We may pay those amounts and deduct them from the
amount We pay You, and You hereby provide Us with specific authority to take such action. We will
provide You with notice of the amounts that We are going to pay, prior to actual payment.

D. If any Purchased Payments are mistakenly sent to You after We have paid You for them, You will immediately contact
Us. If We then determine that any deductions or holdbacks as set forth above are not enough to reimburse Us, We will
advise You of the amount You owe Us. You agree to immediately send that amount to Us by bank or certified check.

3. YOUR REPRESENTATIONS AND WARRANTIES

You represent and warrant to Us the following:

A. You understand that THIS IS A SALE AND NOT A LOAN.

B. The Annuity Policy is in full force, You are the sole and undisputed recipient of the right to the Purchased Payments,
have the right to sell them free and clear of any Encumbrances and have not previously sold any of the Purchased
Payments to any other Person.

C. You understand that Court Approval is required for this purchase; and You agree to fully cooperate with Us to
obtain that approval.

D. You gave Us all requested information and signed all documents necessary to complete the purchase.
Every statement made by You in the Contract Documents and Closing Documents is true and complete.

E. No law, divorce decree or other legal obstacle:

 requires You to keep the Purchased Payments for the benefit of a current or former spouse, dependent children,
or other person; or

 legally prevents You from contracting with Us, selling the Purchased Payments or changing the Annuity
Policy’s beneficiary.

F. Either:

 You have never filed for bankruptcy, will not do so before the Funding Date and there are no lawsuits or efforts
by any of Your creditors to put You into bankruptcy or take any of the Purchased Payments; or

 If You filed for bankruptcy, the Purchased Payments were not subject to the claims of Your creditors. You will
give Us a copy of any of Your bankruptcy documents that We request including evidence of a final bankruptcy
payoff or case closing, if any.
G. We can rely on Your representations, warranties, and promises in this Contract. These representations, warranties, and
promises are for Our benefit and the benefit of any future owners of the Purchased Payments. You understand that Our
reliance on any intentional misrepresentation by You may result in Our enforcing Our rights against You in court.
Page 3
07/12/12 © 2011 J.G. Wentworth Originations, LLC
DocuSign Envelope ID: 10237D2E-F787-423C-BEB2-5326F48D8999

Account ID: 1693499

H. You had enough time to consider the sale of the Purchased Payments, understand the terms of the Contract Documents
and Closing Documents (including the arbitration provision), are of legal contracting age and sound mind, not under the
influence of drugs or alcohol, and freely and voluntarily, enter into this Contract and agree to all of its terms.

I. You were advised by Us to obtain independent legal advice and professional tax advice about the sale of the Purchased
Payments and to have those advisors review the terms and legal, tax and other effects of this Contract with You prior to
Your execution of this Contract. You have also explored all appropriate financial options before
entering into this transaction.

J. We did not provide tax, financial, or legal advice to You about this Contract and have advised You that We may not refer
You to any specific attorney for such purpose.

K. If You are married, Your spouse understands all of the terms and conditions of this Contract including, but not limited to
the fact that, after the Funding Date, You (and Your spouse) will not receive the same amount of money on the same
payment schedule as You would have received under the Annuity Policy. Your spouse has been provided with
all information relating to the transaction and has had every opportunity to review the terms of the transaction and to
seek any advice relating thereto. Your Spouse also understands that he or she will be giving up any property or contract
rights that he or she may have in the Purchased Payments.

L. We may sell, transfer, or assign Our right to the Purchased Payments in a sale, securitization, or other financing
transaction (resale). Any resale would involve disclosing certain information about You (including Your personal
information) to the parties to a resale.

M. Any future owner of the right to the Purchased Payments will have all of the same rights We have, including the right to
the duties You owe Us under this Contract. This includes the right to make a claim against You for violating any of the
representations, warranties, or promises You made in this Contract.

4. YOUR PROMISES TO US

Before and after the Funding Date:

A. You will tell us right away if Your address or telephone number changes and do
everything necessary, including completing and signing all documents to:

 sell the right to the Purchased Payments to Us;

 change the beneficiary as required by this Contract; and

 correct any documentation errors in the Contract Documents or Closing Documents.

B. You will also tell Us if any of the following occurs:

 a violation of this Contract; or

 anything that could negatively affect the Annuity Policy, the Purchased Payments, or this Contract.

C. You will not:

 agree to sell the Purchased Payments to any Person other than Us;

 change the Annuity Policy’s beneficiary to any Person other than Your estate until We have collected all of the
Purchased Payments; or

 withdraw cash from, borrow against, or change the Annuity Policy.

D. You will give Us information necessary to update Your representations, warranties, and promises in this Contract. You
will also update any documents and information so they will be true and complete on the Funding Date.
Page 4
07/12/12 © 2011 J.G. Wentworth Originations, LLC
DocuSign Envelope ID: 10237D2E-F787-423C-BEB2-5326F48D8999

Account ID: 1693499

E. We are now, and will continue in the future, to rely on the representations and warranties You have given Us. We will
confirm the accuracy of Your representations and warranties. You must cooperate with this confirmation and provide
complete access to any information We believe necessary.

F. You agree that updating representations, warranties, promises, documents and other information will not cure a breach
of any representation or warranty made by You that was not true and complete.

G. You agree that Our obligation to You under this Contract is strictly limited to the requirement to pay You what We owe
You under the terms of this Contract, after receipt and approval of the Closing Documents, final underwriting approval
and Court Approval. Under no circumstances will We be liable for any consequential damages.

H. You hereby appoint Us and any of Our designees, with full power of substitution as your Attorney in Fact, to act in
Your name and place for the purpose of assigning and transferring ownership of any and all right, title and interest that
You have in the Purchased Payments and for Us to obtain all benefits contemplated by this transaction. You also give
Us full authority to act in any way proper and necessary to exercise this Attorney in Fact appointment including, but not
limited to: (1) negotiating, endorsing and executing checks, drafts and other instruments in Your name; and
(2) instituting, maintaining, compromising, settling and terminating any litigation or other proceedings related to the
Purchased Payments. This power of attorney is coupled with an interest and shall survive death or disability.

5. CANCELLATION BY US

We may cancel this Contract before the Funding Date if:

A. You breach any representation, warranty, or promise in any Contract Documents or Closing Documents.

B. The petition for the Court Order is contested, opposed, or not approved.

C. We are sued or threatened with a lawsuit or an arbitration about this Contract or the Annuity Policy.

D. There is any threatened, pending, or final action, or change in law or rule challenging the legality of, or negatively
affecting this transaction.

E. You file for, or are forced into bankruptcy.

F. You die.

G. Final approval has not been given by Our underwriting department.

H. The Purchase Contract is not signed by You and received back by Us by April 16, 2021.

I. A major rating agency downgrades the Issuer’s credit rating.

J. The Issuer is, or becomes insolvent, or under regulatory supervision.

K. With respect to A through J above, to the extent permitted by applicable law, the arbitration provision in Section 9 of
this Contract shall survive the termination, cancellation or rescission of this Contract.

6. CANCELLATION BY YOU

A. (1) YOU MAY CANCEL THIS CONTRACT WITHOUT PENALTY OR FURTHER OBLIGATION AT ANY
TIME WITHIN FIVE (5) BUSINESS DAYS AFTER THE DATE YOU RECEIVE PAYMENT
HEREUNDER FROM US. IN ORDER FOR THE CANCELLATION TO BE EFFECTIVE, YOU MUST
SEND A NOTICE POSTMARKED AT ANY TIME WITHIN FIVE BUSINESS DAYS AFTER YOU
RECEIVE PAYMENT HEREUNDER FROM US (This is the rescission period).

(2) YOUR NOTICE IS TO BE SENT EITHER BY CERTIFIED OR REGISTERED MAIL (RETURN
RECEIPT REQUESTED) OR FEDEX OR ANOTHER MAJOR OVERNIGHT DELIVERY SERVICE. THE
Page 5
07/12/12 © 2011 J.G. Wentworth Originations, LLC
DocuSign Envelope ID: 10237D2E-F787-423C-BEB2-5326F48D8999

Account ID: 1693499

NOTICE MUST INCLUDE A BANK OR CERTIFIED CHECK MADE PAYABLE TO US, IN THE FULL
AMOUNT RECEIVED BY YOU. YOUR NOTICE MUST BE SENT TO:

J.G. Wentworth Originations, LLC
Attention: Manager of Operations
3993 Howard Hughes Parkway, Suite 250
Las Vegas, NV 89169-6754

B. GEORGIA RESIDENTS: YOU MAY CANCEL THIS TRANSACTION AT ANY TIME PRIOR TO 5:00 P.M.
OF THE TWENTY-FIRST DAY FOLLOWING RECEIPT OF THE ENCLOSED “NOTICE OF
CANCELLATION RIGHTS” FORM, OR AT THE HEARING ON THE APPLICATION FOR
AUTHORIZATION OF A TRANSFER OF STRUCTURED SETTLEMENT PAYMENT RIGHTS, OR AT ANY
TIME WITHIN FIVE (5) BUSINESS DAYS AFTER YOU RECEIVE PAYMENT HEREUNDER FROM US,
WHICHEVER EVENT OCCURS LAST (This is the Georgia rescission period). IN ORDER FOR THE
CANCELLATION TO BE EFFECTIVE, YOU MUST SIGN THE ENCLOSED “NOTICE OF
CANCELLATION RIGHTS” FORM AND MAIL OR DELIVER IT TO US AS SPECIFIED IN THAT
NOTICE AND YOU MUST RETURN ALL AMOUNTS (PURCHASE PRICE OR OTHERWISE) RECEIVED
BY YOU ACCORDING TO THE REQUIREMENTS OF 6 (A) (2) ABOVE.

C. WEST VIRGINIA RESIDENTS: IN ORDER FOR YOUR CANCELLATION TO BE EFFECTIVE, YOUR
NOTICE CAN BE SUBMITTED VIA PHONE, MAIL, OR FACSIMILE. ANY AMOUNTS ADVANCED BY
US IN CONTEMPLATION OF THE TRANSFER SHALL BE IMMEDIATELY REFUNDED TO US. IF YOU
DISMISS YOUR ACTION AFTER APPOINTMENT OF A GUARDIAN AD LITEM, OR RESCIND YOUR
TRANSFER AGREEMENT (PURCHASE CONTRACT) WITHIN THE RESCISSION PERIOD IN
6(A) (1) ABOVE, YOU SHALL BE RESPONSIBLE FOR THE FILING FEE AND ANY GUARDIAN AD
LITEM FEES.

D. With respect to A through C above, to the extent permitted by applicable law, the arbitration provision in Section
9 of this Contract shall survive the termination, cancellation or rescission of this Contract.

7. NOTICES

A. All notices about this Contract must be in writing.

B. All notices must be sent either by: (1) certified or registered mail (return receipt requested); or (2) FedEx or another major
overnight delivery service with a delivery tracking system and are considered given when delivered as follows: If to You:
to the most recent address for You listed in Our files. If to Us: to the address listed in Section 6(A) (2) of this Contract.

8. EVENTS OF DEFAULT

You will be in default if You:

A. fail to comply with any terms or conditions of this Contract; or

B. breach any of Your representations, warranties and promises in this Contract.

If You are in default, even if You have not rejected the arbitration provision (see Section 9 of this Contract), We have the right to
enforce Our rights against You in court to make You perform Your promises or to get money from You. If We sue You in court
in connection with a Claim that is subject to arbitration under the arbitration provision in Section 9 of this Contract, and You have
not rejected the arbitration provision, You will have the option of remaining in court or seeking to compel arbitration of that
Claim under the terms of the arbitration provision.

Account ID: 1693499

9. ARBITRATION PROVISION

To the extent permitted by applicable law, You and We agree to the following arbitration provision.

YOU HAVE THE RIGHT TO REJECT THIS ARBITRATION PROVISION AS SET FORTH BELOW. If You do not reject
this arbitration provision and a Claim is arbitrated, You will not have the right to: (1) have a court or a jury decide the Claim;
(2) engage in information gathering (discovery) to the same extent as in court; (3) participate in a class action in court or in
arbitration; or (4) join or consolidate a Claim with claims of any other person. The right to appeal is more limited in
arbitration than in court and other rights in court may be unavailable or limited in arbitration.

Claims Subject to Arbitration. A “Claim” subject to arbitration is any claim, dispute or controversy between You and Us (other than
an Excluded Claim or Proceeding as set forth below), whether preexisting, present or future, which arises out of, or relates to the
Contract, the negotiations related thereto, the breach thereof or any other transaction conducted with us in connection with the
Contract. “Claim” has the broadest possible meaning and includes initial claims, counterclaims, cross-claims, third-party claims and
federal, state, local and administrative claims. It includes disputes based upon contract, tort, consumer rights, fraud and other
intentional torts, constitution, statute, regulation, ordinance, common law and equity and includes claims for money damages and
injunctive or declaratory relief. Upon the demand of You or Us, Claim(s) will be resolved by individual (not class or class-wide)
binding arbitration in accordance with the terms specified in this arbitration provision.

Special Definitions. Solely for purposes of this arbitration provision, in addition to the meanings set forth in this Contract: (1) “We,”
“Us” and “Our” also (a) refer to Our employees, officers, directors, parents, controlling persons, subsidiaries and affiliates and (b)
apply to third parties if You assert a Claim against such third parties in connection with a Claim you assert against Us; and (2) “You”
or “Your” also refer to Your current or former spouse(s), children. heirs, estate, executors, successors, assigns, representatives and
beneficiaries.

Excluded Claim or Proceeding. Notwithstanding the foregoing, “Claim” does not include any dispute or controversy about the
validity, enforceability, coverage or scope of this arbitration provision or any part thereof (including, without limitation, the “Class
Action Waiver” set forth below and/or this sentence); all such disputes or controversies are for a court and not an arbitrator to decide.
However, any dispute or controversy that concerns the validity or enforceability of the Contract as a whole is for the arbitrator, not a
court, to decide. In addition, We will not require You to arbitrate any individual action brought by You in small claims court or Your
state’s equivalent court, unless such action is transferred, removed, or appealed to a different court.

Federal Arbitration Act. Notwithstanding any other provision in this Contract, You and We agree that this Contract evidences a
transaction involving interstate commerce and that the Federal Arbitration Act (Title 9 of the United States Code) (“FAA”) shall
govern its interpretation and enforcement and proceedings pursuant thereto. To the extent state law is applicable under the FAA, the
law of the state of Your domicile (where You regularly reside on the Contract Date) shall apply.

Class Action Waiver. Notwithstanding any other provision of this Contract, if a Claim is arbitrated, neither You nor We will
have the right: (a) to participate in a class action, private attorney general action or other representative action in court or in
arbitration, either as a class representative or class member; or (b) to join or consolidate Claims with claims of any other
Persons. No arbitrator shall have authority to conduct any arbitration in violation of this provision (provided, however, that
the Class Action Waiver does not apply to any lawsuit or administrative proceeding filed against us by a state or federal
government agency even when such agency is seeking relief on behalf of a class of borrowers including You. This means that
We will not have the right to compel arbitration of any claim brought by such an agency). The Class Action Waiver is
nonseverable from this arbitration provision. If the Class Action Waiver is limited, voided or found unenforceable, then this
arbitration provision (except for this sentence) shall be null and void with respect to such proceeding, subject to the right to
appeal the limitation or invalidation of the Class Action Waiver.

Arbitration Procedures. If You or We seek to arbitrate a Claim, the Party seeking arbitration must notify the other Party in writing.
This notice can be given after the beginning of a lawsuit and can be given in papers filed in the lawsuit, such as a motion to compel
arbitration. Otherwise, Your notice must be sent to Us at the address specified in Section 6 (A) (2) of this Contract and Our notice
must be sent to the most recent address for You in our files. Any arbitration hearing that You attend will take place in a venue of Your
domicile. If a Party files a lawsuit in court asserting Claim(s) that are subject to arbitration, and the other Party files a motion to
compel arbitration with the court, which is granted, it will be the responsibility of the Party prosecuting the Claim(s) to select an
arbitration administrator in accordance with the paragraph below and commence the arbitration proceeding in accordance with the
administrator’s rules and procedures.

Account ID: 1693499

The arbitration will be administered by the American Arbitration Association (“AAA”), 1633 Broadway, 10th Floor, New York, NY
10019, www.adr.org, 1-800-778-7879 or JAMS, 1920 Main Street, Suite 300, Irvine, CA 92614, www.jamsadr.com, 1-800-352-5267.
The rules and forms of the AAA and JAMS may be obtained by writing to these organizations at the addresses listed above. If the
AAA and JAMS are unable or unwilling to serve as administrator, the Parties may agree upon another administrator or, if they are
unable to agree, a court shall determine the administrator. No company may serve as administrator, without the consent of all Parties,
if it adopts or has in place any formal or informal policy that is inconsistent with and purports to override the terms of this arbitration
provision. In the event of a conflict between the provisions of this arbitration provision, on the one hand, and other provisions of this
Contract or any applicable rules of the AAA or JAMS or other administrator used, on the other hand, the provisions of this arbitration
provision shall control.

A single arbitrator will be appointed by the administrator and must be a practicing attorney with ten or more years of experience or a
retired judge. The arbitrator will not be bound by judicial rules of procedure and evidence that would apply in a court, or by state or
local laws that relate to arbitration proceedings. The arbitrator will honor statutes of limitation and claims of privilege recognized
under applicable law. In determining liability or awarding damages or other relief, the arbitrator will follow this Contract and the
applicable substantive law, consistent with the FAA and this Contract, that would apply if the matter had been brought in court. At
Your written request, we will pay all filing, hearing and/or other fees charged by the administrator and arbitrator to You for Claim(s)
asserted by You in arbitration after You have paid an amount equivalent to the fee, if any, for filing such Claim(s) in state or federal
court (whichever is less) in the judicial district in which You reside. (If You have already paid a filing fee for asserting the Claim(s) in
court, You will not be required to pay that amount again). In addition, the administrator may have a procedure whereby You can seek
a waiver of fees charged to You by the administrator and arbitrator. We will always pay any fees or expenses that We are required to
pay by law or the administrator’s rules or that We are required to pay for this arbitration provision to be enforced. The arbitrator will
have the authority to award attorneys’ and expert witness fees and costs to the extent permitted by this Contract, the administrator’s
rules or applicable law. The arbitrator will always award You reasonable attorneys’ and expert witness fees and costs (a) if and to the
extent You prevail on Claims you assert against Us in an arbitration commenced by You and (b) to the extent required under
applicable law for this arbitration provision to be enforced. The arbitrator shall write a brief explanation of the grounds for the
decision. A judgment on the award may be entered by any court having jurisdiction.

Severability and Survival. If any part of this arbitration provision, other than the Class Action Waiver, is deemed or found to be
unenforceable for any reason, the remainder shall be enforceable. To the extent permitted by applicable law, this arbitration provision
shall survive the termination, cancellation or rescission of this Contract.

Effect of Arbitration Award. The arbitrator’s award shall be final and binding on all Parties, except for any right of appeal provided
by the FAA. However, if the amount of the Claim exceeds $50,000 or involves a request for injunctive or declaratory relief that could
foreseeably involve a cost or benefit to either Party exceeding $50,000, any Party can, within 30 days after the entry of the award by
the arbitrator, appeal the award to a three-arbitrator panel administered by the administrator. The panel shall reconsider anew any
aspect of the initial award requested by the appealing Party. The decision of the panel shall be by majority vote. Reference in this
arbitration provision to “the arbitrator” shall mean the panel if an appeal of the arbitrator’s decision has been taken. The costs of such
an appeal will be borne in accordance with the above paragraph titled “Arbitration Procedures.” Any final decision of the appeal
panel is subject to judicial review only as provided under the FAA.

Right to Reject Arbitration Provision. You may reject this arbitration provision by sending Us written notice of Your decision so
that We receive it at the address listed below within forty-five (45) days of the Contract Date. Such notice must be sent by certified or
registered mail (return receipt requested) or by FedEx or another major overnight delivery service with a delivery tracking system;
must include a statement that You wish to reject the arbitration provision along with Your name, address, Account I.D. number and
Your signature; and must be delivered to Us at the address specified in Section 6 (A) (2) of this Contract. This is the sole and only
method by which You can reject this arbitration provision. Upon receipt of a rejection notice, We will reimburse You for the standard
cost of a certified or registered letter or overnight delivery. Rejection of this arbitration provision will not affect any other terms of
this Contract and will not result in any adverse consequence to You. You agree that Our business records will be final and conclusive
with respect to whether You rejected this arbitration provision in a timely and proper fashion. This arbitration provision will apply
to You and Us unless you reject it by providing proper and timely notice as stated herein.

Account ID: 1693499

10. MISCELLANEOUS

A. You give Us permission to conduct background checks on You, including obtaining information from the credit bureaus,
in order to verify Your legal residence, contact information, and any other information We deem necessary for this
transaction. We can also search records for UCC filings, bankruptcy filings, judgments, liens and child support
obligations against You.

B. This Contract is the entire agreement between You and Us.

C. If there is more than one of Us or You, this Contract applies to all of those people together, and to each of them on their
own.

D. Both Parties must agree in writing to any change to this Contract or waiver of its terms.

E. Except as set forth in the arbitration provision in Section 9 of this Contract, if a court undoes any part of this Contract,
the rest of the Contract remains valid.

F. You cannot voluntarily or involuntarily sell, assign, or transfer this Contract, or any of Your rights or duties under this
Contract. Any such action taken by You in violation of this section shall be void and of no effect.

G. Except as otherwise required by applicable law, the law of the state of Your domicile (where You regularly reside on the
Contract Date) will govern this Contract and disputes under this Contract shall be determined in Your domicile State
(where You regularly reside on the Contract Date).

H. This Contract also holds responsible Your heirs, and executors. This Contract benefits only You and Us, and no one else.
However, if properly assigned by Us, this Contract will bind and benefit Our successors and assigns.

I. Failure to enforce any provision of this Contract is not a waiver of that provision.

J. The Parties may sign this Contract in one or more counterparts. Each counterpart will be considered an original. All
counterparts will form one Contract. A facsimile, pdf or other electronic copy of the signed Contract or any counterpart
will be considered an original and treated as such in any court [or arbitration] proceeding.

K. We have investigated the proposed transfer of the Purchased Payments and, in light of information available to Us, have
identified no violation of any applicable state or federal law.

L. You will not receive an IRS Form 1099 from Us.

M. Titles and headings in this Contract are for convenience only. Do not use them to interpret this Contract.

N. Except as otherwise set forth in this Contract (including the arbitration provision in Section 9 of this Contract), You and
We will pay our respective costs and expenses in carrying out this Contract.

O. You give Us permission to request from our Affiliates information and documentation You have previously provided to
them which we deem necessary for this transaction, including, bankruptcy filings, judgments, settling documents,
annuity documents, liens, child support obligations, divorce documents.

You and We, intending to be legally bound, have signed this Contract as of the Contract Date below, and agree to all of its
terms and conditions, including the arbitration provision.

Account ID: 1693499

By signing below, You also acknowledge that You were advised by Us in writing, that You should obtain independent legal
advice and professional tax advice about the sale of the Purchased Payments and to have those advisors review with You, the
terms and legal, tax and other effects of this Contract.

SELLER:

For full print and download access, please subscribe at https://www.trellis.law/.

Request,Application: In Re:

Preview

Case Info

Parties

Request,Application: In Re:

Preview

Related Topics

Case Info

Parties