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CAUSE NO. __________
IN THE DISTRICT COURT OF
IN RE:
MONTGOMERY COUNTY, TEXAS
SEMPRA FINANCE, LLC
_______ JUDICIAL DISTRICT
APPLICATION FOR APPROVAL OF TRANSFER OF
STRUCTURED SETTLEMENT PAYMENT RIGHTS
Applicant Sempra Finance, LLC Sempra Finance” or “Transferee”) files this Application
for Approval of Transfer of Structured Settlement Payment Rights pursuant to Chapter 141 of the
Texas Civil Practice & Remedies Code (the “Texas Transfer Statute”) and requests that the Court
approve a transfer of the right to receive certain future structured settlement payments. In support
of this Application, Sempra Finance would respectfully show the Court as follows:
Discovery Control Plan
Although it is anticipated that no discovery will be necessary in this case, pursuant
to Tex. R. Civ. P. Rule 190, this case should be governed by Discovery Control Plan 2.
Parties
Applicant Sempra Finance is the proposed Transferee as defined by Section
141.002(21) of the Texas Transfer Statute.
(“Payee”) is the Payee as defined by Section
141.002(9) of the Texas Transfer Statute. Payee is years old and currently resides in
Montgomery County, Texas.
Metropolitan Tower Life Insurance Company MTLIC” or “Annuity Issuer”) is
the Annuity Issuer as defined by Section 141.002(1) of the Texas Transfer Statute.
APPLICATION FOR APPROVAL OF TRANSFER OF STRUCTURED SETTLEMENT PAYMENT
RIGHTS Page
5. MetLife Assignment Company, Inc. (“MLAC” or “Structured Settlement Obligor”)
is the Structured Settlement Obligor as defined by Section 141.002(15) of the Texas Transfer
Statute.
Venue and Jurisdiction
6. Venue and jurisdiction are proper in District Court in Montgomery County, Texas
because the Payee resides in Montgomery County, Texas. According to the Section 141.002(2) of
the Texas Transfer Statute, this application is properly brought in the statutory county court,
statutory probate court, or district court of the county in which the Payee resides.
Redaction of Personally Identifiable Information
and Request for Issuance of Order Under Temporary Seal
7. Payee’s personally identifiable information has been redacted from this Application
pursuant to Section 141.006(d) of the Texas Transfer Statute. A written request by Payee to
conceal the personally identifiable information from public inspection is attached hereto as Exhibit
A. Sempra Finance will provide the court and each interested party required to receive notice
under Section 141.006(b) of the Texas Transfer Statute complete, unredacted copies of the
application and all other pleadings in the time provided by the Texas Transfer Statute.
8. Furthermore, pursuant to Section 141.006(d)(2) of the Texas Transfer Statute,
Sempra Finance requests that with respect to any order issued approving or denying this
Application, a copy of the order be filed as part of the public record with the personally identifiable
information redacted. At the same time as the filing of the redacted order, Sempra Finance requests
that an unredacted copy of the order be issued under seal, with an unredacted copy of the order
provided to Sempra Finance and all interested parties.
APPLICATION FOR APPROVAL OF TRANSFER OF STRUCTURED SETTLEMENT PAYMENT
RIGHTS – Page 2
List of Dependents
Payee is and has the following dependents as defined by the Texas
Transfer Statute:
Statement of Facts
Payee was involved in the settlement of a lawsuit/claim (the “Settlement”) whereby
Payee became entitled to receive certain structured periodic settlement payments. (The payments
due and payable to Payee under the Settlement shall hereafter be referred to as the “Settlement
Payments.”)
In accordance with the Settlement, the obligation to make the Settlement Payments
was assigned to and assumed by . then purchased an annuity (“the Annuity”), from
MTLIC to fund its obligations to make the Settlement Payments to Payee under the Settlement.
Payee receives the Settlement Payments directly from MTLIC
In return for the payment of a lump sum, Payee has agreed to transfer and assign to
Sempra Finance the right to receive certain Settlement Payments as follows:
(The payments which are being transferred to Sempra Finance pursuant to the Transfer Agreement,
as defined below, and which are the subject of this court proceeding, shall hereafter be referred to
as the “Assigned Payments.”)
Payee executed an Absolute Assignment and UCC Article 9 Security Agreement
dated on or about November 4, 2023, in which the Payee agreed to assign and transfer the Assigned
Payments to Transferee Sempra Finance and/or its successors and assigns. This document
constitutes a Transfer Agreement as defined by Section 141.002(19) of the Texas Transfer Statute
(hereinafter referred to as the “Transfer Agreement” and attached hereto as Exhibit B).
APPLICATION FOR APPROVAL OF TRANSFER OF STRUCTURED SETTLEMENT PAYMENT
RIGHTS Page
Sempra Finance timely provided to the Payee a written disclosure statement in
accordance with Section 141.003 of the Texas Transfer Statute, more than three (3) days prior to
the date on which the Payee executed the Transfer Agreement (hereinafter referred to as the
“Disclosure Statement,” and attached hereto as Exhibit C).
The transfer is in the best interests of the Payee, taking into account the welfare and
support of the Payee’s dependents, if any.
Payee was advised in writing to seek independent professional advice regarding the
financial, legal, and tax implications of the transfer, and the Payee has either received independent
professional advice or has knowingly waived the advice in writing. A copy of the Payee’s
Statement of Independent Professional Advice is attached hereto as Exhibit D.
This transfer complies with the Texas Transfer Statute, and does not contravene
any applicable federal or state statute or the order of any court or other governmental or responsible
administrative authority. (A copy of the Texas Transfer Statute is attached hereto as Exhibit E.)
At least twenty (20) days prior to the hearing for approval of the transfer, the
Transferee will provide written notice of the hearing to the Annuity Issuer, the Structured
Settlement Obligor, and all other interested parties, if any, and will file same with the Court
pursuant to Section 141.006 of the Texas Transfer Statute. Specifically, the Annuity Issuer, the
Structured Settlement Obligor, and all interested parties will be provided with the following
documents and information pursuant to Section 141.006 of the Texas Transfer Statute:
A copy of this Application for Approval of Transfer of Structured Settlement
Payment Rights;
A copy of the Transfer Agreement;
APPLICATION FOR APPROVAL OF TRANSFER OF STRUCTURED SETTLEMENT PAYMENT
RIGHTS Page
C. A copy of the Disclosure Statement required by Section 141.003 of the Texas
Transfer Statute;
D. A list of the Payee’s dependent(s), together with each dependent’s age, if any;
E. Notification that any interested party is 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; and
F. Notification of the time and place of the hearing and notification of the manner in
which and the time by which written responses to the Application must be filed in
order to be considered by the Court.
Prayer
Based upon the foregoing, Sempra Finance, LLC requests that the Court grant this
Application and approve the transfer to Sempra Finance of the Assigned Payments. Sempra
Finance, LLC further requests that any final order(s) entered in this case relative to this Application
be maintained under temporary seal in accordance with Section 141.006(d)(2) of the Texas
Transfer Statute.
Respectfully submitted,
VASSAR, MCCOWN, DEAR & SICOTTE, L.L.P.
15851 Dallas Parkway, Suite 525
Addison, TX 75001
Telephone - (972) 371-2411
Fax - (972) 371-2410
Email – transfers@vmdslaw.com
/s/ J. Brian Dear
By: ___________________________
J. Brian Dear
State Bar No. 24032117
David S. Vassar
State Bar No. 20503175
ATTORNEYS FOR SEMPRA FINANCE, LLC
APPLICATION FOR APPROVAL OF TRANSFER OF STRUCTURED SETTLEMENT PAYMENT
RIGHTS – Page 5
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CIVIL PRACTICE AND REMEDIES CODE
TITLE 6. MISCELLANEOUS PROVISIONS
CHAPTER 141. STRUCTURED SETTLEMENT PROTECTION ACT
Sec. 141.001. SHORT TITLE. This chapter may be cited as the Structured Settlement
Protection Act.
Added by Acts 2001, 77th Leg., ch. 96, § 1, eff. Sept. 1, 2001.
Sec. 141.002. DEFINITIONS. In this chapter:
(1) 'Annuity issuer' means an insurer that has issued a contract to fund periodic
payments under a structured settlement.
(2) 'Court' means:
(A) the court of original jurisdiction that authorized or approved a
structured settlement; or
(B) if the court that authorized or approved the structured settlement no
longer has jurisdiction to approve a transfer of payment rights under the structured settlement
under this chapter, a statutory county court, a statutory probate court, or a district court located in
the county in which the payee resides.
(3) 'Dependents' includes a payee's spouse, minor children, and all other persons
for whom the payee is legally obligated to provide support, including alimony.
(4) 'Discounted present value' means the present value of future payments
determined by discounting the payments to the present using the most recently published
Applicable Federal Rate for determining the present value of an annuity, as issued by the
United States Internal Revenue Service.
(5) 'Gross advance amount' means the sum payable to the payee or for the payee's
unt as consideration for a transfer of structured settlement payment rights before any
reductions for transfer expenses or other deductions to be made from the consideration.
(6) 'Independent professional advice' means advice of an attorney, certified
ublic accountant, actuary, or other licensed professional adviser.
(7) 'Interested party' means, with respect to any structured settlement:
(A) the payee;
(B) any beneficiary irrevocably designated under the annuity contract to
receive payments following the payee's death;
(C) the annuity issuer;
(D) the structured settlement obligor; and
(E) any other party that has continuing rights or obligations under the
structured settlement.
(8) 'Net advance amount' means the gross advance amount less the aggregate
amount of the actual and estimated transfer expenses required to be disclosed under Section
141.003(5).
(9) 'Payee' means an individual who is receiving tax-free payments under a
structured settlement and proposes to transfer payment rights under the structured settlement.
(10) 'Periodic payments' includes both recurring payments and scheduled future
lump-sum payments.
(11) 'Qualified assignment agreement' means an agreement providing for a
qualified assignment within the meaning of Section 130, Internal Revenue Code of 1986 (26
U.S.C. Section 130), as amended.
(12) 'Settled claim' means the original tort claim or workers' compensation claim
resolved by a structured settlement.
(13) 'Structured settlement' means an arrangement for periodic payment of
damages for personal injuries or sickness established by settlement or judgment in resolution of a
tort claim or for periodic payments in settlement of a workers' compensation claim.
(14) 'Structured settlement agreement' means the agreement, judgment,
stipulation, or release embodying the terms of a structured settlement.
(15) 'Structured settlement obligor' means, with respect to any structured
settlement, the party that has the continuing obligation to make periodic payments to the payee
under a structured settlement agreement or a qualified assignment agreement.
(16) 'Structured settlement payment rights' means rights to receive periodic
payments under a structured settlement, whether from the structured settlement obligor or the
annuity issuer, if:
(A) the payee is domiciled in or the domicile or principal place of
business of the structured settlement obligor or the annuity issuer is located in this state;
(B) the structured settlement agreement was authorized or approved by a
court located in this state; or
(C) the structured settlement agreement is expressly governed by the laws
of this state.
(17) 'Terms of the structured settlement' include, with respect to any structured
settlement, the terms of the structured settlement agreement, the annuity contract, any qualified
assignment agreement, and any order or other approval of the court.
(18) 'Transfer' means any sale, assignment, pledge, hypothecation, or other
alienation or encumbrance of structured settlement payment rights made by a payee for
consideration, except that the term does not include the creation or perfection of a security
interest in structured settlement payment rights under a blanket security agreement entered into
with an insured depository institution, in the absence of any action to redirect the structured
settlement payments to the insured depository institution, or its agent or successor in interest, or
to enforce the blanket security interest against the structured settlement payment rights.
(19) 'Transfer agreement' means the agreement providing for a transfer of
structured settlement payment rights.
(20) 'Transfer expenses' means all the expenses of a transfer that are required
under the transfer agreement to be paid by the payee or deducted from the gross advance amount,
including court filing fees, attorney's fees, escrow fees, lien recording fees, judgment and lien
search fees, finders' fees, commissions, and other payments to a broker or other intermediary,
except that the term does not include preexisting obligations of the payee payable for the payee's
account from the proceeds of a transfer.
(21) 'Transferee' means a party acquiring or proposing to acquire structured
settlement payment rights through a transfer.
Added by Acts 2001, 77th Leg., ch. 96, § 1, eff. Sept. 1, 2001. Amended by Acts 2003, 78th
Leg., ch. 578, § 1, eff. Sept. 1, 2003.
Sec. 141.003. REQUIRED DISCLOSURES TO PAYEE. At least three days before the
date on which the payee signs a transfer agreement, the transferee shall provide to the payee a
separate disclosure statement, in bold type at least 14 points in size, that states:
(1) the amounts and due dates of the structured settlement payments to be
transferred;
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(2) the aggregate amount of the payments;
(3) the discounted present value of the payments to be transferred, which shall be
identified as the 'calculation of current value of the transferred structured settlement payments
under federal standards for valuing annuities,' and the amount of the Applicable Federal Rate
used in calculating the discounted present value;
(4) the gross advance amount;
(5) an itemized listing of all applicable transfer expenses, other than attorney's
fees and related disbursements payable in connection with the transferee's application for
approval of the transfer, and the transferee's best estimate of the amount of those expenses;
(6) the net advance amount;
(7) the amount of any penalties or liquidated damages payable by the payee in the
event of any breach of the transfer agreement by the payee; and
(8) a statement that the payee has the right to cancel the transfer agreement,
without penalty or further obligation, not later than the third business day after the date the
agreement is signed by the payee.
Added by Acts 2001, 77th Leg., ch. 96, § 1, eff. Sept. 1, 2001.
Sec. 141.004. APPROVAL OF TRANSFERS OF STRUCTURED SETTLEMENT
PAYMENT RIGHTS. No direct or indirect transfer of structured settlement payment rights shall
be effective and no structured settlement obligor or annuity issuer shall be required to make any
payment directly or indirectly to any transferee of structured settlement payment rights unless the
transfer has been approved in advance in a final court order based on express findings by the
court that:
(1) the transfer is in the best interest of the payee, taking into account the welfare
and support of the payee's dependents;
(2) the payee has been advised in writing by the transferee to seek independent
professional advice regarding the transfer and has either received the advice or knowingly
waived the advice in writing; and
(3) the transfer does not contravene any applicable statute or an order of any
court or other governmental authority.
Added by Acts 2001, 77th Leg., ch. 96, § 1, eff. Sept. 1, 2001.
Sec. 141.005. EFFECTS OF TRANSFER OF STRUCTURED SETTLEMENT
PAYMENT RIGHTS.
Following a transfer of structured settlement payment rights under this chapter:
(1) the structured settlement obligor and the annuity issuer shall, as to all parties
except the transferee, be discharged and released from any and all liability for the transferred
payments;
(2) the transferee shall be liable to the structured settlement obligor and the
annuity issuer:
(A) if the transfer contravenes the terms of the structured settlement, for
any taxes incurred by the parties as a consequence of the transfer; and
(B) for any other liabilities or costs, including reasonable costs and
attorney's fees, arising from compliance by the parties with the order of the court or arising as a
consequence of the transferee's failure to comply with this chapter;
(3) the transferee shall be liable to the payee:
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(A) if the transfer contravenes the terms of the structured settlement, for
any taxes incurred by the payee as a consequence of the transfer; and
(B) for any other liabilities or costs, including reasonable costs and
attorney's fees, arising as a consequence of the transferee's failure to comply with this chapter;
(4) neither the structured settlement obligor nor the annuity issuer may be
required to divide any periodic payment between the payee and any transferee or assignee or
between two or more transferees or assignees; and
(5) any further transfer of structured settlement payment rights by the payee may
be made only after compliance with all of the requirements of this chapter.
Added by Acts 2001, 77th Leg., ch. 96, § 1, eff. Sept. 1, 2001.
Sec. 141.006. PROCEDURE FOR APPROVAL OF TRANSFERS. (a) An application
under this chapter for approval of a transfer of structured settlement payment rights shall be
made by the transferee and shall be brought in the court.
(b) At least 20 days before the date of the scheduled hearing on any application for
approval of a transfer of structured settlement payment rights under Section 141.004, the
transferee shall file with the court and serve on all interested parties a notice of the proposed
transfer and the application for authorization, including with the notice:
(1) a copy of the transferee’s application;
(2) a copy of the transfer agreement;
(3) a copy of the disclosure statement required under Section 141.003;
(4) a listing of each of the payee’s dependents, together with each dependent’s
age;
(5) notice that any interested party is entitled to support, oppose, or otherwise
respond to the transferee’s application, either in person or by counsel, by submitting written
comments to the court or by participating in the hearing; and
(6) notice of the time and place of the hearing and notification of the manner in
which and the time by which written responses to the application must be filed to be considered
by the court.
(c) Written responses to the application under Subsection (b)(6) must be filed on or after
the 15th day after the date the transferee’s notice is served.
(d) If the application under this chapter for approval of a transfer of structured settlement
payment rights includes a written request by the payee to conceal from public inspection the
personally identifiable information of the payee and the court and each interested party required
to receive notice under Subsection (b) receive complete, unredacted copies of the application,
other pleadings, and any order in the time provided by Subsection (b), as applicable:
(1) in any application, other pleadings, or any order filed or submitted, the court
shall permit the full redaction of the name of the payee, the address of the payee, and other
information that could reasonably be used to determine the identity or address of the payee,
including the names of dependents, family members, and beneficiaries; and
(2) with respect to any order issued approving or denying the transfer of
structured settlement payment rights:
(A) a copy of the order, with the information described by Subdivision (1)
redacted, shall be filed as part of the public record;
(B) at the same time as the filing under Paragraph (A), an unredacted
copy of the order shall be issued under seal and shall be provided to the transferee and each
interested party entitled to notice under Subsection (b); and
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(C) not earlier than six months after the date the order is issued, the court
on its own initiative may, or on the motion of any person including a member of the general
public shall, unseal the unredacted order and make the order part of the public record.
(e) Except as provided by this subsection, Rule 76a, Texas Rules of Civil Procedure,
applies to all court proceedings and filings under this chapter. A party is not required to comply
with that rule in order to redact the payee’s personally identifiable information under Subsection
(d)(1) or for the purpose of issuing an unredacted copy of the order under seal under Subsection
(d)(2).
Enacted by Acts 2001, 77th Leg., ch. 96 (S.B. 277), § 1, effective September 1, 2001; am. Acts
2017, 85th Leg., ch. HB3356 (H.B. 3356), § 1, effective June 15, 2017.
§ 141.007. GENERAL PROVISIONS; CONSTRUCTION. (a) The provisions of this
chapter may not be waived by any payee.
(b) Any transfer agreement entered into by a payee who resides in this state must provide
that disputes under the transfer agreement, including any claim that the payee has breached the
agreement, shall be determined in and under the laws of this state. The transfer agreement may
not authorize the transferee or any other party to confess judgment or consent to entry of
judgment against the payee.
(c) Transfer of structured settlement payment rights may not extend to any payments that
are life-contingent unless, prior to the date on which the payee signs the transfer agreement, the
transferee has established and agreed to maintain procedures reasonably satisfactory to the
structured settlement obligor and the annuity issuer for:
(1) periodically confirming the payee's survival; and
(2) giving the structured settlement obligor and the annuity issuer prompt written
notice in the event of the payee's death.
(d) A payee who proposes to make a transfer of structured settlement payment rights
may not incur any penalty, forfeit any application fee or other payment, or otherwise incur any
liability to the proposed transferee or any assignee based on any failure of the transfer to satisfy
the conditions of this chapter.
(e) Nothing contained in this chapter may be construed to authorize any transfer of
structured settlement payment rights in contravention of any law or to imply that any transfer
under a transfer agreement entered into before the effective date of this chapter is valid or
invalid.
(f) Compliance with the requirements in Section 141.003 and fulfillment of the
conditions in Section 141.004 are solely the responsibility of the transferee in any transfer of
structured settlement payment rights, and neither the structured settlement obligor nor the
annuity issuer bear any responsibility for, or any liability arising from, noncompliance with the
requirements or failure to fulfill the conditions.
Added by Acts 2001, 77th Leg., ch. 96, § 1, eff. Sept. 1, 2001.
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CAUSE NO. __________ IN THE DISTRICT COURT OF IN RE: MONTGOMERY COUNTY, TEXAS SEMPRA FINANCE, LLC _______ JUDICIAL DISTRICT APPLICATION FOR APPROVAL OF TRANSFER OF STRUCTURED SETTLEMENT PAYMENT RIGHTS Applicant Sempra Finance, LLC Sempra Finance” or “Transferee”) files this Application for Approval of Transfer of Structured Settlement Payment Rights pursuant to Chapter 141 of the Texas Civil Practice & Remedies Code (the “Texas Transfer Statute”) and requests that the Court approve a transfer of the right to receive certain future structured settlement payments. In support of this Application, Sempra Finance would respectfully show the Court as follows: Discovery Control Plan Although it is anticipated that no discovery will be necessary in this case, pursuant to Tex. R. Civ. P. Rule 190, this case should be governed by Discovery Control Plan 2. Parties Applicant Sempra Finance is the proposed Transferee as defined by Section 141.002(21) of the Texas Transfer Statute. (“Payee”) is the Payee as defined by Section 141.002(9) of the Texas Transfer Statute. Payee is years old and currently resides in Montgomery County, Texas. Metropolitan Tower Life Insurance Company MTLIC” or “Annuity Issuer”) is the Annuity Issuer as defined by Section 141.002(1) of the Texas Transfer Statute. APPLICATION FOR APPROVAL OF TRANSFER OF STRUCTURED SETTLEMENT PAYMENT RIGHTS Page 5. MetLife Assignment Company, Inc. (“MLAC” or “Structured Settlement Obligor”) is the Structured Settlement Obligor as defined by Section 141.002(15) of the Texas Transfer Statute. Venue and Jurisdiction 6. Venue and jurisdiction are proper in District Court in Montgomery County, Texas because the Payee resides in Montgomery County, Texas. According to the Section 141.002(2) of the Texas Transfer Statute, this application is properly brought in the statutory county court, statutory probate court, or district court of the county in which the Payee resides. Redaction of Personally Identifiable Information and Request for Issuance of Order Under Temporary Seal 7. Payee’s personally identifiable information has been redacted from this Application pursuant to Section 141.006(d) of the Texas Transfer Statute. A written request by Payee to conceal the personally identifiable information from public inspection is attached hereto as Exhibit A. Sempra Finance will provide the court and each interested party required to receive notice under Section 141.006(b) of the Texas Transfer Statute complete, unredacted copies of the application and all other pleadings in the time provided by the Texas Transfer Statute. 8. Furthermore, pursuant to Section 141.006(d)(2) of the Texas Transfer Statute, Sempra Finance requests that with respect to any order issued approving or denying this Application, a copy of the order be filed as part of the public record with the personally identifiable information redacted. At the same time as the filing of the redacted order, Sempra Finance requests that an unredacted copy of the order be issued under seal, with an unredacted copy of the order provided to Sempra Finance and all interested parties. APPLICATION FOR APPROVAL OF TRANSFER OF STRUCTURED SETTLEMENT PAYMENT RIGHTS – Page 2 List of Dependents Payee is and has the following dependents as defined by the Texas Transfer Statute: Statement of Facts Payee was involved in the settlement of a lawsuit/claim (the “Settlement”) whereby Payee became entitled to receive certain structured periodic settlement payments. (The payments due and payable to Payee under the Settlement shall hereafter be referred to as the “Settlement Payments.”) In accordance with the Settlement, the obligation to make the Settlement Payments was assigned to and assumed by . then purchased an annuity (“the Annuity”), from MTLIC to fund its obligations to make the Settlement Payments to Payee under the Settlement. Payee receives the Settlement Payments directly from MTLIC In return for the payment of a lump sum, Payee has agreed to transfer and assign to Sempra Finance the right to receive certain Settlement Payments as follows: (The payments which are being transferred to Sempra Finance pursuant to the Transfer Agreement, as defined below, and which are the subject of this court proceeding, shall hereafter be referred to as the “Assigned Payments.”) Payee executed an Absolute Assignment and UCC Article 9 Security Agreement dated on or about November 4, 2023, in which the Payee agreed to assign and transfer the Assigned Payments to Transferee Sempra Finance and/or its successors and assigns. This document constitutes a Transfer Agreement as defined by Section 141.002(19) of the Texas Transfer Statute (hereinafter referred to as the “Transfer Agreement” and attached hereto as Exhibit B). APPLICATION FOR APPROVAL OF TRANSFER OF STRUCTURED SETTLEMENT PAYMENT RIGHTS Page Sempra Finance timely provided to the Payee a written disclosure statement in accordance with Section 141.003 of the Texas Transfer Statute, more than three (3) days prior to the date on which the Payee executed the Transfer Agreement (hereinafter referred to as the “Disclosure Statement,” and attached hereto as Exhibit C). The transfer is in the best interests of the Payee, taking into account the welfare and support of the Payee’s dependents, if any. Payee was advised in writing to seek independent professional advice regarding the financial, legal, and tax implications of the transfer, and the Payee has either received independent professional advice or has knowingly waived the advice in writing. A copy of the Payee’s Statement of Independent Professional Advice is attached hereto as Exhibit D. This transfer complies with the Texas Transfer Statute, and does not contravene any applicable federal or state statute or the order of any court or other governmental or responsible administrative authority. (A copy of the Texas Transfer Statute is attached hereto as Exhibit E.) At least twenty (20) days prior to the hearing for approval of the transfer, the Transferee will provide written notice of the hearing to the Annuity Issuer, the Structured Settlement Obligor, and all other interested parties, if any, and will file same with the Court pursuant to Section 141.006 of the Texas Transfer Statute. Specifically, the Annuity Issuer, the Structured Settlement Obligor, and all interested parties will be provided with the following documents and information pursuant to Section 141.006 of the Texas Transfer Statute: A copy of this Application for Approval of Transfer of Structured Settlement Payment Rights; A copy of the Transfer Agreement; APPLICATION FOR APPROVAL OF TRANSFER OF STRUCTURED SETTLEMENT PAYMENT RIGHTS Page C. A copy of the Disclosure Statement required by Section 141.003 of the Texas Transfer Statute; D. A list of the Payee’s dependent(s), together with each dependent’s age, if any; E. Notification that any interested party is 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; and F. Notification of the time and place of the hearing and notification of the manner in which and the time by which written responses to the Application must be filed in order to be considered by the Court. Prayer Based upon the foregoing, Sempra Finance, LLC requests that the Court grant this Application and approve the transfer to Sempra Finance of the Assigned Payments. Sempra Finance, LLC further requests that any final order(s) entered in this case relative to this Application be maintained under temporary seal in accordance with Section 141.006(d)(2) of the Texas Transfer Statute. Respectfully submitted, VASSAR, MCCOWN, DEAR & SICOTTE, L.L.P. 15851 Dallas Parkway, Suite 525 Addison, TX 75001 Telephone - (972) 371-2411 Fax - (972) 371-2410 Email – transfers@vmdslaw.com /s/ J. Brian Dear By: ___________________________ J. Brian Dear State Bar No. 24032117 David S. Vassar State Bar No. 20503175 ATTORNEYS FOR SEMPRA FINANCE, LLC APPLICATION FOR APPROVAL OF TRANSFER OF STRUCTURED SETTLEMENT PAYMENT RIGHTS – Page 5 AND UCC ARTITCIL.E 9 A I signing any B1 B2 B3 the Annuity Issuer. conditions precedent Assignee's obligation approving the Assigned Payments Under this and only State. This Agreement shall single arbitrator selected jurisdiction thereof. prevailing party prevailing party. G. I Assigned Payments portion thereof, (collectively, "Claims") obtain same, Assignor shall Applicable Disclosure IDocuSigned by: personally known [ ] produced _____________________ Page 3 discounted present advance amount: J. I signing below, DocuSlgned by: the transfer obtain independent 2 of 2 ____________ [ ] [ ] professional advisor certified public structured settlement 0ocuS1gned by: 0 R ------ ---- _____ proposed transfer CIVIL PRACTICE AND REMEDIES CODE TITLE 6. MISCELLANEOUS PROVISIONS CHAPTER 141. STRUCTURED SETTLEMENT PROTECTION ACT Sec. 141.001. SHORT TITLE. This chapter may be cited as the Structured Settlement Protection Act. Added by Acts 2001, 77th Leg., ch. 96, § 1, eff. Sept. 1, 2001. Sec. 141.002. DEFINITIONS. In this chapter: (1) 'Annuity issuer' means an insurer that has issued a contract to fund periodic payments under a structured settlement. (2) 'Court' means: (A) the court of original jurisdiction that authorized or approved a structured settlement; or (B) if the court that authorized or approved the structured settlement no longer has jurisdiction to approve a transfer of payment rights under the structured settlement under this chapter, a statutory county court, a statutory probate court, or a district court located in the county in which the payee resides. (3) 'Dependents' includes a payee's spouse, minor children, and all other persons for whom the payee is legally obligated to provide support, including alimony. (4) 'Discounted present value' means the present value of future payments determined by discounting the payments to the present using the most recently published Applicable Federal Rate for determining the present value of an annuity, as issued by the United States Internal Revenue Service. (5) 'Gross advance amount' means the sum payable to the payee or for the payee's unt as consideration for a transfer of structured settlement payment rights before any reductions for transfer expenses or other deductions to be made from the consideration. (6) 'Independent professional advice' means advice of an attorney, certified ublic accountant, actuary, or other licensed professional adviser. (7) 'Interested party' means, with respect to any structured settlement: (A) the payee; (B) any beneficiary irrevocably designated under the annuity contract to receive payments following the payee's death; (C) the annuity issuer; (D) the structured settlement obligor; and (E) any other party that has continuing rights or obligations under the structured settlement. (8) 'Net advance amount' means the gross advance amount less the aggregate amount of the actual and estimated transfer expenses required to be disclosed under Section 141.003(5). (9) 'Payee' means an individual who is receiving tax-free payments under a structured settlement and proposes to transfer payment rights under the structured settlement. (10) 'Periodic payments' includes both recurring payments and scheduled future lump-sum payments. (11) 'Qualified assignment agreement' means an agreement providing for a qualified assignment within the meaning of Section 130, Internal Revenue Code of 1986 (26 U.S.C. Section 130), as amended. (12) 'Settled claim' means the original tort claim or workers' compensation claim resolved by a structured settlement. (13) 'Structured settlement' means an arrangement for periodic payment of damages for personal injuries or sickness established by settlement or judgment in resolution of a tort claim or for periodic payments in settlement of a workers' compensation claim. (14) 'Structured settlement agreement' means the agreement, judgment, stipulation, or release embodying the terms of a structured settlement. (15) 'Structured settlement obligor' means, with respect to any structured settlement, the party that has the continuing obligation to make periodic payments to the payee under a structured settlement agreement or a qualified assignment agreement. (16) 'Structured settlement payment rights' means rights to receive periodic payments under a structured settlement, whether from the structured settlement obligor or the annuity issuer, if: (A) the payee is domiciled in or the domicile or principal place of business of the structured settlement obligor or the annuity issuer is located in this state; (B) the structured settlement agreement was authorized or approved by a court located in this state; or (C) the structured settlement agreement is expressly governed by the laws of this state. (17) 'Terms of the structured settlement' include, with respect to any structured settlement, the terms of the structured settlement agreement, the annuity contract, any qualified assignment agreement, and any order or other approval of the court. (18) 'Transfer' means any sale, assignment, pledge, hypothecation, or other alienation or encumbrance of structured settlement payment rights made by a payee for consideration, except that the term does not include the creation or perfection of a security interest in structured settlement payment rights under a blanket security agreement entered into with an insured depository institution, in the absence of any action to redirect the structured settlement payments to the insured depository institution, or its agent or successor in interest, or to enforce the blanket security interest against the structured settlement payment rights. (19) 'Transfer agreement' means the agreement providing for a transfer of structured settlement payment rights. (20) 'Transfer expenses' means all the expenses of a transfer that are required under the transfer agreement to be paid by the payee or deducted from the gross advance amount, including court filing fees, attorney's fees, escrow fees, lien recording fees, judgment and lien search fees, finders' fees, commissions, and other payments to a broker or other intermediary, except that the term does not include preexisting obligations of the payee payable for the payee's account from the proceeds of a transfer. (21) 'Transferee' means a party acquiring or proposing to acquire structured settlement payment rights through a transfer. Added by Acts 2001, 77th Leg., ch. 96, § 1, eff. Sept. 1, 2001. Amended by Acts 2003, 78th Leg., ch. 578, § 1, eff. Sept. 1, 2003. Sec. 141.003. REQUIRED DISCLOSURES TO PAYEE. At least three days before the date on which the payee signs a transfer agreement, the transferee shall provide to the payee a separate disclosure statement, in bold type at least 14 points in size, that states: (1) the amounts and due dates of the structured settlement payments to be transferred; 2 (2) the aggregate amount of the payments; (3) the discounted present value of the payments to be transferred, which shall be identified as the 'calculation of current value of the transferred structured settlement payments under federal standards for valuing annuities,' and the amount of the Applicable Federal Rate used in calculating the discounted present value; (4) the gross advance amount; (5) an itemized listing of all applicable transfer expenses, other than attorney's fees and related disbursements payable in connection with the transferee's application for approval of the transfer, and the transferee's best estimate of the amount of those expenses; (6) the net advance amount; (7) the amount of any penalties or liquidated damages payable by the payee in the event of any breach of the transfer agreement by the payee; and (8) a statement that the payee has the right to cancel the transfer agreement, without penalty or further obligation, not later than the third business day after the date the agreement is signed by the payee. Added by Acts 2001, 77th Leg., ch. 96, § 1, eff. Sept. 1, 2001. Sec. 141.004. APPROVAL OF TRANSFERS OF STRUCTURED SETTLEMENT PAYMENT RIGHTS. No direct or indirect transfer of structured settlement payment rights shall be effective and no structured settlement obligor or annuity issuer shall be required to make any payment directly or indirectly to any transferee of structured settlement payment rights unless the transfer has been approved in advance in a final court order based on express findings by the court that: (1) the transfer is in the best interest of the payee, taking into account the welfare and support of the payee's dependents; (2) the payee has been advised in writing by the transferee to seek independent professional advice regarding the transfer and has either received the advice or knowingly waived the advice in writing; and (3) the transfer does not contravene any applicable statute or an order of any court or other governmental authority. Added by Acts 2001, 77th Leg., ch. 96, § 1, eff. Sept. 1, 2001. Sec. 141.005. EFFECTS OF TRANSFER OF STRUCTURED SETTLEMENT PAYMENT RIGHTS. Following a transfer of structured settlement payment rights under this chapter: (1) the structured settlement obligor and the annuity issuer shall, as to all parties except the transferee, be discharged and released from any and all liability for the transferred payments; (2) the transferee shall be liable to the structured settlement obligor and the annuity issuer: (A) if the transfer contravenes the terms of the structured settlement, for any taxes incurred by the parties as a consequence of the transfer; and (B) for any other liabilities or costs, including reasonable costs and attorney's fees, arising from compliance by the parties with the order of the court or arising as a consequence of the transferee's failure to comply with this chapter; (3) the transferee shall be liable to the payee: 3 (A) if the transfer contravenes the terms of the structured settlement, for any taxes incurred by the payee as a consequence of the transfer; and (B) for any other liabilities or costs, including reasonable costs and attorney's fees, arising as a consequence of the transferee's failure to comply with this chapter; (4) neither the structured settlement obligor nor the annuity issuer may be required to divide any periodic payment between the payee and any transferee or assignee or between two or more transferees or assignees; and (5) any further transfer of structured settlement payment rights by the payee may be made only after compliance with all of the requirements of this chapter. Added by Acts 2001, 77th Leg., ch. 96, § 1, eff. Sept. 1, 2001. Sec. 141.006. PROCEDURE FOR APPROVAL OF TRANSFERS. (a) An application under this chapter for approval of a transfer of structured settlement payment rights shall be made by the transferee and shall be brought in the court. (b) At least 20 days before the date of the scheduled hearing on any application for approval of a transfer of structured settlement payment rights under Section 141.004, the transferee shall file with the court and serve on all interested parties a notice of the proposed transfer and the application for authorization, including with the notice: (1) a copy of the transferee’s application; (2) a copy of the transfer agreement; (3) a copy of the disclosure statement required under Section 141.003; (4) a listing of each of the payee’s dependents, together with each dependent’s age; (5) notice that any interested party is entitled to support, oppose, or otherwise respond to the transferee’s application, either in person or by counsel, by submitting written comments to the court or by participating in the hearing; and (6) notice of the time and place of the hearing and notification of the manner in which and the time by which written responses to the application must be filed to be considered by the court. (c) Written responses to the application under Subsection (b)(6) must be filed on or after the 15th day after the date the transferee’s notice is served. (d) If the application under this chapter for approval of a transfer of structured settlement payment rights includes a written request by the payee to conceal from public inspection the personally identifiable information of the payee and the court and each interested party required to receive notice under Subsection (b) receive complete, unredacted copies of the application, other pleadings, and any order in the time provided by Subsection (b), as applicable: (1) in any application, other pleadings, or any order filed or submitted, the court shall permit the full redaction of the name of the payee, the address of the payee, and other information that could reasonably be used to determine the identity or address of the payee, including the names of dependents, family members, and beneficiaries; and (2) with respect to any order issued approving or denying the transfer of structured settlement payment rights: (A) a copy of the order, with the information described by Subdivision (1) redacted, shall be filed as part of the public record; (B) at the same time as the filing under Paragraph (A), an unredacted copy of the order shall be issued under seal and shall be provided to the transferee and each interested party entitled to notice under Subsection (b); and 4 (C) not earlier than six months after the date the order is issued, the court on its own initiative may, or on the motion of any person including a member of the general public shall, unseal the unredacted order and make the order part of the public record. (e) Except as provided by this subsection, Rule 76a, Texas Rules of Civil Procedure, applies to all court proceedings and filings under this chapter. A party is not required to comply with that rule in order to redact the payee’s personally identifiable information under Subsection (d)(1) or for the purpose of issuing an unredacted copy of the order under seal under Subsection (d)(2). Enacted by Acts 2001, 77th Leg., ch. 96 (S.B. 277), § 1, effective September 1, 2001; am. Acts 2017, 85th Leg., ch. HB3356 (H.B. 3356), § 1, effective June 15, 2017. § 141.007. GENERAL PROVISIONS; CONSTRUCTION. (a) The provisions of this chapter may not be waived by any payee. (b) Any transfer agreement entered into by a payee who resides in this state must provide that disputes under the transfer agreement, including any claim that the payee has breached the agreement, shall be determined in and under the laws of this state. The transfer agreement may not authorize the transferee or any other party to confess judgment or consent to entry of judgment against the payee. (c) Transfer of structured settlement payment rights may not extend to any payments that are life-contingent unless, prior to the date on which the payee signs the transfer agreement, the transferee has established and agreed to maintain procedures reasonably satisfactory to the structured settlement obligor and the annuity issuer for: (1) periodically confirming the payee's survival; and (2) giving the structured settlement obligor and the annuity issuer prompt written notice in the event of the payee's death. (d) A payee who proposes to make a transfer of structured settlement payment rights may not incur any penalty, forfeit any application fee or other payment, or otherwise incur any liability to the proposed transferee or any assignee based on any failure of the transfer to satisfy the conditions of this chapter. (e) Nothing contained in this chapter may be construed to authorize any transfer of structured settlement payment rights in contravention of any law or to imply that any transfer under a transfer agreement entered into before the effective date of this chapter is valid or invalid. (f) Compliance with the requirements in Section 141.003 and fulfillment of the conditions in Section 141.004 are solely the responsibility of the transferee in any transfer of structured settlement payment rights, and neither the structured settlement obligor nor the annuity issuer bear any responsibility for, or any liability arising from, noncompliance with the requirements or failure to fulfill the conditions. Added by Acts 2001, 77th Leg., ch. 96, § 1, eff. Sept. 1, 2001. 5