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CAUSE NO. __________
§ IN THE DISTRICT COURT OF
IN RE: §
§ FORT BEND COUNTY, TEXAS
2220 BOGEY FREE, LLC
_______ JUDICIAL DISTRICT
APPLICATION FOR APPROVAL OF TRANSFER OF
STRUCTURED SETTLEMENT PAYMENT RIGHTS
Applicant 2220 Bogey Free, LLC 2220 Bogey” 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, 2220 Bogey 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 2220 Bogey 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 Fort Bend 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.
Metlife Assignment Company MLAC” or “Structured Settlement Obligor”) is the
Structured Settlement Obligor as defined by Section 141.002(15) of the Texas Transfer Statute.
APPLICATION FOR APPROVAL OF TRANSFER OF STRUCTURED SETTLEMENT PAYMENT
RIGHTS Page
Venue and Jurisdiction
Venue and jurisdiction are proper in District Court in Fort Bend County, Texas
because the Payee resides in Fort Bend 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
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. 2220 Bogey 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.
Furthermore, pursuant to Section 141.006(d)(2) of the Texas Transfer Statute, 2220
Bogey 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, 2220 Bogey requests that an
unredacted copy of the order be issued under seal, with an unredacted copy of the order provided
to 2220 Bogey and all interested parties.
List of Dependents
Payee is and has the following dependents as defined by the Texas Transfer
Statute:
APPLICATION FOR APPROVAL OF TRANSFER OF STRUCTURED SETTLEMENT PAYMENT
RIGHTS Page
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 MLAC. MLAC 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
2220 Bogey the right to receive certain Settlement Payments as follows:
(The payment which being transferred to 2220 Bogey pursuant to the Transfer Agreement, as
defined below, and which the subject of this court proceeding, shall hereafter be referred to as
Assigned Payment.”)
Payee executed a Transfer and Assignment Agreement dated on or about February
12, 2024, in which the Payee agreed to assign and transfer the Assigned Payment to Transferee
2220 Bogey 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).
2220 Bogey 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).
APPLICATION FOR APPROVAL OF TRANSFER OF STRUCTURED SETTLEMENT PAYMENT
RIGHTS Page
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;
A copy of the Disclosure Statement required by Section 141.003 of the Texas
Transfer Statute;
A list of the Payee’s dependent(s), together with each dependent’s age, if any;
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
APPLICATION FOR APPROVAL OF TRANSFER OF STRUCTURED SETTLEMENT PAYMENT
RIGHTS Page
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, 2220 Bogey Free, LLC requests that the Court grant this
Application and approve the transfer to 2220 Bogey of the Assigned Payment. 2220 Bogey Free,
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 2220 BOGEY FREE, LLC
APPLICATION FOR APPROVAL OF TRANSFER OF STRUCTURED SETTLEMENT PAYMENT
RIGHTS – Page 5
personally identifiable
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TRANSFER AND ASSIGNMENT AGREEMENT
his Transfer and Assignment Agreement (this "Agreement") is being entered into by and between
Seller") who currently resides in and 2220 Bogey Free, LLC (hereinafter referred to as
Purchaser").
NOW THEREFORE, for valuable consideration, the receipt of which is hereby acknowledged, the
parties agree:
At some time in the past, Seller or Seller's predecessor in interest, entered into an agreement in
connection with the settlement of a lawsuit or other claim (the "Settlement Agreement"). Seller has told
Purchaser that Seller is entitled to receive certain payments due under the Settlement Agreement (hereinafter
referred to as the "Settlement Payments"). (the "Settlement Obligor") agreed
to make the payments that are due to Seller under the Settlement Agreement. The Settlement Obligor
purchased and/or caused to be issued an annuity from (the
"Annuity Issuer"). Pursuant to the terms of the nnuity, the Settlement Payments are to be made to Seller on
a fixed schedule. Seller has agreed to assign to Purchaser, Seller's right to receive certain Settlement Payments
in exchange for the Purchase Price described below.
A. Purchase and Sale. Subject to the terms and conditions herein provided, Purchaser agrees to pay
Seller the sum of ("Purchase Price"), and Seller hereby sells and assigns to Purchaser, or its
assignee, Seller's right, title and interest in and to
(The "Assigned Payments").
B. onditions to be Satisfied Prior to Closing. The following must occur prior to Purchaser paying Seller
the Purchase Price: (1) Purchaser shall be satisfied, in its sole discretion, that there are no claims, or
interests of any kind or nature whatsoever that do or may affect Purchaser's rights to or interest in
the Assigned Payments and/or Purchaser's or its assign's ability to receive the Assigned Payments in
their entirety on the dates set forth herein; (2) Purchaser receives a nonappealable court order t hat
(a) directs the Settlement Obligor and Annuity Issuer to make the Assigned Payments to Purchaser, or
its assigns; and (b) makes all finding required by applicable state and federal law (the "Court Order");
and (3) the company making the Settlement Payments has acknowledged the receipt of the Court
Order. Upon completion of the foregoing events, the Purchase Price will be paid to the Seller (the
"Closing").
Right to Assign. Purchaser may elect to assign this Agreement and/or its right, title, and interest
under this Agreement in the Assigned Payments to a thirdparty Purchaser (an "Assignee") and may
affect such assignment by requesting that the aforesaid Court Order name such Assignee as the
recipient of the Assigned Payments. The obligations and rights of Purchaser may be further assigned
or otherwise transferred by Purchaser, provided that any assignee is bound by the terms and
condition hereof. The obligations and rights of Seller under this Agreement may not be assigned or
otherwise transferred.
Representations and Warranties of Seller Seller represents and warrants as follows: (1) Seller has full
power and authority to enter into this Agreement and assign the Assigned Payments to Purchaser; (2)
No other person, firm or corporation claims a lien, right, title or interest of any kind in the Assigned
Payments; (3) Seller has no lawsuits pending or threatened against Seller and Seller is not subject to
any outstanding judgment, levy, claim or offset; (4) Seller is not receiving the Settlement Payments as
a result of a workman’s compensation claim; (5) Seller has paid all federal, state and local taxes due
through and Including the date hereof and Seller is not subject to any outstanding tax liens; ( Seller
is not indebted for any child support arrearage or child support lien; ( Seller has not filed for
bankruptcy and does not intend to file for bankruptcy; ( Seller has reviewed and understands the
terms and effects of this Agreement and Seller is competent to enter into this Agreement; (9 Seller
has entered nto this Agreement under Seller's own free will without undue influence or duress and
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Seller is not entering into this Agreement under the influence of drugs or alcohol; ( Seller is
entering into this Agreement to sell the Assigned Payments to Purchaser, and with respect to the sale
of the Assigned Payments to Purchaser Purchaser has satisfied all its obligations with respect to any
guarantee or other promotional offer; and (1 ) All information contained in the Application for Sale of
Structured Settlement Payments Is true and correct. If any of these statements becomes untrue prior
to the Closing (as defined herein), Seller agrees to notify Purchaser in writing immediately. Seller
hereby authorizes Purchaser or its agents or assigns to conduct such credit and other searches as may
be necessary in order to confirm the foregoing with the understanding that all such reports and
searches will be kept strictly confidential, but may be used by Purchaser, its subsidiaries, affiliates
and/or its assigns as necessary to complete the intent of this Agreement.
ndemnification. Seller agrees to indemnify, hold harmless and defend Purchaser against all claims,
losses, damages or expenses, including attorney fees, which Purchaser might incur as a result of any
breach or failure of any representation or warranty contained in Section D hereof or as a result of any
breach of any term or provision of the agreement.
ight to Cancel Assignment and Effective Notice of Cancellation. Seller has the right to cancel this
Agreement without any further obligation to Purchaser not later than the third business day after thi
greement was signed, as required by law (the "Statutory Cancellation Period"). To cancel this
assignment during the Statutory Cancellation Period, Seller specifically agrees to provide notice to
Purchaser that Seller desires to cancel the above described assignment. In order for your cancellation
to be effective, you must send a notice by certified or registered mall (return receipt requested) or
FedEx or another major overnight delivery service to Purchaser
Notices. All notices about this contract must be n writing. All notices must be sent either by: 1
ertified or registered mail (return receipt requested); or 2) FedEx or another major overnight delivery
service with a delivery tracing system and are considered given when delivered.
his Is Not a Loan. Purchaser and Seller acknowledge and agree that the sale and transfer herein
contemplated constitutes a sale of the Assigned Payments, and not a loan, conveying good title
thereto free and clear of any liens and encumbrances from Seller to Purchaser. In connection with the
rights granted to Purchaser hereunder, Seller hereby grants a security interest in all of Seller's right,
title and Interest in and right to receive all of the Assigned Payments to Purchaser, or its assigns, to
the extent such grant is permitted under applicable law. In addition, Seller authorizes Purchaser, it
bsidiaries, affiliates and/or its assigns to make all filings and to take all other actions that Purchaser
and/or assigns, in its discretion, deems necessary or proper to complete the transactions
contemplated hereby and to perfect the sale of the Assigned Payments including, without limitation,
filing a UCC1 against the Assigned Payments.
vents of Default. Seller understand that the following events shall be deemed a default by Seller
under this Agreement; (a) Seller's death; (b) Seller's insolvency or the appointment of a custodian,
trustee, liquidator or receiver for Seller or Seller's assets; (c) an assignment for the benefit of Seller
reditors or the filing of a petition under bankruptcy, insolvency or debtor's relief laws by or against
Seller; (d) failure by the Settlement Obligor or Annuity Issuer to make any one or more of the Assigned
Payments as a result of any act by Seller, Seller's estate or any of Seller's heirs; (e) Seller's failure to
comply with any term or condition set forth in this Agreement; or (f) a representation or warranty
made by Seller turns out to be materially false.
emedies. If Seller is in default, Purchaser has the right to enforce its rights against Seller in court
make Seller perform their promises or to get money from the Seller including to recover damages for
breach thereof, along with court and attorney fees
Beneficiaries. Seller acknowledges that Purchaser, or its assigns, is entitled to receive the Assigned
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Payments - to the exclusion of any beneficiary, heir, executor, representative or dependent of Seller -
even if Seller is no longer living at the time when the payments come due. Seller shall execute and
deliver a separate writing which designates Seller's estate as the beneficiary of the Assigned Payments
and shall execute and sign any document, agreement, waiver, beneficiary change, or other document
required to reflect, evidence, and confirm that Purchaser, or its assigns shall be entitled to receive the
Assigned Payments to the exclusion of Seller and/or Seller's heirs, beneficiaries, representative,
dependents, and executors. Seller cannot and will not amend, modify, alter or otherwise change the
beneficiary designation without Purchaser's express prior written consent.
Adjustment of Purchase Price; Advances; Satisfaction of Judgments. Seller acknowledges and agrees
that the Purchase Price may be adjusted, if necessary, by subtracting an amount equal to the sum of
(i) ll Assigned Payments received by Seller after the date of this Agreement and prior to the Closing
lus (ii) any payments and advances made to Seller or made on behalf of Seller to a third party at or
prior to the Closing. Any advances and payment to third parties by Purchaser shall be made, if at all, in
Purchaser's sole and absolute discretion. In the event that any charges, encumbrances, judgments
(including, without limitation, any pledges or assignments), liens, or other claims against the Seller or
the Assigned Payments should arise or be disclosed, then Seller may be required to satisfy these
obligations at Closing. Seller agrees that any disbursements required for these satisfactions shall be
paid from the Purchase Price prior to any disbursement to Seller. In the event Purchaser elects to
disburse some or all of the Purchase Price prior to obtaining all reports identifying charges,
encumbrances, judgments, liens or other claims, Seller hereby agrees that Purchaser, or its assignees,
may hold back from the disbursement two (2) times the total of such charges, encumbrances,
judgments, liens or other claims as reasonably estimated by Purchaser. In such event, Seller w
ute any and all documentation reasonably requested by Purchaser to identify the amounts to be
withheld and consent to such withholdin Additionally, if prior to the completion of the transfer
provided in this Agreement, it is determined that any portion of the Assigned Payments are not
available to be purchased, I understand and agree that an equal amount shall be deducted from th
ssignment Price, and the Assignment Price shall be reduced in the same amount as these payments,
and that the terms of this Agreement regarding the payments to be assigned, shall be treated as
amended to reflect the adjusted amount.
aiver of Restrictions on Assignability. Seller acknowledges that Seller's Settlement Agreement ma
ave been entered into prior to the enactment of the relevant Structured Settlement Protection
Act. Accordingly, Seller 's Settlement Agreement may contain a provision or provisions restricting or
purporting to restrict Seller's right to assign. Seller, on behalf of Seller, and Seller's heirs, beneficiaries,
executors, administrators, successors, and legal representatives, hereby waives and releases any such
restriction. Furthermore, Seller agrees and covenants that Seller shall not raise, assert or claim any
such rights or restrictions against Purchaser in the future.
ontinuing Cooperation. Upon Seller's execution of this Agreement, Purchaser and Seller sha
ooperate in commencing a legal action with the appropriate court seeking the court approval
required by the relevant Structured Settlement Protection Act/s Seller agrees to cooperate in taking
all actions to facilitate the consummation of the transaction contemplated under this Agreement,
including appearing in the contemplated court action as a party thereto. Seller agrees to execute and
deliver at any time any addition instruments and documents promptly and to do any acts or things
as may be necessary or expedient to effectuate the terms and conditions of this Agreement, including
obtaining, providing and filing any court documents necessary to obtain a Court Order approving the
gnment contemplated by this Agreement. Seller hereby authorizes the Purchaser to correct any
typographical errors or to make any inisterial revisions to this Agreement and to any other
supporting documents signed by Seller if such revisions are necessary to effectuate the terms and
conditions of this Agreement. Seller also agrees to notify Purchaser in writing of any delay in
performance or changes to the Assigned Payments, and to furnish to Purchaser all informatio
eceived by Seller regarding the Assigned Payments.
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pplicable Law. This Agreement shall be governed by and interpreted in accordance with the laws of
the State of Seller’s current domicile
Holdback. Purchaser, or its assigns, shall, in its discretion, withhold an amount from the Purchase
Price equal to the amount of the payments to be paid within six months of the Closing, or the amount
of the first assigned lump sum payment, until such time as the first payment is received by Purchaser
or its assigns. Within five business days after receipt of the first payment, Purchaser, or its assigns,
shall release any funds withheld from the Purchase Price to Seller. Purchaser, or its assigns, shall have
the right to retain funds sufficient to cover any payments not received.
eneral Provisions. (1) This Agreement may be executed in two or more counterparts, each of which
shall be deemed an original and all of which together shall constitute one and the same Agreement;
(2) he section headings contained in this Agreement are for reference only and shall not affect in any
way the meaning or interpretation of this Agreement; (3) In the event an action is commenced in any
forum to enforce the rights of a party to this Agreement, then the prevailing party in such action shall
be entitled to all reasonable attorney's fees and costs incurred to the extent permitted by law; (4) This
Agreement may be amended or modified, and performance of any covenant or agreement herein
contained may be waived or modified only by an instrument signed by the parties hereto. The waiver
or modification by a party of performance or of a breach of any provision of this Agreement shall not
operate or be construed as a waiver of any subsequent or other performance or breach thereof; (
s Agreement constitutes the entire agreement and understanding of the parties with respect to the
matters and transactions contemplated hereby and supersedes any and all prior agreements and
understandings with respect thereto. No representations have been made, or relied upon, by either
party except those set forth in this Agreement; (6) Except for notice pursuant to section , notice sha
e deemed to have been duly given three (3) business days after having been mailed by certified or
registered mail, return receipt requested or upon delivery if delivered by a nationally recognized
overnight delivery service, such as Federal express; (7) Seller acknowledges and agrees that th
bligations under this Agreement shall be binding upon Seller, Seller's heirs, personal representative,
transferees, successors, estate and assigns; and (8) If any provision of this Agreement is found to be
invalid or unenforceable, the validity or enforceability of any other provision of this Agreement shall
not be affected thereby.
pecial Irrevocable Durable Power of Attorney. Seller hereby grants Purchaser, or its assigns,
cial Irrevocable Durable Power of Attorney with full power of substitution, to act In Seller's name,
place and stead regarding the Assigned Payments, including, without limitation, the authority to
negotiate, endorse and execute checks, drafts and other Instruments in Seller's name, the power to
alter, edit and change payment instructions and/or beneficiary designations and any other act it
deems necessary to obtain all the benefits of the bargain contemplated by this Agreement. This
durable power of attorney shall be coupled with an interest, and shall survive Seller's death, disability,
incompetence or incapacity. Seller declares this durable power of attorney to be irrevocable a
enounces all right to revoke it or appoint any other person to perform the acts referred to in this
provision.
ndependent Advice. Purchaser advises Seller to seek independent professional advice regarding the
transaction contemplated by this Agreement. Seller (i) has had the opportunity to receive legal, ta
inancial, accounting and/or business or personal advice regarding the transaction contemplated by
this Agreement from Seller's own legal, tax, financial, accounting and/or other advisors and has either
received such advice or has knowingly and voluntarily waived and declined the opportunity to seek
such advice; (ii) Seller has not received any financial, accounting, tax, legal, business, or other advice
from the Purchaser; (iii) Seller has not relied on any representations or statements made by
Purchaser, Purchaser's agents or attorneys in connection with this transaction or the tax
consequences hereof and (iv) Seller has relied solely upon the advice of Seller's own financial, tax,
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legal, business and other advisors in entering into this Agreement. Seller further acknowledges that
Seller is fully aware of the economic consequences of the transaction contemplated by this
Agreement. This is an important financial transaction and Seller should consult with his/her own
advisors regarding said transaction.
ervicing Arrangement. In the event Seller is selling less than the entire amount of any ndividual
Settlement Payment, the Settlement Obligor, the Annuity Issuer or the Court may require, or it may
otherwise be necessary or convenient, that Purchaser, or its assigns, receive the entire Settlement
Payment and assume the obligation to remit any unassigned portion of such Settlement Payment to
Seller. Should such a situation arise, Seller authorizes and directs Purchaser, or its assigns, or any third
party contracted by Purchaser or its assigns for this purpose, to receive the entirety of each
Settlement Payment affected, and remit the unassigned portion of each such Settlement Payment to
Seller (the "Servicing Arrangement"). Seller acknowledges, understands and agrees that (1)
ervicing Arrangement may reduce the gnability of the unassigned portion of any affect
ettlement Payment; (2) Purchaser has paid Seller fair and adequate consideration for the Assigned
Payments, including the negative impact, if any, that the Servicing Arrangement may have upon the
future assignability of the unassigned portions of Settlement Payments of which the Assigned
Payments are a part; (3) t shall be Seller's sole and exclusive responsibility to notify Purchaser, or i
assigns, by written notice, of the address to which the unassigned portion of the Settlement Payments
s to be forwarded; (4) With respect to any unassigned portio n of any Settlement Payment affected by
the Servicing Arrangement, Purchaser's, or its assign's, obligations and liability under the Servicing
Arrangement shall be satisfied upon deposit in the amount of the unassigned portion of such
Settlement Payment via ACH, Wire, or a check in the United States Mail, UPS, FedEx or similar
overnight delivery service, postage or fee prepaid, addressed to the last known address for Seller; and
Servicing Arrangement will result in a delay in Seller's receipt of the unassigned portion of the
Settlement Payments affected by the Servicing Arrangement.
Arbitration of Disputes. Any dispute, claim or controversy arising out of or relating to this Agreement
(other than the petitions required by law to be filed in court for the approval of transfers) or the
breach, termination, enforcement, interpretation or validity thereof, including the determination of
the scope or applicability of this agreement to arbitrate (“Claim”), shall be determined by final and
binding arbitration in Seller’s state of domicile. In no event shall a Claim (in a demand or counter
demand) be entertained if the demand (or counterdemand), is filed after the date when institution of
legal or equitable proceedings based on such Claim would be barred by the applicable statute of
limitations. The arbitration shall be administered by JAMS Arbitration (“JAMS”) pursuant to its
Comprehensive Arbitration Rules and Procedures. Judgment on the award may be entered in any
court having jurisdiction. The arbitrator shall apply the law of the jurisdiction where court approval of
this Agreement was sought. Purchaser or Seller may, upon approval of the other, substitute another
nationally recognized independent arbitration organization that uses a similar code or procedure. This
arbitration agreement is made pursuant to a transaction involving interstate commerce, and shall be
verned by the Federal Arbitration Act, 9 U.S.C. §1
ignatures and Acknowledgment on Following Page)
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ccepted:
2220 Bogey Free, LLC
itle: Authorized Rep.
Date: 2/12/2024
advance amount:
the transfer
Payee: NONE.
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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;