231 Pa. Code § 229.2

Current through Register Vol. 54, No. 17, April 27, 2024

Rule 229.2 - Petition to Transfer Structured Settlement Payment Rights

(a) Words used in this rule, which are defined by the Structured Settlement Protection Act, shall have the meaning set forth in the Act.

(b) A petition to transfer structured settlement payment rights shall be filed in the county in which the payee is domiciled.

(c) The parties to the petition shall be the payee and the transferee.

(d) The petition shall be verified by the transferee and shall contain:

(1) a statement setting forth the payment provisions of the structured settlement agreement and the payment rights that the payee seeks to transfer,

(2) separate paragraphs which in bold type set forth

(i) the net amount payable to the payee after deduction of all commissions, fees, costs, expenses, and charges, and

(ii) the following statement setting forth the interest rate:

"Based on the net amount that the payee will receive from this transaction ($)___ and the amounts and timing of the structured settlement payments that would be assigned, the payee is, in effect, paying interest at a rate of ___ % per year."

(3) four attachments:

(i) a Payee's Affidavit in Support of Petition, in the form prescribed by subdivision (f) as Attachment 1,

(ii) an initial order of court scheduling the hearing, in the form prescribed by subdivision (g),

(iii) a certification by an attorney for the transferee representing to the best of his or her knowledge, information and belief, formed after reasonable inquiry, that the transfer will comply with the requirements of the Act and will not contravene any other applicable federal or state statute or regulation or the order of any court or administrative authority, and

(iv) a final order of court granting the petition, in the form prescribed by subdivision (i).

(e)

(1) If the petition and Payee's Affidavit in Support of Petition meet the requirements of this rule and contain factual allegations which, if established, will support the findings set forth in Section 3 of the Act, the court shall promptly enter an order scheduling a hearing date. The transferee shall give notice of the hearing, in the form prescribed by subdivision (h), to the payee, the structured settlement obligor, the annuity issuer, the payee's spouse and any person who receives child support, alimony or alimony pendente lite from the payee.

(2) If the petition is denied without a hearing for failure to meet the requirements of this rule or to contain necessary factual allegations, which will support the findings set forth in Section 3 of the Act, the court shall state reasons for the denial and the payee may file an amended petition as of course.

(f) The Payee's Affidavit in Support of Petition shall be substantially in the following form:

(Caption)

Payee's Affidavit in Support of

Petition to Transfer Structured Settlement Rights

I, __________, the payee, verify that the statements below are true and correct:

1.Payee's name, address and age: ____________________________

_________________________.

2. Marital Status:

___ Never Married; ___ Married;

___ Separated; ___ Divorced

If married or separated, name of spouse: ____________.

3.Minor children and other dependents:

Initials of minor children, names of other dependents, ages, and places of residence: __________________________________________________

__________________________________________________.

4. Income:

(a) Payee's monthly income and sources: _______

_________________________.

(b) If presently married, spouse's monthly income and sources: ______________________________________

_________________________.

5. Child support, alimony or alimony pendente lite:

Obligation to pay: ___ Yes ___ No

If yes, state the amount of the obligation, to whom payable, and whether there are arrearages: ___.

6. Previous transfers:

Have you previously filed a petition to transfer payment rights under the structured settlement that is the subject of this petition? ___ Yes ___ No

If yes, for each petition that you filed,

(a) If the transfer was submitted for court approval, list the court, the case caption and case number, and state whether the court approved or disapproved the transfer: ______________________________________

________________________________

_________________________.

(b) If the transfer was approved,

(i) State the name of the transferee and identify (listing due dates and payment amount(s)) the payments involved in the transfer: ______________________________________

_________________________.

(ii) State the amount of money and the manner in which the money was used: ______________________________________

_________________________.

(c) Have you ever transferred payments without court approval? If so, please explain: ______________________________________

_________________________.

7. Reasons for transfer:

Describe in detail your reasons for the proposed transfer, including an explanation as to why a sale of a lesser amount of the structured settlement amount will not better serve your interests: ______________________________________

_________________________.

8. Payment of debts:

If you seek the transfer in order to pay debts, list each debt, including the name of the creditor and the amount presently owed:

Debt	Creditor	Amount Owed
___	____________	$ ___
___	____________	$ ___
___	____________	$ ___

Verification

I verify that the statements made in this affidavit are true and correct. I understand that false statements herein are made subject to the penalties of 18 Pa.C.S. § 4904, relating to unsworn falsification to authorities.

DATE: ____________

______________________________________

Signature

(g) The initial order of court shall be substantially in the following form:

(CAPTION)

Initial Order of Court

On this ___ day of ____________ , 2 ___ , it is ordered that a hearing on this Petition to Transfer Structured Settlement Payment Rights will be held on ___ , in Courtroom ___ at ___ o'clock. The payee shall bring income tax returns for the prior two (2) years to the hearing.

Within seven (7) days, the transferee shall give notice of the hearing date to the payee, the structured settlement obligor, the annuity issuer, the payee's spouse and any person receiving child support, alimony, or alimony pendente lite. The transferee shall attach a certificate of service to the notice of hearing date. A copy of the notice with the certificate of service shall be filed with the court prior to the hearing.

BY THE COURT: ____________

J.

(h) The notice of hearing shall be substantially in the following form:

(CAPTION)

Notice of Hearing on Petition to

Transfer Structured Settlement Payment Rights

To: ______________________________________

You are hereby given notice that ______________________________________

(name of payee)

has filed a petition to transfer structured settlement payment rights. A hearing in this matter has been scheduled on ___ , 2 ___ at ___ o'clock in courtroom no. ___ , courthouse, _________________________ .

(address)

You are entitled to support, oppose or otherwise respond to the payee's petition, either in person or by counsel, by filing written comments with the court prior to the hearing or by attending the hearing.

____________

Date

__________________________

Transferee

_________________________

_________________________

Address

_________________________

Telephone Number

(i) The final order of court shall be substantially in the following form:

(CAPTION)

Final Order of Court

On this ___ day of ____________ , 2 ___ , it is ordered that the Petition to Transfer of Structured Settlement Payment Rights is granted.

The court specifically finds that:

(1) the payee has established that the transfer is in the best interests of the payee or the payee's dependents;

(2) based on the certification by an attorney for the transferee, and the court having not been made aware of any statute, regulation or order that would be incompatible with the proposed transfer, the transfer will not contravene any applicable federal or state statute or regulation, or the order of any court or administrative authority;

(3) the transfer complies with the remaining requirements of the Structured Settlement Protection Act, including Sections 3(a)(2), 3(a)(4), 3(a)(5) and 3(a)(6);

(4) the payments that are to be transferred are designated as follows:

________________________________

________________________________.

(5) the terms of this order shall survive the death of the payee and shall be binding on the payee's heirs, beneficiaries and assigns;

(6) the payee shall receive from the transferee, as of ___ , the amount of $ ___ , from which no funds are owed for counsel fees, administrative fees, or other costs, fees or expenses.

BY THE COURT: ____________

J.

231 Pa. Code § 229.2

The provisions of this Rule 229.2 adopted June 15, 2007, effective 9/1/2007, 37 Pa.B. 4515; amended January 5, 2018, effective 1/6/2018, 48 Pa.B. 475; amended June 1, 2018, effective 7/1/2018, 48 Pa.B. 3519.