Not less than 10 days prior to the date on which a payee signs a transfer agreement, the transferee shall provide to the payee a separate disclosure statement, in bold type no smaller than 14 points, setting forth all of the following:
         (1) the amounts and due dates of the structured
    
settlement payments to be transferred;
        (2) the aggregate amount of the payments;

Terms Used In Illinois Compiled Statutes 215 ILCS 153/10

  • Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.

         (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 attorneys’ 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 any such fees and disbursements;
        (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;
        (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; and
        (9) the effective annual interest rate, which must
    
be disclosed in the following statement: “Based on the net amount that you will receive from us and the amounts and timing of the structured settlement payments that you are turning over to us, you will, in effect, be paying interest to us at a rate of …. percent per year.”.
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