Michigan Laws 691.1306 – Transfer of structured settlement payment rights; application for approval; court jurisdiction; notice of proposed transfer
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Terms Used In Michigan Laws 691.1306
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Interested party: means , with respect to a structured settlement, the payee, a beneficiary irrevocably designated under an annuity contract to receive payments following the payee's death, an annuity issuer, a structured settlement obligor, or any other person that has continuing rights or obligations under the structured settlement. See Michigan Laws 691.1302
- Payee: means an individual who receives tax free payments under a structured settlement and who proposes to make a transfer of payment rights under the structured settlement. See Michigan Laws 691.1302
- person: may extend and be applied to bodies politic and corporate, as well as to individuals. See Michigan Laws 8.3l
- 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.
- Structured settlement: means an arrangement for periodic payment of damages for personal injuries or sickness established by settlement or judgment to resolve a tort claim. See Michigan Laws 691.1302
- Structured settlement agreement: means an agreement, judgment, stipulation, or release embodying the terms of a structured settlement. See Michigan Laws 691.1302
- 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 1 or more of the following conditions exist:
(i) 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. See Michigan Laws 691.1302Transfer: means a sale, assignment, pledge, hypothecation, or other alienation or encumbrance of structured settlement payment rights a payee makes for consideration; except that "transfer" 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, unless action has been taken to redirect the structured settlement payments to the insured depository institution or to an agent or successor in interest of the depository institution, or action has been taken to otherwise enforce the blanket security interest against the structured settlement payment rights. See Michigan Laws 691.1302 Transfer agreement: means an agreement providing for a transfer of structured settlement payment rights. See Michigan Laws 691.1302 Transferee: means a person acquiring or proposing to acquire structured settlement payment rights through a transfer. See Michigan Laws 691.1302
(1) The transferee may apply for approval of a transfer of structured settlement payment rights with the court in the county in which the payee resides, in the county in which the structured settlement obligor or the annuity issuer maintains its principal place of business, or with the court that approved the structured settlement agreement.
(2) Not less than 20 days before the scheduled hearing on an application for approval of a transfer of structured settlement payment rights under section 4, the transferee shall file with the court and serve on all interested parties a notice of the proposed transfer and the application for its authorization, and shall include with the notice all of the following:
(a) A copy of the transferee’s application.
(b) A copy of the transfer agreement.
(c) A copy of the disclosure statement required under section 3.
(d) A listing of each of the payee’s dependents and each dependent‘s age.
(e) 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.
(f) Notice of the time and place of the hearing and of the manner in which and the time by which written responses to the application must be filed to be considered by the court. The time for filing written responses shall be not less than 15 days after service of the transferee’s notice.