[§676‑1]  Definitions.  As used in
this chapter, unless the context otherwise requires:



"Annuity issuer" means an insurer
that has issued a contract to fund periodic payments under a structured
settlement.



"Dependents" include a payee's spouse
and minor children and all other persons for whom the payee is legally
obligated to provide support, including alimony.



"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.



"Gross advance amount" means the sum
payable to the payee or for the payee's account 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.



"Independent professional advice"
means advice of an attorney, certified public accountant, actuary, or other
licensed professional adviser.



"Interested party" means, with
respect to any structured settlement, the payee, any beneficiary irrevocably
designated under the annuity contract to receive payments following the payee's
death, the annuity issuer, the structured settlement obligor, and any other
party that has continuing rights or obligations under the structured
settlement.



"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 676‑2(5).



"Payee" means an individual who is
receiving tax free payments under a structured settlement and proposes to make
a transfer of the payment rights.



"Periodic payments" includes both
recurring payments and scheduled future lump sum payments.



"Qualified assignment agreement"
means an agreement providing for a qualified assignment within the meaning of
Section 130 of the United States Internal Revenue Code, United States Code
Title 26, as amended from time to time.



"Responsible administrative
authority" means, with respect to a structured settlement, any government
authority vested by law with exclusive jurisdiction over the settled claim
resolved by the structured settlement.



"Settled claim" means the original
tort claim resolved by a structured settlement.



"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.



"Structured settlement agreement"
means the agreement, judgment, stipulation, or release embodying the terms of a
structured settlement.



"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.



"Structured settlement payment
rights" means rights to receive periodic payments under a structured
settlement, whether from the structured settlement obligor or the annuity
issuer, where:



(1)  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;



(2)  The structured settlement agreement was approved
by a court or responsible administrative authority in this State; or



(3)  The structured settlement agreement is expressly
governed by the laws of this State.



"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 any court or responsible administrative
authority or other government authority that authorized or approved the
structured settlement.



"Transfer" means any sale,
assignment, pledge, hypothecation, or other alienation or encumbrance of
structured settlement payment rights made by a payee for consideration;
provided that the term "transfer" shall 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 such insured depository institution, or an agent or successor in
interest, or otherwise to enforce the blanket security interest against the
structured settlement payment rights.



"Transfer agreement" means the
agreement providing for a transfer of structured settlement payment rights.



"Transferee" means a party acquiring
or proposing to acquire structured settlement payment rights through a
transfer.



"Transfer expenses" means all
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, without
limitation, court filing fees, attorneys fees, escrow fees, lien recordation
fees, judgment and lien search fees, finders' fees, commissions, and other
payments to a broker or other intermediary.  "Transfer expenses"
shall not include preexisting obligations of the payee payable for the payee's
account from the proceeds of a transfer. [L 2006, c 146, pt of §1]