32-03.4-03. Approval of transfers of structured settlement payment rights

32-03.4-03. Approval of transfers of structured settlement payment rights

A direct or indirect transfer of structured settlement payment rights is not effective and a

structured settlement obligor or annuity issuer may not 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 the following express findings by

the court:

1. The transfer is in the best interest of the payee, taking into account the welfare and

support of the payee's dependents and whether the transaction, including the discount

rate used to determine the gross advance amount and the fees and expenses used to

determine the net advance amount, are fair and reasonable. If the court makes the

findings as outlined in this subsection, there is not a requirement for the court to find

that an applicant is suffering from a hardship to approve the transfer of structured

settlement payments under this subsection;

2. The payee has been advised in writing by the transferee to seek independent

professional advice regarding the transfer and has either received that advice or

knowingly waived the advice in writing; and

3. The transfer does not contravene any applicable statute or the order of any court or

other governmental authority.