July 31, 2014 SSPA – Changes to state SSPA’s JOHN McCULLOCH EPS Settlements Group

EPS & DrinkerBiddle 2 Factoring Volume: Stronger Statutes – SSPA’s Delaware (2005)  Amended to allow the court, at its discretion, to appoint an attorney ad litem for payees who are unrepresented by counsel or represented by the same counsel as the transferee.  Attorney ad litem fees are to be paid by the transferee, and may not be passed onto the payee. Virginia (2006)  Amended to specifically state that the provisions of the transfer act are not applicable to payments of workers’ compensation benefits.

EPS & DrinkerBiddle 3 Factoring Volume: Stronger Statutes – SSPA’s California (2010)  Amended to:  Require additional information in the petition related to the payee and the payee’s family, sources of income, child support obligations, and information regarding prior transfers;  Provide criteria for the court to consider when determining whether a transfer is fair, reasonable and in the payee’s best interest, including, but not limited to the payee’s desire to complete the transfer; the payee’s economic situation; the payments being transferred and whether the payments are need for future care or living expenses; whether the payee has other means of support sufficient to meet the payee’s financial obligations; any prior approved or attempted transfers within five years; any hardship; whether the payee obtained IPA; and  Require that, if the structured settlement was entered into within 5 years prior to the date of the transfer agreement, then notice of the transfer must be given to the payee’s counsel if such counsel is a California licensed attorney.

EPS & DrinkerBiddle 4 Factoring Volume: Stronger Statutes – SSPA’s New York (2011)  Amended to require that the petition include a statement setting forth whether there have been any prior transfers or applications for transfer and setting forth the details of those matters; and  The payee to attend the hearing on the proposed transfer unless excused for good cause

EPS & DrinkerBiddle 5 Factoring Volume: Stronger Statutes – SSPA’s Oregon (2014)  Amended to require that:  The transferee provide additional information in the petition regarding the payee and the financial terms of the transfer;  A detailed declaration from the payee including a summary of all prior transfers, and including any order approving, denying, or otherwise relating to prior transfers or attempted transfers; and  The disclosure statement be provided 14 days prior to the date the payee signs the transfer agreement.  Additional express findings to include:  A finding that the payee understands the agreement, the disclosure statement, and the financial terms of the transfer;  A finding that the payee understands the payee’s right to cancel the agreement and knowingly elected not to do so; and  A finding that the payee confirmed to the court at the hearing that the payee wanted the court to approve the proposed transfer and understands that the court would not approve the proposed transfer if the payee did not so desire.

EPS & DrinkerBiddle 6 Factoring Volume: Stronger Statutes – SSPA’s Minnesota (2014)  Amended to require that the transferee include a notification of the date and judicial district of any prior transfer petition filed by the factoring company for this payee, including the final disposition, and if approved, the details of the transfer(s) Florida (2014)  Attempted amendments, both of which died in committee, would have:  Limited the discount rate to not exceed an annual percentage rate equal to the prime rate plus 5 percentage points; and  Required the transferee to file a petition in the county in which the payee resides.