California Residents

California Residents

By AFG Newswire Nov.30, 2014 11:53 a.m. Block 15.4  Article 2.3 Transfers of Structured Settlement Payment Rights

Part 11 California Residents:  What the Transfer Company Can’t Make You Do


They Can’t Change California as Your Court Venue if You’re from California, and the Original Incident Happened in a Different State, and/or Other Involved Parties are from a Different State.


  • 10138(a)(10) “If the payee is domiciled in California at the time that the transfer agreement is signed by the payee, any choice-of-law provision that provides for controlling law to be other than California law in any action arising under the contract.”


“Choice-of-law”, or “conflict-of-law” means that body of law by which the court in which the action is maintained determines or chooses which law to apply where a diversity [people from different states] exists between the applicable law of that court’s state [the forum or host state] and the applicable law of anther jurisdiction interested in the controversy.


The conflict of which state law is to be applied, is not for the transfer company to decide.  This “conflict” is settled by §10138(a)(10) clearly stating that if the payee has residency in California at the time of signing the transfer agreement, all California laws have power over the transfer.


There was a time, before §10138(a)(10) existed that some transfer companies exercised some muscle and decided for the California payee where their case was going to be heard.


This won’t happen anymore because of §10138(a)(10).  If you have any questions about jurisdiction, contact an independent professional adviser today.

Transfer Company Can’t Make You Do

By AFG Newswire Nov.22, 2014 12:31p.m. Block 13.3  Article 2.3 Transfers of Structured Settlement Payment Rights

California Residents:  What the Transfer Company Can’t Make You Do, Part 1


  • 10138(a) is the opening, enabling paragraph to 10138, and is 2 sentences long.


(10138 has it’s opening paragraph, lists twelve (12) prohibited provisions, then has a closing, waiver, paragraph that makes all parties unable to waive any of these prohibited provisions.)


  • 10138(a) alerts the reader that there are listed conditions that are not to be included in the transfer agreement, and that if any of these listed conditions are in the transfer agreement, the transfer agreement will be void and unenforceable. No good.


Not such an exciting clause, but it is setting the stage for what is about to come.  And what is about to come is a long and arduous list of oppressive wrong doings to consumers.  Each one of these prohibited provisions or listed conditions happened in the past; that’s why it’s law now.  Count your blessings it didn’t happen to you.


What’s scary is what oppressive activity might be out there right now.  Your only protection is an independent professional adviser.  They’re almost like a friend of the court.  Like a liaison between the courts, and the community.


  • 10138(a) states, “A transfer agreement, as defined in (o) of Section 10134, shall not include any provision described in the paragraphs below. Any inclusion of a prohibited provision, with respect to a seller who is a California resident, shall make the provision void and unenforceable.”


Keep a look out for further articles on “California Residents:  What the Transfer Company Can’t Make You Do” as we explore each prohibited provision one by one.

Cancel if You Need To

By AFG Newswire Nov.13, 2014 4:27 p.m. Block 12.3  Article 2.3 Transfers of Structured Settlement Payment Rights

10136(e) You Can Break a Provision, and Cancel if You Need To….


There is a provision in 10139.5(a)(6) that states, “The payee understands and does not wish to exercise the payee’s right to cancel the transfer agreement.”  But if you do wish to cancel the agreement, and if you have sent a letter to the transfer company stating so, section 10136(e) is telling the payee, yes, the courts will recognize the payee’s wish to cancel, despite the fact that the code says you won’t.


A little confusing, but, in short, you have the ultimate say so.


If for some reason, you have not sent a letter to the transfer company, and you are standing there at the eleventh hour, and you have decided last minute, in the court house to cancel, right when the court was going to begin proceedings of approval, chances are, you can, if done in writing right there, addressed to the transfer company.


At this point, it would be a case-by-case basis.  No judge wants to see anyone forced into selling their structured settlement payment rights.  If you even question whether you might be a candidate for a situation like this, best to contact an independent professional adviser now, and address your fears before the eleventh hour.


This is the very last subsection of section 10136, subsection (e), and it states:

At any time before the date on which a court enters a final order approving the transfer agreement pursuant to Section 10139.5, the payee may cancel the transfer agreement, without cost or further obligation, by providing written notice of cancellation to the transferee.”


This is why state legislatures and Congress have strongly recommended and advised consumers to seek independent professional advice regarding the legal, tax, and financial implications:  to avoid any confusion or fears the consumer may have regarding issues during the transfer of their structured settlement payment rights.


Independent Professional Advisers are here to help, not hinder.

Structured Settlement Attorney

Disclosure Statement

By AFG Newswire Nov.13, 2014 4:27 p.m. Block 12.2 Article 2.3 Transfers of Structured Settlement Payment Rights

10136(d) Disclosure Statement Must Promote Lawful Adherence of Transfer Agreement


10136(d) states, ” The contract for transferring the structured settlement payment rights may not violate Section 10138


10138 has 12 little sections that are prohibited provisions that are NOT allowed in the transfer agreement, THAT’s all.


This statement needs to be in the Disclosure Statement to the consumer.  But how does the consumer know what these prohibited provisions are?  A few ways to find out:

  1. Read our future posts and find out
  2. Call an independent professional adviser and find out
  3. Read the code and interpret for yourself


We will be covering what section 10138 exactly is, but it is not in the scope of this article.  But let it be known, that the transfer company is instructed by law according to code 10136(d) to state in the Disclosure Statement to the consumer that there are prohibited provisions not allowed in the transfer agreement.


This should be a “red flag” for any responsible payee.  This is also a “red flag” for the courts to be on the look out in all transfer agreements for any extra wording that should NOT be added in any transfer agreements.


Hiring an independent professional adviser is the safest and easiest way to mitigate your transfer agreement, and the Disclosure Statement as well.  Call today for a consultation.

Structured Settlement Attorney

Your Right to Cancel the Transfer

Block 12.1 Article 2.3 Transfers of Structured Settlement Payment Rights

10136(c)(13) Your Right to Cancel the Transfer Agreement is Stated in the Disclosure Statement


This article and the last thirteen (13) articles have been about what is required by law to be in the Disclosure Statement; that is what 10136(c) et al is all about.


10136(c)(13), is the last subdivision of (c), (13) being the last of 13 out of 13 subdivisions of subsection (c).


10136(c)(13) tells TRANSFER COMPANY to make a statement in the Disclosure Statement to the consumer in “larger print”, that they can cancel their transfer agreement at any time, in writing, without a special form, as long as IT IS IN WRITING:


(13) states, ” The following statement printed in 14-point type, circumscribed by a box with a bold border, and set forth immediately above or adjacent to the space reserved for the payee’s signature: “You have the right to cancel this agreement without any cost or obligation until the date the court approves this agreement. You will receive notice of the court hearing date when approval may occur. You must cancel in writing and send your cancellation to [insert transferee’s name and address].”

What is so special about these instructions is that the law directs the transfer

company to put your right to cancel into…


Can you believe it?  The law directs the transfer company the way something needs to look?  Not just what the law needs to mean, but also what it needs to look like when the transfer is company is trying to explain itself to you.


Now THAT is consumer protection in action!  You’ll see this kind of “print” in your Disclosure Statement.

Structured Settlement Attorney