House Bill 1189

AN ACT TO AMEND SECTION 11-57-5, MISSISSIPPI CODE OF 1972, TO REVISE INFORMATION IN THE DISCLOSURE STATEMENT OF A STRUCTURED SETTLEMENT; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Section 11-57-5, Mississippi Code of 1972, is amended as follows:

11-57-5. Not less than three (3) days before the date on which a payee signs a transfer agreement, the transferee shall provide to the payee a separate disclosure statement, in bold type no smaller than fourteen (14) points, setting forth:

(a) The amounts and due dates of the structured settlement payments to be transferred;

(b) The aggregate amount of such payments;

(c) The discounted present value of the payments to be transferred, which shall be identified as the "calculation of current value of the transferred structured settlement payments under federal standards for valuing annuities," and the amount of the Applicable Federal Rate used in calculating such discounted present value;

(d) The gross advance amount;

(e) An itemized listing of all applicable transfer expenses, other than attorney's fees and related disbursement payable in connection with the transferee's application for approval of the transfer, and the transferee's best estimate of the amount of any such fees and disbursements;

(f) The net advance amount;

(g) The amount of any penalties or liquidated damages payable by the payee in the event of any breach of the transfer agreement by the payee; * * *~~and~~

(h) A statement that the payee has the right to cancel the transfer agreement, without penalty or further obligation, not later than the third business day after the date the agreement is signed by the payee * * *.; and

(i) A list of each court proceeding, with the court and case number, in which the payee has requested a transfer of payment rights, and the results of those proceedings including the procedural history of such proceedings.

SECTION 2. This act shall take effect and be in force from and after July 1, 2014.