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HomeMy WebLinkAbout08-7530 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA IN RE: PETITION OF SETTLEMENT FUNDING, LLC d/b/a/ PEACHTREE SETTLEMENT No FUNDING TO TRANSFER STRUCTURED SETTLEMENT PAYMENT RIGHTS (PAYEE, BRANDEN K. HIPPENSTEEL) p ?- 7 S36 ?N? ? -1??? PETITION TO TRANSFER STRUCTURED SETTLEMENT PAYMENT RIGHTS Petitioner, Settlement Funding, LLC d/b/a Peachtree Settlement Funding, hereby submits the following Petition to Transfer Structured Settlement Payment Rights pursuant to the Structured Settlement Protection Act, 40 P.S. §§ 4001-4009 ("the Act"), and Pa.R.C.P. 229.2, and in support states: 1. Pursuant to Rule 229.2, the "Transferee" and Petitioner herein is Settlement Funding, LLC d/b/a Peachtree Settlement Funding, a Georgia Limited Liability Company with offices located at 3301 Quantum Blvd., Second Floor, Boynton Beach, Florida 33426. 2. The " Payee" is Branden K. Hippensteel, an adult individual whose date of birth is March 11, 1989, and who resides at 121 Spur Road, Carlisle, Pennsylvania 17013. 3. This Court has jurisdiction to determine the merits of this petition pursuant to the Act because the Payee is domiciled in Cumberland County, Pennsylvania. 40 P.S. § 4004. 4. As the result of a wrongful death claim, Payee is entitled to receive 120 monthly payments each in the amount of $500.00 commencing on March 11, 2007 through and including February 11, 2017, and lump sum payments each in the amount of $146,650.00 due on March 11, 2011, March 11, 2014, March 11, 2019, March 11, 2024, and in the amount of $146,684.90 due on March 11, 2029. 5. By operation of a Uniform Qualified Assignment, the obligation to make the monthly payments is held by American General Assignment Corporation, the Structured "Settlement Obligor" as defined by 40 P.S. § 4002. American General Assignment Corporation is located at 205 East 10th Avenue, Amarillo, Texas 79101. 6. The obligation was funded through the issuance of an annuity by AIG Annuity Insurance Company (the "Annuity Issuer"). AIG Annuity Insurance Company is located at 205 East 10th Avenue, Amarillo, Texas 79101. 7. On December 18, 2008, Payee executed an Absolute Assignment and UCC Article 9 Security Agreement (the "Transfer Agreement"), a true and correct copy of which is attached hereto and incorporated herein by reference as Exhibit "A". The Transfer Agreement provides for the assignment of Payee's right Page 2 of 8 and interest in receiving one lump sum payment of $46,650.00 due on or about March 11, 2011, to Settlement Funding LLC.1 8. The rights to receive the payments described above at paragraph 4 are exclusive to the Payee, who owns them. 9. The Transfer Agreement was executed by the Transferee on December 18, 2008. 10. Payee has completed the "Payee's Affidavit in Support of Petition" required by Rule 229.2, a copy of which is attached hereto as Exhibit "B". As set forth in further detail in the Affidavit, the purpose of this transaction is to purchase a reliable car, pay off a credit card, and provide for his child. (Exhibit "B", para. 7). 11. Payee has been provided, and has acknowledged receipt at least 10 days prior to receipt of the Transfer Agreement, the "Transfer Disclosure" required by 40 P.S. § 4003 (a)(2), attached and incorporated herein by reference as Exhibit "C". As set forth in greater detail in the Transfer Disclosure, the following terms have been disclosed to the Payee: a. The amounts and due dates of the structured settlement payments to be transferred are: one lump sum payment in the amount of $46,650.00 due on or about March 11, 2011. b. The aggregate amount of the structured settlement payments to be transferred is $46,650.00. ' Pursuant to Rule 229.2(d), Settlement Funding, LLC d/b/a Peachtree Settlement Funding is the Petitioner and has attached a Verification in support thereof. Pursuant to Rule 229.2 (c), the Payee is also a party to this petition, as reflected in the caption, but is not represented by counsel for Petitioner. Page 3 of 8 C. The discounted present value of the payments transferred using the most recently published applicable federal rate for determining the value of an annuity is $43,221.16. d. The federal discount rate used to determine the discounted present value is 3.40 percent as of December 9, 2008. e. The gross amount payable to Payee in exchange for the transferred payments is $30,769.19. f. The net amount payable to Payee after deduction of legal. fees, costs, expenses and processing fees is $28,569.19. g. The quotient is 66.10%. h. The amount of penalty and aggregate amount of any liquidated damages inclusive of penalties payable by the Payee in the event of any breach of the Transfer Agreement by the Petitioner is: NONE. 12. Based on the net amount that the Payee will receive from this transaction ($28,569.19), and the amounts and timing of the structured settlement payments that would be assigned, the Payee is, in effect, paying interest at the rate of 23.95% per year. 13. Payee has been provided, and has acknowledged receipt, at least 10 days prior to receipt of the Transfer Agreement, of the written "Notice" in bold print 12-point type as required by 40 P.S. § 4003 (b). A true and correct copy of Payee's acknowledgement of the receipt of the § 4003 (b) Notice is attached as Exhibit "D". Page 4 of 8 14. Payee has expressly waived independent legal advice regarding the implications of the transfer, including the tax ramifications of the transfer, as reflected in the "Acknowledgment" dated December 18, 2008 (Exhibit "E"). 15. The transfer complies with the requirements of the Structured Settlement Protection Act, 40 P.S. §§ 4001-4009, and will not contravene other applicable Federal or State statutes or regulations or any applicable law limiting the transfer of workers' compensation claims. (See, Certification of Ronald E. Reitz, attached as Exhibit "F"). 16. Petitioner and Payee respectfully request that the Court sign an order approving this transfer which constitutes a "qualified order" for purposes of 26 U.S.C.A § 5891. 17. Payee believes that due to his personal circumstances and financial needs, his best interests are served by completing this transfer. 18. A brief discussion regarding the non-applicability of anti-assignment provisions is attached for the Court's convenience, as Exhibit `\G" herein. 19. Payee acknowledges that Swartz Campbell LLC has not been engaged to render professional advice with respect to the advisability, or the implications of the transfer, including the tax ramifications of the transfer. Counsel has been engaged solely to prepare and present the within Petition, based upon Page 5 of 8 Payee's independent determination and advice obtained from others, with respect to the advisability and ramifications of the transfer. WHEREFORE, Petitioner prays that this Honorable Court grant this Petition to Transfer Structured Settlement Payment Rights. Respectfully submitted, Swartz a e LLC By: onal E. e i t z Attorney for Petitioner Page 6 of 8 VERIFICATION I, Kurt Moody, In-House Counsel of Settlement Funding, LLC d/b/a Peachtree Settlement Funding, have read the foregoing Petition to Transfer Structured Settlement Payment Rights, and hereby aver that the statements therein are correct to the best of my personal knowledge, information and belief. This statement and verification is made subject to the penalties of 18 Pa. C.S. § 4904 relating to unsworn falsification to authorities. Date : ` P,2 3-cS- K T MOODY Page 7 of 8 CERTIFICATE OF SERVICE I hereby certify that a true and correct copy of the foregoing PETITION TO TRANSFER STRUCTURED SETTLEMENT PAYMENT RIGHTS was served by certified mail, return-receipt requested, postage pre-paid, on this a day of December, 2008 on: American General Assignment Corporation Att'n: Dona Clements, Legal Assistant 205 East 10th Ave. Amarillo, TX 79101 ("Settlement Obligor") AIG Annuity Insurance Company Att'n: Dona Clements, Legal Assistant 205 East 10th Ave. Amarillo, TX 79101 ("Annuity Issuer") and by regular U.S. mail, postage prepaid to: Kurt Moody, Esquire Structured Settlements-In-House Counsel Peachtree Settlement Funding 3301 Quantum Boulevard, Second Floor Boynton Beach, FL 33426 ("Transferee") Branden K. Hippensteel 121 Spur Rd. Carlisle, PA 17013-9505 ("Payee") Swartz/Cat 111 LLC By: Donald E7 Reitz Attorney for Petitioner Page 8 of 8 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA IN RE: PETITION OF SETTLEMENT FUNDING, LLC d/b/a/ PEACHTREE SETTLEMENT . FUNDING TO TRANSFER No. STRUCTURED SETTLEMENT PAYMENT RIGHTS (PAYEE, BRANDEN K. . HIPPENSTEEL) FINAL ORDER On this day of 2008, it is ordered that the Petition to Transfer Structured Settlement Payment Rights is granted. The court specifically finds that: (1) the payee has established that the transfer is in the best interests of the payee taking into account the welfare and support of payee's dependents; (2) based on the certification by an attorney for the transferee, Settlement Funding, LLC, and the court having not been made aware of any statute, regulation or order that would be incompatible with the proposed transfer, the transfer will not contravene any Federal or State statute or regulation, or the order of any court or responsible administrative authority; (3) the transfer complies with the remaining requirements of the Structured Settlement Protection Act, including Sections 3 (a) (2) , 3 (a) (4) , 3 (a) (5) and 3 (a) (6) ; (4) the payments that are to be transferred are designated as follows: one lump sum payment of $46,650.00 due on March 11, 2011, to Settlement Funding, LLC (the "Assigned Payments"). (5) the Settlement Obligor is American General Assignment Corporation, and the Annuity Issuer is AIG Annuity Insurance Company. Annuity Issuer shall forward the Assigned Payments to Settlement Funding, LLC, when due, to P.O. Box 116476, Atlanta, GA 30368-6476 or to such other address as designated by Settlement Funding, LLC. (6) the terms of this order shall survive the death of the payee and shall be binding on the payee's heirs, beneficiaries and assigns. (7) the payee shall receive from the transferee the gross amount of $30,769.19. BY THE COURT: J. DEC-18-2008 15:56 FROM:WILLIAM TAYLOR 7177899955 TD:18006007161 P.2 ABSOLUTE ASSIGNMENT AND UCC ARTICLE 9 SECURITY AGREEMENT (THE "AGREEMENT") December IS, 2008 I, Brandon K. Hippenstool, ("f , "Me' or "Assignor") residing at 121 Spur Rd Carlisle, PA 17013.9505 am entitled to 120 monthly payments each in the amount of $500.00 commencing on March 11, 2007 through and including February 11, 2017 and lump sum payments as follows: $146,660.00 due on March 11, 2011; $146,650.00 due on March 11, 2014; $146,650.00 due on March 11, 2018; $146,650.00 due on March 11, 2024 and $146,684.90 due on March 11, 2029 (the `Periodic Payments") on account of the settlement of a certain personal injury claim, the settlement of which Is memorialized in that certain settlement agreement (the "Settlement Agreement"). The Periodic Payments are due to me from American General Assignment Corporation (the 'Settlement Obligor") under the terms of the Settlement Agreement and are being funded by an annuity issued by AiG Annuity Insurance Company (the "Annuity issuer") bearing annuity contract number 8404483.0. A. i hereby sell, assign and convey to Settlement Funding, L.L.C. (the "Assignee") and its assigns through an assignment all of my rights to and interest in and to the following payments due or to become due under the Settlement Agreement, one lump sum payment of $46,650.00 due on or about March 11, 2011 (the "Assigned Payments"); and In consideration for this assignment, Assignee shall pay to me the sum of: $30,769.19 (the "Assignment Price"). B. i hereby make the following unconditional representations, warranties and promises: 1. No one other than me has any Interest or claim of any kind or nature in, to or under the Assigned Payments I am assigning hereunder. 2. 1 am not indebted to anyone that would affect In any way either the assignment of the Assigned Payments referenced above Or Assignee's absolute rights to receive some. 31 1 agree to conduct my affairs so as to ensure that Assignee obtains all of the benefits of the assignment contemplated hereby. C. I agree that the following shall be considered an event of default by me under this Absolute Assignment Agreement: 1. The representations set forth in Paragraphs B 1 and 8 2 above are at any time not true, 2_ Failure by me to perform the promise set forth in Paragraph B 3 above. 3. Failure by the Settlement Obligor or the Annuity Issuer to make any one or more of the Assigned Payments as a result of any act by me, my estate or any of my heirs. 4. Failure by the Settlement Obligor or Annuity Issuer to forward one or more Assigned Payments to Assignee as a result of any act by me, my estate or any of my heirs. 5. Failure by me to forward promptly to Assignee any Assigned Payment received by me from the Settlement Obligor or the Annuity Issuer. 6. Failure by me to fulfill any other obligation of mine under this Agreement. D. The following are conditions precedent to Assignee's obligation to pay me the Assignment Price: 11 Assignee shall be satisfied, in its sole discretion, that there are no claims or interests of any kind or nature whatsoever that do or may affect Assignee's rights to or interest in the Assigned Payments and Assignee's ability actually to receive same on the dates and In the amounts set forth herein. 2. Assignee shall have received a final non-appealable court order, or a signed acknowledgment from Settlement Obligor and the Annuity Issuer satisfactory to Assignee In its sole discretion (such court order or acknowledgement together are hereinafter referred to as the "Order"), authorizing the transfer by assignment of the Assigned Payments (which may continue to be made out to my name) to Assignee, and directing that the Periodic Payments due on or after the day of the Order be forwarded, or authorizing the forwarding of the Periodic Payments, directly to Assignee I-. Under this Agreement and only to the extent permitted by law Assignee and I intend to create a security Interest under Article 9 of the Uniform Commercial Code of the state designated in Paragraph F below, In my rights to and interest in the Assigned Payments, which rights have been assigned to Assignee as General Intongibles DEC-1B-2008 15:56 FROM:WILLIAM TAYLOR 7177899955 TO:18006007161 P.3 under Article 9 of the uniform Commercial Code of the state designoted in Paragraph F below. This Agreement shall also function as a security agreement. This security interest secures payment of the rights assigned and performance of my obligations under Paragraph B above. Assignee may direct any account debtor, obligor on an instrument, Including, without limitation, the Settlement Obligor or Annuity Issuer, to make periodic payments directly to Assignee as contemplated by the Uniform Commercial Code. Assignee may file a UCC-1 financing statement to perfect its rights hereunder. F. Except as otherwise required by applicable statutory law, this Agreement shall be governed by and interpreted in accordance with the law of the state of residence of the Assignor on the date of this Agreement. ARBITRATION Any and all controversies, claims, disputes, rights, interests, suits or causes of action arising out of or relating to this Agreement and the negotiations related thereto, or the breach thereof, shell be settled by binding arbitration administered by the American Arbitration Association. The demand for arbitration shall be filed in writing with the other parry to this Agreement and with the American Arbitration Association offices in your state of residence. The arbitration shall be held In the largest city in your state of residence. The arbitration shall be held before a single arbitrator selected in accordance with the Commercial Arbitration Rules of the American Arbitration Association in effect at the time that the demand for arbitration is filed. Uiscovery, specifically Including interrogatories, production of documents and depositions shall be at the discretion of the arbitrator and to the extent permitted shall be conducted In accordance with, and governed by the Federal Rules of Civil Procedure. A demand for arbitration shall be made within a reasonable time after the claim, dispute or other matter in question has arisen. In no event, shall the demand for arbitration be made after the date when Institution of legal or equitable proceedings based on such claim, dispute or other matter in question, would be barred by the applicable statute of (imitations No arbitration arising out of or relating to this Agreement shalt include, by consolidation or joinder or in any other manner, an additional person or entity not a party to this Agreement, except by written consent of the parties hereto, containing a speciflo reference to this Agreement and signed by the entity sought to be joined. Consent to arbitration involving an additional person or entity shall not constitute consent to arbitration of any claim, disputo or other matter In question not described in the written consent or with a person or entity not named or described therein. The foregoing agreement to arbitrate and other agreements to arbitrate with an additional person or entity duly consented to by parties to this Agreement, shall be specifically enforceable in accordance with applicable law in any court having jurisdiction thereof. The award rendered by the arbitrator shall be final, and judgment may be entered upon it in accordance with applicable law in any court having jurisdiction thereof. Such arbitrator shall identify the substantially prevailing party and shall include legal fees and expenses for the substantially prevailing party- This provision does not apply to the extent Inconsistent with applicable state law regarding the transfer of structured settlement payments. In such case any disputes between the parties will be governed In accordance with the laws of the domicile state of the payee and the domicile state of the payee is the proper venue to bring any cause of action arising out of a breach of the agreement. G. I hereby grant to Assignee an Irrevocable Power of Attorney with full powers of substitution to do all acts and things that I might do regarding the Assigned Payments and any and all rights I have under the Settlement Agreement with respect to the Assigned Payments, including, without limitation, the power to endorse checks, drafts or other Instruments, the power to alter, edit and change payment Instructions and/or beneficiary designations and any other act which, In the sole discretion of Assignee as my Attomey-in-Fact is necessary or expedient for It to obtain all of the bensfile of the bargain contemplated by this transaction. This power of attorney Is coupled with an interest and shall survive my death or disability. H. In the event that prior to the consummation of the transaction contemplated hereby I receive any of the Assigned Payments, or any portion thereof, the Assignment Price shall be reduced in like amount and the terms of this Agreement regarding the payments to be assigned shall be deemed to be adjusted accordingly, in the event Assignee receives or otherwise comes into possession of any of the Periodic Payment(s) or portion(s) thereof which are not included in the payments being absolutely assigned to Assignee hereunder, Assignee shall forward such amount(s) to me at the address set forth above within seven (7) days of receipt of such amount(s). DEC-18-2008 15:56 FROM:WILLIAM TAYLOR 7177899955 T0:18006907161 P.4 i Assignee shall be entitled to discharge any adverse claims against Assignor or any of the Assigned Payments whether or not such adverse claims are disclosed. Assignee may, provided Assignee furnishes prior written notice to Assignor, pay any and all amounts necessary or, if the Assignment Price has been deposited Into an escrow account, Instruct the escrow agent to pay any and all amounts necessary to discharge such liens or other adverse claims, and the Assignment Price shall be reduced by the amount of any such payment. Adverse claims may Include disclosed amounts to be deducted by Assignee from the Assignment Price to pay Assignee, as servioer for Peachtree Finance Company, LLC, to enable Assignor to obtain Peachtree Finance Company, LLC's release of its encumbrance on a portion of the Assigned Payments, which portion of Assigned Payments relate to prior transfer transaction(s) consummated prior to the effective date of the applicable transfer act(s) which encumbrance must be released for the transaction contemplated herein to be consummated. J_ I know that it will take some time for the Settlement Obligor and the Annuity Issuer to receive and process the court order once it is granted I would like to receive the Assignment Price or a portion thereof as soon as possible thereafter. Accordingly, I hereby request Assignee to pay me a portion of the Assignment Price as soon as possible after the court order is granted and authorize Assignee to hold in escrow an amount it deems necessary or advisable from the Assignment Price (the "Escrow Amounr) until all conditions precedent have been satisfied, including, without limitation, the receipt by Assignee of the Settlement Obligor and the Annuity Issuer's acknowledgment of the terms of the court order In writing and their agreement to honor and comply with same. At such time or earlier as Assignee may determine, I understand that Assignee will send the Escrow Amount to me minus any Assigned Payments that the Annuity Issuer and/or Settlement Obligor sent to me while the Settlement Obligor and the Annuity Issuer were processing the court order. K. This Agreement shall take effoct on tho date it is signed by me (the Assignor) or on such later date proscribed by applicable statutory tow. All disclosure statements are a material part of this Agreement and shall be read in part materaa herewith. In witness whereof I hereunto set my hand. Ili, 7 r Brandon K. Hipp" eel STAVE 01: !'"z ltMVt0fflX)* COUNTY OR CITY OF d On the day of A+ Agf in the yeat2-O before me, the undersigned, personally appeared Branden K. Hippensteel, personally known to me or proved to me on the basis of satisfactory evidence to be the individual(s) whose name(s) is (are) subscribed to the within instrument, and acknowledged to me that he/she/they executed the some in his/her/their ospeclty(les), and that by his/her/their signature(s) on the instrument, the Int v'duallA). or hia n nr+ ???? h If of which the Individual(s) acted, executed the Instrument. NoTARUU. se:aL WILLIAM R TAYLOR NotoW Publle SPRING TWR PERRY COUNTY ` My commission Expkes ion 27, 2010 tart' My Commission expires on X1111 n24Ir PLEASE DO NOT SIGN THIS Accepted, DOCUMENT UNTIL 12/18/2008 18pttlement)t ding, L.L.C. Title:' Date: ti DEC-18-2008 15:58 FROM:WILLIAM TAYLOR 7177699955 70:18006007161 P.11 ulbRrizatlor} Far t7 s Pursuant to the terms of the Agreement, Assignee may deduct from the Purchase Price the full amount due to any and all third patty creditors, judgment holders, holders of child support obligations, the holder of any other outstanding lien or claim (collectively the °JudgmentslCtalme) including life insurance policy payment(s) or any attorney fees in connection with the consummation of this transaction if Assignee Is able to satisfy in full the Judgments/Claims for less than the full amount due, Assignee shall be entitled to keep the difference between the amount deducted and the amount actually paid. Authorization to Conduct Credit.19g Climinal sack raund_Checks I, Branden K, Hippensteal residing at 121 Spur Rd, Carlisle, PA 17013-9505, hereby authorize Settlement Funding or any of its agents or designees. to conduct any and all criminal background reports, searches or checks and any and all credit history reports, searches or checks which it in its sole discretion and judgment deems necessary or advisable. Authorization to Release information 1, Branden K Hippensteal, hereby request and authorize American General Assignment Corporation, AIG Annuity Insurance Company, or any of their successors, assigns, designees, agents or administrators, or my attorney to disclose, or any other parties that may possess any information deemed necessary by Settlement Funding, or any of Its agents or designees to be disclosed, make available and furnish to Settlement Funding, or any of Its agents or designees any and all information pertaining to my personal injury settlement as set forth In a certain Release, or any other documents deemed necessary by Settlement Funding, or any of Its agents or designees. I specifically direct that American General Assignment Corporation, AiG Annuity Insurance Company, or any of their successors, assigns, designees, agents or admintstrators or any other person or entity that this authorization is given to, cooperate with Settlement Funding or any of their agents or designees regarding disclosure of information pertaining or related to my settlement or other required documentation. I also hereby request and authorize any third party creditors, judgment holders, any Child Support Enforcement agencies, or any other holder of any outstanding lien or claim, such as tax Ilens, government overpayments, etc., to release any information deemed necessary to Settlement Funding, or any of Its agents or designees Please provide copies via fax (1.800.800 7161) or otherwise of any and all documents requested by Settlement Funding or their agents or designees Dated: .a&:Q&- Branden K. Hippe teal STATE OF I/- COUNTY OR CITY OF On the /0.* day of in the yearW' before me, the undersigned, personally appeared Brandon K. Fiippeneteel, personalty known to me or proved to me on the basis of satisfactory evidence to be the individual(s) whose name(s) Is (are) subscribed to the within Instrument, and acknowledged to me that he/she/they executed the same in his/her/their cepacity(les), and that by his/her/their signature(s) on the Instrument, the individual(s), or the person upon behalf of which the Individual(s) acted, NOTARIAL SM NolOry "11c SM110I" PERW COUNN My Commlulon Ex" Jon 27.2010 t r tary My Commission expires on DEC-18-2008 15:57 FROM:WILLIAM TRYLOR 7177899955 70:18006007161 P.5 IN THE COURT OF COMMON FLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA PETITION OF SETTLEMENT ) FUNDING LLLC d/b/a PEACHTREE ) SETTLEMENT FUNDING TO ) No. TRANSFER STRUCTURED ) SETTLEMENT PAYMENT IUG14TS ) Payee's Affidavit in Support of Petition to Transfer Structured Settlement Rights I, Branden K. Hippensteel, the payee, verify that the statements below are true and correct: 1. Payee's name, address and age: Branden K. Hippensteel residing at 121 Spur Road, Carlisle, PA 17013-9505 and I am 19 years old 2. Marital Status: X Never Married; Married; Separated; Divorced If married or separated, name of spouse: 3. Minor children and other dependents: Names, ages, and places of residence: Blake Hippensteel, nine months old, lives at same address as above. 4. Income: (a) Payee's monthly income and sources: I am not employed currently, but I am actively searching for work. I will continue to receive monthly payments of $500.00 through February 11, 2017. In addition, I will also receive tho following lump sum payments: $100,000.00 due on March 11, 2011; $146,650.00 due on March 11, 2014; DEC-18-2008 15:57 FROM:WILLIAM TAYLOR 7177699955 70:18006007161 P.6 $146,650.00 due on March 11, 2019; $146,650.00 due on March 11, 2024 and $146,684.90 due on March 11, 2029. Also, I live with my girlfriend, Stacey Kine, and she earns $1,600.00 per month as a sandwich maker at Sheets Gas Station. (b) It presently married, spouse's monthly income and sources:. /A 5. Child support, alimony or alimony pendente Utc: Obligation to pay: Yes X No If yes, state the amount of the obligation, to whom payable, and whether there are arrearages: ,? 6. Previous transfers: Have you previously filed a petition to transfer payment rights under the structured settlement that is the subject of this petition? Yes _J?-,No If yes, for each petition that you filed, (a) If the transfer was submitted for court approval, list the court, the case caption and case number, and state whether the court approved or disapproved the transfer: (b) If the transfer was approved, (i) State the name of the transferee and identify (listing due dates and payment amount(s), the payments involved in the transfer: 00 State the amount of money and the manner in which the money was used: . t DEC-18-2008 15:58 FROM:WILLIAM TAYLOR 7177899955 TO:18006007161 P.7 Have you ever transferred payments without court approval? NO. If so, please explain: 7. Reasons for transfer: Describe in detail your reasons for the proposed transfer, including an explanation as to why a sale of a lesser amount of the structured settlement will not better serve your interests: 1 would like to use the proceeds to buy a dependable new car, pay off debt and buy clothing and supplies for my baby. I am looking for work, but my search is very limited because my current car is unreliable and in need of costly repairs. I would like to use $24,000.00 of the proceeds to buy a reliable and bigger new car as it will be safer and can fit a car seat comfortably, I will then use $3,000.00 of the proceeds to pay off my Capital One Master Card, Paying off my outstanding debt will improve my credit score and give me a guaranteed rate of return equal to my interest rate. I would like to use the remaining proceeds of $1,569.00 to cover expenses for my baby. A sale of a lesser amount will not be enough to accomplish these goals. $, Payment of debts: If you seek the transfer in order to pay debts, list each debt, including the name of the creditor and the amount presently owed: Debt Creditor Amount Owed MasterCard Capital On $3.000.00 DEC-18-2008 15:58 FROM:WILLIAM TAYLOR 7177899955 TO:1B006007161 P.8 Verification I verify that the statements made in this affidavit are true and correct. I understand that false statements herein are made subject to the penalties of 18 Pa.C.S. §4904, relating to unsworn falsification to authorities. DATE: / -- 8,1? " M Branden K Hippen ei DEC-18-2008 16:01 FROM:WILLIAM TAYLOR 7177899955 70:18006007161 P.22 PENNSYLVANIA TRANSFER DISCLOSURE Payee: Branden K. Hippensteel; resident of. PA A. Amounts and due dates of ti-ie structured settlement payments to be transferred: One jump sum payment of $46,650.00 due on or about March 11, 2011. B. Aggregate amount of such payments: $46,650.00. C. (1) Discounted present value of such payments: $43,221.16. (2) The discount rate used in determining such discounted present value: 3.40 percent as of December 9, 2008. D. Gross amount payable to the Payee in exchange for such payments: $30,769.19. E. Itemized listing of all brolters' commissions, service charges, application or processing fees, closing costs, filing or administrative charges, legal fees, notary fees and other commissions, fees, costs, expenses and charges payable by the Payee or deductible from the gross amount otherwise payable to the Payee: Legal Fees: $2,000.00; Processing Kee: $200.00. F. Net amount payable to Payee after deduction of all commissions, fees, costs, expenses and charges described above; $28,569,19 minus any advances made to Payee against the amount payable to Payee. G. The quotient, expressed as a percentage, obtained by dividing the net payment amount by the discounted present value of the payments: 66.10%. H. Amount of any penalty and the aggregate amount of any liquidated damages, inclusive of penalties, payable by the Payee in the event of any breach of the transfer agreement by the Payee: NONE. DEC-18-2008 16:01 FROM:WILLIAM TAYLOR 7177899955 T0:18006007161 P.23 I. payee acknowledges receipt of, and acknowledges to have react and understood, the above disclosure statement and information required to be disclosed by Payee's applicable state statute(s). Initials: fl By signing below you are confirming that you received a copy of this disclosure at least 90 days prior to executing your transfer agreement. _ X? Branden K. Hippensteel /J-09 _,........._._ Date DEC-18-2008 16:02 FROM:WILLIAM TAYLOR 7177899955 TO:18006007161 P.24 NOTICE (PAJ Payee, E3randen K. Hippensteel IMPORTANT NOTICE: YO?u oare f the strongly rgax consult with an of this attorney who can advise y potential transaction. I acknowledge receipt of the above notice. this By signing below you are confirming ctWhat you received a copy of transfer agreement. notice at least 10 days prix g your B"-z :?e x+- Brandon K. Hippensteel Gate D DEC-18-2008 16:02 FROM:WILLIAM TAYLOR 7177899955 70:18006007161 P•26 ACKNOWLED?gMENT PA payee: Branden K. Hippensteel (Please initial the following statement) I expressly waive independent legal advice the gaardinag the implications the of the transfer, including considerations o transfer. (Initials) Branden K. Hippensteel /,', • lb'-a pate IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA IN RE: PETITION OF SETTLEMENT FUNDING, LLC d/b/a/ PEACHTREE SETTLEMENT No. FUNDING TO TRANSFER STRUCTURED SETTLEMENT PAYMENT RIGHTS (PAYEE, BRANDEN K. HIPPENSTEEL) CERTIFICATION OF COUNSEL Ronald E. Reitz, attorney for Settlement Funding LLC d/b/a Peachtree Settlement Funding, hereby sets forth the following: 1. I, Ronald E. Reitz, am counsel of record in this matter for Settlement Funding, LLC d/b/a Peachtree Settlement Funding. 2. Based on materials provided to me by Settlement Funding, and upon reasonable investigation and inquiry, including my discussions with the Payee, the transfer set forth in the subject Petition complies with all requirements of the Structured Settlement Protection Act, 40 P.S. § 4001-4009, and does not contravene any applicable Federal or State statute or regulation, or order of any court or administrative authority. 3. This Certification is made to the best of my knowledge, information and belief pursu n Pa.R.C.P. 229.2. Ronald Reitz Background on Structured Settlements Generally: Contrary to popular misconception, structured settlements typically result from a voluntary settlement of an underlying tort claim. While many believe that structured settlements are typically court approved, court ordered or otherwise mandated by the court as a form of spendthrift trust, this is simply not true. Structured settlements are a convenient and cost effective way to settle personal injury claims, particularly where there is disagreement over the size of the settlement as the perceived value of future payments is generally higher than their true value. Simply put, structured settlements are a cost effective way for insurance carriers to settle personal injury claims on favorable terms and are often used for garden variety cases. In the vast majority of cases they are simply the result of a negotiated settlement between plaintiff and defendant with no substantive court involvement. Anti-assignment provisions are often included in structured settlement agreements under the mistaken belief that they are required to prevent the application of the "constructive receipt" tax doctrine. These anti-assignment provisions were not included as a form of spendthrift trust nor were they intended as a restriction on alienation of the right to receive structure settlement payments. Rather they are a result of an overly cautious reading of several private letter rulings from the early 1980's and a mis-understanding of the constructive receipt tax doctrine. Any lingering doubts as to whether an anti- assignment provision is required to prevent constructive receipt were dispelled in 2002 with the passage of 26 USC Section 5891, et seq. which made it clear - by way of a clarification of existing law - that a sale or transfer of structure payments rights would not alter the tax treatment applicable to the annuitant or annuity issuers. Notwithstanding this, anti-assignment clauses remain a vestige of common practice and are hence present in many settlement agreements. The one common failing of structured settlements is that they are relatively inflexible. Once established they cannot be altered. As a consequence, a secondary market for structured settlements evolved in the 1990's. Because of the significant demand from structured settlement recipients to restructure/refinance how and when they receive these payments, a secondary market flourished. In 2002, the United States Congress, after hearings before the Ways and Means committee, passed 26 USC Section 5891, et seq. making it clear that structured settlements could be transferred and that no adverse tax consequence would attach. As part of providing this clarification, Congress required that a transfer of structured settlement payment rights be pursuant to a state transfer statute finding that the transfer was in the best interest of the selling annuitant. Employees and officers of the petitioner, Settlement Funding, appeared at the congressional hearing referenced above and worked tirelessly in the late 90's and early 2000's to obtain the passage of 26 USC Section 5891 and to pass state transfer laws around the country. Almost every state now has a structured settlement statute which provides for unprecedented levels of consumer safeguards prior to an individual being permitted to sell a structured settlement. This is so notwithstanding the fact that the decision to accept the structured settlement, as outlined above, is typically the result of a simple negotiation between plaintiff and defendant and not as consequence of the independent judgment that • F the recipient is unable to manage their financial affairs. The structured settlement transfer statutes and the provisions of 26 USC Section 5891, et seq. make it clear that both federal and state legislators recognized the need for liquidity in the secondary market for structured settlement payments. Provided that the transfer statute is adhered to, the court should permit the transfer of the structured settlement payments provided that such transfer is in the best interest of the payee. ? ? wT DEC 3 1 2 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA IN RE: PETITION OF SETTLEMENT FUNDING, LLC d/b/a/ PEACHTREE SETTLEMENT . FUNDING TO TRANSFER STRUCTURED SETTLEMENT PAYMENT RIGHTS (PAYEE, BRANDEN K. HIPPENSTEEL) No. cg 7S-3 d ov;1 1"^ INITIAL ORDER OF COURT On this ?j day of 2009, it is ordered that a hearing on this Petition to Transfer Structured Settlement Payment Rights will be held on x--00 9 , in Courtroom y at 1,15- M. o'clock. The payee shall bring income tax returns for the prior two (2) years to the hearing. Within seven (7) days, the transferee shall give notice of the hearing date to the payee, the structured settlement obligor, the annuity issuer, the payee's spouse and any person receiving child support, alimony, or alimony pendente lite. The transferee shall attach a certificate of service to the notice of hearing date. A copy of the notice with the certificate of service shall be filed with the court prior to the hearing. BY THE COURT: , J. n? { eyl-a kL?L ' IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA IN RE: PETITION OF SETTLEMENT FUNDING, LLC d/b/a/ PEACHTREE SETTLEMENT FUNDING TO TRANSFER STRUCTURED SETTLEMENT PAYMENT RIGHTS (PAYEE, BRANDEN R. HIPPENSTEEL) No. 08-7530 Civil Term NOTICE OF HEARING ON PETITION TO TRANSFER STRUCTURED SETTLEMENT PAYMENT RIGHTS To: American General Assignment Corporation Attn: Donna Clements, Legal Assistant 205 East 10th Avenue Amarillo, TX 79101 ("Settlement Obligor") AIG Annuity Insurance Company Attn: Donna Clements, Legal Assistant 205 East 10th Avenue Amarillo, TX 79101 ("Annuity Issuer") and by regular U.S. mail, postage prepaid to: Kurt Moody, Esquire Structured Settlements-In-House Counsel Peachtree Settlement Funding 3301 Quantum Boulevard, Second Floor Boynton Beach, FL 33426 ("Transferee") Branden K. Hippensteel 121 Spur Rd. Carlisle, PA 17013-9505 ("Payee") You are hereby given notice that Settlement Funding LLC has filed a petition to transfer structured settlement payment rights. A hearing in this matter has been . scheduled on Friday, January 30, 2009 at 1:15 p.m. in Courtroom No. 4 before Hon. Kevin A. Hess, Cumberland County Courthouse, One Courthouse Square, Carlisle, PA 17013. You are entitled to support, oppose or otherwise respond to the payee's petition, either in person or by counsel, by filing written comments with the court prior to the hearing or by attending the hearing. Date In 1, Settlement Funding LLC c/o Ronald E. Reitz Swartz Campbell LLC 600 Grant Street 4750 U.S. Steel Tower Pittsburgh, PA 15219 (412) 232-9800 I Irk DES 12001 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA IN RE: PETITION OF SETTLEMENT FUNDING, LLC d/b/a/ PEACHTREE SETTLEMENT FUNDING TO TRANSFER STRUCTURED SETTLEMENT PAYMENT RIGHTS (P]?Z=, SRNMEN R. RXPFMSTrAEL) : No. 09, 7536 cw;1 4u^ INITM ORD=R 01P COURT On this 101 day of 2009, it is ordered that a hearing on this Petition to Transfer Structured Settlement Payment Rights will be held on 0l ll„ , A,4, 'o, &.0o 9 , in Courtroom Y at _ to / Qty. o'clock. The payee shall bring income tax returns for the prior two (2) years to the hearing. Within seven (7) days, the transferee shall give notice of the hearing date to the payee, the structured settlement obligor, the annuity issuer, the payee's spouse and any person receiving child support, alimony, or alimony pendente lite. The transferee shall attach a certificate of service to the notice of hearing date. A copy of the notice with the certificate of service shall be filed with the court prior to the hearing. , J. BY THE COURT: 4?. CERTIFICATE OF SERVICE I hereby certify that a true and correct copy of this NOTICE OF HEARING ON PETITION FOR TRANSFER OF STRUCTURED SETTLEI9'+NT PAYMENT RIGHTS has been served by FedEx Priority Overnight on this 7th day of January, 2009, on: American General Assignment Corporation Attn: Donna Clements, Legal Assistant 205 East 10th Ave. Amarillo, TX 79101 ("Settlement Obligor") AIG Annuity Insurance Company Attn: Donna Clements, Legal Assistant 205 East 10th Ave. Amarillo, TX 79101 ("Annuity Issuer") and by regular U.S. mail, postage prepaid to: Kurt Moody, Esquire Structured Settlements-In-House Counsel Peachtree Settlement Funding 3301 Quantum Boulevard, Second Floor Boynton Beach, FL 33426 ("Transferee") Branden K. Hippensteel 121 Spur Rd. Carlisle, PA 17013-9505 ("Payee") Swartz e LLC By: Ronald E. Reitz Attorney for Petitioner e•.s b ?'i tY.. ? ? ??=? '? ??? ? ? -; -a IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA IN RE: PETITION OF SETTLEMENT FUNDING, LLC d/b/a/ PEACHTREE SETTLEMENT FUNDING TO TRANSFER STRUCTURED SETTLEMENT PAYMENT RIGHTS (PAYEE, BRANDEN R. HIPPENSTEEL) Civil Division No. 08-7530 Civil Term Counsel of Record for this Party: NOTICE OF 40 P.S. §4003(a)(6) COMPLIANCE Ronald E. Reitz Pa. I.D. No. 55408 Filed on behalf of Petitioner, Settlement Funding, LLC d/b/a Peachtree Settlement Funding SWARTZ CAMPBELL LLC Firm I.D. No. 765 4750 U.S. Steel Tower 600 Grant Street Pittsburgh, PA 15219 412-232-9800 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL DIVISION IN RE: PETITION OF SETTLEMENT FUNDING, LLC d/b/a/ PEACHTREE SETTLEMENT FUNDING TO TRANSFER STRUCTURED SETTLEMENT PAYMENT RIGHTS (PAYEE, BRANDEN R. HIPPENSTEEL) No. 08-07530 Civil Term NOTICE OF 40 P.S. §4003(a)(5) COMPLIANCE AND NOW, comes Petitioner, Settlement Funding, LLC d/b/a Peachtree Settlement Funding, and files the within Notice of its compliance with 40 P.S. §4003(a)(6), as set forth in the attached "Notice to Annuity Issuer and Structured Settlement Obligor," attached hereto as Exhibit "A". Respectfully submitted, Swartz a 11 LLC BY: Ronald E.- Reitz Attorney for Petitioner 1 r vj ry pp# gWee Notice to Annuity Issuer and Structured Settlement Obligor American General Assignment Corporation AIG Annuity Insurance Company 205 East 10th Avenue 205 East 10th Avenue Amarillo, TX 79101 Amarillo, TX 79101 (OBLIGOR) (ISSUER) RE: Transfer of structured settlement rights by Branden Hiaaensteel Annuity Contract #: S404483-0 DOH: 3/11/1989 Payments to be Transferred: One lumpsum payment of $46,650.00 due on or about March 11, 2011 This letter shall serve as formal notice to you, as required by PA ST 40 PS §4003(a)(6) of Branden Hippensteel's pending transfer of certain structured settlement payment rights. Pursuant to PA ST 40 PS §4003(a)(6), the transferee's name and address is: Name: Settlement Funding, LLC Address: 3301 Quantum Boulevard Boynton Beach, FL 33426 Taxpayer I.D.: 58-2292928 Any other statutory requirements that may apply to this transaction will also be followed. 3301 Quantum Boulevard - Boynton Beach, FL 33426 Phone: (561) 962-3900 - Fax: (561) 962-7217- i > % CERTIFICATE OF SERVICE I hereby certify that a true and correct copy of this NOTICE OF P.S. §4003(a)(6) COMPLIANCE was served by certified mail, return-receipt requested, postage pre-paid on this day of January, 2009, on: American General Assignment Corporation Attn: Donna Clements, Legal Assistant 205 East 10th Ave. Amarillo, TX 79101 ("Settlement Obligor") AIG Annuity Insurance Company Attn: Donna Clements, Legal Assistant 205 East 10th Ave. Amarillo, TX 79101 ("Annuity Issuer") and by regular U.S. mail, postage prepaid to: Kurt Moody, Esquire Structured Settlements-In-House Counsel Peachtree Settlement Funding 3301 Quantum Boulevard, Second Floor Boynton Beach, FL 33426 ("Transferee") Branden K. Hippensteel 121 Spur Rd. Carlisle, PA 17013-9505 ("Payee") Swartz ell LLC By: onald E. Reitz Attorney for Petitioner ?.... }x? ?M??w- ?s ? IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA IN RE: PETITION OF SETTLEMENT FUNDING, LLC d/b/a/ PEACHTREE SETTLEMENT FUNDING TO TRANSFER STRUCTURED SETTLEMENT PAYMENT RIGHTS (PAYER, BRANDEN K. BIPPENSTEEL) FINAL ORDER No. 0F._ 7530Giv;1116m on this 30., day of 2009, it is ordered that the Petition to Transfer Structured Settlement Payment Rights is granted. The court specifically finds that: (1) the payee, Branden K. Hippensteel, has established that the transfer is in the best interests of the payee or the payee's dependents, taking into account the welfare and support of payee's dependents; (2) based on the certification by an attorney for the transferee, Settlement Funding, LLC, and the court having not been made aware of any statute, regulation or order that would be incompatible with the proposed transfer, the transfer will not contravene any Federal or State statute or regulation, or the order of any court or responsible administrative authority; (3) the transfer complies with the remaining requirements of the Structured Settlement Protection Act, including Sections 3 (a) (2) , 3 (a) (4) , 3 (a) (5) and 3 (a) (6) ; (4) the payment that is to be transferred is designated as follows: one lump sum payment of $46,650.00 due on March 11, 2011 (the "Assigned Payment"). (5) the Structured Settlement Obligor is American General Assignment Corporation, and the Annuity Issuer is AIG Annuity Insurance Company. The Structured Settlement Obligor and Annuity Issuer shall forward the Assigned Payment, when due, to Settlement Funding, LLC at P.O. Box 116476, Atlanta, GA 30368- 6476 or to such other address as designated by Settlement Funding, LLC. (6) the terms of this order shall survive the death of the payee and shall be binding on the payee's heirs, beneficiaries and assigns. (7) the payee shall receive from the transferee the gross amount of $30,769.19. BY THE COURT: J. on. a ?V I N r_ r-..> U 17