Loading...
HomeMy WebLinkAbout09-3223IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA IN RE: PETITION OF SETTLEMENT , FUNDING, LLC d/b/a/ , PEACHTREE SETTLEMENT No. OQ - 3al.?,Z / FUNDING TO TRANSFER U? y STRUCTURED SETTLEMENT PAYMENT RIGHTS (PAYEE, CURTIS L. , HIPPENSTEEL) 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 Curtis L. Hippensteel, an adult individual whose date of birth is October 2, 1986, and who resides at 425 Croghan Drive, 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 October 2, 2004 through and including September 2, 2014, and lump sum payments each in the amount of $118,150.00 due on October 2, 2011; October 2, 2016; October 2, 2021; and in the amount of $118,903.26 due on October 2, 2026. An excerpt of Payee's Annuity Payment schedule is attached hereto as Exhibit "A". 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 May 13, 2009, Payee executed an Absolute Assignment Agreement (the "Transfer Agreement"), a true and correct copy of which is attached hereto and incorporated herein by reference as Exhibit "B". The Transfer Agreement provides for the assignment of Payee's right and interest in receiving lump sum payments of $43,150.00 due on or about October 2, 2011, Page 2 of 5 and $43,150.00 due on or about October 2, 2016, 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 May 13, 2009. 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 "C". As set forth in further detail in the Affidavit, the purpose of this transaction is to purchase a new car, pay off a loan, and establish an emergency fund. (Exhibit "C", 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 "D". 12. Based on the net amount that the Payee will receive from this transaction ($36,394.26), 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 21.84% per year. 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 5 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 "E". 14. Payee has been advised to obtain independent legal advice regarding the implications of the transfer, including the tax ramifications of the transfer, as reflected in the "Acknowledgment" dated May 13, 2009 (Exhibit "F"). 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 "G"). 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. Page 4 of 5 18. A brief discussion regarding the non-applicability of anti-assignment provisions is attached for the Court's convenience, as Exhibit °H" 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 Payee's independent determination and advice obtained from others, with respect to the advisability and ramifications of the transfer. WHEREFORE, Transferee, Settlement Funding, LLC, and Payee, Curtis L. Hippensteel, pray that this Honorable Court grant this Petition to Transfer Structured Settlement Payment Rights. Respectfully submitted, Swartz ¢ar 1 , LC By: Ronald E. Utz Attorney for Transferee Page 5 of 5 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: .? ??Cy°, T 0 OD 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 2041" day of May, 2009 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") Curtis L. Hippensteel 425 Croghan Dr. Carlisle, PA 17013-9505 ("Payee") Branden Hippensteel 121 Spur Road Carlisle, PA 17013-9505 Swartz 1 By: Ronald E. Reitz Attorney for Transferee 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, CURTIS L. HIPPENSTEEL) FINAL ORDER On this 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, Curtis L. 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 payments to be transferred are designated as follows: lump sum payments of $43,150.00 due on or about October 2, 2011, and $43,150.00 due on or about October 2, 2016 (the "Assigned Payments")— (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 Payments, 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 $38,594.26. BY THE COURT: J. SCHEDULE POLICY NUMBER: 404,599 EFFECTIVE DATE: 12-29-2000 SINGLE PREMIUM: $10.00 AND OTHER VALUABLE CONSIDERATION OWNER: AMERICAN GENERAL ASSIGNMENT CORPORATION MEASURING LIFE: CURTIS LEE DAVIS AGE (NEAREST BIRTHDAY) OF MEASURING LIFE ON EFFECTIVE DATE: 14 NUMBER, MANNER, AND MODE OF INSTALLMENT PAYMENTS TO BE MADE: GUARANTEED PAYMENTS: BEGINNING ENDING DATE DATE 10-02-2004 9-02-2014 10-02-2008 10-02-2008 10-02-2011 10-02-2021 10-02-2026 10-02-2026 PAYMENT AMOUNT $500.00 $118,150.00 $118,150.00 $118,903.26 FREQUENCY ANNUAL RATE OF IN- OF PAYMENT CREASE IN PAYMENTS MONTHLY --p-- SINGLE --0-- EVERY 5 YEARS --0-- SINGLE --0-- IF THE MEASURING LIFE DIES PRIOR TO PAYMENT OF ALL INSTALLMENTS DURING THE GUARANTEED PERIOD, ANY REMAINING PAYMENTS DUE SMALL BE PAID IN ACCORDANCE WITH THE SETTLEMENT AGREEMENT, AS THEY BECOME DUE. FIRST INSTALLMENT DUE DATE: 10-02-2004 COPY OF ORIGINAL PAGE 3 May 13 09 04:24p Sally R. Rowe 717-597-0186 p.4 ABSOLUTE ASSIGNMENT AGREEMENT (THE "AGREEMENT") May 13, 2009 1, Curtis L Hippensteel alkla Curtis Lee Davis alkla Curtis Davis, Cl", "Me" or "Assignor") residing at 425 Croghan Dr Carlisle, PA 17013-1713 am entitled to 120 monthly payments each in the amount of $500.00 commencing on October 2, 2004 through and including September 2, 2014 and lump sum payments as follows: $118,150.00 due on October 2, 2011; $118,150.00 due on October 2, 2016; $118,150.00 due on October 2, 2021 and $118,90126 due on October 2, 2026 (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 dated March 26, 2001 (the "Settlement Agreement"). The Periodic Payments are due to me from American Genera{ 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 Issuers) bearing annuity contract number 404,599. 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: Lump sum payments as follows: $43,160.00 due on or about October 2, 2011 and $43,150.00 due an or about October 2, 2016 (the "Assigned Payments"); and In consideration for this assignment, Assignee shall pay to me the sum of $38,594.26 (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. 3. t 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 B 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. 61 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: 1. 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. 3. Assignee shall have received final financing approval from applicable funding source(s). May 13 09 04:24p Sally S. Rowe 717-597-0106 p.6 E. 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 Intangibles under Article 9 of the Uniform Commercial Code of the state designated in Paragraph F below. This Agreement shah 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 instnxnent, 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 controversles, 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, shall be settled by binding arbitration administered by the American Arbitration Association. The demand for arbitration shall be filed in writing with the other party to this Agreement and % With the American Arbitration Association offices In your state of residence. The arbitration shah 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. Discovery, 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 limitations. No arbitration arising out of or relating to this Agreement shall 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 specific 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, dispute 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 duty 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 shah 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 after, edit and change payment instructions and/or beneficiary designations and any other act which, in the sole discretion of Assignee as my Attomey4n-Fact is necessary or expedient for It to obtain all of the benefits 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 May 13 09 04:25p Sally A. Rowe 717-597-0186 p.7 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). 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 servicer 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 Amount") 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 andlor Settlement Obligor sent to me while the Settlement Obligor and the Annuity Issuer were processing the court order. K. This Agreement shall take effect on the date it is signed by me (the Assignor) or on such later date prescribed by applicable statutory law L. All disclosure statements are a material part of this Agreement and shall be read in pars materla herewith. In witness whereof I hereunto set my hand. A --,/ 1--,- Ctj?d". Hippdfistebl 80"K Cur s Lee Davis STATE OF Pl? a/k/a Curtis Davis e.. COUNTY OR CITY OF 112 a On the 1,3 day of .,A A ` , In the year before me, the undersigned, personally appeared Curtis L. Hippensteei, personal) 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 helshe/they executed the same in h1wherAheir capacity(ies), and that by his/her/their signature(s) on the instrument, the individual(s), or the person uocn behalf nr which the individual(s) acted, executed the instrument. NOTARIAL SEAL SALLY A ROWE Notary Puble GREENCASTLE DOWNH, fRA14lU.Ad COON My Commission Expkes Apr 10, 2010 Owe.... My Commission expires on Accepted: 5ettl$ment Fu di ItL.C. Title: v Date: S'1 131 Q 9 PLEASE DO NOT SIGN THIS DOCUMENT UNTIL 05/13/2009 Mai 13 09 04:26p Sally R. Rowe 717-597-0186 p.8 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA PETITION OF SETTLEMENT ) FUNDING LLC d/b/a PEACHTREE ) SETTLEMENT FUNDING TO ) No. TRANSFER STRUCTURED ) SETTLEMENT PAYMENT RIGHTS ) Payee's Affidavit in Support of Petition to Transfer Structured Settlement Rights I, Curtis L. Hippensteel a/k/a Curtis Lee Davis Wa Curtis Davis, the payee, verify that the statements below are true and correct: f. Payee's name, address and age: Curtis L. Hippensteel aWa Curtis Lee Davis, a/k/a Curtis Davis residing at 425 Croghan Drive, Carlisle, PA 17013»1713 and I am 22 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: Caleb Greenaway, four-years old and lives at same address as above. 4. Income: (a) Payee's monthly income and sources: I am a machine operator at Land O'Lakes where I eam $2,500.00 per month. In addition, I will continue to receive structured settlement payments of $500.00 per month through September 2, 2014. I will also receive the following lump sum payments: $75,000.00 due on October 2, 2011; May 13 09 04:26p Sally R. Rowe 717-597-0186 p.9 $75,000.00 due on October 2, 2016; $118,150.00 due on October 2, 2021 and $11$,150.00 due on October 2, 2026. (b) If presently married, spouse's monthly income and sources: 5. Child support, alimony or alimony pendente late: 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 X 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: (ii) State the amount of money and the manner in which the money was used: Have you ever transferred payments without court approval? No. If so, please explain: May 13 09 04:27p Sally R. Rowe 717-597-0188 p.10 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: My current car is thirteen years old and in bad condition, so 1 plan to use $22,900.00 of the proceeds to buy a new Honda Pilot, in full. Paying for the car outright will eliminate the burden of monthly car payments and free up my finances to cover other living expenses. Next, i plan to use $11,000.00 to repay a personal loan from Cornerstone Credit Union. Finally, I will put the remaining proceeds of $3,000.00 into an emergency savings account. A sale of a lesser amount will not be enough to accomplish my financial goals. 8. 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 Loan Cornerstone C.U. $11.000.00 May 13 09 04:27p Sally R. Rowe 717-597-0186 p.11 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 unworn falsification to authorities. DATE:14 .1604) Tom' Curtis L. H nsteel afta C e Davis awa Curtis Davis May 13 09 04:39p Sally R. Rowe 717-597-0186 p.2 PENNSYLVANIA TRAHSEgR DInSPLOSURE Payee: Curtis Hippensteel a/k/a Curtis Lee Davis a/k/a Curtis Davis; resident of: PA A. Amounts and due dates of the structured settlement payments to be transferred: Lump sum payments as follows: $43,150.00 due on or about October 2, 2011 and $43,150.00 due on or about October 2, 2016. B. Aggregate amount of such payments: $86,300.00 C. (1) Discounted present value of such payments: $76,821.52 (2) The discount rate used In determining such discounted present value: 2.40 percent as of May 5, 2009. D. Gross amount payable to the Payee in exchange for such payments: $38,594.26 E. Itemized listing of all brokers' 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 Fee: $200.00. F. Net amount payable to Payee after deduction of all commissions, fees, costs, expenses and charges described above: $36,394.26 minus any advances made to Payee against the amount payable to Payee. G. An estimate of the Administrative fee(s) being charged by the Annuity Owner and or the Annuity Issuer to be paid by the transferee (not the consumer) as a result of the transfer: AIG Annuity Insurance Company - $500.00. H. The quotient, expressed as a percentage, obtained by dividing the net payment amount by the discounted present value of the payments: 47.38%. 1. 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 May 13 09 04:39p Sally R. Rowe 717-597-0188 p.3 J. Payee acknowledges receipt of, and acknowledges to have read and understood, the above disclosure statement and Information required to be disclosed by Payee's applicable state statute(s). Initials:-Qi._...._ By signing below you are confirming that you received a copy of this disclosure at least 10 days prior to executing your transfer agreement. Cu HI en keel a Curtis Lee Davis a/kla Curtis Davis W4.1 r-,? q Date / May 13 09 04:40p Sally R. Rowe 717-597-0166 p.4 NOTICE (PA) Payee: Curtis Hippensteel alkla Curtis Lee Davis alkla Curtis Davis IMPORTANT NOTICE: You are strongly urged to consult with an attorney who can advise you of the potential tax consequences of this transaction. I acknowledge receipt of the above notice. By signing below you are confirming that you received a copy of this notice at least 10 days prior to executing your transfer agreement. C rtis Hip s /kla Curtis Lee Davis a/kla Curtis Davis Date May 13 09 04:40p Sa11w R. Rowe 717-597-0186 p.6 ACKNOWLEDGEMENT (PA) Payee: Curtis Hippensteel a/k/a Curtis Lee Davis a/kla Curtis Davis (Please initial the following statement) I expressly waive independent legal advice regarding the implications of the transfer, including considerations of the tax ramifications of the transfer. C.? (Initials) C is Hippensteei a Curtis Lee Davis a/kla Curtis Davis Date 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, CURTIS L. 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 pursua o Pa.R.C.P. 229.2. Ronald E. Reitz Background on Stractured 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 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. cill Fill E', r u .I8 i 1 `aA 1' *2 1 f, ` It 0: T SU IL4 ( eK? ?oGs R? ?2sv7? MAY 2 7 2009 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA IN RE: PETITION OF SETTLEMENT FUNDING, LLC d/b/a/ PEACHTREE SETTLEMENT No. oQ - 3223 FUNDING TO TRANSFER STRUCTURED SETTLEMENT PAYMENT RIGHTS (PAYEE, CURTIS L. HIPPENSTEEL) INITIAL ORDER OF COURT On this AA day of AA °-?-, 2009, it is ordered that a 1 hearing on this Petition to Transfer Structured Settlement Payment Rights will be held one > ??cy 9 in Courtroom at 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 t the hearing. J. BY THE COURT: ? ?ff / JJ ?33fSn3CC1 . ???W S3tG?v;? _ IJ-O S 7' 1 U l b?? r , IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA IN RE: PETITION OF SETTLEMENT FUNDING, LLC d/b/a/ PEACHTREE SETTLEMENT No. 09-3223 FUNDING TO TRANSFER STRUCTURED SETTLEMENT PAYMENT RIGHTS (PAYEE, CURTIS L. HIPPENSTEEL) . NOTICE OF HEARING ON PETITION TO TRANSFER STRUCTURED SETTLEXW PAYMENT RIGHTS To: American General Assignment Corporation Attn: Dona Clements, Legal Assistant 205 East 10th Ave. Amarillo, TX 79101 ("Settlement Obligor") AIG Annuity Insurance Company Attn: Dona Clements, Legal Assistant 205 East 10th Ave. Amarillo, TX 79101 ("Annuity Issuer") Kurt Moody, Esquire Structured Settlements-In-House Counsel Peachtree Settlement Funding 3301 Quantum Boulevard, Second Floor Boynton Beach, FL 33426 ("Transferee") Curtis L. Hippensteel 425 Croghan Dr. Carlisle, PA 17013-9505 ("Payee") Brandon Hippensteel 121 Spur Road Carlisle, PA 17013-9505 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, June 26, 2009 at 9:30 a.m. before Hon. J. Wesley Oler, Jr. in Courtroom No. 1, 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. Pursuant to 40 P.S. §4003(a) (6), the Transferee's name, address, and taxpayer identification are: Settlement Funding, LLC 3301 Quantum Boulevard Boynton Beach, Florida 33426 Taxpayer I.D. No.: 58-2292928. Date 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 CERTIFICATE OF SERVICE I hereby certify that a true and correct copy of this NOTICE OF HEARING ON PETITION TO TRANSFER STRUCTURED SETTLEMENT PAYMENT RIGHTS has been served by certified (mail, return-receipt requested, postage pre-paid, on this z0 ~day of May, 2009, on: American General Assignment Corporation Attn: Dona Clements, Legal Assistant 205 East 10th Ave. Amarillo, TX 79101 ("Settlement Obligor") AIG Annuity Insurance Company Attn: 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") Curtis L. Hippensteel 425 Croghan Dr. Carlisle, PA 17013-9505 ("Payee") Branden Hippensteel 121 Spur Road Carlisle, PA 17013-9505 Swartz b l LLC By: lionald E. Reitz Attorney for Transferee 2 0 0 9 uU! I -2 H 8- I i IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA IN RE: PETITION OF SETTLEMENT FUNDING, LLC d/Wa PEACHTREE SETTLEMENT No. 09-3223 Civil Term FUNDING TO TRANSFER STRUCTURED SETTLEMENT PAYMENT RIGHTS (PAYEE, CURTIS L. HIPPENSTEEL) FINAL. ORDER F CO T_ AND NOW, this 26th day of June, 2009, after hearing, it is ordered that the Petition to Transfer Structured Settlement Payment Rights of Curtis Lee Hippensteel a/k/a Curtis L. Hippensteel aWa Cutis Lee Davis a/k!a Curtis Davis ("Mr. Hippensteel') is granted as described herein. The Court specifically finds that: The transfer of structured settlement payment rights by the payee, Mr. Hippensteel, to the transferee, Settlement Funding, LLC ("Settlement Funding') (the "Proposed Transfer"), as described in the Petition, complies with the requirements of 40 PA. CoNs. ANN. STAT. §§ 4001, et seq., does not contravene any federal or state statute or regulation or any applicable law limiting the transfer of workers' compensation claims, as required by 40 PA. CoNs. ANN. STAT. § 4003(axl ), or the order of any court or responsible administrative authority; 2. Not less than ten (10) days prior to the date on which Mr. Hippensteel first incurred any obligation with respect to the transfer, Settlement Funding provided to Mr. Hippensteel a disclosure statement satisfying the requirements of 40 PA. CONS. ANN. STAT. § 4003(ax2); 3. Mr. Hippensteel has established that the transfer is in his best interests or the best interests of his dependents taking into account the welfare and support of his dependents, if any, as required by 40 PA. CONS; ANN. STAT. § 4003(a)(3); 4. Mr. I ippensteel has received, or waived in writing his right to receive, independent legal advice regarding the implications of the transfer, including consideration of tax ramifications of the transfer, as required by 40 PA. CONS. ANN. STAT. § 4003(ax4); 5. N the transfer would contravene the teens of the structured settlement agreement, the express written approvals have been or will be properly obtained and filed, as set forth in 40 PA. CONS. ANN. STAT. § 4003(ax5); and 6. Mr. I ippensteel has given written notice of the transferee's name, address and taxpayer identification number to the annuity issuer, Western National Life Insurance Company f/k/a AIG Annuity Insurance Company, successor to American General Annuity Insurance Company f/k/a Western National Life Insurance Company ("WNL"), and the structured settlement obligor, American General Assignment Corporation, successor to Conseco Annuity Guarantee Company C AGAC'), and has filed a copy of such notice with the court, as required by 40 PA. CONS. ANN. STAT. § 4003(ax6). 7. Mr. Hippensteel shall receive from Settlement Funding the gross amount of $38,594.26. 8. Mr. Hippensteel represents and warrants that he has all right,, title, and interest in and to the Factored. Payments (defined below), that said payments were not previously transferred, assigned, sold, encumbered, or otherwise alienated, and that he is not aware of any claim or potential claim against, or interest of any third-party in, said payments or payment rights other than as expressly set forth herein. Now, based on the foregoing findings, it is hereby: ORDERED that the Petition is GRANTED and APPROVED as follows: Pursuant to 40 PA. CONS. ANN. STAT. §§ 4001 - 4009 et seq., the assignment by Mr. Hippensteel to Settlement Funding of all of his right, title, and interest in and to certain payments is hereby APPROVED. It is father, ORDERED that WNL is hereby directed on the dates set forth below to deliver and make payable to Settlement Funding, LLC, certain payments due under policy no. 404,599 (the "Annuity'), as follows: one lump sum payment of $43,150.00 due on October 2, 2011; and one lump sum payment of $43,150.00 due on October 2, 2016 (the "Factored Payments"). It is further, ORDERED that the Factored Payments, together with the remaining non- factored portion of the lump sum payments due under the Annuity on October 2, 2011 and October 2, 2016 (the "Factored Period'j, shall be delivered to Settlement Funding, LLC at the following address: Settlement Funding, LLC P.O. Box 116476 Atlanta, Georgia 30368-6476 (the "Designated Address"). It is further, ORDERED that Settlement Funding shall issue to Mr. Hippensteel the non- factored portion of each payment due under the Annuity during the Factored Period (the "Servicing Arrangement'). It is further, ORDERED that Settlement Funding, its affiliates and successors in interest, shall defend, indemnify, and hold harmless WNL and AGAC, and their respective directors, shareholders, officers, agents, employees, servants, successors, and assigns, and any parent, subsidiary, or affiliate thereof and their directors, shareholders, officers, agents, employees, servants, successors, and assigns, past and present, from and against any and all liability, including but not limited to costs and reasonable attorneys' fees, for any and all claims made in connection with, related to, or arising out of the Petition, the Factored Payments, the Servicing Arrangement, or the compliance of WNL and/or AGAC with this Order, except with respect to claims by Settlement Funding against WNL and/or AGAC to enforce the obligations of WNL and/or AGAC to Settlement Funding under this Order. It is further, ORDERED that Settlement Funding,"its affiliates and successors in interest, will indemnify WNL and AGAC (and all of their affiliates, parents and subsidiaries, and their respective directors, officers and employees) from any adverse tax consequences incurred under the Internal Revenue Code arising from or related to WNL's payment to Settlement Funding of the Factored Payments, together with the remaining non-factored portion of each payment due under the Annuity during the Factored Period It is further, ORDERED that neither the fact of the entry of this Order, nor any term or action taken hereunder,. shall be admissible at any time in any action or proceeding for any purpose, except if required in connection with the enforcement of any individual's or entity's rights hereunder. It is futher, ORDERED that Settlement Funding is authorized by this Order to make subsequent assignments or transfers of the Factored Payments, except that regardless of any such subsequent assignment or transfer, the Factored Payments will be serviced by Settlement Funding. In other words, the Factored Payments, together with the remaining non-factored portion of each payment due under the Annuity during the Factored Period, will be sent from WNL to Settlement Funding at the Designated Address only, regardless of any subsequent transfer or assignment of the Factored Payments. However, if for reasons beyond the control of Settlement Funding, or due to Settlement Funding being merged with or acquired by another individual or entity, or for traditional address change purposes (i.e., if Atlanta, Georgia is no longer a viable address for Settlement Funding to receive payments) the Designated Address is no longer valid, WNL will send the Factored Payments, together with the remaining non- factored portion of each payment due under the Annuity during the Factored Period, to a new It is Anther, ORDERED that WNL and AGAC are hereby discharged from all liability for the Factored Payments, together with the remaining non-factored portion of each payment due under the Annuity during the Factored Period, as to all individuals and entities except Settlement Funding. This order is entered without prejudice to the rights WNL and AGAC, and the Court makes no finding regarding the enforceability of any anti-assignment provisions contained in the underlying structured settlement agreement, the Annuity, or related documents. This Order in no way modifies or negates the ownership or control over the Annuity by WNL and AGAC. It is further, ORDERED that the death of Mr. Hippensteel, prior to the due date of the last Factored Payment, shall not affect the transfer of the Factored Payments, together with the remaining non-factored portion of each payment due under the Annuity during the Factored Period, from Mr. Hill to Settlement Funding and Mr. Hippensteel has given up his rights, and the rights of his heirs, assigns, successors, and/or executors, to the Factored Payments. BY THE COURT: FILL-? t ; E CF THF- # p.n?fH ,k{t MARY 209 JUN 26 AM 10: 01 svA.?'q,[ tt r 1f?,. Wa'1 N a ae_INe,rcck clpy 4u c?tfy +??.if? y