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HomeMy WebLinkAbout09-66711 s 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, WILLIAM A. MAXWELL) 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 William A. Maxwell, an adult individual whose date of birth is January 19, 1952, and who resides at 632 North West Street, 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. t r 4. As the result of a personal injury claim, Payee is entitled to receive 240 monthly payments each in the amount of $2,290.40 commencing on February 15, 1995 through and including January 15, 2015, and then continuing for life thereafter (an Income Verification Letter reflecting these payments is attached hereto as Exhibit "A"). 5. By operation of a Uniform Qualified Assignment, the obligation to make the monthly payments is held by Travelers Casualty & Surety Company, the Structured "Settlement Obligor" as defined by 40 P.S. § 4002. Travelers Casualty & Surety Company is located. at 2711 Centerville Road, Suite 400, Wilmington, Delaware 19808. 6. The obligation was funded through the issuance of an annuity by ING Life Insurance and Annuity Company (the "Annuity Issuer"). ING Life Insurance and Annuity Company is located at ING Americas, One Orange Way, Windsor, Connecticut 06095. 7. On June 9, 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 60 monthly payments each in the amount of $400.00 commencing on February 15, 2010 through and including January 15, 2015; and 108 monthly payments each in the amount of $1,290.40 commencing Page 2 of 6 W on February 15, 2015 through and including January 15, 2024, 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. 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 vehicle, lease an apartment, and establish a savings account. (Exhibit "C", para. 7). 10. 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". 11. Based on the net amount that the Payee will receive from this transaction ($24,218.23), 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 28.62% per year. 12. 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 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 6 I f 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". 13. Payee's annuity payments are life-contingent. Accordingly, Payee intends to purchase a policy of term life insurance having an estimated premium not to exceed $11,172.21 to ensure that the Transferee receives the benefit of its consideration (the value of the payments to be transferred) in the event that Payee passes away prior to the due date of the final monthly payment, January 15, 2024. (See, Exhibit "C", para. 7, describing the estimated insurance premium for term life insurance). 14. Payee has been advised to seek independent legal advice regarding the implications of the transfer, including the tax ramifications of the transfer, as reflected in the "Acknowledgment" signed on June 9, 2009, attached hereto as 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"). Page 4 of 6 16. Transferee 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 "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. 20. Pursuant to Cumberland County Local Rule 208.3(a)(2), no judge of this County has ruled on any issue in the same or related matter. Page 5 of 6 WHEREFORE, Settlement Funding, LLC, and William A. Maxwell, pray that this Honorable Court grant this Petition to Transfer Structured Settlement Payment Rights. Respectfully submitted, Swartz C LLC By: Ronald eitz Attorney for Transferee Page 6 of 6 ? E 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: KURT MOODY G G 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 & day of October, 2009 on: Travelers Casualty & Surety Company Corporation Service Company Att'n: SOP Department 2711 Centerville Rd., Suite 400 Wilmington, DE 19808 ("Settlement Obligor") ING Life Insurance and Annuity Company Attn: Ida I. Colon ING Americas One Orange Way Windsor, CT 06095-4774 ("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") William A. Maxwell 632 N. West St. Carlisle, PA 17013-1966 ("Payee") Swartz C p 1 C By: R nald z Attorney for Transferee 04/03/2006 16:07 FAX 7172332667 ANTHONY STEPANON "` "...•?"""""'?? 411 Pamela W.? lbbl t e MWWW velle / ? ?? ??yy 1' ' y/??.?WJry / '''_Y amm Lo 7 (M) 277,27 09 (800) 277 (tom Om Tower Square Kwftrd, OT 06183 INCOME . _?' LETTER Annuitant: William Maxwell Contract: WS200811 A Owner: Travelers Casualty and Surety Company Issuer: ING - ALIAC This is to ggnf= the fat .qM= 2 U= Maxwell, $2,290.40 per month guaranteed for 240 months cflmmencing February 15, 1995 through and including March 15, 2015. QU002/002 Benefks Letter $2,290.40 per month guaranteed for the life of the Annuitant cottmxencing February 15'2015 , and payable each month as long as the Anuuwitaut is living. (If the Annuitant is deceased prior to February 15, 201.5, no payrnents will be made) r t Jun 09 .09 06:22p ABSOLUTE ASSIGNMENT AGREEMENT (THE "AGREEMENT") June 7, 2009 p.2 1, William A. Maxwell a/k/a William Maxwell, ("I", "Me" or "Assignor") residing at 632 N. West St. Carlisle, PA 17013- 1966 am entitled to 240 monthly payments each in the amount of $2,290.40 commencing on February 15, 1995 through and including January 15, 2015 and then continuing for life thereafter (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 February 1, 1995 (the "Settlement Agreement'). The Periodic Payments are due to me from Travelers Casualty & Surety Company (the "Settlement Obligor") under the terms of the Settlement Agreement and are being funded by an annuity issued by ING Life Insurance and Annuity Company (the "Annuity issuer") bearing annuity contract number WS200811A. 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: 60 monthly payments each in the amount of $400.00 commencing on February 15, 2010 through and including January 15, 2015 and 108 monthly payments each in the amount of $1,290.40 commencing on February 15, 2015 through and including January 15, 2024. (the Assigned Payments"); and If any of the Assigned Payments are life-contingent, the payments under the insurance policy described in Paragraph D.4. below to the extent of the undiscounted sum of all such life-contingent structured settlement or annuity payments sold to Assignee and not yet received as of the date of my death prior to the due date of the last life-contingent Assigned Payment. In consideration for this assignment, Assignee shall pay to me the sum of $37,590.44 (the "Assignment Price"Y 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 same. 3. 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 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. 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: 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 oft Periodic Pa ments directly to Assignee. Jun 09 09 06:22p p.3 3. Assignee shall have received final financing approval from applicable funding source(s). 4. In the event any of the Assigned Payments are life-contingent, Assignee shall have received a fully paid for life Insurance policy acceptable to the Assignee, in its sole discretion, on the life of the Assignor. 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 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, 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 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 Rutes 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 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 parry 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 1 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 Attorney-in-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. Jun 09 09 08:23P p.4 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). 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. .1, I know that It will take some dme 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 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 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 pad matede herewith. In witness whereof I hereunto set my hand. -4`f - -14 ,?b rY-Vlffam A axwell b-NA William Ma 4- I STATE OF T l'15 1v LV')1 0,- COUNTY OR CITY OF n Jae_r- - On the day of ? I t l . In the year 2CM before me, the undersigned, personally appeared William A. Maxwell, personally known to me or proved to me on the basis of satisfactory evidence to be the individual(s) whose name(s) is taro) subscribed to the within instrument, and acknowledged to me that he/sheAhey executed the same in his/f0ltheircapacity(ies), and that by hislher/their signature(s) on the instrument, the individual(s), or the person upon behalf of which the Individual(s) acted, executed the instrument mmeew?eleh o NOTARIAL SEAL I H?TRown be tW CCo" commiuim, kaAprN22,20i1 Notary My Commission expires on 2?-> 1 ZU 11PLEASE DO NOT SIGN THIS Accepted: DOCUMENT UNTIL 06107/2009 Tement FindIft fr L.C. e ! T le: ?o Lit' Date: y . I 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, William A. Maxwell a/k/a William Maxwell, the payee, verify that the statements below are true and correct: 1. Payee's name, address and age: William A. Maxwell a/k/a William Maxwell residing at 632 North West Street, Carlisle, PA 17013-1966 and I am 55 years old. 2. Marital Status: Never Married; Married; Separated; X_ Divorced If married or separated, name of spouse: 3. Minor children and other dependents: Names, ages, and places of residence: No dependent children. 4. Income: (a) Payee's monthly income and sources: I am retired and I receive $718.00 per month from my retirement pension. I will also continue to receive structured settlement payments of $800.00 per month through January 15, 2010. On February 15, 2010, the payments will decrease to $400.00 per month and continue through January 15, 2015. Starting on February 15, 2015, I will begin to receive payments of $1,000.00 per month through January 15, 2024. On February 15, 2024, I will start receiving payments of $2,290.40 per month and continuing for life thereafter. (b) If presently married, spouse's monthly income and sources: N/A. 5. Child support, alimony or alimony pendente lite: 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? X Yes 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: State of South Carolina, County of Lexington, In Re: Application of Settlement Funding, LLC d/b/a Peachtree Settlement Funding, and William Maxwell for Approval of Transfer of Structured Settlement Payment Rights Under S.C. Code 15-50-60, In the Court of Common Pleas, Case NO. 06-CP-32-754. The Court approved this matter. State of South Carolina, County of Lexington, In Re: Application of Settlement Funding, LLC d/b/a Peachtree Settlement Funding, and William Maxwell for Approval of Transfer of Structured Settlement Payment Rights Under S.C. Code 15-50-60, In the Court of Common Pleas, Case NO. 06-CP32-3716. The Court approved this matter. (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: The transferee was Settlement Funding, LLC and the payments involved were 105 monthly payments each in the amount of $950.00 commencing on May 15, 2006 through and including January 15, 2015. For the December 2006 (second) transfer, the transferee was Settlement Funding, LLC and the payments involved were 96 monthly payments each in the amount of $540.40 commencing on February 15, 2007 through and including January 15, 2015. (ii) State the amount of money and the manner in which the money was used: I received approximately $38,720.32 in April of 2006, of which I used $35,000.00 to purchase property in Lexington, SC, $1,700.00 to pay property taxes, $2,000.00 to clear the land and install utilities. I received approximately $23,000.00 in December 2006, which I used to finish clearing the land, lay the driveway and install a septic tank. (c) 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: First, I plan to use $20,000.00 for the outright purchase of a Dodge SLT pick up truck, which will eliminate the burden of monthly car payments and free up my finances to cover other living expenses. Next, I will use $2,400.00 to lease an apartment, including the security deposit and the first and last months' rent. Then, I will place $1,700.00 into an emergency savings account. Finally, I intend to use approximately $11,172.21 (the "Estimated Premium") of the proceeds that I will receive from this 4 ? transaction to purchase a term life insurance policy. I will be the owner of this life insurance policy and I can choose the beneficiary of this policy. I understand Collateral Assignment of this policy limits my rights of ownership. This Collateral Assignment provides that Settlement Funding will only receive the portion of the life insurance face value equal to the number of structured settlement payments transferred but not received if I pass away before January 15, 2024. My beneficiary will receive the remaining face value. The price of the term life insurance policy was generated from information I provided to Settlement Funding. I understand if the information I provided is not accurate, the price of the term life insurance could be considerably higher than disclosed. The payments I am proposing to transfer and assign to Settlement Funding are life contingent structured settlement payments. As such, if I were to pass away before this agreement reaches full maturity, Settlement Funding could lose a significant portion of their anticipated consideration as proposed under this agreement. Therefore, to ensure Settlement Funding receives the full benefit of their anticipated consideration, and to ensure life insurance is in place to provide for my beneficiary, I intend to purchase a term life insurance policy and collaterally assign it to Settlement Funding. Settlement Funding advised me that in the event insurance can not be obtained, or if the cost of such insurance is exorbitant, Settlement Funding may be willing to accept this mortality risk (i.e. the risk that I may pass away and they will not receive the payments they have purchased) in exchange for a self-insurance premium to be retained by Settlement Funding. Settlement Funding advised me such self-insurance premium would not be more than $11,172.21(the "Maximum Premium"). I agree that, in the event Settlement Funding accepts the mortality risk, Settlement Funding may deduct an amount not to exceed the Maximum Premium from my purchase price. A sale of a lesser amount will not be enough to accomplish my financial goals described above. 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: N/A. Debt Creditor Amount Owed Jun 09 09 06:25p P.10 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. §4944, relating to unworn falsification to authorities. PATE. _ 0-1 Wi Liam A, axwell a/k/a William axwell {Jun b9 09 06:38p p.7 PENNSYLVANIA TRANSFER DISCLOSURE Payee: William A. Maxwell a/k/a William Maxwell; resident of: PA A. Amounts and due dates of the structured settlement payments to be transferred: 60 monthly payments each in the amount of $400.00 commencing on February 15, 2010 through and including January 15, 2015. 108 monthly payments each in the amount of $1,290.40 commencing on February 15, 2015 through and including January 15, 2024. B. Aggregate amount of such payments: $163,363.20 C. (1) Discounted present value of such payments: $131,561.27 (2) The discount rate used in determining such discounted present value: 2.40 percent as of May 28, 2009. D. Gross amount payable to the Payee in exchange for such payments: $37,590.44 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; Term/Self Insurance: $11,172.21 for the purchase of a term life insurance policy, or if a term life insurance policy is not purchased, Transferee will retain this amount (in consideration of the substantial risk inherent in the life contingent nature of the structured settlement payments). F. Net amount payable to Payee after deduction of all commissions, fees, costs, expenses and charges described above: $24,218.23 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: 18.41% 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 r 1. ,Jun 09 09 06:38p 4 p.8 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: By signing below you are confirming that you received a copy of this disclosure at least 10 days prior to executing your transfer agreement. ;d,oe ile 11"L," all, ?evw , ? `'f ?ti l 'Will l A. axwell alk/a William Maxwell Date Jun 09 09 06:56p NOTICE (PA) Payee: William A. Maxwell a/k/a William Maxwell p.1 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. Q4 ffo& =49 P Willi, -am A. Maxwell a/k/a William Maxwell Date I ? Jun 09 09 06:57p ACKNOWLEDG, 9MENT (PA) Payee: William A. Maxwell a/k/a William Maxwell (Please initial the following statement) p.3 I expressly waive independent legal advice regarding the implications of the transfer, including considerations of the tax ramifications of the transfer. Initials) il!aA. Maxwell a/k/a William Maxwell 9 6'T Date 4 A [ ? 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, WILLIAM A. MAXWELL) 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 pursuant t Pa.R.C.P. 229.2. Aca a - Ronald tz 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 1 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. FELE0-+a:,,;r,F OF THc pp TAf?Y 2009 OCT -7 AN 11: ?`f S 7 ?. sa e,k 3 2 3 G je, 3 J5"S`7 OCT 0 9 2009 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, WILLIAM A. MAXWELL) q. L 4 '7 . No. INITIAL ORDER OF COURT On this 01'-day of Q? 2009, it is ordered that a hearing on this Petition to Transfer Structured Settlement Payment Rights will be held on / a;?r 0?q+J90j , in Courtroom --*- - 5 at g.'90 AIYZ 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: Y?to, (?- -- ,, \\ , J. ?p lpfi APY X099 GL,T 1 2 AIM !I• S9 f 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, WILLIAM A. MAXWELL) Civil Division No.: 09-6671 Civil Term COUNSEL OF RECORD FOR THIS PARTY: ORIGINAL VERIFICATION OF KURT MOODY Ronald E. Reitz Pa. I.D. No. 55408 Filed on behalf of Transferee, Settlement Funding, LLC d/b/a Peachtree Settlement Funding SWARTZ CAMPBELL LLC Firm I.D. No. 765 4750 U.S. Steel Tower 600 Grant St. Pittsburgh, PA 15219 412.232.9800 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: 10,6-(1?? KURT MOODY E7 • CERTIFICATE OF SERVICE I hereby certify that a true and correct copy of the foregoing ORIGINAL VERIFICATION OF KURT MOODY was served by regular United States mail, postage pre-paid, on this 8th day of October, 2009 on: Travelers Casualty & Surety Company Corporation Service Company Att'n: SOP Department 2711 Centerville Rd., Suite 400 Wilmington, DE 19808 ("Settlement Obligor") ING Life Insurance and Annuity Company Attn: Ida I. Colon ING Americas One Orange Way Windsor, CT 06095-4774 ("Annuity Issuer") Kurt Moody, Esquire Structured Settlements-In-House Counsel Peachtree Settlement Funding 3301 Quantum Boulevard, Second Floor Boynton Beach, FL 33426 ("Transferee") William A. Maxwell 632 N. West St. Carlisle, PA 17013-1966 ("Payee") Swartz 1 C By: Ronald E. Reitz Attorney for Transferee FILED- TI-IfE F:)T'-!(-?.!'?Tl'RY OF 2009 OCT 13 PH 3: 4 4 CJ r' v Vly 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, WILLIAM A. MAXWELL) No. 2009-6671 Civil Term NOTICE OF HEARING ON PETITION TO TRANSFER STRUCTURED SETTLEMENT PAYMENT RIGHTS To: Travelers Casualty & Surety Company Corporation Service Center Att'n: SOP Department 2711 Centerville Rd., Suite 400 Wilmington, DE 19808 ("Settlement Obligor") ING Life and Annuity Company Att'n: Ida I. Colon ING Americas One Orange Way Windsor, CT 06095-4774 ("Annuity Issuer") Kurt Moody, Esquire Structured Settlements-In-House Counsel Peachtree Settlement Funding 3301 Quantum Boulevard, Second Floor Boynton Beach, FL 33426 ("Transferee") William A. Maxwell 632 N. West St. Carlisle, PA 17013-1966 ("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 Tuesday, November 29, 2009 at 8:30 a.m. in Courtroom No. 5 before Hon. M.L. Ebert, Jr., 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. /0 ot- Dat? C9A ) 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 BEARING ON PETITION TO TRANSFER OF STRUCTURED SETTLEMENT PAYMENT RIGHTS has been served by certified mail, return-receipt requested, postage pre-paid, on this /J?tday of October, 2009 on: Travelers Casualty & Surety Company Corporation Service Company Attn: SOP Department 2711 Centerville Rd., Suite 400 Wilmington, DE 19808 ("Settlement Obligor") ING Life Insurance and Annuity Company Att'n: Ida I. Colon ING Americas One Orange Way Windsor, CT 06095-4774 ("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") William A. Maxwell 632 N. West St. Carlisle, PA 17013-1966 ("Payee") Swartz 1 LLC By: Ronald E. Reitz Attorney for Transferee FILED-,";F'F- 2G09 0 C T 16 PM 3: 30' IN RE: PETITION OF SETTLEMENT FUNDING, LLC d/b/a PEACHTREE SETTLEMENT FUNDING TO TRANSFER STRUCTURED SETTLEMENT PAYMENT RIGHTS (PAYEE, WILLIAM A. MAXWELL) ORDER OF COURT AND NOW, this 24th day of November, 2009, upon consideration of the information received from Ronald E. Reitz, Esquire, attorney for the Transferee that Mr. Maxwell is ill and unable to be here today for the hearing, IT IS HEREBY ORDERED AND DIRECTED that the hearing is continued until Monday, December 21, 2009, at 8:30 a.m. in Courtroom No. 5 of the Cumberland County Courthouse, Carlisle, Pennsylvania. IT IS FURTHER ORDERED AND DIRECTED that Attorney Reitz shall notify all parties of the new hearing date and time. By the Court, ?? A ?XA \ ? M. L. Ebert, Jr., J. Ronald E. Reitz, Esquire 4750 U. S. Steel Tower 600 Grant Street Pittsburgh, PA 15219 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 09-6671 CIVIL IN RE: CONTINUANCE OF HEARING DATE tla7 bas Fil FE-"- OF 40TARY 2009 NOV 24 PH 12: 51 'C vi?fz_b'f !'i= IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA N RE: PETITION OF SETT"CEMENT FUNDING, LLC d/b;'a/ PEACHTREE SETTLEMENT FUNDING TO TRANSFER STRUCTURED SETTLEMENT PAYMENT RIGHTS . (PAYEE, WILLIAM A. MAXWELL) . No. 2009-6671 Civil Term PRAECIPE TO DISCONTINUE ';':.~: PRO`1HONOTARY OF CUMBERLAND, PENNSYLVANIA: Petitioner, Settlement Funding, LLC d/b/a Peachtree Settlement Funding, hereby requests that the above captioned mattF.~r be discontinued. Respnectf/ully submitted, SWPB~IZ [CiL~1P~ELL LhC Ronald E.'Reitz Counsel for Transferee, Settlement Funding, LLC CERTIFICATE OF SERVICE I hereby certify that a true and correct copy of the foregoing PRAECIPE TO DISCONTINUE was served by regular U.S. mail, postage pre-paid, on this 25th day of November, 2009 on: Travelers Casualty & Surety Company Corporation Service Company Attn: SOP Department 271_ Centerville Rd., Suite 400 Wilmington, DF. ~~_9~08 ("Settlement Obligor") ING Life Insurance and Annuity Company Attn: Ida I. Color~~ ING Americas One Orange Way Windsor, CT 0609~~-47 74 ("Annuity Issuer") Kurt Moody, Esquire Structured Settlements-In-House Counsel Peachtree Settlement Funding 3301 Quantum Boulevard, Second Floor Boynton Beach, ~'L 33426 ("Transferee") Williarri A. Maxwell 632 N. West St. Carlisle, PA 1701.3-1966 ("Payee") Swartz m 1 LLC By: Rona .u E. R itz P_ttor.nev for Petitioner L~n~ irLit.~ ~%u i'~ ~~ ~ . (',, '.