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HomeMy WebLinkAbout09-7555 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, CURTIS L. HIPPENSTEEL) No. ?9- '7SSS Ccv?,t ?Lcr? 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 lccated 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 n/k/a Western National Life Insurance Company (the "Annuity Issuer"). AIG Annuity Trisurance Company n/k/a Western National Life Insurance Company is located at 205 East 10th Avenue, Amarillo, Texas 79101. 7. On October 24, 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 Page 2 of 5 t ? lump sum payments as follows: $25,000.00 due on or about October 2, 2011; $35,000.00 due on or about October 2, 2016; and $48,150.00 due on or about October 2, 2021, 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 October 26, 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 vehicle, replace windows in his home, and pay tuition expenses. (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 ($27,508.00), and the amounts and timing of the structured settlement payments that would be assigned, ' 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 the Payee is, in effect, paying interest at the rate of 23.97% per year. 13. Payee has been provided, and has acknowledged receipt, at least 10 days prior to receipt of the Transfer Agreement, of the written "Notice" in bold print 12-point type as required by 40 P.S. § 4003 (b). A true and correct copy of Payee's acknowledgement of the receipt of the § 4003 (b) Notice is attached as Exhibit "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 October 24, 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. 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. 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. 20. Pursuant to Cumberland County Local Rule 208.3(a)(2), Payee has had another matter decided by this Honorable Court, in which a previous structured settlement transfer was approved. This matter was filed at Docket No. 09-3223 (Civil Term), and the final order was filed on. June 26, 2009. 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/?-ubmitted, Swartz CAMNp Je l /j,LC By: Ronald-E. NOitz 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 reaa me zozeyu.iily 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, KU T MOODY e s 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 30th day of October, 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 n/k/a Western National Life Insurance Company Att'n: Dona Clements, Legal Assistant 205 East loth 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") Dana Hippensteel 425 Croghan Dr. Carlisle, PA 17013-9505 Swartz r _1 LLC By. _ Ronald E. eitz Attorney for Transferee 1N 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 tre 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: $25,000.00 due on or about October 2, 2011; $35,000.00 due on or about October 2, 2016; and $48,150.00 due on or about October 2, 2021 (the "Assigned Payments"). (5) the Structured Settlement Obligor is American General Assignment Corporation, and the Annuity Issuer is AIG Annuity Insurance Company n/k/a Western National Life 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 ana assigns. (7) the payee shall receive from the transferee the gross amount of $29,708.00. BY THE COURT: J. SCHEDULE POLICY NUMBER: 404,599 EFFECTIVE DATE: 12-29.7000 SINGLE PRSMIUMs $10.00 AND OTHER VALUABLE CONSIDERATION OWNERS 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 MADEs I-. GUARANTEED PAYMENTS: BEGINNING ENDING PAYMENT FREQUENCY ANNUAL RATE OF IN- DATE DATE: AMOUNT OF PAYMENT CREASE IN PAYMENTS 10-02-2004 9-02-2014 $500.00 MONTHLY --0-- 10-02-2008 10-02-2008 $118,150.00 SINGLE --0-- 10-02-2011 10-02-2021 $118,150.00 EVERY 5 YEARS -0- 10-02-2026 10-02-2026 $118,903.26 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 BSCOME DUE. FIRST INSTALLMENT DUE DATE: 10-02-2004 COPY OF ORIGINAL PAGB 01./16/2007 02:37 7177320282 SUSAN SMITH PAGE 04/46 ABSOLUTE ASSIGNMENT AGREEMENT (THE "AGREEMENT") October 24, 2009 1, Curtis I... Hippensteel a/kia Curtis Lee Davis alk/a Curtis Davis, ("I", "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 $118,903.26 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 Agreement7). The Periodic Payments are due to me from American General Assignment Corporation (the "Settlement Obligor") under the terns of the Settlement Agreement and are being funded by an annuity issued by AIG Annuity Insurance Company nikfa Wesorn National Life Insurance Company (the "Annuity issuer") 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: $25,000.00 due on or about October 2, 2011; $35,000.00 due on or about October 2, 2016 and $48,150.00 due on or about October 2, 2021 (the "Assigned Payments"): and In consideration for this assignment, Assignee shall pay to me the Sum of: $29,708.00 (the "Assignment Price"). S. 1 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 01 and B 2 above are at any time not true. 2 Failure by me to perform the promise set forth in Paragraph 8 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 of the Periodic Payments, directly to Assignee, 3. Assignee shall have received final financing a r v I fr applicable funding source(s)- 01/16/2007 02:37 7177320282 SUSAN SMITH PAGE 05146 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 S 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 5 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 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 govemed by the f=ederal 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, cnn 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 party and shall include legal fees and expenses for the substantially prevailing party. This provision does not apply to the extent inconsistent with applicable state law regarding the transfer of structured settlement payments. In such case any disputes between the parties will be governed in accordance with the laws of the domicile state of the payee and the domicile state of the payee is the proper venue to bring any cause of action arising out of a breach of the agreement. G, I hereby grant to Assignee an Irrevocable Power of Attorney with full powers of substitution to do all acts and things that I might do regarding the Assigned Payments and any and all rights I have under the Settlement Agreement with respect to the Assigned Payments, including, without limitation, the power to endorse checks, drafts or other instruments, the power to alter, edit and change payment Instructions and/or beneficiary designations and any other act which, in the sole discretion of Assignee as my Attorney-in-f=act 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 01/16/2007 02:37 7177320282 SUSAN SMITH PAGE 06/46 Assignee receives or otherwise comes into possession of any of the Periodic Payment(s)oor Ertl st( st ihherreAorfdw iiccthr are not Included in the payments being absolutely assigned to Assignee hereunder, 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 transactlon(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 fhe 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 terns of the court order in writing and their agreement to honor and comply with some. 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 pars meteds herewith. In witness whereof I hereunto set my hand. Curtis L. Hippbrift' UeNs) Curtis Lee Davis a/k/a Curtis Davis STATE OF P OR CITY On the y day of in the year,?pA before me, the undersigned, personally appeared Curtis L. Hippenmeel, personally known to me or proved to me on the basis of satisfactory evidence to be the Individual(s) whose name(s) is (are) subscribed to the within Instrument, and acknowledged to me that he/sheAhey executed the some in his/her/theircapaclty(les), and that by his/her/their signature(s) on the Instrument, the individual(s), or the person upon behalf of which the individual(s) acted, executed the instrument. JU1 JI. l ?. ?e- iVotary My Commission expires on _ S?l"??diGta PLEASE DO NOT SIGN THIS DOCUMENT UNTIL 10/74/2009 Accepted: Settlement Fu Fi.,C. Title: S ?1 aW?NM Date: J 2 i) cl CQUNrV -(9- HAWW 11N? ??? t4, Zt1iZ i w comnNala? te?PMa MdY 01/16/2007 02:37 7177320282 SUSAN SMITH PAGE 07/46 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, FENNSXLVANM 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 'T'ransfer Structured Settlement Rights I, Curtis L. Hippensteel allc/a Curtis Lee Davis aWa Curtis Davis, the payee, verify that the statements below are true and correct: 1. Payee's name, address and age: Curtis L. Hippenrsteel a/k/a Curtis Lee Davis aWa Curtis Davis residing at 425 Croghan Drive, Carlisle, PA 17013-1713 and I am 23 years old. 2. Marital Status: Never Married; X Married; -Separated',; Divorced if married or separated, name of spouse: Dana Hippensteel. 3. Minor children and other dependents: Names, ages, and places of residence: cdeb Greenaway, age 4, and he lives at the same address as above. 4. Income: (a) Payee's monthly income and sources: I work for Land O'Lakes, as a machine operator and I earn $2,500.00 per month. In addition, l will continue to receive structured settlement payments of $500.00 per month through September 2, 2014. 1 will also receive lump sum payments of $54,000.00 due on October 2, 2011, 01/1612007 02:37 7177320282 SUSAN SMITH PAGE 08146 $40,000.00 due on October 2, 2016, $70,000.00 due on October 2, 2021 and $118,903.26 due on October 2, 2026. If presently married, spouse's monthly income and sources: My wife is a stay-at- home mother. 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? _2LYes _ No If yes, for each petition that you filed, (a) If the transfer was submitted for court approval, list the count, the case caption and case number, and state whether the court approved or disapproved the transfer. In the Court of Common Please of Cumberland County, Pennsylvania, In Re: Petition of Settlement Funding, LLC, d/b/a peachtree Settlement Funding to Transfer Structured Settlement Payment Rights (Payee, Curtis L. Hippensteel), Civil Term, No. 09-3223. The Court approved this transfet. (b) If the transfer was approved, (i) State the name of the transferee and identify (listing due dates and payment amnount(s), the payments involved in the transfer: The transferee was Settlement Funding, LLC and the payments involved were lump sum payments of 02/16/2007 02:37 7177320282 SUSAN SMITH PAGE 09/46 $43,150.00 due on or about October 2, 2011 and $43,150.00 due on or about October 2, 2016, (ii) State the amount of money and the manner in whieb the money was used: I received approximately $36,394.00, which l used to buy a car for my wife and to repay a personal loan. (b) 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: I plan to use $15,000.00 of the proceeds to replace my 1995 Isuzu with a recent model Toyota 4-Runner. Then, I will use $5,000.00 to replace the windows in my house, which will make my house more energy-efficient and will reduce monthly heating and cooling bills. Next, I wish to use $4,500.00 to pay tuition at HACC where I will study business computer management. Finally, I intend to place the remaining $3,000.00 into an emergency savings account. A sale of a lesser amount will not be adequate to achieve the above 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: N/A. Debt Creditor Amount Owed 01/16/2007 02:37 7177320282 SUSAN SMITH PAGE 10/46 Verifieatiou 1 verify that the statements made in this affidavit are true and correct. 1 understand that false statements herein are made subject to the penalties of 18 Pa.C.S. §4904, relating to unsworn falsification to authorities. DATE: ta-.";"•©1? Curtis L, Hippensteel is Lee Davis aWa. Cuffs Davis 01/16/2007 02:37 7177320282 SUSAN SMITH PAGE 33/46 PENN YLVANIA TRANSFER DISCLOSURE Payee: Curtis L Hippensteel a/kla Curtis Lee Davis a/kfa Curtis Davis; resident of: PA A. Amounts and due dates of the structured settlement payments to be transferred: Dump sum payments as follows: $25,000.00 due on or about October 2, 2011; $35,000.00 due on or about October 2, 2016= and $48,150.00 due on or about October 2, 2021. B. Aggregate amount of such payments: $108,150.00 C. (1) Discounted present value of such payments: $84,345.65 (2) The discount rate used in determining such discounted present value: 3.20 percent as of October 15, 2009. D. Gross amount payable to the Payee in exchange for such payments: $29,708.00 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: $27,508.00 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: 32.61% 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 01416/2007 02:37 7177320262 SUSAN SMITH PAGE 34/46 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). Inltials:_C,,,?, By signing below you are confirming that you received a copy of this disclosure at least 10 days prior to executing your transfer agreement. Li6kv-SA CCu?ft L. 1 I alk/a Curtis Lee Davis a/k/a Curtis Davis to •dr4-O1 Date .. 1 01/16/2007 02:37 7177320282 SUSAN SMITH PAGE 35/46 NOTICE (PJA Payee: Curtis L. Hippensteel a/k/a Curtis Lee Davis a/k/a 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. Curfis L. Hfppens#eel alk/a Curtis Lee Davis alk/a Curtis Davis (0.2!4- 9 Date II . 01/16/2007 02:37 7177320282 SUSAN SMITH PAGE 37/46 ACKNOWLEDGEMENT WA) Payee: Curtis L. Hippensteel alkla Curtis Lee Davis a/k/a 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) Curtis L. H p of /k/a Curtis Lee Davis a/k/a Curtis Davis Date I 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 R.C.P. 229.2. Ronald E. eitz It .# s 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 AIM 4. o• b 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. RLED- =7FE , ;., 4 ti)TARY CAF THE i 2109 NOV -2 A 9: 4 3 :vivl ! 75?, S?) ,,,ol, agj? -:2 3a ??? RECEIPT FOR PAYMENT ------------------- ------------------- Cumberland County Prothonotary's Office Carlisle, Pa 17013 HIPPENSTEEL CURTIS L (VS) Case Number 2009-07555 Received of PD ATTY REITZ Total Non-Cash..... + Total Cash......... + Change ............. - Receipt total...... _ Receipt Date 11/02/2009 Receipt Time 9:42:37 Receipt No. 232822 RL 78.50 Check# .00 .00 3264 $78.50 Distribution Of Payment Transaction Description Payment Amount PETITION 55.00 CUMBERLAND CO GENERAL FUND TAX ON PETITION .50 BUREAU OF RECEIPTS AND CONTROL SETTLEMENT 8.00 CUMBERLAND CO GENERAL FUND AUTOMATION FEE 5.00 CUMBERLAND CO AUTOMATI ON FUND JCP FEE 10.00 BUREAU OF RECEIPTS AND CONTROL $78.50 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, CURTIS L. HIPPENSTEEL) Civil Division No. 09-7555 ORIGINAL VERIFICATION OF KURT MOODY Filed on behalf of Transferee, Settlement Funding, LLC d/b/a Peachtree Settlement Funding COUNSEL OF RECORD FOR THIS PARTY: Ronald E. Reitz Pa. I.D. No. 55408 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: JO.' 3 KU T M00DY _,_ _ .. °? P.?.,:. 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 3rd day of November, 2009 on: American General Assignment Corporation Att'n: Dona Clements, Legal Assistant 205 East ] 0'`h Ave. Amarillo, TX 79101 ("Settlement Obligor") AIG Annuity Insurance Company n/k/a Western National Life Insurance Company Att'n: 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") Dana Hippensteel 425 Croghan Dr. Carlisle, PA 17013-9505 Swartz - LC By: onaId E. R tz Attorney for Transferee OF TF?"c PC,"') F N OTAIRY 2009 NOV -5 FM I : 57 U??t[. ?.: f( -'J.Niy NOV 0 3 2009 4 .:. _ IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA ?N RE: PETITION OF SETTLEMENT.' FUNDING, LLC d/b/a/ PEACHTREE SETTLEMENT FUNDING TO TRANSFER STRUCTURED SETTLEMENT PAYMENT RIGHTS (PAYEE, CURTIS L. HIPPENSTEEL) No. a - JS INITIAL ORDER OF COURT On this A day of _ ? oy , 2009, it is ordered that a hearna cn this Petition to Tran sfer Structured Settlement. !payment Rights will be held on in Courtroom at o' ciock.0-M, The payee shall bring income tax ret urns for the prior two (2) years to t:?,e_ hearing. within seven (7) days, the transferee shall give notice of r.t e he« r. ing date to the payee, tiie structured settlement ouii_gor, the annuity issuer, the payee's spouse and any person receiving chi.Ld support, alimony, or alimony pendente -i-ite. The transferee shal1 attach a certificate of service to the notice of neari.nu date. A copy of the noti ce with the certificate of sex-Vice s:iat! be filed ,,with t he court prior to the hearing. 1BY THE COURT: I . 7 OF TES PD "M ?=I 0,TARY 2009 NOV -5 Phi 2: 55 ;wTY -1, . ,Ii eQ? c =/Y7 R ZO AAA Y IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA IN RE: PETITION OF SETTLEMENT FUNDING, LLC d/b/a/ PEACHTREE SETTLEMENT No. 09-7555 FUNDING TO TRANSFER STRUCTURED SETTLEMENT PAYMENT RIGHTS (PAYEE, CURTIS L. HIPPENSTEEL) NOTICE OF HEARING ON PETITION TO TRANSFER STRUCTURED SETTLEMENT PAYMENT RIGHTS To: American General Assignment Corporation Att'n: Dona Clements, Legal Assistant 205 East 10th Ave. Amarillo, TX 79101 ("Settlement Obligor") AIG Annuity Insurance Company n/k/a Western National Life Insurance Company At-.'n: Dona Clements, Legal Assistant 205 East 10th Ave. Amarillo, TX 79101 ("Annuity Issuer") Kurt Moody, Esquire Structured Settle,Tients-In-House Counsel Peachtree Settlement Funding 3331 uar.,.u n BDule Ord, Second '1 .. _ 1. Boynton Beach, FL 33426 ("Transferee") Curtis L. Hippensteel 425 Croghan Dr. Carlisle, PA 17013-1713 Payee") Darla Hippensteel 425 Croghan Dr. Carlisle, PA 17013-1"?13 You are hereby given not:ic:e that Settlement Funding, LLC has filed a. petition to transfer structured settlement paymei_.t rights. A hearing in this matter_ has been scheduled on Monday, December 21, 2009 at 11:00 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. Settlement Funding LLC Date V? 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 T 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 6th day of November, 2009, on: American General Assignment Corporation Att' n . Dona C1 ement._ , Le- 1. As i sta.. 205 East 10"' Ave. Amarillo, TX 79101 ("Settlement Obligor") AIG Annuity Insurance Company n/k/a Western National Life Insurance Company Attn: Dona Clements, Legzl Assistant 205 East 10" Ave. Amarillo, TX 79191 ("Annuity Issuer") Dana Hippensteel 425 Croghan Dr. Carlisle, PA 17013-1713 and by regular U.S. mail., postage prepairl to: Kurt Moody, Esquire Structured Settlements-In-House Counsel. Peachtree Settlement Funling 3301 Quantum Boulevard, Second Floor Lovnton Beach, Fi, 33426 ("Transferee") Curtis L. Hippensteel. 425 Croghan Dr.. Carlisle, PA 17013-__713 ("Payee") SwaqR m LLC By .. aI E. Reitz Attorney for Transferee 2c,04 ?' r' 10 f;J ! i'.' 10