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HomeMy WebLinkAbout10-0267V v IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL DIVISION IN RE: PETITION OF SETTLEMENT FUNDING, LLC d/b/a/ PEACHTREE SETTLEMENT FUNDING TO TRANSFER STRUCTURED SETTLEMENT PAYMENT RIGHTS (PAYEE, DOROTHY L. STRINE) No. /C?• .zZ7 I..IU?? `fin rv ) C o -r,• ?. 03 U n -? rn tS l r ..moo PETITION TO TRANSFER Cal STRUCTURED 199TTLEMENT 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 its principal r)ia,,e of business at 3301 Quantum Blvd., Second Floor, Boynton 3 ach, Florida 33426. 2. The "Payee" is Dorothy L. Stripe, an adult individual w'ose date of birth is September 1, 1954, and who resides at 167 (n T,i n Drive, Carlisle, Pennsylvania 1701"). `t'his 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. eK-C? 3Jq& pw X&01,3 ? Y 4. As the result or a wrcmgful death claim that was settled in 1991, Payee is entitled to receive 240 monthly payments each in the amount of $900.00 commencing on February 1, lc_'31 through and including January 1, 2011, then continuing for ffe thereafter. Attached hereto as EXhitit "A" is a portion of Payee's Annuity Contract, with benefit information. 5. By opera--ion of a Uniform Qualified Assignment, the obligation to make the monthly payments is held by MCare: f/k/a Medical PFL Liability Catastrophic Loss Fund, the Structured "Settlement Obligor" as defined by 40 P.S. § 4002. MCare: f/k/a Medical PFL Liability Catastrophic Loss Fund is located at 30 North Third Street, 8th Floor, Suite 800, Harrisburg, Pennsylvania 12030. 6. The obligation was funded through the issuance of an annuity by Allstate Life Insurance Company (the "Annuity Issuer"). Allstate Life Insurance Company is located at 544 akeview Parkway, Vernon Hills, Illinois 60061. ?. On December 26, 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 fc;r the assignment of Payee's right and interest in receiving 193 monthly payments each in the amount of $-150.00 commencing on Page 2 of 5 v X December 1, 2013 through and including December 1, 2029, 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 renovate her home. (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 ($11,079.06), 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 31.02% per year. 12. Payee is fifty-five years old, and has one dependent child. 13. Payee has been provided, and has acknowledged receipt, c. l-ast 1.0 days prior to receipt of the Transfer Agreement, of Pursuant to Rule 229.2(d), Settlement Funding, LLC 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 V T 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 at,ached as Exhibit "E". 14. The Assigned Payments are life-contingent and are only due and payable if Payee is alive at the time each such payment i_s due. 15. 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 December 26, 2009, attached hereto as Exhibit "F". 16. The transfer complies with the requirements of the Act, 40 P.S. §§ 4001-4009, and will not contravene other applicable Federal or State statutes or regulations or any app licable law limiting the transfer of workers' compensation claims. (See, Certification of Ronald E. Reitz, attached as Exhibit "G") . 17. Transferee and Payee respectfully :request that the Court sign an order approving this transfer which constitutes a "Lllaai.if_ied order" for purposes of 26 U.S.C.A § 5891. 1.8. Payee believes that due to her personal circumstances and financial needs, her best interests are served by completing `.h s transfer. Page 4 of 5 19. A brief discussion regarding the non-applicability of anti-assignment provisions is attached for the Court's convenience, as Exhibit "H" herein. %0. Payee acknowledges that Swartz Campbell LLC has not been engaged to render professional advice with respect to the adv=isability, 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. 21. Pursuant to Cumberland County Local Rule 208.3(a)(2), Judge Bayley ruled on a previous transfer petition involving Payee, Dorothy Strine, docketed at No. 08-1355. WHEREFORE, Settlement Funding, LLC, and Dorothy L. Strine, pray that this Honorable Court grant this Petition to Transfer Structured Settlement Payment Rights. Respect 1, submitted, Swartz 1 LLC By: kona Reitz Pa. I.D. No. 55408 4750 U.t. Steel Tower 600 Grant Street Pittsburgh, PA 15219 412-232-9800 Attorney for Transferee Page 5 of 5 11 a 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. 9909 relating to unsworn falsification to authorities. Date: 1, - 6''-i c(d KUR MOODY 2 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 6th day of January, 2010 on: MCare: f/k/a Medical PFL Liability Catastrophic Loss Fund 30 North Third Street 8th Floor, Suite 800 Harrisburg, PA 17101 ("Settlement Obligor") Allstate Life Insurance Company 544 Lakeview Parkway, L1B Vernon Hills, IL 60061 ("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") Dorothy Strine 167 Ken Lin Dr. Carlisle, PA 17015-9753 ("Payee") Swartz am ell LLC By: % onald E. Reitz Attorney for Transferee IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL DIVISION IN RE: PETITION OF SETTLEMENT ) FUNDING, LLC d/b/a/ ) PEACHTREE SETTLEMENT ) FUNDING TO TRANSFER ) No. STRUCTURED SETTLEMENT ) PAYMENT RIGHTS ) (PAYEE, DOROTHY L. STRINE) ) FINAL ORDER On this day of , 201.0, it is ordered that the Petition to Transfer Structured Settlement Payment Rights is granted. The court specifically finds that: (1) the payee has established that the transfer is in the best interests of the payee taking into account the welfare and support of payee's dependents; (2) based on the certification by an attorney for the transferee, Settlement Funding, LLC, and the court having not been made aware of any statute, regulation or order that would be incompatible with the proposed transfer, the transfer will not contravene any Federal or State statute or regulation, or the order of any court or responsible administrative authority; (3) the transfer complies with the remaining requirements of the Structured Settlement Protection Act, including Sections 3 (a) (2) , 3 (a) (4) , 3,a) (5) and 3 (a) (6) ; (4) the payments that are to be transferred are designated as follows: 193 monthly payments each in the amount of $750.00 commencing on December 1, 2013 through and including December 1, 2029, to Settlement Funding, LLC (the "Assigned Payments"). (5) *?he Settlement Obligor is Mcare NKA: f/k/a Medical PFL Liability Catastrophe Fund; the Annuity Issuer is Allstate Life Insurance Company. Annuity Issuer shall forward the Assigned Payments to Settlement Funding, LLC, when due, to P.O. Box 1164'76, Atlanta, GA 30368-6476 or to such other address as designated by Settlement Funding, LLC. (6) The Transferred Payments are life contingent and are only due and payable if Dorothy L. Strine is alive at the time each such payment is due. Until the due date of the last Transferred Payment:, Settlement Funding, LLC shall, on a quarterly basis, send a letter or postcard to Dorothy L. Strine, to confirm her mortality. Upon receipt of the letter or postcard, Dorothy L. Strine will sign where appropriate and return it to Settlement Funding, LLC in the enclosed self- addressed stamped envelope. Within 30 days of receipt of same, Settlement Funding, LLC will mail a copy of same to Settlement Ob,igor and Annuity Issuer. If the letter or postcard is not r?- : _Ar-led to Settlement Funding, LLC within 30 days from the date it was sent out, a telephone call will be made to Dorothy L. Strine or an alternate contact who can verify her mortality. In the event Settlement Funding, LLC receives information confirming that Dorothy L. Strine has died, Settlement Funding, LLC shall immediately notify Settlement Obligor and Annuity Issuer in writing and shall refund any payments received after Dorothy L. Stripe's death within 30 days of Settlement Funding, I;LC's first receiving information or notification regarding Dorothy L. Stri.ne's death. Settlement Obligor's and Annuity Issuer's liability to make the Transferred Payments ceases upon Dorothy L. Strine's death and Settlement Funding, LLC alone bears the risk that Dorothy L. Strine may die before all of the Transferred Payments are received by Settlement Funding, LLC. (7) the terms of this order shall survive the death of the payee and shall be binding on the payee's heirs, beneficiaries and assigns. (8) the payee shall receive from the transferee the gross amount of $22,374.27. BY THE COURT: J. SCHEDULE OF PAYMENTS ATE FEB I, 1991 AND THEREAFTER AMOUNT s 900.00 MONTHLY ei CERTAIN PAYMENTS: THE FIRST 240 PAYMENTS SHOWN ABOVE, THE LAST ONE SCHEDULED FOR JAN 1, 2011. NAME SEX DATE OF BIRTH ANNUITANT: DOROTHY STRINE FEMALE SEP 1, 1954 CONTRACT NUMBER: 90600709 OWNERc COMMONWEALTH PA CAT FUND ISSUE DATE: JAN 2, 1991 PAGE 3 POLICY DATA PAGE FOR LU970 ABSOLUTE ASSIGNMENT AGREEMENT (THE "AGREEMENT") December 25, 2009 I, Dorothy L. Strine alk/a Dorothy Strine, ("I", "Me" or 'Assignor") residing at 167 Ken Lin Dr, Carlisle, PA 17015- 9753 am entitled to 240 monthly payments each in the amount of $900 00 commencing on February 1, 1991 through and including January 1, 2011 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 (the "Settlement Agreement") The Periodic Payments are due to me from Mcare flkla Medical PFL Liability Catastrophe Loss Fund (the "Settlement Obligor") under the terms of the Settlement Agreement and are being funded by an annuity issued by Allstate Life Insurance Company (the "Annuity Issuer") bearing annuity contract number 90600709 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: 193 monthly payments each in the amount of $750.00 commencing on December 1, 2013 through and including December 1, 2029 (the "Assigned Payments"), and If any of the Assigned Payrents are life-contingent, the payments under the Insurance policy described in Paragraph D.A 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: $22,374.27 (the "Assignment Price") 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 tinder this Absolute Assignment Agreement: 1 The representations set forth in Paragraphs 6 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 insult 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 fulfil 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) Mar 5P/SO X)Vd Z8Z0Z6LLLL hh:ZZ L00Z/61/E0 4. In the event any of the Assigned Payments are life-contingent, Assignee shall have received a fully paid for life instirance 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 6 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 fled 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 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 'I he 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 taws 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 tinder 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 t7/90 39Vd HIII•IS hivsnS ZBZOZELLTL hb:TZ L00Z/6T/EO 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 die 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 Ute 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, LLCM's release of its encumbrance on a portion at 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 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 part materia herewith in witness whereof I hereunto set my hand. por by l.. Stri a/kla f orothy Strine STATE OA •'?^"--?""' COUNTY OR CITY O On the a(, day of.& ti In the year2009 before me, the undersigned, personally appeared Dorothy L. Strine. personally known to me or proved to me on the basis of satisfactory evidence to be the individual(s) whose name(s) is (are) subscribed to the within instrument, and acknowledged to me that he/she they executed the same in his/her/their capacity(ies), 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 ?otary My Commission expires on. S `rte/) ;t?1,;- pLEASE DO NOT SIGN THIS Accepted: DOCUMENT UNTIL 12/25/2009 Se lement F nd 7", L.L.C. NOTARIAL SEAL TI F -? SU$AN M SMITH Date: 1 Notary Public HAMPDEN TWR CUMSEALANrD COUNTY My Commission Explres May 14, 2012 Sh/LO 39hd HIINS hivsnS ZBWELLIL hb:LZ L©OZ/6I/ce IN THE COURT OF COMMON PLEAS OF CUIVIBER.LAND COUNTY, 116NNSYLVANIA PETITION OI: SLT'TLr'MENT ) FUNDING LLC d/b/a PEACHT'REE ) SETTLEMENT FUNDING TO ) No. TRANSFER S*f RUC°fURED ) SETTLEMENT PAYMENT RIGHTS ) Payee's Affidavit in Support of Petition to Transfer Structured Settlement Rights I, Dorothy L Strine Wa Dorothy Strine, (lie payee, verify that the statements below are hire and con-ect, 1. Payee's name, address and age: Dorothy L Strine a/k/a Dorothy Strine residing at 167 Ken Lin Drive, Carlisle, PA 1701.5-9753 and I am ??earss old. 2. Marital Status: Never N,larried; Married; Separated; j Divorced If married or separated, name of spouse: 3. Minor ctildren and other dependents: Names, ages, and places of residence: No dependent children a. Income: (a) Payec', monthly income and sources: I work as senior teller for Citizens Bank where I earn $1,750 00 per month In addition, I will continue to receive structured settlement payments of $150.00 per month starting December 1. 2013 through December 1; 2029. On January 1, 2030, those payments will increase to $900 00 per month and continue for life thereafter. (b) If presently married, spouse's monthly income and sources: _ sth /ea 3aHd ZBZOZELLtL WIZ L007,1611EO 5.. Child support, alimony or alimony pendente lite: Obligation to pay: . Yes X No If. yes. slate the amount of the obligation, to whom payable, and whether there are 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 t.lre 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; In the (,ourt of Common Pleas of Cumberland County, Pennsylvania, Civil Division, In Re: Petition of Settlement f=unding, LLC d/b/a Peachtree Settlement Funding to Transfer Structured Settlement Payment Rights (Payee, Dorothy L Sirine), No 08-1355. The Court approved this transfer (b) If the transfer was approved, (i) State the name of the transferee and identify (listing due dates and payrnent amount(s), the payments involved in the transfer; 'I lie transferee was Settlement Funding, LLC and the payments involved were annual payments of $10,000 00 each, commencing on August 1, 2008 through and including August 1, 2013 111 monthly payments of $90000 each, commencing on December 1, 2009 through and including November 1, 2011, 34 monthly payments of $90000 each, commencing on February 1, 2011 through and including November 1, 2013 SP/60 30Vd H11VIS Nvsns ZKGZ L 11 WTZ L@K/61/EO 0 1 - 4 (ii) State the amount of money and the manner in which the money was used: I received approximately $56,185.00, of which I used $10,000 00 to pay off a loan from Debtscape, $43,385.00 to pay my mortgage from ncwen Federal [lame and $2,800 00 to purchase a term life insurance policy, (c) Have you ever transferred payments without court approval" No. If so, please explain: 7. Reasons for transfer: Desciibe 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 intend to use the proceeds for house renovations and to buy a term life insurance policy I am planning to sell my house this coming year, but bet-ore I list it, I need to make sume improvements and renovations Therefore, I would like to use $4,500 00 to replace the heating system, $3,000.00 to repaint the interior walls and $3,500.00 to remodel the bathrooms. Finally, I intend to use the remaining $10,29521 (the "Estimated Premium") of the proceeds that I will receive from this transaction to purchase a tenrr life insurance policy. I will be the owner of this lifc insurance policy and I can choose the beneficiary of tlvs policy. I understand Collateral Assignment of this policy limits my rights of ownership This Collateral Assignment provides thrrt Settlement Funding will only receive the portion of the life insurance face value equal to the number of struetuted settlement payments transferred but not rcccived if 1 pass away before December 1, 2029. My beneficiary will receive the remaining face value. The price of the tens 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 tenn life insurance could be considerably higher than disclosed l Ire payments l sv/GT 391jd H1IWS i,ivsns aszoze!ttt br:Ta 0007,/6t/60 . 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 He insurance is in place to provide for my beneficiary, I intend to purchase a term life insur-ance 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 1 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 $10,295 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 permit me to accomplish the above goals 3. 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: None Debt Creditor Amount Owed S ?r.irt 39dd Nlrws Nvsns Ze'LNE«rt fih:tz GOOZ/61/EO ,A Verification I verify that (lie statements made in this affidavit are true and correct., I understand that Use statements herein are made subject to the penalties of 18 Aa.C.S.. §4904, relating to unsworn falsification to authorities DATE: Sv/ZZ 39vd Cri Aalom"?,L- '. - Dor by L. St a a/k/ Daroihy String H1I1^IS mvsns 68ZOZELLIL WIZ LOOZ/51/EO .I PENNSYLVANIA TRANSFER DISCLOSURE Payee: Dorothy L. Strine a/k/a Dorothy Strine; resident of: PA A. Amounts and due dates of the structured settlement payments to be transferred: 193 monthly payments each in the amount of $750.00 commencing on December 1, 2013 through and including December 1, 2029. B. Aggregate amount of such payments: $144,750.00 C. (1) Discounted present value of such payments: $99,857.41 (2) The discount rate used in determining such discounted present value: 3.20 percent as of December 15, 2009. D. Gross amount payable to the Payee in exchange for such payments: $22,374.27 I-. 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: $800.00; Processing Fee: $200.00; Term/Self Insurance: $10,295.21 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: $11,079.06 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: 11.09% 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,inE ?nad ZKOZELL4 WIZ LOOZ/6[/EO . .4 r L 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: Allstate Life Insurance Company - $760.00 Payee acknowledges receipt of, and acknowledges to have read and understood, the above disclosure statement and information required to be dis d 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. Dorothy 4L. rine°alkla Dorothy Strine Date Sn/SE 39bd HANS P sns ZKKULTL WIZ L00Z/6T/E0 NOTICE PA Payee: Dorothy L. Strine alk/a Dorothy Strine 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 agrooment. A 4 M.44 . Do thy L. ring kla Dorothy Strine Date Sty/9E 39hd ZKOZ£LtTL hb:LZ L0OZ/6I/£O A ,4 r ACKNOWLEDGEMENT jPA1 Payee; Dorothy L. Strine alkla Dorothy Strine (Please initial the following statement) 1 ex ressly waive independent legal advice regarding the implications of the transfer, including considerations of the tax ramifications oft he transfer. J-d (Initials) 1' Do thy L, trin alkla Dorothy Strine 'Z07-- Date ZBZOZ£LLIL 7b:ZZ LOOZ/6L/£0 Sb/L£ 19VJ c 1' r IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL DIVISION IN RE: PETITION OF SETTLEMENT ) FUNDING, LLC d/b/a/ ) No. PEACHTREE SETTLEMENT ) FUNDING TO TRANSFER ) STRUCTURED SETTLEMENT ) PAYMENT RIGHTS ) (PAYEE, DOROTHY L. STRINE) ) 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 transfer set forth in the subject Petition requirements of the Structured Settlement P.S. § 4001-4009, and does not contravene any or State statute or regulation, or order administrative authority. and inquiry, the complies with all Protection Act, 40 applicable Federal of any court or 3. This Certification is made to the best of my knowledge, information and belief pursua! .R.C.P. 229.2. Ronald E. Reitz • 4 C Backiround 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 ! 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. 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, DOROTHY L. STRINE) Civil Division No. 10-267 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 7:1 0 C _ m 1 ?' -- m 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: _zl KUR MOODY 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 11th day of January, 2010 on: MCare: f/k/a Medical PFL Liability Catastrophic Loss Fund 30 North Third Street 8th Floor, Suite 800 Harrisburg, PA 17101 ("Settlement Obligor") Allstate Life Insurance Company 544 Lakeview Parkway, L1B Vernon Hills, IL 60061 ("Annuity Issuer") Kurt Moody, Esquire Structured Settlements-In-House Counsel Peachtree Settlement Funding 3301 Quantum Boulevard, Second Floor Boynton Beach, FL 33426 ("Transferee") Dorothy Strine 167 Ken Lin Dr. Carlisle, PA 17015-9753 ("Payee") Swartz ? LLC B y . onald f_._ Reitz Attorney for Transferee IN THE CO:JRT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL DIVISION IN RE: PETITION OF SETTLEMENT FUNDING, LLC d/b/a/ PEACHTREE SETTLEMENT FUNDING TO TRANSFER STRUCTURED SETTLEMENT PAYMENT RIGHTS No. to- 02.7 (PAYEE, DOROTHY L. STRINE) j INITIAL ORDER OF COURT rv C? On this day of 2010, it is =t; r r.at a hearinq on this Petition to Transter St.r" It tu=p- d enenr_ Paymert Rights will be he .]d on or after January 26, vl ` /l) 2010, OurtrU?•1'? y y` ?C a . , The c<_ si.a .. br,nq income tax returns for the prior two (2) years t-h hearing. buit -lin sever. (7) days, the transferee shall. give notice of ., , c.ir I nq .,atc to the payee, the structured sett1_ement issuer, the payee's spouse and any person ,d support, alimony, or alimony penden%e li.t.e. Tn,? r_ -1-sferee !.?! alta-h a certificate cr- service to the n&ti(_:e A =o.Y of the notice with the. cert_f_iC'at.e of f ?? ie X wl.til tnc Court r) t.o rill rlear:_nC t r } J -::Ten IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA IN RE: PETITION OF SETTLEMENT FUNDING, LLC d/b/a/ PEACHTREE SETTLEMENT No. 10-267 EE! FUNDING TO TRANSFER STRUCTURED SETTLEMENT tr?T PAYMENT RIGHTS (PAYEE, DOROTHY L. STRINE) ' --'_' C-) C= n c: NOTICE OF HEARING ON PETITION TO TRANSFER STRUCTURED SETTLEMENT PAYMENT RIGHTS To: Mcare NKA: f/k/a Medical PFL Liability Catastrophe Fund 30 North Third Street 8th Floor, Sutie 800 Harrisburg, PA 17101 ("Settlement Obligor") Allstate Life Insurance Company 544 W. Lakeview Pkwy, L1B Vernon Hills, IL 60061 ("Annuity Issuer") Kurt Moody, Esquire Structured Settlements--In-House Counsel Peachtree Settlement Funding 3301 Quantum Boulevard, Second Floor Boynton Beach, FL 33426 ("Transferee") Dorothy L. Strine 167 Ken Lin Drive Carlisle, PA 1701.5-9753 ("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 Thursday, February 11, 2010, before Hon. J. Wesley, Oler, 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. A6` Settlement Funding LLC Date c/o Ronald E. Reitz Swartz Campbell LLC 600 Grant Street 4750 J.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 FedEx Priority Overnight mail, on this 19th day of January, 2010, on: MCare: f/k/a Medical PFL Liability Catastrophic Loss Fund 30 North Third Street 8th Floor, Suite 800 Harrisburg, PA 17101 ("Settlement Obligor") Allstate Life Insurance Company 544 Lakeview Parkway, L1B Vernon Hills, IL 60061 ("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") Dorothy Strine 167 Ken Lin Dr. Carlisle, PA 17015-9753 ("Payee") Swartz 1 C By: Ronald E. itz Attorney for Transferee IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL DIVISION IN RE: AMENDED PETITION OF ) SETTLEMENT FUNDING, LLC ) No. 10-267 d/b/a/ PEACHTREE ) N SETTLEMENT FUNDING TO )- TRANSFER STRUCTURED ) 4_ -t SETTLEMENT PAYMENT RIGHTS (PAYEE, DOROTHY L. STRINE) ) r... AMENDED PETITION TO TRANSFER STRUCTURED SETTLEMENT PAYMENT RIGHTS ?'•' ) ?s Petitioner, Settlement Funding, LLC d/b/a Peachtree Settlement Funding, hereby submits the following Amended 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: I 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 its principal place of business at 3301 Quantum Blvd., Second Floor, Boynton Beach, Florida 33426. 2. The "Payee" is Dorothy L. Strine, an adult individual whose date of birth is September 1, 1954, and who resides at 167 Ken Lin Drive, Carlisle, Pennsylvania 17015. i,e amenament invoives a clarification of the Obligor's address, and correction of a previous averment that a Uniform Qualified Assignment was effected. r 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 that was settled in 1991, Payee is entitled to receive 240 monthly payments each in the amount of $900.00 commencing on February 1, 1991 through and including January 1, 2011, then continuing for life thereafter. Attached hereto as Exhibit "A" is a portion of Payee's Annuity Contract, with benefit information. 5. The obligation to make the monthly payments is held by Medical Care Availability and Reduction of Error Fund (Mcare), the Structured "Settlement Obligor" as defined by 40 P.S. § 4002. Medical Care Availability and Reduction of Error Fund (Mcare) is located at 1062 Lancaster Avenue, Suite 15-F, Rosemont, Pennsylvania 19010. 6. The obligation was funded through the issuance of an annuity by Allstate Life Insurance Company (the "Annuity Issuer"). Allstate Life Insurance Company is located at 544 Lakeview Parkway, Vernon Hills, Illinois 60061. 7. On December 26, 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 193 monthly payments each in the amount of $750.00 commencing on Page 2 of 5 • r December 1, 2013 through and including December 1, 2029, to Settlement Funding LLC.2 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 renovate her home. (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 ($11,079.06), 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 31.02% per year. 12. Payee is fifty-five years old, and has one dependent child. 13. Payee has been provided, and has acknowledged receipt, at least 10 days prior to receipt of the Transfer Agreement, of rursuanu ro Rule 229.2(d), Settlement Funding, LLC 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 e , 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. The Assigned Payments are life-contingent and are only due and payable if Payee is alive at the time each such payment is due. 15. 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 December 26, 2009, attached hereto as Exhibit "F". 16. The transfer complies with the requirements of the 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"). 17. 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. 18. Payee believes that due to her personal circumstances and financial needs, her best interests are served by completing this transfer. Page 4 of 5 t 19. A brief discussion regarding the non-applicability of anti-assignment provisions is attached for the Cour t's convenience, as Exhibit "H" herein. 20. 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 Amended Petition, based upon Payee's independent determination and advice obtained from others, with respect to the advisability and ramifications of the transfer. 21. Pursuant to Cumberland County Local Rule 208.3(a) (2), Judge Bayley ruled on a previous transfer petition involving Payee, Dorothy Strine, docketed at No. 08-1355. WHEREFORE, Settlement Funding, LLC, and Dorothy L. Strine, pray that this Honorable Court grant this Amended Petition to Transfer Structured Settlement Payment Rights. Respectfully submitted, Swartz Campbell LLC By: /a w Ronald E. Veitz Pa. I.D. No. 55408 4750 U.S. Steel Tower 600 Grant Street Pittsburgh, PA 15219 412-232-9800 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 Amended 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: Zd/ (J KU T MOODY CERTIFICATE OF SERVICE I hereby certify that a true and correct copy of the foregoing AMENDED PETITION TO TRANSFER STRUCTURED SETTLEMENT PAYMENT RIGHTS was served by certified mail, return-receipt requested, postage pre-paid, on this 25th day of January, 2010 on: Medical Care Availability and Reduction of Error Fund (Mcare) 1062 Lancaster Avenue, Suite 15-F Rosemont, PA 19010 ("Settlement Obligor") Allstate Life Insurance Company 544 Lakeview Parkway, L1B Vernon Hills, IL 60061 ("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") Dorothy Strine 167 Ken Lin Dr. Carlisle, PA 17015-9753 ("Payee") Swartz Campbell LLC By: -.P') 7a Ronald E. Rei z Attorney for Transferee ` I IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL DIVISION IN RE: AMENDED PETITION OF ) SETTLEMENT FUNDING, LLC ) d/b/a/ PEACHTREE ) SETTLEMENT FUNDING TO ) TRANSFER STRUCTURED ) SETTLEMENT PAYMENT RIGHTS ) (PAYEE, DOROTHY L. STRINE) ) FINAL ORDER On this day of No. 10-267 2010, it is ordered that the Amended Petition to Transfer Structured Settlement Payment Rights is granted. The court specifically finds that: (1) the payee has established that the transfer is in the best interests of the payee taking into account the welfare and support of payee's dependents; (2) based on the certification by an attorney for the transferee, Settlement Funding, LLC, and the court having not been made aware of any statute, regulation or order that would be incompatible with the proposed transfer, the transfer will not contravene any Federal or State statute or regulation, or the order of any court or responsible administrative authority; (3) the transfer complies with the remaining requirements of the Structured Settlement Protection Act, including Sections 3 (a) (2) , 3 (a) (4) , 3 (a) (5) and 3 (a) (6) ; I (4) the payments that are to be transferred are designated as follows: 193 monthly payments each in the amount of $750.00 commencing on December 1, 2013 through and including December 1, 2029, to Settlement Funding, LLC (the "Assigned Payments"). (5) the Settlement Obligor is Medical Care Availability and Reduction of Error Fund (Mcare); the Annuity Issuer is Allstate Life Insurance Company. Annuity Issuer shall forward the Assigned Payments to Settlement Funding, LLC, when due, to P.O. Box 116476, Atlanta, GA 30368-6476 or to such other address as designated by Settlement Funding, LLC. (6) The Transferred Payments are life contingent and are only due and payable if Dorothy L. Strine is alive at the time each such payment is due. Until the due date of the last Transferred Payment, Settlement Funding, LLC shall, on a quarterly basis, send a letter or postcard to Dorothy L. Strine, to confirm her mortality. Upon receipt of the letter or postcard, Dorothy L. Strine will sign where appropriate and return it to Settlement Funding, LLC in the enclosed self- addressed stamped envelope. Within 30 days of receipt of same, Settlement Funding, LLC will mail a copy of same to Settlement Obligor and Annuity Issuer. If the letter or postcard is not returned to Settlement Funding, LLC within 30 days from the date it was sent out, a telephone call will be made to Dorothy L. Strine or an alternate contact who can verify her mortality. In the event Settlement Funding, LLC receives information confirming that Dorothy L. Strine has died, Settlement Funding, LLC shall immediately notify Settlement Obligor and Annuity Issuer in writing and shall refund any payments received after Dorothy L. Strine's death within 30 days of Settlement Funding, LLC's first receiving information or notification regarding Dorothy L. Strine's death. Settlement Obligor's and Annuity Issuer's liability to make the Transferred Payments ceases upon Dorothy L. Strine's death and Settlement Funding, LLC alone bears the risk that Dorothy L. Strine may die before all of the Transferred Payments are received by Settlement Funding, LLC. (7) the terms of this order shall survive the death of the payee and shall be binding on the payee's heirs, beneficiaries and assigns. (8) the payee shall receive from the transferee the gross amount of $22,374.27. BY THE COURT: J. SCHEDULE OF PAYMENTS DATE AMOUNT FEB 1, 1991 9 AND 900.00 MONTHLY THEREAFTER CERTAIN PAYMENTS: THE FIRST 240 PAYMENTS SHOWN ABOVE, THE LAST ONE SCHEDULED FOR JAN 1, 2011. i NAME ??? SEX DATE _2E_jLM ANNUITANT: DOROTHY STRINE FEMALE SEP 1, 1954 CONTRACT NUMOERc 90600709 OWNERi COMMONWEALTH PA CAT FUND ISSUE DATEp JAN 2r 1991 PAGE 3 POLICY DATA PAGE FOR LU970 F r ABSOLUTE ASSIGNMENT AGREEMENT (THE "AGREEMENT") December 25, 2009 1, Doromy L. Strine a/k/a Dorothy 8trlne, ("I", "Me' or "Assignor") residing at 167 Ken Un Dr, Carlisle, PA 17015- 9753 am entitled to 240 monthly payments each in the amount of $900 00 commencing on February 1, 1991 through and including January 1, 2011 then continuing for life thereafter (the "Periodic Payments") on account of the settlement of a oenaln personal Injury claim, the settlement of which Is memorialized In that certain settlement agreement (the "Settlement Agreement') The Periodic Payments are due to me from Moore Vida lilledical PFL Liability Catastrophe Loss Fund (the 'Settlement Obligor) under the terms of the Settlement Agreelrtent and are being horded by an annuity issued by Allstate Ufa Insurance Company (the "Annuity Issuer") bearing annuity contract number 90600709 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: 193 monthly payments each In the amount of $750.00 commencing on December 1, 2013 through and including December 1, 2029 (the "Assigned Payments'), and If any of the Assigned Payments are life-contingent, the payments under the Insurance policy described in Paragraph D.A below to the extent of the undiscounted sure of all such Itfe•oantingant 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 Iasi tile-contingent Assignod Payment In consideration for this assignment, Assignee shall pay to me the sum of: $22,374,27 (the "Assignment Price") B i hereby make the following unconditional representations, warranties and promises, 1 No one other then me has any interest or claim of any Mid or nature in, to or under the Assigned Payments I am assigning hereunder 2 t 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 f agree that the following shall be considered an event of default by me under this Absolute Assignment Agreement: 1 The representations set forth In Paragraphs B 1 and 8 z 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 a 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 Agteomenl 0. The following are conditions precedent to Assignee's obligation to pay me the Assignment Price: 1 Assignee shall be satisfied, In fit; sole discretion, that there are no claims or interests of any kind or nature whatsoever that do or may affect Assignee's ?fghts to or interest In the Assigned Payments and Assignee's ability actually to racalve some on the dates and in the amounts sat 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 conflnue 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 ft forwarding of the Periodic Payments, directly to Assignee 3 Assignee shall have received final financing approval from applicable funding source(s) Sh;80 39Gd ZUSULLTL WIZ. L006/61/ee 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 meats a security interest under Article 8 of the Uniform Commercial Code of the stale 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 8 of the Uniform Commercial Code of the stele 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 ale a UCC-1 financing statement to perleot 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 stato of residence of the Assignor on the dote 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 ihterrogsiodes, production i 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 I 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, shell 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, woad be barred by the applicable statute of limitations No arbitraUon arising out of or relating to this Agreement shalt Include, by consolidation or jolnder 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 oonstiluts 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 parilse to this Agreement, shall be specifically enforceable in accordance with applicable law In any court having jurisdiction thereof The award rendered by the arbitrator shag be final, and Judgment may be entered upon ii in accordance with applicable law In any court having jurisdiction thereof Such arbitrator shall idenfify the substantially prevailing party and shall Include legal fees and expenses for the substantially prevailing party This provision does not apply to Hie extent inconsistent with applicable state law regarding the transfer of structured settlement payments In such coos any dlsputes between the parties will be governed in accordance with the taws 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 t hereby grant to Assignee an Irrevocable Power of Attorney with fug powers of substitutlon to do all sole and things that I might do regarding the Assigned Payments and any and all rights I have under the setnement Agreement with respect to the Assigned Payments, Including, without limitation, the pourer to endorse oheeks, drafts or other Instruments, the power to alter, edit and change payment Instructions and/or beneficiary designations and any other act which, in the acts 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 5r•/90 39vd HIIH5 NV%B ZOUZELL'IL bit TZ 48975T/ea H in the event that prior to the consummation of the transaction contemplated hereby I twelve any of the Assigned Payments, or any portion thereof, the Assignment Price shall be reduced In tike amount and the terms of this Agreement regarding the payments to be assigned shall be deen*d to be adjusted accordingly. In the event Assignee receives or otherwise comets 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 ouch amount(s) to me at die address set forth above within seven (7) days of receipt of such amount(s) I Assignee shall be entttlad 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 wrI(ten 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 lead all amounts necessary to discharge such flans 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 Asst gout Price to pay Assignee, as servicor for Peachtree Finance Company, LLG, to enable Assignor to obtain Peachtree Finance Company, LLC's release of its ancumbrance on a portion ur the Assigned Payments, which portion of Assigned Payments relate to prior transfer transaction(s) consummated prror to the effective date of the applioable transfer act(s) which encumbrance must be released for the transaction contemplated herein to be consummated J 1 know that it will take some lime 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 bean satisfied, Including, without limitation, the receipt by Assignee of the Settlement Obligor and the Annuity IasuBr's acknowledgment of the terms of the court order in writing and their agreement to horror 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 r- 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. I_ All disclosure statements are a material part of this Agreement and shaft be read In part materle herewith In witness whereof i hereunto set my hand. Do by L. Strf Iyaffle rothY 9trlne STATE OFiL:n COUNTY OR CITY O On the ko _ day of .N&>??_ in the yearl.00 before me, this undersigned, personally appeared Dorothy L. Stride. 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 thei helshe/they executed the same In his/her/their oapaclty(les), and that by htsflwrAheir signature(s) on the Instrument, the indlvidual(s), or the person upon behalf of which the individual(s) acted, executed the instrument. Notary My Commission expires on g 11ti{ 1 ;L0!'?- P;t,FAsE DO NOT SIGN THIS Accepted: DOCUMENT UNTIL 12125/2009 5e lament F nd , L.L.G. O NO'U RIAL TEAL Ti o 405UT sum NORHy ?IC Datte:_ '? G? HAMPDEN TW CUMBULANa C0V9W My Commksbn Explfos May 11, 2012 SD/LO 39bd FINS Nvmrz ZSZOZ£LLiL idA:'[Z zeez/6I/Ell r , IN 114E COURT OF COMMON FLEAS OF CUMBERLAND COUNTY. PENNSYLVANIA PETITION OF SETTLEMENT ) FUNDING LLC d/b/a PEAC14TREE ) SETTLEMENT FUNDING TO ) No. TRANSFER STRUCTURED ) SETTLEMENT PAYMENT R10HTS ) Payee's Affidavit in Support of Petition to Transfer Structured Settlement Rights 1, Dorothy L Strine We Dorothy Strinc, the payee, verify that the statements below are true and correct: 1. Payee's name, address nod age: Dorothy L- Strine a/Wa Dorothy Strine residing at 167 Ken Lin Drive, Carlisle, PA 17015-9753 and I a4ears old. 2. Marital Stntus: w_ Never Married; Mauled; Separated; JLI)ivoreed if married or separated, name of spouse; i j 3. Minor children and other dependents: Names, ages, and places of residence; No dependent children 4, Income. (a) Payee's monthly incomc and sources; I work as senior teller ibr Citizens Bank v%+hcre I earn51,730.00 per month In addition, l will continue lo receive structured settlement payments of $150.00 per month starting December 1. 2013 through December 1, 2029. On January 1, 2030, those payments will incicase to $900 00 per month and continue for life thereafter. (b) If presently married, spouse's monthly income and sources: SO/80 MVd 6MUEGLTL bb:TZ 100Z/61/E9 I , S. Child support, Hlimony or alimony pendeate lite: Obligation to pay; Ycs „3A_No If ye., state the amount of the obligation, to whom payable, and whether there are anew-ages: 6. Previous transfers; Have you previously Wed 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 oase caption and case number, and state whether the court approved or disapproved the transfer: In the Court of Common Pleas of Cumberland County, Pennsylvania, Civil Division, In Re, Petition of Settlement Funding, LLC d/b/a Peachtree Settlement Funding to Transfer Structured Settlement Payment Rights (Payee, Dorothy L Strine), No 08-1355. 'The Court approved this 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. The transferee was Settlement Funding, L.LC and the payments involved were annual payments of $10,000.00 each, oommencing on August I, 2008 through and including August ), 2013. 14 monthly payments of $900-00 each. commencing on December I, 2009 fuough and including November 1, 2011. 34 monthly payments of $900.00 each, commencing on February 1, 2011 through and including November 1, 2013 SP/60 39vd WINS t 7,868ZELLTL PP-TZ 49OZ/61/EO 00 State the amount of money and the manner In which the money was used: I rccrivad approximately $56,1$5.00, of which I used $)0,000 00 to pay offs loan from Debtscapo, $43,385.00 to pay my mortgage from 0ewen Federal I34pk and $2,300 00 to purchase a term fife insurance policy. 7. (c) HaVe you ever transferred payments witfiout court approval? No, If so, please explain: 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 tiic structured settlement will not better serve your interests; 1 intend to use the proceeds for house renovations and to buy a term life insurance policy l am planning to sell my house this coming year, but beFora I list it, I need to make some improvements and renovations Therefore, I would like to use $4,500 00 to replace the heating system, $3,000.00 to repaint the interior walls and $3,500.00 to remodel the bathrooms. Finally, I intend to use the remaining $10,295..21 {the "Estimated premium') of the proceeds that I will receive from this transaction to purchase a tenn life insurance policy. I will be the owner of this life insurance policy and I can choose the beneficiary of tins policy. 1 understand Collateral Assignment of this policy limits my rights of awncrship This Collateral Assignment provides that Settlement Funding will only receive the portion of the life Insurance face value equal to the number of structured scrtioticnt payments transferred but not received if I pass away before: December 1, 2029. Nfy beneficiary will receive the remaining face value. The price of the term life insurance policy was generated from information i provided to Settlement Funding. 1 understand If the information I provided is not accurate, the price of the term life insurance could be considerably higher than disclosed "1 Ile payments I 9 h/Br 3D%ld HIPS Fttlsns Z$i;MUTL WTI GAOL/&T/Ee 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, l 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 a tho risk that l may pass away and they will not receive the payments they have putchascd) 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 $10,295 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 patmit me to accomplish the above goats S. Payment of debts: If you scck the tranafcr in order to pay debts, list each debt, including the name of the creditor and the amount presently owed: None. Debt Creditor Amount Qlved GOM --iJHd H.LIWS Nvsns WOU4414 WT6 468Z/6I/ca Verification I verify that the statements made in this affidavit are true and correct. I understand that fosse statements herein are made subject to the penalties of 18 Pa.C,S. §4904, glaring to unsworn falsification to authorities DATE: Dor by L. St a ask/ Dorothy Stripe Su/Lt 39Vd RUNS NV5nS ZBZBZEZITZ WIZ C086/61/Eo r PENNsy1I NIA TRAtISF913 DISC?.O3URE Payee: Dorothy L. Strine a/k/a Dorothy Strine; resident of., PA A. Amounts and due dates of the structured settlement payments to be transferred: 193 monthly payments each In the amount of $750.00 commencing on December 1, 2013 through and including December 1, 2029. B. Aggregate amount of such payments: $144,760.00 C, (1) Discounted present value of such payments: $89,857.41 (2) The discount rate used In determining such discounted present value: 3.20 percent as of December 15, 2009. D. Gross amount payable to the Payee in exchange for such payments: $22,374.27 I-. 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: $800.00; processing Foe: $200.00; Term/Self Insurance: $10,296.21 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: $11,078.06 minus any advances made to payee against the amount payable to Payee. 0. The quotient, expressed as a percentage, obtained by dividing the net payment amount by the discounted present value of the payments: 11.09% 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 GPM add Z849MI TL 00,1Z MZ/Wee 1 ` r • 1. 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: Allstate Life insurance Company .$760.00 Payee acknowledges receipt of, and acknowledges to have read and understood; the above disclosure statement and information required to be diVd by Payee's applicable state statute(s). lnHials; ,,....,._ By signing below you are confirming that you received a copy of this disclosure at feast 10 days prior to executing your transfer agreement, d4w Dorothy L, rine"a/k/a Dorothy Btri ne -L-rl??? Date 517/5£ 3`Jdd H1IWS MVSnS UZUE1111 oplu L00Z/6VE8 FS r • N011CE (PA) Payee: Dorothy L. Strine alkla Dorothy Strlne IMPORTANT NOTICE: You are strongly urged to consult with an attorney who can adviae 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. Do thy L. rine la Dorothy Strine -6?6 01 Date 5p/9E 39hd 0COZEU It Db . LZ 488Z/GI/E0 ACKNOWLE20 EMENT JPA) Payee: Dorothy L, Strine elkla Dorothy Strine (Please initial the following statement) AA-7 I/ A .1 1A A- 8trine i Date sv/LE 3Jdd I expressly waive independent legal advice regarding the implications of the transfer, including considerations of the tax ramifications of the transfer. (initi s ) Do thy L, trio a/k!a Dorothy MOZE44 TL bh "ZZ 03BMWE0 • f IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL DIVISION IN RE: AMENDED PETITION OF SETTLEMENT FUNDING, LLC ) No. 10-267 d/b/a/ PEACHTREE ) SETTLEMENT FUNDING TO ) TRANSFER STRUCTURED ) SETTLEMENT PAYMENT RIGHTS ) (PAYEE, DOROTHY L. STRINE) ) 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, 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 Pa.R.C.P. 229.2. Ronald E. Re tz % t, 6 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'x. 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. a ? IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA IN RE: AMENDED PETITION OF SETTLEMENT FUNDING, LLC d/b/a/ PEACHTREE SETTLEMENT FUNDING TO TRANSFER STRUCTURED SETTLEMENT PAYMENT RIGHTS (PAYEE, DOROTHY L. STRINE) Civil Division No. 10-267 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 N ? p --i - T r?r I ... A. VERIFICATION I, Kurt Moody, In-House Counsel of Settlement Funding, LLC d/b/a Peachtree Settlement Funding, have read the foregoing Amended 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: KU T MOODY I .6 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 27th day of January, 2010 on: Medical Care Availability and Reduction of Error Fund (Mcare) 1062 Lancaster Avenue, Suite 15-F Rosemont, PA 19010 ("Settlement Obligor") Allstate Life Insurance Company 544 Lakeview Parkway, L1B Vernon Hills, IL 60061 ("Annuity Issuer") Kurt Moody, Esquire Structured Settlements-In-House Counsel Peachtree Settlement: Funding 3301 Quantum Boulevard, Second Floor Boynton Beach, FL 33426 ("Transferee") Dorothy Strin.e 167 Ken Lin Dr. Carlisle, PA 17015-9753 ("Payee") Swartz LLC: By: Ronald Reitz Attorney for Transferee IN RE: PETITION OF SETTLEMENT FUNDING, LLC d/b/a PEACHTREE SETTLEMENT FUNDING TO TRANSFER STRUCTURED SETTLEMENT PAYMENT : RIGHTS : (PAYEE, DOROTHY L. STRIKE: IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 10-267 CIVIL TERM IN RE: AMENDED PETITION TO TRANSFER STRUCTURED SETTLEMENT PAYMENT RIGHTS ORDER OF COURT AND NOW, this 29`h day of January, 2010, upon consideration of the Amended Petition To Transfer Structured Settlement Payments Rights, a hearing is scheduled for Thursday, February 11, 2010, at 9:30 a.m., in Courtroom No. 1, Cumberland County Courthouse, Carlisle, Pennsylvania. BY THE COURT, 7 J. Wesley Olei, r., J. i Ronald E. Reitz, Esq. 4750 U.S. Steel Tower 600 G rant Street Pittsburgh, PA 15219 Attorney for Transferee ""/Mcare: fWa Medical PFL Liability Catastrophic Loss Fund 30 North Third Street 8t' Floor Suite 800 Harrisburg, PA 17101 Allstate Life Insurance Company 544 Lakeview Parkway, LIB Vernon Hills, IL 60061 ?rt Moody, Esq. Peachtree Settlement Funding 3301 Quantum Boulevard, Second Floor Boynton Beach, FL 33426 /orothy Strine 167 Ken Lin Drive Carlisle, PA 17015-9753 :rc Co ? Es rna? ??? 43/10 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL DIVISION IN RE: AMENDED PETITION OF ) SETTLEMENT FUNDING, LLC d/b/a ) PEACHTREE SETTLEMENT ) No. 10-267 FUNDING TO TRANSFER ) STRUCTURED SETTLEMENT ) PAYMENT RIGHTS } (PAYEE, DOROTHY L. STRIKE) ) FINAL ORDER OF COURT AND NOW, this t `'day of February, 2010, it is ordered that the Petition to Transfer Structured Settlement Payment Rights is granted. The Court specifically finds that: The payee, Dorothy L. Strine a/k/a Dorothy Strine ("Ms. Strine'% has established that the transfer is in the best interest of Ms. Strine and her dependents, if any, taking into account the welfare and support of her dependents, if any. 2. Based on the certification by an attorney for the transferee, Settlement Funding, LLC d/b/a Peachtree Settlement Funding ("Settlement Funding"), 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 applicable federal or state statute or regulation, or the order of any court or responsible administrative authority, or any applicable law limiting the transfer of workers' compensation claims. 3. The transfer complies with the remaining requirements of the Pennsylvania Structured Settlement Protection Act, 40 P. S. § 4001 et seq., including sections 4003(a)(2), 4003(a)(4), 4003(a)(5), and 4003(a)(6). Based upon the foregoing findings, IT IS HEREBY ORDERED that: BE011691635.2 r 1. The payments that are to be transferred are designated as follows: monthly life contingent payments each in the amount of $750.00, commencing on December 1, 2013 through and including December 1, 2029 (the "Assigned Life Contingent Payments"). 2. The Assigned Life Contingent Payments are not due and payable unless Ms. Strine is alive at the time each such payment is due. The obligation to make any of the Assigned Life Contingent Payments ceases upon Ms. Strine's death. Nothing in the subject amended petition, the proposed transfer, the parties' Stipulation or any other matter changes the fact that each of the Assigned Life Contingent Payments is owed only if Ms. Strine is alive at the time each such payment is due. 3. Subject to all of the conditions set forth herein and in the parties' Stipulation, the annuity issuer, Allstate Life Insurance Company ("Allstate Life"), shall forward the Assigned Life Contingent Payments, within 7 days of the date due, by check made payable to "Settlement Funding, LLC," at P.O. Box 116476, Atlanta, GA 30368-6476, as follows: monthly life contingent payments each in the amount of $750.00, commencing on December 1, 2013 through and including December 1, 2029. 4. All remaining structured settlement payments (and/or portions thereof), including but not limited to the balance of each monthly structured settlement payment commencing on December 1, 2013 through and including December 1, 2029, that are not the subject of the Proposed Transfer and not previously assigned, shall be made payable to Ms. Strine and will be forwarded by Allstate Life, if and when due, to Ms. Strine's most recent known address or any payment address designated by Ms. Strine, subject to the consent of Allstate Life and the annuity owner, Medical Care Availability and Reduction of Error Fund ("Mcare"). BE01/ 691635.2 -2- I 5. Settlement Funding shall provide to Allstate Life, within ninety (90) days prior to December 1, 2013, written confirmation contemporaneously signed by Ms. Strine and notarized that Ms. Strine is alive (the "Initial Required Confirmation"). Beginning ninety (90) days after the date of the Initial Required Confirmation, and every ninety (90) days thereafter, and at any time upon reasonable request of Allstate Life, until the due date of the last Assigned Life Contingent Payment, Settlement Funding shall provide Allstate Life with written confirmation, contemporaneously signed by Ms. Strine, that Ms. Strine is alive (the "Required Confirmation"). To obtain the Required Confirmation, Settlement Funding shall send a series of quarterly letters to Ms. Striune. Within ten (10) days of the receipt of each such letter, Ms. Strine will sign where appropriate and return the letter to Settlement Funding in the self-addressed, stamped envelope accompanying the letter. In addition, Settlement Funding shall hire an independent mortality tracking company (i. e., The Berwyn Group) to track Ms. Strine's mortality quarterly throughout the duration of the Assigned Life Contingent Payment stream. Each Required Confirmation will be sent to the attention of Lisa Sterner, Allstate Financial, 544 Lakeview Parkway, LIB, Vernon Hills, IL 60061 (or such other Allstate Life representative and/or address subsequently designated by Allstate Life in a written notice to Settlement Funding). Ms. Strine and Settlement Funding shall cooperate with one another and with Allstate Life for purposes of providing each Required Confirmation. In the event Settlement Funding acquires information indicating that Ms. Strine has died, Settlement Funding shall immediately provide Allstate Life with this information in writing directed to Allstate Life at the address listed above (or to any designated successor Allstate Life representative or address). 6. If Settlement Funding fails to provide any Required Confirmation that Ms. Strine is alive, or if Allstate Life has any reasonable basis to believe that Ms. Strine has died, Allstate BE01/ 691635.2 -3- Life may suspend making the Assigned Life Contingent Payments until Allstate Life has received the Required Confirmation of Ms. Strine's survival. 7. To the extent any of the Assigned Life Contingent Payments are made by Allstate Life to Settlement Funding after the death of Ms. Strine, Settlement Funding will reimburse Allstate Life with funds in the amount of such Assigned Life Contingent Payments, plus interest at 6% per annum from the date that the funds were paid through the date reimbursement is tendered. 8. In the event Settlement Funding further assigns or otherwise transfers the Assigned Life Contingent Payments (or any portion thereof or interest therein) to another person or entity (a "Reassignment"), Allstate Life will not be obligated to redirect the Assigned Life Contingent Payments (or any portion thereof) to any person or entity other than Settlement Funding or to any payment address other than that specified herein, and Settlement Funding and Ms. Strine shall remain obligated to comply with all terms and conditions herein and in the parties' Stipulation. However, if Settlement Funding moves, or later merges with or is acquired by another entity, or its designated payment address is no longer viable for reasons beyond its control, Allstate Life agrees to make the Assigned Life Contingent Payments to a new payee and/or payment address upon the timely submission by Settlement Funding of a written notice to Allstate Life confirming that such event has occurred and specifying the new payee and/or payment address. Notwithstanding the foregoing, the parties' Stipulation and this Order will remain binding and fully enforceable against Settlement Funding and Ms. Strine. 9. Settlement Funding shall defend, indemnify, and hold harmless Allstate Life and Mcare and their respective directors, shareholders, officers, agents, employees, servants, successors, and assigns, and any parent, subsidiary, or affiliate thereof, and their directors, BE01/ 691635. 2 -4- 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 asserted by any person or entity, including but not limited to any claims asserted by any person or entity not a party hereto, claiming an interest in the Assigned Life Contingent Payments, and any and all other claims made in connection with, related to, or arising out of the purchase agreement between Ms. Strine and Settlement Funding, the proposed transfer, the Assigned Life Contingent Payments, any Reassignment, or Allstate Life's compliance with the parties' Stipulation or Allstate Life's and Mcare's compliance with this Order, except with respect to claims by Settlement Funding against Allstate Life to enforce Allstate Life's obligations to Settlement Funding under the parties' Stipulation. 10. Allstate Life's lack of opposition to this matter, or its or the other parties' stipulation hereto or compliance herewith, shall not constitute evidence in this or any matter, and is not intended to constitute evidence in this or any matter, that: (a) payments under a structured settlement contract or annuity or related contracts can be assigned or that "anti-assignment" or "anti-encumbrance" provisions in structured settlement contracts or annuities or related contracts are not valid and enforceable; or (b) other transactions entered into by Settlement Funding and its customers constitute valid sales and/or loans; or (c) Allstate Life has waived any right in connection with any other litigation or claims; or (d) Settlement Funding has waived any right other than as expressly set forth in the parties' Stipulation and/or this Order. 11. Ms. Strine shall receive from Settlement Funding the gross amount of $22,374.27. DONE IN OPEN COURT this JL? day fary,2010. 7 C= C? l D-1 M ge _ co _n BTOI/ 691635.2 -5- CD _ C t 41/1/0 (? --t