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HomeMy WebLinkAbout11-3967I 1 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL DIVISION IN RE: JOINT PETITION OF SENECA 1 I ?3? b7 LLC AND BRANDEN N ONE vII o. , HIPPENSTEEL TO TRANSFER `? Sq, STRUCTURED SETTLEMENT s PAYMENT RIGHTS ? ?? JOINT PETITION TO TRANSFER STRUCTURED SETTLEMENT PAYMENT RIGHTS =? . Petitioners, SENECA ONE, LLC and BRANDEN HIPPENSTEEL, hereby subinif-ibe "= following Joint Petition to Transfer Structured Settlement Payment Rights pursuant to, and in compliance with, the Structured Settlement Protection Act, 40 P.S. §§ 4001-4009 ("the Act"), and Pa.R.C.P. 229.2, and in support state as follows: 1. This is a Joint Petition brought by both, SENECA ONE, LLC and BRANDEN HIPPENSTEEL, to the extent that both parties have a unified and common interest in effectuating the within proposed transfer pursuant to the Act. 2. Joint Petitioner, SENECA ONE, LLC, is a Limited Liability Company in the business of purchasing periodic payments and therefore a "Transferee" as defined by 40 P.S. § 4002, having a principal place of business at 7920 Norfolk Avenue, Suite 300, Bethesda, Maryland 20814. 3. Joint Petitioner, and "Payee", BRANDEN HIPPENSTEEL, is an adult individual whose date of birth is October 2, 1986 and who resides at 126 Beech Street Carlisle, Cumberland County, Pennsylvania 17013. 4. 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. Co. ob Pd a K? Ct? 3978 R.? as?'S>jo I T 5. As the result of a wrongful death lawsuit, Payee is entitled to receive monthly payments of $500.00 beginning on March 11, 2007 and guaranteed for 10 years; a lump sum payment of $146,650.00 payable on March 11, 2011; five annual payments of $146,650.00 beginning March 11, 2014 and guaranteed for five years; and a lump sum payment of $146,684,.90 payable on March 11, 2029; which payments are reflected in an "Annuity Schedule" attached hereto as Exhibit "A". 6. By operation of a Uniform Qualified Assignment, the obligation to make these payments is held by American General Assignment Corporation (the Structured "Settlement Obligor") as defined by 40 P.S. § 4002. American General Assignment Corporation has a service address of 205 East 10th Avenue Amarillo, TX 79101. 7. The obligation was funded through the issuance of an annuity by Western National Life Insurance Company, (the "Annuity Issuer"). Western National Life Insurance Company has a service address of 205 East 10th Avenue Amarillo, TX 79101. 8. On April 16, 2011, Payee executed a "Transfer and Assignment Agreement," (the " Agreement"), a true and correct copy of which is attached hereto as Exhibit "B". The Agreement provides for the assignment of Payee's right and interest in receiving One (1) lump sum payment of $30,000.00 payable on March 11, 2019; and One (1) annual payment of $92,000.00 payable on March 11, 2024 to SENECA ONE, LLC (the "Transferee").' 9. The rights to receive the payments described above at paragraph 4, and reflected in Exhibit "A", are exclusive to the Payee, who owns them. He has never pledged, sold, assigned, transferred, or otherwise encumbered the rights to receive these payments. 10. The Transfer Agreement was executed by the Transferee on April 19, 2010. ' Pursuant to Rule 229.2, SENCA ONE, LLC is a Petitioner herein and has attached verification in support thereof. Payee, BRANDEN HIPPENSTEEL is a joint petitioner however she is not represented by counsel for the Transferee. Page 2 of 8 11. Payee shall retain all right and interest in the remaining payments not assigned. 12. 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 do home improvements. 13. Payee is 22 years old, single with one (1) minor child. 14. Payee has been provided, and has acknowledged receipt at least 10 days prior to receipt of the Transfer Agreement, of the "Transfer Disclosure" required by 40 P.S. § 4003 (a)(2), attached and incorporated herein by reference as Exhibit "D". As set forth in greater detail in the Transfer Disclosure, the following terms have been disclosed to the Payee: a. The amounts and due dates of the structured settlement payments to be transferred are: One (1) lump sum payment of $30,000.00 payable on March 11, 2019; and One (1) annual payment of $92,000.00 payable on March 11, 2024. b. The aggregate amount of the structured settlement payments to be transferred is $122,000.00. C. The discounted present value of the payments transferred using the most recently published applicable federal rate for determining the value of an annuity is $86,240.70. d. The federal discount rate used to determine the discounted present value is 3.0 percent. e. The gross amount payable to Payee in exchange for the transferred payments is $28,319.99. f. The net amount payable to Payee after deduction of legal fees, costs, expenses and processing fees is $28,319.99. g. The quotient is 32.8%. h. The amount of penalty and aggregate amount of any liquidated damages inclusive of penalties payable by the Payee in the event of any breach of the Transfer Agreement by the Petitioner is: NONE. Page 3 of 8 15. Based on the net amount that the Payee will receive from this transaction ($28,319.99), 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 13.7% per year. 16. Payee has been provided, and has acknowledged receipt, at least 10 days prior to receipt of the Transfer Agreement, of the written "Notice" in bold print 12-point type as required by 40 P.S. § 4003 (b). A true and correct copy of Payee's acknowledgement of the receipt of the § 4003 (b) Notice is attached as Exhibit "E". 17. Payee acknowledges that he has been advised to obtain independent professional advice regarding the consequences, implications, and tax effects of the transaction, and has expressly waived such advice as set forth in the "Acknowledgment" attached to this Joint Petition as Exhibit "F" 18. 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") 19. Joint Petitioners, SENECA ONE, LLC and BRANDEN HIPPENSTEEL, 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. 20. Payee has seriously contemplated this transaction, and due to his personal circumstances and financial needs, believes that this transfer is in his best interest. 21. 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 Page 4 of 8 within Petition, based upon Payee's independent determination and professional advice obtained from others, with respect to the advisability and ramifications of the transfer. 22. Pursuant to Cumberland County Local Rule 208.3(a)(2), Payee has had other matters decided by this Honorable Court, in which previous structured settlement transfers were approved. The first matter was filed at Docket No. 08-7530 (Civil Term); the second was filed at Docket No. 09-4851, and the final order was entered on September 3, 2009; the third was filed at Docket No. 10-4807 with a final order entered on September 9, 2010. WHEREFORE, Joint Petitioners, SENECA ONE, LLC and BRANDEN HIPPENSTEEL, pray that this Honorable Court grant their Joint Petition to Transfer Structured Settlement Payment Rights. Respectful Swartz Cab By: Attorney for Joint Petitioner, Seneca One LLC Page 5 of 8 CERTIFICATE OF SERVICE I hereby certify that a true and correct copy of the foregoing JOINT PETITION TO TRANSFER STRUCTURED SETTLEMENT PAYMENT RIGHTS was served by certified day of mail, return-receipt requested, postage pre-paid, on this , 2011 on: An- J_ a tr I Western National Life Insurance Company 205 East 10th Avenue Amarillo, TX 79101 American General Assignment Corporation 205 East 10th Avenue Amarillo, TX 79101 and by regular U.S. mail, postage prepaid to: Simone M. Gremillion, Paralegal Seneca One, LLC 7920 Norfolk Avenue, Suite 300 Bethesda, MD 20814 ("Transferee") Branden Hippensteel 126 Beech Street Carlisle, PA 17013 Swartz 1, By: o ad Attorney for Joint Petitioner, Seneca One LLC VERIFICATION I, BRANDEN HIPPENSTEEL, verify and state that the facts contained in the foregoing Joint Petition for Approval of a Transfer of Structured Settlement Payment Rights and the exhibits thereto are true and correct to the best of my knowledge, information and belief. I make this Verification subject to 18 PA. C.S.A. § 4904, relating to penalties for unsworn falsification to authorities. BRANDEN HIPPENSTEEL Page 7 of 8 VERIFICATION I, Doyle Chisholm, am the Vice President and Senior Counsel of Structured Settlement Operations at Seneca One, LLC and I am familiar with the file that Seneca One, LLC maintains for BRANDEN HIPPENSTEEL and I am authorized to make this Verification. I verify and state that the facts contained in the foregoing Joint Petition for Approval of a Transfer of Structured Settlement Payment Rights by BRANDEN HIPPENSTEEL and the exhibits thereto are true and correct to the best of my knowledge, information and belief. I make this Verification subject to 18 PA. C.S.A. § 4904, relating to penalties for unsworn falsification to authorities. ?aweu C DO E CHISHOLM Page 8 of 8 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL DIVISION IN RE: JOINT PETITION OF SENECA ONE, LLC AND BRANDEN No. HIPPENSTEEL TO TRANSFER STRUCTURED SETTLEMENT PAYMENT RIGHTS FINAL ORDER On this day of , 2011, it is ordered that the Joint 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, Seneca One, LLC, and the court having not been made aware of any statute, regulation or order that would be incompatible with the proposed transfer, the transfer will not contravene any Federal or State statute or regulation, or the order of any court or responsible administrative authority; (3) the transfer complies with the remaining requirements of the Structured Settlement Protection Act, including Sections 3(a)(2), 3(a)(4), 3(a)(5) and 3(a)(6); (4) the payments that are to be transferred are designated as follows: one lump sum payment in the amount of $30,000.00 due on or about March 11, 2019; one lump sum payment in the amount of $92,000.00 due on or about March 11, 2024, to SENECA ONE, LLC. (5) the Settlement Obligor is American General Assignment Corporation, and the Annuity Issuer is Western National Life Insurance Company f/k/a AIG Annuity Insurance Company. Annuity Issuer shall forward the Assigned Payments to Seneca One, LLC, when due, to 7920 Norfolk Ave., Suite 300, Bethesda, MD 20814 or to such other address as designated by Seneca One, LLC. (6) the terms of this order shall survive the death of the payee and shall be binding on the payee's heirs, beneficiaries and assigns; (7) the payee shall receive from the transferee the net amount of $28,319.99. BY THE COURT: J. 0'12912009 16:38 17172415373 SCHEDULE UPS STORE 2878 POLTCj ATUMSm 404,483 EFFECTIVE HATE: 12-29-2000 $ INGLE PREMIUM :.$10.00 AND OTHER VALUABLE C NSIDERAT I Ott OWNER: AMERICAN GENERAL ASSIGNMZNT CORPORATION MEASURING LIFE2 IIANDEN KEITH HIPPINSTEEL AGE (NEAREST BIRTHDAY) OF MEASURINQ LIFE ON EFFECTIVE DATE: lz NUMBER, BANNER, AND MODE OF IINSTJLLMENT PAY ENTS TO BE MAb$; GITARAHTEED PAYMENTS; BEGINNING ENDING PAMENT FREQU ENCY DATE DATE AMOUNT OF p YHENT 3-11-2007 2-11-200 $500.00 HON'I LY 3-11-2011 3-112011 $146r65O.40 SIYfi E 3-11-2014 3-11-3024 $146F6$0.D0 DYER 5 YEARS 3-11-2029 3-11-2029 $146,684.90 SINGL E IF THE MEASURING LIFE DIES PAXOR 7D PAT THE GUARANTEED PERIOD, ANY REMAINING PA IN ACCORDANCE WITH THEE SETTLEMENT AGREE FIRST INSTALLMENT DUE DATE; 3-11-2007 ANNUAL RATE OF IN- MAST IN PAMENTS -Wo-, OF ALL IN$FALEMNIS DURING S DUB SHALL BS PAID AS THEY BECOKE DUE, PACE 06/18 INAL c FACIE TRANSFER AND ASSIGNMENT AgREEMENT This Transfer and Assignment Agreement (this "Agreement"), dated and effective as of April 26, 2011, is being entered into by and between Branden Hippensteel ("Seller's who currently resides at 121 Spur Road, Carlisle, PA 17013 and Seneca One, LLC, a Maryland limited liability company having its principal place of business at 7920 Norfolk Avenue, Suite 300, Bethesda, MD 20814 (hereinafter referred to as "Purchaser"). NOW THEREFORE, for valuable consideration, the receipt of which is hereby acknowledged, the parties agree: At some time in the past, Seiler or Seller's predecessor in interest, entered into an agreement in connection with the settlement of a lawsuit or other claim (the "Settlement Agreement'. Seller has told Purchaser that Seller is entitled to receive certain payments due under the Settlement Agreement (hereinafter referred to as the "Settlement Payments'. An entity (the "Settlement Obligor") agreed to make the payments that are due to Seller under the Settlement Agreement. The Settlement Obligor purchased and/or caused to be issued annuity policy no. (the "Annuity') by Western National Life Insurance Company (the "Annuity Issuer"). Pursuant to the terms of the Annuity, the Settlement Payments are to be made to Seller on a fixed schedule. Seller has agreed to assign to Purchaser, Seller's right to receive certain Settlement Payments in exchange for the Purchase Price described below. A. Purchase and Sale. Subject to the terms and conditions herein provided, Purchaser agrees to pay Seller the sum of $28,319.99 "Purchase Price"), and Seller hereby sells and assigns to Purchaser, or its assignee, Seller's right, title and interest in and to One(1)lump sum payment in the amount of $30000.00 which is due on or about March 11, 2019; One(1)lump sum payment in the amount of $92000.00 which is due on or about March 11, 2024 (the "Assigned Payments'). B. Conditions to be Satisfied Prior to Closing The following must occur prior to Purchaser paying Seller the Purchase Price: (1) Purchaser 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 Purchaser's rights to or interest in the Assigned Payments and/or Purchaser's or its assign's ability to receive the Assigned Payments in their entirety on the dates set forth herein; (2) Purchaser receives a non-appealable court order that (a) directs the Settlement Obligor and Annuity Issuer to make the Assigned Payments to Purchaser, or its assigns; and (b) makes all findings required by applicable state and federal law (the "Court Order"); and (3) the company making the Settlement Payments has acknowledged receipt of the Court Order. Upon completion of the foregoing events, the Purchase Price will be paid to the Seller (the "Closing"). C. Right to Assign. Purchaser may elect to assign this Agreement and/or its right, title, and interest under this Agreement in the Assigned Payments to a third party purchaser (an "Assignee") and may effect such assignment by requesting that the aforesaid Court Order name such Assignee as the recipient of the Assigned Payments. The obligations and rights of Purchaser may be further assigned or otherwise transferred by Purchaser, provided that any assignee is bound by the terms and conditions hereof. The obligations and rights of Seller under this Agreement may not be assigned or otherwise transferred. 0? D. Representations and Warranties of Seller. Seller represents and warrants as follows: (1) Seller has full power and authority to enter into this Agreement and assign the Assigned Payments to Purchaser; (2) No other person, firm or corporation claims a lien, right, title or interest of any kind in the Assigned Payments; (3) Seller has no lawsuits pending or threatened against Seller and Seller is not subject to any outstanding judgment, levy, claim or offset; (4) Seller has paid all federal, state and local taxes due through and including the date hereof and Seller is not subject to any outstanding tax liens; (5) Seller is not indebted for any child support arrearage or child support lien; (6) Seller has not filed for bankruptcy and does not intend to file for bankruptcy; (7) Seller has reviewed and understands the terms and effects of this Agreement and Seller is competent to enter into this Agreement; (8) Seller has entered into this Agreement under Seller's own free will without undue influence or duress and Seller is not entering into this Agreement under the influence of drugs or alcohol; (9) Purchaser has disclosed to Seller and Seller understands that Purchaser is a wholly owned subsidiary of Seneca One Finance, Inc.; (10) Seiler is entering into this Agreement to sell the Assigned Payments to Purchaser, and with respect to the sale of the Assigned Payments to Purchaser, Purchaser has satisfied all its obligations with respect to any guarantee or other promotional offer; and (11) All information contained in the Application for Sale of Structured Settlement Payments is true and correct. If any of these statements becomes untrue prior to the Closing (as defined herein), Seller agrees to notify Purchaser in writing immediately. Seller hereby authorizes Purchaser or its agents or assigns to conduct such credit and other searches as may be necessary in order to confirm the foregoing with the understanding that all such reports and searches will be kept strictly confidential, but may be used by Purchaser, its subsidiaries, affiliates and/or its assigns as necessary to complete the intent of this Agreement. E. This Is Not a Loan. Purchaser and Seller acknowledge and agree that the sale and transfer herein contemplated constitute a sale of the Assigned Payments, and not a loan, conveying good title thereto free and clear of any liens and encumbrances from the Seller to Purchaser. In connection with the rights granted to Purchaser hereunder, Seller hereby grants a security interest in, all of Seller's right, title and interest in and right to receive all of the Assigned Payments to Purchaser, or its assigns, to the extent such grant is permitted under applicable law. In addition, Seller authorizes Purchaser, its subsidiaries, affiliates and/or its assigns to make all filings and to take all other actions that Purchaser and/or its assigns, in its discretion, deems necessary or proper to complete the transactions contemplated hereby and to perfect the sale of the Assigned Payments including, without limitation, filing a UCC-1 against the Assigned Payments. F. Events of Default. Seller understands that the following events shall be deemed to a default by Seller under this Agreement: (a) Seller's death; (b) Seller's insolvency or the appointment of a custodian, trustee, liquidator or receiver for Seller or Seller's assets; (c) an assignment for the benefit of Seller's creditors or the filing of a petition under bankruptcy, insolvency or debtor's relief laws by or against Seller; (d) failure by the Settlement Obligor or Annuity Issuer to make any one or more of the Assigned Payments as a result of any act by Seller, Seller's estate or any of Seller's heirs; (e) Seller's failure to comply with any term or condition set forth in this Agreement; or (t) a representation or warranty made by Seller turns out to be materially false. G. Beneficiaries. Seller acknowledges that Purchaser, or its assigns, is entitled to receive the Assigned Payments - to the exclusion of any beneficiary, heir executor, representative or dependent of Seller - even if Seller is no longer living at the time when the payments come due. Seller shall execute and deliver a separate writing which designates Seller's estate as the beneficiary of the Assigned Payments and shall execute and sign any document, agreement, waiver, beneficiary change, or other document to reflect, evidence, and confirm that Purchaser, or its assigns shall be entitled to receive the Assigned Payments to the exclusion of Seller and/or Seller's heirs, beneficiaries, representatives, dependents, and executors. In the event Seller's death occurs during the course of this transaction, this 2 Agreement is and shall be deemed a "Testamentary Agreement" in which Seller agrees, for all time, to name Purchaser, or its assigns, as the party that will inherit the Assigned Payments. Seiler cannot and will not amend, modify, after or otherwise change the beneficiary designation or this Testamentary Agreement without Purchaser's express prior written consent. H. Adiustment of Purchase Price: Advances: Satisfaction of Judgments Seller acknowledges and agrees that the Purchase Price may be adjusted, if necessary, by subtracting an amount equal to the sum of (i) all Assigned Payments received by Seller after the date of this Agreement and prior to the Closing; plus (ii) any payments and advances made to Seller or made on behalf of Seller to a third party at or prior to the Closing. Any advances and payments to third parties by Purchaser shall be made, if at all, in Purchaser's sole and absolute discretion. In the event that any charges, encumbrances, judgments (including, without limitation, any pledges or assignments) liens or other claims against the Seller or the Assigned Payments should arise or be disclosed, then Seller may be required to satisfy these obligations at Closing. Seller agrees that any disbursements required for these satisfactions shall be paid from the Purchase Price prior to any disbursement to Seller. In the event Purchaser elects to disburse some or all of the Purchase Price prior to obtaining all reports identifying charges, encumbrances, judgments, liens or other claims, Seller hereby agrees that Purchaser, or its assignees, may hold back from the disbursement two (2) times the total of such charges, encumbrances, judgments, liens or other claims as reasonably estimated by Purchaser. In such event, Seller will execute any and all documentation reasonably requested by Purchaser to identify the amounts to be withheld and consent to such withholding. 1. Waiver of Restrictions on Assignability. Seller acknowledges that Seller's Settlement Agreement may have been entered into prior to the enactment of the Pennsylvania Structured Settlement Protection Act (the "Pennsylvania Transfer Statute'. Accordingly, Seller's Settlement Agreement may contain a provision or provisions restricting or purporting to restrict Seller's right to assign. Seller, on behalf of Seller, and Seller's heirs, beneficiaries, executors, administrators, successors, and legal representatives, hereby waives and releases any such restriction. Furthermore, Seller agrees and covenants that Seller shall not raise, assert or claim any such rights or restrictions against Purchaser in the future. J. Continuing Cooperation Upon Seller's execution of this Agreement, Purchaser and Seller shall cooperate in commencing a legal action with the appropriate court seeking the court approval required by the Pennsylvania Transfer Statute. Seiler agrees to cooperate in taking all actions to facilitate the consummation of the transaction contemplated under this Agreement, including appearing in the contemplated court action as a party thereto. Seller agrees to execute and deliver at any time any additional instruments and documents promptly and to do any acts or things as may be necessary or expedient to effectuate the terms and conditions of this Agreement, including obtaining, providing and filing any court documents necessary to obtain a Court Order approving the assignment contemplated by this Agreement. Seller hereby authorizes Purchaser to correct any typographical errors or to make any ministerial revisions to this Agreement and to any other supporting documents signed by Seller if such revisions are necessary to effectuate the terms and conditions of this Agreement. Seller also agrees to notify Purchaser in writing of any delay in performance or changes to the Assigned Payments, and to furnish to Purchaser all information received by Seller regarding the Assigned Payments. K. Governina Law: Venue. This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Pennsylvania . Disputes under this Agreement, including any claim that the Seller breached this. Agreement, shall be determined in and under the laws of the State of Pennsylvania . Any action to enforce any right by either party under this Agreement shall be commenced in Pennsylvania . L. Holdback. Purchaser, or its assigns, shall, in its discretion, withhold an amount from the Purchase Price equal to the amount of the payments to be paid within six months of the Closing, or the amount of the first assigned lump sum payment, until such time as the first payment is received by Purchaser or its assigns. Within five business days after receipt of the first payment, Purchaser, or its assigns, shall release any funds withheld from the Purchase Price to Seller. Purchaser, or its assigns, shall have the right to retain funds sufficient to cover any payments not received. M. General Provisions. (1) This Agreement may be executed in two or more counterparts, each of which shall be deemed an original and all of which together, shall constitute one and the same Agreement; (2) The section headings contained in this Agreement are for reference only and shall not affect in any way the meaning or interpretation of this Agreement; (3) In the event an action is commenced in any forum to enforce the rights of a party to this Agreement, then the prevailing party in such action shall be entitled to all reasonable attorney's fees and costs incurred to the extent permitted by law; (4) This Agreement may be amended or modified, and performance of any covenant or agreement herein contained may be waived or modified only by an instrument signed by the parties hereto. The waiver or modification by a party of performance or of a breach of any provision of this Agreement shall not operate or be construed as a waiver of any subsequent or other performance or breach thereof, (5) This Agreement constitutes the entire agreement and understanding of the parties with respect to the matters and transactions contemplated hereby and supersedes any and all prior agreements and understandings with respect thereto. No representations have been made, or relied upon, by either party except those set forth in this Agreement; (6) Except for notice pursuant to section P, notice shall be deemed to have been duly given three (3) business days after having been mailed by certified or registered mail, return receipt requested, or upon delivery if delivered by a nationally recognized overnight delivery service, such as Federal Express. All notices shall be mailed to the addresses set forth at the beginning of this Agreement. All notices mailed to Purchaser shall be sent to the attention of the Processing Group; (7) Seller acknowledges and agrees that the obligations under this Agreement shall be binding upon Seller, Seller's heirs, personal representatives, transferees, successors, estate and assigns; and (8) If any provision of this Agreement is found to be invalid or unenforceable, the validity or enforceability of any other provision of this Agreement shall not be affected thereby. N. Special Irrevocable Durable Power of Attorney Seller hereby grants Purchaser, or its assigns, a Special Irrevocable Durable Power of Attorney with full power of substitution, to act in Seller's name, place and stead regarding the Assigned Payments, including, without limitation, the authority to negotiate, endorse and execute checks, drafts and other instruments in Seller's name, the power to after, edit and change payment instructions and/or beneficiary designations and any other act it deems necessary to obtain all the benefits of the bargain contemplated by this Agreement. This durable power of attorney shall be coupled with an interest, and shall survive Seller's death, disability, incompetence or incapacity. Seller declares this durable power of attorney to be irrevocable and renounces all right to revoke it or appoint any other person to perform the acts referred to in this provision. IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly authorized representatives effective as of the date first set forth above. SELLER: (SEAL) Branden Hippensteei The foregoing Agreement, and specifically the Spe 'al Irrevocable Durable Power of Attorney in provision N., was acknowledged before me this ay of April, 2011 by Branden Hippensteel , who is personally known to me or has produced , (_ (type of identification) as identification and who did take an oath. COMMONWEALTH OF PENNSYLVANIA (sign name) NO?SeaCk LINA, Smy, Note ptft (Print name) City OfHwdWxM Da4ft Cotm(y MY 10mvi scion E July 24, 2DI I Member, Pennsylvania Association of Notaries NOTARY PUBLIC, State of PC" PURC My Commission Expires: (? { f Seneca ne, C: BY: (SEAL) S c re,C?? 6 COURT OF COMMON PLEAS IN RE: TRANSFER OF STRUCTURED Cumberland COUNTY SETTLEMENT PAYMENT RIGHTS BY Branden Hippensteel Payee's Affidavit in Support of Petition to Transfer Structured Settlement Riehts 1, Branden Hippensteel, the payee, verify that the statements below are true and correct: 1. Payee's name, address and age: Branden lppensteel, 126 Beech St. Carlisle. PA 17013. I am 22 years old. 2. Marital Status: _X Never Married; Married; ___ Separated; _ Divorced If married or separated, name of spouse: 3. Minor children and other dependents: Names, ages, and places of residence: Blake Hippensteel. 3 Years old, and lives with the an my fiance. 4. Income: (a) Payee's monthly income and sources: I will continue to receive ,$500.00 a month from my annuity, I am also looking for a full time job. My fiance is receiving unemployment in the amount of $700.00 a month (b) If presently married, spouse's monthly income and sources: 5. Child support, alimony or alimony pendente lite: Obligation to pay: _ Yes No If yes, state the amount of the obligation, to whom payable, and whether there are arrearages: 6. Previous transfers: 1-lave you previously filed a petition to transfer payment rights under the structured settlement that is the subject of this petition? _-X-Yes No 0? If yes, for each petition that you filed, (a) If the transfer was submitted for court approval, list the court, the case caption and case number, and state whether the court approved or disapproved the transfer: Cumberland County PA, Case #E 2008-07530, and it was approved Cumberland County, PA Case # 2009-04851 and it was MpMved. Cumberland County, PA, case # 2010-4807 and it was approved. (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: Settlement Funding, I transferred to them a lump sum of $46,650.00 on March 11, 2011 • Settlement Funding I transferred to them $40,000.00 due on March 11, 2011 and $16,650.00 due 2n March 11, 2414: Seneca One, LLC, I transferred to them 165,000.OQdue on March 11, 2019. (ii) State the amount of money and the manner in which the money was used: In my first transfer 1 received $28,569.00. I used the proceeds to buy a car, pUoff debt as well as to buy baby supplies. In my second transfer, I received $34,997.56. I used the proceeds to prepay rent for 8 months, purchase furniture and paid off some personal loans. I was tunable to buy the home outright as my personal loans that paid off were more significant than I thought and there was not enough proceeds left to do so. So I ended upp epayinrent instead. I received $13,114.00 in order to pay off debt in order fix My credit so that I could purchase a home. I also fix my vehicles. (c) Have you ever transferred payments without court approval? If so, please explain: N/A 7. Reasons for transfer: Describe in detail your reasons for the proposed transfer, including an explanation as to why a sale of a lesser amount of the structured settlement amount will not better serve your interests: I intend on using -the,proceeds in order to do some home improvements to a home that I just purchased. I used the funds from a. lump sum payment that was due to in on March l'l, 2011. I was going to rent aproyM with the funds from my last transaction with Seneca Qne. LLC, but it only made sense to purchase a property outri ht. 8. Payment of debts: If you seek the transfer in order to pay debts, list each debt, including the name of the creditor and the amount presently owed: N/A Verification I verify that the statements made in this affidavit are true and correct. I understand that false statements herein are made subject to the penalties of 18 Pa.C.S.§4904, relating to unsworfi falsification to authorities. DATE: ?_ ?/' Signature DISCLOSURE STATEMENT This Disclosure Statement is being provided by Seneca One, LLC ("Purchaser") to Branden Hippensteel ("Seller") in connection with Seller's agreement to transfer and assign to Purchaser certain structured settlement payment rights due to Seller. This Disclosure Statement is being provided pursuant to Pennsylvania law. 1. Schedule of Payments Transferred: Seller is transferring all of Seller's right, title and interest in the following payments to Purchaser: One(1)lump sum payment in the amount of $30000.00 which is due on or about March 11, 2019; One(1)lump sum payment in the amount of $92000.00 which is due on or about March 11, 2024 2. Aggregate Amount of Payments Transferred: $122,000.00 3. Gross Amount to Seller: $28,319.99 4. Transfer Expenses: Seller will be responsible for the following commissions, fees, expenses, and charges in connection with the closing of this transaction: None $0.00 5. Net Amount to Seller: $28,319.99 Seller understands that Seller will receive the Net Advance Amount less (i) any advances made to Seller or on Seller's behalf by Purchaser; and (ii) any amounts necessary to satisfy any outstanding liens, judgments, and credit-based obligations, pursuant to the terms of the transfer agreement. 6. Discounted Present Value of the Transferred Payments: The calculation of current value of the transferred structured settlement payments is $86,240.70 using the applicable federal rate of 3.000%. 7. Quotient: $28,379.99 _ $86,240.70 = 32.840% Net Amount Payable divided by the Present Fair Market Value 8. Penalty in the Event of Breach of Contract: The amount of any penalty or liquidated damages, payable to Purchaser by Seller in the event the transfer agreement is breached by Seller shall be ZERO Dollars ($0.00). 9. Independent Professional Advice: You are advised to seek independent professional advice regarding the transfer. 10. Acknowledgment of Disclosure Statement: Seller acknowledges that this disclosure statement was provided at least ten days prior to becoming obligated under a transfer agreement. [Signature on Following Page] I, Branden Hippensteel , acknowledge and confirm that I have read this Disclosure Statement and understand the transaction and believe that the terms of the transaction are fair and reasonable and that the transaction is in my best interest. i 11? Branden Hippensteel IMPORTANT NOTICE: You are strongly urged to consult with an attorney who can advise you of the potential tax consequences of this transaction. S-'? Branden Hippensteei ACKNOWLEDGMENT OF PROFESSIONAL ADVICE I, Branden Hippensteel , Seller under that certain Transfer and Assignment Agreement dated on or about April 26, 2011 (the "Transfer Agreement") hereby acknowledge, confirm, and agree that Seneca One, LLC has advised me, in writing, to seek independent professional advice from an attorney, certified public accountant, actuary, or other licensed adviser regarding the transaction described in the Transfer Agreement. I acknowledge that (check one and insert name, address and telephone number of adviser, if applicable): I have received such professional advice from (please include statement signed by adviser on company letterhead) I have knowingly and voluntarily decided not to seek any professional advice regarding th transaction with Seneca One, LLC Branden Hippensteel IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL DIVISION IN RE: JOINT PETITION OF SENECA ONE, LLC AND BRANDEN No. HIPPENSTEEL TO TRANSFER STRUCTURED SETTLEMENT PAYMENT RIGHTS CERTIFICATION OF COUNSEL Ronald E. Reitz, attorney for Seneca One, LLC, hereby sets forth the following: 1. I, Ronald E. Reitz, am counsel of record in this matter for Seneca One, LLC. 2. Based on materials provided to me by Seneca One, LLC, 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 to Pa.R.C.P. 229.2. C . -A THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL DIVISION IN RE: J INT PETITION OF SENECA NE, LLC AND BRANDEN No. 2011-3967 IPPENSTEEL TO TRANSFER : S RUCTURED SETTLEMENT P YMENT RIGHTS ORDER OF COURT A er a hearing and review of the Petition to Transfer Structured Settlement Payment Pursuant t 40 PA. STAT. ANN. §§ 4001 (2000), et seq. (the "Petition"), the Court finds as follows: 1. The transfer of structured settlement payment rights by the payee Branden Keith Hippenste 1 a/k/a Branden K. Hippensteel a/k/a Branden Hippensteel ("Hippensteel") to the transferee, Seneca One, LLC ("Seneca One"), as described in the Petition (the "Proposed Transfer") complies with the requirements of 40 PA. STAT. ANN. § 4001 (2000), et seq. and will not contravene other applicable federal or state statutes, including TEX. CIV. PRAC. & REM. CODE §§ 141.00 (2004), et seq., or regulations or any applicable law, as required by 40 40 PA. STAT. ANN. § 4003(a)(1); 2. Not less than ten (10) days prior to the date on which Hippensteel first incurred any oblig ion with respect to the Proposed Transfer, Seneca One provided to Hippensteel a disclosure statement satisfying the requirements of 40 PA. STAT. ANN. § 4003(a)(2); 3. Hippensteel has established that the Proposed Transfer is in his best interest or the best intere t of his dependents, if any, as required by 40 PA. STAT. ANN. § 4003(a)(3); 4. Hippensteel has received, or waived in writing his right to receive, independent professional advice regarding the implications of the Proposed Transfer, including consideration of tax ramifications of the Proposed Transfer, as required by 40 PA. STAT. ANN. § 4003(a)(4); i 5. 1 If the Proposed Transfer would contravene the terms of the structured settlement agreement, the express written approvals have been properly obtained and filed, as set forth in 40 PA. STAT. NN. § 4003(A)(5); and 6. Hippensteel has given written notice of the transferee's name, address and taxpayer i entification number to the annuity issuer, Western National Life Insurance Company ("WNL"), and the structured settlement obligor, American General Assignment Corporation ("AGAC" , and has filed a copy of such notice with the court, as required by 40 PA. STAT. ANN. § 4003(A)(6). 7. Hippensteel represents and warrants that he has all right, title, and interest in and to the As igned Payments (defined below), that said payment was not previously transferred, assigned, :rn d, encumbered, or otherwise alienated, and that he is not aware of any claim or potential against, or interest of any third-party in, said payment or payment rights other than as ex6ressly set forth herein. Ba ed on the foregoing findings and being satisfied that the Proposed Transfer satisfies all applicable statutory requirements, including TEX. Civ. PRAC. & REM. CODE §§ 141.001 (2004), et eq., it is hereby, ORDERED that the Petition is GRANTED and APPROVED as follows: P suant to 40 PA. STAT. ANN. §§ 4001 (2000), et seq., the assignment by Hippensteel, to Seneca 06e, of all of his right, title, and interest in and to a certain payment is hereby APPRO It i further, ORDERED that WNL is hereby directed, on the dates set forth therein, to deliver to Seneca One's designated assignee, by check made payable to "Great Falls Titling Trust" ("Great Falls Trust") certain payments due under policy no. 404,483 (the "Annuity"), as 2 follows: I • One (1) lump sum payment of $30,000.00 due on or about March 11, 2019; and • One (1) lump sum payment of $92,000.00 due on or about March 11, 2024 (the "Assi ned Payments"). The Assigned Payments shall be delivered to the following address (the "Designated Address"): Great Falls Titling Trust P.O. Box 62478 Baltimore, MD 21264-2478 Tax ID: 27-6261293 The Assigned Payments that are being transferred and assigned to Great Falls Trust by way of th s Final Order constitutes only a portion of the lump sum payments due and owing on March 111, 2019 through and including March 11, 2024 (the "Term"). AGAC and/or WNL are not required to divide or split the payment due and owing during the Term (the "Term Therefore, Hippensteel, Seneca One and Great Falls Trust have agreed to, and the Court hereby approves, a payment servicing arrangement relative to said payments. IT IS THEREFORE ORDERED that AGAC and/or WNL shall pay and remit to Great Falls Trus and Great Falls Trust shall receive from AGAC and/or "L, 100% of the lump sum payments ue and owing by "L and AGAC during the Term. Great Falls Trust shall retain the portion of he Term Payments it receives during the Term that represents the Assigned Payments. Great Fall Trust shall promptly pay and remit to Hippensteel the remaining un-assigned portion of the Tern? Payments, if any. L and AGAC shall discharge their obligation to make the Term Payments in question by paying and directing said payments to Great Falls Trust and by doing so WNL and AGAC shall not have any liability to Hippensteel for the Term Payments. This Final Order in no way modifies o negates the ownership or control over the Annuity by "L and/or AGAC. 3 IT S FURTHER ORDERED that Seneca One, Great Falls Trust, their successors and assigns, parents, affiliates, and subsidiaries, shall defend, indemnify and hold harmless WNL and AGA from and against any and all liability from all claims in connection with, related to, or in a way arising out of the issuance of the Term Payments to Seneca One and/or Great Falls Trust whether such claims are brought by Hippensteel (including Hippensteel's heirs, beneficiaries, and/or executors), by any individual or entity to which Seneca One and/or Great Falls Trus subsequently assign or transfer the Assigned Payments, or any portion thereof, or by any other individual or entity. To the extent that Seneca One or Great Falls Trust neglect to honor this ndemnification and defense obligation, WNL and AGAC may, in addition to all other remedies vailable at law, satisfy the same by withholding to their own credit any remaining Assigned IT 11S THEREFORE ORDERED that neither the fact of the entry of this Final Order, nor any term r action taken hereunder, shall be admissible at any time in any action or proceeding for any purpose, except if required in connection with the enforcement of any party's rights It ?s further ORDERED that WNL and AGAC are hereby discharged from all liability for the Term Payments, as to all parties except Seneca One, Great Falls Trust and their successors and/or ass ans. This Order is entered without prejudice to the rights of WNL and AGAC and the Court males no finding regarding the enforceability of any anti-assignment provisions contained in the ann6ity contracts or related documents. IS FURTHER ORDERED that the death of Hippensteel prior to the due date of the Term Payments shall not affect the transfer of the Assigned Payments from Hippensteel to Seneca O?e's designated assignee Great Falls Trust, and Hippensteel understands he is giving up a his rights, a[nd the rights of his heirs, successors and/or beneficiaries, to the Assigned Payments. It is further ORDERED this Order is a "Qualified Order" within the meaning of 26 U.S.C. § 591, et seq. jre SIGNED THIS / DAY of July, 2011. JUDGE PRESIDING ()vj ?e - ?eo?q(-Vw I-11-11 8iand0VI fI?opell6$ " ! (opy 71111t 'vL C-) C) o -*? Go C- - Mr -o o r rn 0 ? -4© <p ? Q'Yi 3 Zo " 0 W 5