HomeMy WebLinkAbout05-3610
IN THE MATTER OF
LAWRENCE R. HONAKER
: IN THE COURT OF COMMON PLEAS
: OF CUMBERLAND COUNTY, PENNSYLVANIA
~..J
: NO. OS - .3"10 _~
PETITION FOR APPROVAL OF LUMP SUM PAYMENT OF STRUCTURED
SETTLEMENT PURSUANT TO THE STRUCTURED SETTLEMENT PROTECTION
ACT
AND NOW, this
day of July, 2005, comes Lawrence R. Honaker, by and
through his attorney Michael D. Rentschler, Esquire, who files the within Petition, as
follows:
1. The Petitioner is Lawrence R. Honaker, an adult individual who is currently
residing at 231 Lincoln Street, Enola, Cumberland County, Pennsylvania 17025
(hereinafter referred to as "Petitioner/Payee").
2. This Petition is being filed pursuant to the Structured Settlement Protection
Act, 40 P.S. 4000, et sea. (The "Act"). The Act requires Court approval of transactions
such as the one contemplated herein.
3. Following a personal injury case that was asserted against the tortfeasor,
Petitioner/Payee, through his attorney settled a claim against the tortfeasor and
Defendant's insurance carrier, Erie Insurance Company, The matter was settled
without having had to institute a lawsuit. The settlement amount or a portion thereof,
was placed in an annuity. The current owner of the annuity is Erie Insurance Group.
The issuer of the annuity is Symetra Life Insurance Company, formerly Safeco Life
Insurance Company.
4. Petitioner/Payee now desires to sell a portion of the structured settlement
annuity comprising an aggregate amount of $15,970.50, which represents one hundred
seventeen (117) monthly payments of $136.50 each, beginning on September 25, 2005
and ending on May 25, 2015. The discounted present value of the aggregate payments
at 4.6 is $12,828.32. The discounted present value is the calculation of the current
value of the transferred structured settlement payments under federal standards for
valuing annuities. The gross amount due to the Seller is $6,600,00. From that amount,
$200.00 is deducted as a compliance and administrative fee, thereby creating a net
payment to the Seller of $6,400.00. Petitioner/Payee intends to use the proceeds of
this transaction to pay bills and other necessary expenses.
5. Prior to the enactment of the Act, Court approval was not necessary in order
to effect a transaction sale such as the one contemplated herein.
6. On July 14, 2005, Petitioner/Payee executed a Purchase Agreement with J.G.
Wentworth, whereby J.G. Wentworth agrees to purchase those structured settlement
payments and give Petitioner/Payee a lump sum payment. A true and correct copy of
the Purchase Agreement is incorporated herein, made a part hereof, and attached as
Exhibit "A".
7, Schedule 1, entitled "Disclosure Statement", advises Petitioner/Payee of
certain disclosures and statements concerning the transaction. Said Disclosure
Statement is incorporated herein, made a part hereof, and attached as Exhibit "B".
8, The legal fees and costs incident to this transaction, which are agreeable to
Petitioner/Payee, is a legal fee of $750.00 to the undersigned counsel, the filing fee of
$55.00, notary fees of $50,00 and certified mailings to the owner and issuer of the
annuity.
9. According to Exhibit "B", the Petitioner/Payee will be entitled to a lump sum
payment of $6,400.00 which amount is the lump sum payment from J.G. Wentworth as
described in Exhibit "B". Seller understands that the attomey's fee, notary fees, the
filing fee and postal fees will be deducted from the $6,400.00 lump sum.
10. This transfer is in Petitioner/Payee's best interest and represents the
settlement of his own personal injury claim that originally arose out of an automobile
accident. Erie Insurance Group, the current owner of the annuity, and Symetra Life
Insurance Company, the issuer of the annuity, will receive a copy of this Petition.
WHEREFORE, it is respectfully requested that this Honorable Court
grant the within Petition and, therefore, approve the lump sum payment from the
Petitioner/Payee's structured settlement, pursuant to the Act, consistent with the
statements contained herein.
Respectfully submitted,
~~-~
?~/~-
MICHAEL D. RENTSCHLER, ESQUIRE
28 North 32"d Street
Camp Hill, PA 17011
(717) 975-9129
Attorney for Petitioner/Payee
VERIFICATION
I, Lawrence R. Honaker, Jr., do hereby swear and/or affirm that the information contained in the
forgoing Petition is true and correct to the best of my information and belief. I understand that
any false statements may be punishable pursuant to 18 PaCS Section 4904, relating to unsworn
falsification to authorities.
PURCHASE AGREEMENT
This is a Purchase Agreement. The date of this Agreement is ,200_. Lawrence Honaker is
the Seller. 32] Henderson Receivables Limited Partnership, a Nevada Limited Partnership, its successors
and/or assigns is the Buyer. In this Agreement, Lawrence Honaker is referred to as "You" or "Your" and
321 Henderson Receivables Limited Partnership or its nominee, is referred to as "We". "Us" or "Our".
BACKGROUND OF THIS AGREEMENT
I. On , You signed a Settlement Agreement with
(" ") and possibly others (the "Release" or the "Settlement Agreement"). Under the
Settlement Agreement, You are entitled to receive certain payments (the "Payments") because You settled a
personal injury claim with
2. andlor its insurer funded the Payments by buying an annuity contract (the
"Annuity") issued by Symetra Life [nsurance Company, fonnerly known as Safeco Life Insurance
Company (the "Annuity Company"),
3. A list of the Payments being sold under this Agreement is attached to this Agreement as
Exhibit "A". You have supplied us with a copy ofthe Release and a copy of the Annuity ora letter that
describes the obligations ofSymetra Life Insurance Company, fonnerly known as Safeco Life [nsurance
Company under the Annuity.
4. You desire to sell and assign to Us all of Your rights to receive all or a portion of the Payments
under the Release, as described on Exhibit "A", all of the other rights You have .mder the Release and the
olherrights as described in Section I(a) below. We desire to purchase all of Your rights and benefits, on
the tenns and under the conditions described in this Agreement.
You and We agree as follows:
t. Purchase and Sale.
a. You now sell, transfer and assign to Us all of Your rights in the "Assigned Assets" as
listed in Exhibit "A". As used in this Agreement, the tenn "Assigned Assets" means (I)
Your rights to receive all or a portion of the Payments under the Release, (2) the
Payments listed in Exhibit "A", (3) the right to receive all or a portion of the "qualified
funding asset" defined in the Qualified Assignment described in Exhibit "C" and any
interest in the proceeds of the qualified funding asset relaled to the Assigned Assets, (4)
all of Your other rights (but none of Your obligations) under the Release and the
Qualified Assignment related to the Assigned Assets, and (5) all of Your present or future
rights to sell, assign, transfer, cause an early tennination of, modify, waive, settle, or
receive value for, the Payments on Exhibit "A". By Our signing this Agreement, We are
hereby purchasing and accepting the sale and assignment of all of the Assigned Assets
described above.
b. The purchase price is Six Thousand Six Hundred Dollars and 00/100 Cents ($6,600.00)
(the "Purchase Price"). The Purchase Price will be paid to You when both You and We
sign this Agreement and We have completed Our internal process.
2. Aeknow/edement.
a. When this Agreement is signed by You and Us, You will deliver to Us a letter, addressed
to the Annuity Company, slating that all payments to be made relating to any of the
Assigned Assets will be sent to Us (the "Notice of Direction of Payment"). The Notice of
Direction of Payment will be in a form satisfactory to Us. You will also, at the time of or
after Your signing of this Agreement, deliver to Us, addressed as We may require, other
nOlices, instructions or documents, and copies of them, as We think arc necessary or
I
proper to carry out this Agreement.
b. When You and We sign this Agreement, You will also deliver to Us: (I) a letter
addressed to the Annuity Company directing that all payments of the Assigned Assets
after Your death shall be sent directly to Us, and (2) a Change of Beneficiary Form
changing the beneficiary of the Assigned Assets, after Your death, to "321 Henderson
Ret:eivables Limited Partnership", as sole beneficiary [(I) and (2) above are referred to as
the Change of Beneficiary Form]. The Change of Beneficiary Form will state thai the
instructions may never be revoked and that no change may be made in the instructions or
in the payments (including as 10 the payee or the manner or place of making such
payments) without Our prior written consent. Yau will also, when this Agreement is
signed by You and Us, deliver to Us, addressed as We may require, such other notices,
instructions or documents, and copies of them, as We think are necessary or proper to
carry out this Agreement.
c. Before You and We sign this Agreement, You will deliver to Us an acknowledgment of
the Estate of Lawrence Honaker, as primary beneficiary of the Assigned Assets, of the
terms of this Agreement. the Estate of Lawrence Honaker will agree that they arc not
entitled to any rights to any of the Assigned Assets.
d. You agree to sign all other documents which We may request forever naming Us as Ihe
only beneficiary of the Assigned Assets, including but not limited to an agreement to
provide in Your Last Will and Testament that all of Your righls to the Assigned Assets
were sold to Us (a "Testamentary Agreement").
e. You acknowledge that We advised You to obtain independent professional tax advice to
determine whether this transaction will result in any adverse federal andlor state tax
consequences.
f. You acknowledge that We advised You must obtain independent legal representation
prior to executing this Agreement and that We have advised you that We may not refer
You to any specific attorney for such purpose.
3. Your Representations and Warranties. You now represent and warrant to Us that:
a. You own (and are selling and assigning to Us under this Agreement) all of the
Assigned Assets, free and clear of all claims, liens, charges, security interests,
encumbrances, and agreements of any nature (other than this Agreement), and
when You and We sign this Agreement, no one other than Us shall have any
present or furore right to the Assigned Assets,
b. This Agreement and all of the other documents signed in connection wilh this
Agreement have been properly signed by You, and they represent Your legal,
valid and binding obligation, enforceable against You in accordance with their
terms, The copies of Ihe list of Payments, Release and Annuity or a letter thai
describes lhe obligations of Symelra Life Insurance Company, fonnerly known
as Safeco Life Insurance Company under the Annuity, attached to this
Agreement as Exhibits A, Band C are true copies of such agrccmenls, and have
not been altered, amended or modified in any way since the date they were
signed. The Release is valid and binding on all of the parties that have signed it,
is in full force and effect, and no party has violaled any of its terms.
e. The signing and perfonnance of this Agreement by You and the transactions
described in this Agreement:
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I. do not conflict with any other obligations of Yours;
II, will not cause a violation under (or create any right of termination,
cancellation or acceleration or similar right under) any contracl or
agreement by which You or Your assets, including the Release, are
bound or may be affected;
iii. will not create, or give any party (other than Us) the right to create, any
lien, charge, security interest or encumbrance in, to or on any of the
Assigned Assets; and
IV. will not create a present or future right in any other pany to make any
claim against You or Your assets, or any of the Assigned Assets.
d. You understand the terms and provisions of this Agreemenl and You have been
represented by tax and accounting advisors and a lawyer in the signing of this
Agreement.
e, Neither You nor anyone else have to do anything else for (I) the proper signing
and performance by You of this Agreement and any transactions intended to be
done in this Agreement, or (2) the canying out by Us of any of Our rights and
remedies under this Agreement. No olher person has made a claim in any rights
in or to the Assigned Assets.
f. You have valid reasons for selling Your interest in the Assigned Assets rather
than obtaining a loan with the Assigned Assets as collateral, and You agree that
the transaction set forth in this Agreement is not a loan or other financing
transaction.
g, This Agreement is a valid sale, transfer and assignment to Us of the Assigned
Assets.
h. Your residence and legal address is as described in Paragraph II of this
Agreement. During the last years, You have lived at such address.
i. No representation or warranty of Yours in this Agreement or in any of the
documents delivered in connection with this Agreement or in any agreement
required by this Agreement, is inaccurate or contains any untrue or misleading
statement.
j. The signing by You of this Agreement will not violate any olher promise or
agreement you have made with anyone else. You understand that any and all
restrictions on the assignability of the Scheduled Payments were included in Ihe
Release andlor Annuity at Your request, for Your benefit and not for the benefit
of any olher person. These restrictions, if any, were included by You as a
precautionary measure to make sure You were allowed favorable tax treatment
under the Internal Revenue Code. You understand that by entering into this
Agreement, you may be giving up this favorable tax treatment. You undersland
that any income earned by You on any investment or use of the Purchase Price
may be taxable to You. You may have to pay more in taxes as a result of this
Agreement. For Our benefit and the benefit of Our assigns or successors. You
agree to WAIVE AND RELEASE all of Your rights in, to, or under, such
restrictions on assignabmty~ if any.
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k. Vou have not before the date of this Agreement., sold or assigned Vour right to
the Assigned Assets or any part of the Assigned Assets. Vou do not owe any
money to Vour present or fanner spouse for support maintenance or similar
obligations, nor do Vou owe any money to any of Vour children or guardians of
Vour children. The Assigned Assets are not subject to any community property
or similar marital rights of any person.
I. Vour right to the Assigned Assets is not affected by any mortgage, pledge, lien,
charge, security interest, encumbrance, restriction or adverse claim of any
nature. You understand that any violation of any of Your representations in
this agreement will result in an act of fraud by You wbieh could result in
You being held respousible for damages in favor of Us, with money to be
paid by You to Us.
m. Vou are not in violation of any obligations concerning child-care. alimony or
support.
n. Vou now give up forever all Vour rights in any agreement that says that Vou
cannot assign or sell Your rights in the Assigned Assets to Us. V ou have not
requesled and V ou do not expect to receive from Us, a Fonn 1099 or any other
documentation which could make the transaction described by this Agreement
taxable to You in any way. Vou further understand that We have not given to
Vou any advice about any ofVour taxes in this transaction. Vou have relied on
Your own professional advisors concerning taxes.
o. As of the date of this Agreement., Von arc oflegal age in the state nOled as Your
address in Section I I of this Agreement, mentally sane, and of a sound mind.
You have never been convicted of a felony or any other crime involving
dishonesty.
p. You are very familiar with Vour financial affairs and condition. With that full
understanding, V ou certifY that (I) on the date We pay Vou the Purchase Price
and V ou sell to Us the Assigned Assets, the fair value of Your assets arc and
will he greater than all of Vour debts; (2) Vou presently intend to pay all of
Your creditors when such payments are due; and (3) V ou have not intentionally
hidden the fact from any creditor of Vours that Vou have entered into this
Agreement and the other documents referred to in this Agreement.
q. Vou do not intend to file for bankruptcy and there are no lawsuits or other
efforts by any of Vour creditors to put Vou into bankruptcy or to take the
Assigned Assets.
r. The Purchase Price is not Vour only or most important source of income and
V ou do not have any mental or physical problems that would prevent You from
having a paying job.
s. You promise to us that no broker, finder, or other person other Ihan those
persons named in the broker statement signed by you in connection with this
Agreement was involved in or important in arranging the purchase transaction in
this Agreement. No other person has a right to any fee, payment, commission,
or other compensation because of this Agreement.
t. You agree that We have not forced Vall to give to Us copies of any confidential
documents. You agree that We told Vou that We only needed to see those
documents which described the Assigned Assets so we could buy from Vou the
Assigned Assets. Vou agree that We do nol intend to tell any other party abollt
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what is included in those documents. You understand that if We do so, it will
only be for the sole purpose of buying the Assigned Assets.
u. You understand that it usually takes six to eight weeks to complete this process,
but that it could take longer. You understand that we have to obtain court
approval of this transfer. You understand that, due to the delays that may be
occasioned by the annuity company, we will escrow the amount equal to the
next lwo monthly payments due to you from the annuily company to insure that
we receive all of the payments that we purchase. You understand that we may
either payor escrow funds to satisfY any judgments, tax liens or child support
against you or the assigned assets and deduct those amounts from the purchase
price. YOU UNDERSTAND THAT WE WILL DEDUCT FROM THE
PURCHASE PRICE ANY AMOUNTS OF PAYMENTS RECEIVED BY
YOU PRIOR TO FUNDING, IF SUCH AMOUNTS ARE NOT COVERED
BY THE ESCROWED FUNDS.
4. You promise Us that
a. You will not, and will not allow any other party (except Us or Our assignee,
if applicable) to take funds away from the Assigned Assels. You will not
do anything else to affect Ihe Assigned Assets. You will not say You still
own the Assigned Assets. You will not do anything or allow anyone else
to do anything that could in any way interfere with or lessen Our rights in
the Assigned Assets.
b, You will not do anything that will, or could in the future, violate the
Release, or any of the agreements required to be executed by this
Agreement. You also agree to cooperate with Us 10 help Us to obtain all of
the rights that We are buying from You in this Agreement and in Ihe
Release.
c. YOIl will give to Us at least thirty (30) days written notice of Your intenlion
to move Y OIlr residence or change Your legal address from the address in
Paragraph J I of this Agreement.
d. You will not make any change in Your instructions to the Annuity
Company regarding payments to be made to You.
e. You understand that the Annuity and the Release may say that You agree
not to sell Your rights to the Assigned Assets.
f. You agree to continue to cooperate with Us. This includes Your obligation
to immediately deliver to Us any checks, funds or other form of Payment
received after the date of this Agreement by You or anyone other than Us. If
any Payment is ever denied, delayed, or withheld from Us, as determined by
Us in our reasonable discretion, directly or indirectly on account of any act
or omission by You or any person acting for You, then You shall be in
defalllt under this Agreement (and an Event of Default under ~8 shall be
deemed to have occurred). Immediately upon such default, and without any
further notice to You, You will pay to Us the following amounts;
(i) the full, dollar value of all remaining Assigned Assets as they
become due after the date of the default;
5
All of the remedies specified under this section shall be cumulative with all
of the remedies for default pursuant to ~8.
g. [f You learn before or aRer the signing of this Agreement of Ihe threat or
actual beginning of any lawsuit or proceeding that has anything to do with
Our rights under this Agreement or the Assigned Assets, then You will
immediately notifY Us of that and You will give Us copies of all notices and
oilIer writings relating to it promptly after You receive them.
h. (fYou receive any notice relating 10 any supposedly unpaid claim affecting
Ihc Annuily or the Assigned Assets or to any other claim against the
Annuily or the Assigned Assets, then You will promptly notify Us and will
promptly give Us copies of all notices and other writings relating to it
received by You promptly after You receive Ihem.
i. You give to Us the right (if We want to do it) to create and use a signature
stamp from a specimen signature given by You to Us for use: (l) in
endorsing checks given under the Annuity or the Release in payment of the
Assigned Assets; and (2) to assist Us to do anything necessary so We can
get all of the rights that We are paying You for under this Agreement, even
if You die or get sick.
j. As described in the Notice of Direction of Payment, You will tell the
Annuity Company (I) to mail all future Annuity payments for the Assigned
Assets to the address We suggest and 10 change the mailing address of the
primary and contingent beneficiaries to that address; (2) to ignore all future
requests, demands, and instructions received from You (or any other person
besides Us) about the Assigned Assets; and (3) to accept and honor future
requests, instructions, and orders about the Assigned Assets only from Us.
5. RIGID TO CANCELLATION. YOU MAY CANCEL THIS CONTRACT
WITHOUT PENAL TV OR FURTHER OBLIGATION WITHIN TWENTY -ONE DAYS FROM THE
DATE YOU RECEIVE PAYMENT FROM 321 HENDERSON. [n order for the cancellation to be
effective, You musl mail a nOlice of cancellation by regislered or certified U.S. mail, postmarked within
twenty-one (21) days ofreceipl oflhe Purchase Price to Us, c/o Vice Presidenl of Opera lions at 2215-B,
Suite 5, Renaissance Drive, Las Vegas, NV 89119. Furthermore, in order for Your nolice of cancellalion
to be effeclive, Your regislered or certified U.S. mail package 10 us musl include a bank or certified check
for the full Purchase Price that We paid You under this Purchase Agreemenl. Any failure to comply with
the above procedure shall be a waiver of Your righl to cancel this transaction.
6. Your Furtber Promises. You agree Ihal, from time to lime, al Your expense, You will
promptly sign and give to Us any and all documents 10 help Us realize our rights and benefits under this
Agreemenl. This promise includes signing, filing or allowing Us to file financing or continuation
statements, or amendments or assignments of those documents. You pennit Us or others acting for Us to
sign our name and/or your name and file without Your signature such financing statements, if that is
permitted in Your state of residence. When You sign this Agreement, You will also sign and deliver to Us
a "Special Irrevocable Power of Attorney" You must retain the services of an attorney and deliver an
opinion of Your attorney about the sale of Assigned Assets to Us, in a form acceptable to Us.
7. Continuation of Representations. Warranties and Covenants. All of Your
representations, warranlies and promises made in this Agreement will continue 10 be relied on by Us after
this Agreement is signed.
6
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.~ew 01l-11100 U! no A ans 0114il!J a'll aAIlIf OM '1In"JO() JO IlClA3 Ull S! a104UI ,,'llne1"O jO IU'A3" U" se S!41
01 JO]OJ'M. '1In"JOP U!.q II!M nOA 1"41 Ull'W IJ!M IlClwaoJlly S'!41 U! SUO!I"luos:lJdal JnoAjo AueJo qaealq
JnOA JO IUowao.1llV S!'IlJo UUOl Aue 41!M A(dwoa 01 alRH"J JnOA 'lIRujall JO luaA:;! '8
will nol affect Your or Our rights under this Agreement in any way.
13. E.xpellses. Except as otherwise affirmatively set forth in this Agreement, You and We
agree that we will each pay onr respective costs and expenses in connection with the carrying out of this
Agreement
14. "ead.iDgs. The section and subsection headings contained in this Agreement are for
reference purposes only and will not affect in any way the meaning or interpretation of this Agreement.
15. Counterparts. One or more originals of this Agreement may be signed wilh Your or Our
signalure. When pUltngethee they will make one agr
by all parties that need to sign. A facsimile signature will be considered an original.
16. AssigtJmelll. We and anyone to whom We assign this Agreement may assign Our right.
title and interest in and to this Agreement, the Annuity and the Assigned Assets without Your approval.
Yon and We agree that if there is an assignment by Us to someone else, We shall not be responsible to
You. You must look only to the person or company that We assign this Agreement to for any payment (for
example, of the Purchase Price) and perfunnance of this Agreement When asked by Us or any assignee,
You will sign and deliver any such documents as We may require to perfonn this transaction, as assigned.
17. Your spouse. You and Your spouse are fully aware of Your rights in the Assigned
Assets, You and Your spouse fully give up those rights. You and Your spouse understand that by selling
the Assigned Assets to Us, You and Your spouse are not receiving the same amount of money as You
would if Yon waited for all of the scheduled Payments of the Assigned Assets but, rather, are receiving a
discounted value in return for reeeipt of the Purchase Price immediately. You and Your spouse have valid
reasons for selling the Assigned Assets. You and Your spouse fully understand the terms of the Purchase
Agreement and understand that the sale of the Assigned Assets is flllal. You also understand that Your
spouse gives up any property righl he or she may have in the Assigned Assets that Your spouse could claim
because of Your marriage.
18. Entire Agreement. This Agreement and the Exhibits and other documents You signed
make up the entire understanding and agreement between You and Us about this Agreement This
Agreement replaces all prior agreements. whether written or oral, about this Agreement. This Agreement
may not be changed unless in a writing signed by You and Us.
19. l.ill!itati0ll9LLiabiJjtynoL Bllyer. You understand that Onr liability to You Ill,der this
Agreement is strictly limited to the requirement to pay the Purchase Price and under no circwnstances will
We be responsible for consequential damages.
20. Court Approval. You understand that court approval is required for this transfer,
You agree to cooperate with us to obtain such court approvaL
2L
Ex"lbijs.
Attached to this Purchase Agreement are the following Exhibits:
Exhibit "A"
List of What Payments We are Buying.
8
Intending to be legally bound, You and We have signed this Agreement as ofthe date at the top of
the first page of this Agreement.
321 HENDERSON RECEIVABLES LIMITED
PARTNERSHIP
Vice Presi
/~!i}i~~
Spouse
Sworn to and subscribed
b;;;:::;~ o~+~ 2005
Notary <l
COMMONWEAlf'i OF PENNSYLVANIA
Not:/ial Seal
Mary M. Lr,. NOIafy Public
Camp HI Bom :"nlIlerland County
My Commission expor... Oct. 27. 2I11l
Member, Pennsylvama Association Of Notaries
9
SCHEDULE 1
DISCLOSURE STATEMENT
PLEASE BE ADVISED THAT THE PROPOSED TRANSACTION IS A SALE,
NOT A LOAN, AND THAT YOU WILL BE SELLING ALL RIGHTS AND
TITLE TO THE ASSIGNED ASSETS ONCE THIS TRANSACTION IS
CONSUMMATED. PLEASE BE ADVISED THAT YOU MAYBE SUBJECT
TO ADVERSE FEDERAL AND STATE INCOME TAX CONSEQUENCES AS
A RESULT OF THE PROPOSED TRANSACTION. YOU SHOULD
CONSULT YOUR OWN COUNSEL, ACCOUNTANT, OR FINANCIAL
ADVISOR REGARDING ANY FEDERAL OR ST ATE INCOME TAX
CONSEQUENCES ARISING FROM THE PROPOSED TRANSFER.
YOUR PURCHASE PRICE WAS DERIVED ASSUMING A DISCOUNT
RATE SIGNIFICANTLY HIGHER THAN THE PRIME INTEREST RATES
CHARGED BY COMMERCIAL BANKS, THEREFORE, WE URGE YOU TO
EXPLORE ALL FINANCIAL OPTIONS.
WE WILL PURCHASE FROM YOU A) 117 Monthly payments of $136.50
each, beginning on 9/25/2005 and ending on 5/25/2015
THE AGGREGATE AMOUNT OF THE PURCHASED PAYMENTS IS
$15,970.50.
THE DISCOUNTED PRESENT VALUE OF THE AGGREGATE PAYMENTS
AT 4.60% IS $12,828.32. THE DISCOUNTED PRESENT VALUE IS THE
CALCULATION OF THE CURRENT VALUE OF THE TRANSFERRED
STRUCTURED SETTLEMENT PAYMENTS UNDER FEDERAL
STANDARDS FOR VALUING ANNUITIES, THE GROSS AMOUNT
PAYABLE TO SELLER IS $6,600.00.
THE FOLLOWING EXPENSES ARE INCURRED BY THE SELLER (YOU)
AND WILL BE DEDUCTED FROM THE PURCHASE PRICE:
COMPLIANCE AND ADMINISTRATIVE FEE: $200.00
THE NET AMOUNT PAYABLE TO THE SELLER(YOU) IS $6,400.00. NO
OTHER EXPENSES ARE INCURRED BY YOU.
SCHEDULEl,I'.,;,Gl': 2
THE DISCOUNTED PRESENT VALUE OF PAYMENTS SHALL BE
CALCULATED AS FOLLOWS: THE APPLICABLE FEDERAL RATE USED
IN CALCULATING THE DISCOUNTED PRESENT VALUE IS 4.60%..
THE EFFECTIVE ANNUAL DISCOUNT RATE FOR THIS TRANSACfION
IS 24.19%. THE CASH PAYMENT YOU RECEIVE IN THIS
TRANSACTION FROM US WAS DETERMINED BY APPLYING THE
SPECIFIED EFFECTIVE ANNUAL DISCOUNT RATE, COMPOUNDED
MONTHLY, TO THE TOTAL AMOUNT OF FUTURE PAYMENTS TO BE
RECEIVED BY US, LESS THE TOTAL AMOUNT OF COMMISSIONS,
FEES, COSTS, EXPENSES AND CHARGES PAYABLE BY YOU.
THE NET AMOUNT THAT YOU WILL RECEIVE FROM US IN
EXCHANGE FOR YOUR FUTURE STRUCTURED SETTLEMENT
PAYMENTS REPRESENTS 49.90% OF THE ESTIMATED CURRENT
VALUE OF THE PAYMENTS BASED UPON THE DISCOUNTED VALUE
USING THE APPLICABLE FEDERAL RATE.
THE QUOTIENT OBTAINED BY DIVIDING THE NET PAYMENT BY THE
DISCOUNTED PRESENT VALUE IS 49.90%.
BASED ON THE NET AMOUNT THAT YOU WILL RECEIVE FROM US
AND THE AMOUNTS AND TIMING OF THE STRUCTURED-
SETTLEMENT PAYMENTS THAT YOU ARE TURNING OVER TO US,
YOU WILL, IN EFFECf, BE PAYING INTEREST TO US AT A RATE OF
24.19% PER YEAR. THE NET AMOUNT PAlDTOYOU (THE PAYEE) BY
US (THE TRANSFEREE) REPRESENTS AN ESTIMATE OF THE FAIR
MARKET VALUE OF THE FUTURE PERIODIC PAYMENTS
TRANSFERRED UNDER THE STRUCUTRED SETTLEMENT
AGREEMENT.
SCI!ED!JLF,J, P AGE:-.J
NOTICE OF CANCELLATION RIGHTS:
YOU MAY CANCEL THIS TRANSACTION AT ANY TIME PRIOR TO 5:00
P.M. OF THE TWENTY-FIRST DAY FOLLOWING THE LATER OF THE
EXECUTION OF THE PURCHASE AGREEMENT, OR THE DATE THE
PAYEE BECOMES OBLIGATED UNDER THE PURCHASE AGREEMENT
WITHOUT PENALTY OR FURTHER OBLIGATION.
THIS CANCELLATION RIGHT CANNOT BE WAIVED IN ANY MANNER.
TO CANCEL, YOU MUST PROVIDE WRITTEN NOTICE TO THE
TRANSFEREE. WRITTEN NOTICE SHOULD BE MAILED OR
DELIVERED TO THE ADDRESS BELOW BY 5:00 P.M. OF
(THE TWENTY-FIRST DAY FOLLOWING THE TRANSACTION). IT IS
BEST TO MAIL IT BY CERTIFIED MAIL, RETURN RECEIPT
REQUESTED, AND TO KEEP A PHOTOCOPY OF THE SIGNED FORM
AND YOUR POST OFFICE RECEIPT, ADDRESS TO WHICH
CANCELLATION IS TO BE RETURNED:
321 HENDERSON RECEIVABLES LIMITED PARTNERSHIP
2215-B RENAISSANCE DRIVE
SUITE 5
LAS VEGAS, NV 89119
ATTENTION: VICE PRESIDENT - OPERATIONS
IMPORTANT NOTICE: YOU ARE STRONGLY URGED TO CONSULT
WITH AN ATTORNEY WHO CAN ADVISE YOU OF THE POTENTIAL
TAX CONSEQUENCES OF THIS TRANSACTION.
SCHEDULEl,J>AG:E:4
PLEASE BE ADVISED THERE ARE NO PENALTIES OR LIQUIDATED
DAMAGES PAYABLE BY YOU IN THE EVENT OF ANY BREACH OF THE
TRANSFER AGREEMENT BY YOU. THERE ARE NO BROKERS
COMMISSIONS, SERVICE CHARGES, APPLICATION FEES,
PROCESSING FEES, CLOSING COSTS, FILING FEES, ADMINISTRATIVE
FEES, LEGAL FEES, NOTARY FEES AND OTHER COMMISSIONS, FEES,
COSTS, EXPENSES AND CHARGES PAYABLE BY YOU OR DEDUCTED
FROM GROSS AMOUNT OTHERWISE PAYABLE TO YOU OTHER mAN
THE COMPLIANCE AND ADMINISTRATIVE FEE.
IF YOU BELIEVE YOU WERE TREATED UNFAIRLY OR WERE MISLED
AS TO THE NATURE OF mE OBLIGATIONS YOU ASSUMED UPON
ENTERING INTO THIS AGREEMENT, YOU SHOULD REPORT THOSE
CIRCUMSTANCES TO YOU LOCAL DISTRICT ATTORNEY OR THE
OFFICE OF THE A TIORNEY GENERAL.
mE EFFECTIVE DATE OF THE TRANSFER AGREEMENT SHALL BE
DEEMED TO BE THE DATE THAT mE AGREEMENT WAS SIGNED BY
THE YOU (PAYEE).
PLEASE BE ADVISED mAT PAYMENT TO YOU PURSUANT TO THE
TRANSFER AGREEMENT IS CONTINGENT UPON COURT APPROVAL
OF THE TRANSFER AGREEMENT.
PLEASE BE ADVISED THA T PAYMENT TO YOU WILL BE DELAYED UP
TO 30 DAYS OR MORE IN ORDER FOR THE COURT TO REVIEW AND
APPROVE THE TRANSFER AGREEMENT.
BY SIGNING BELOW YOU ARE CONFIRMING RECEIPT OF THIS
DISCLOSURE AT LEAST 10 DAYS PRIOR TO RECEIPT OF THIS
CONTRACT.
c)- -;", "
CERTIFICATE OF SERVICE
I, Michael D. Rentschler, Esquire, do hereby certifY that, on the date stated below, I
served a copy of the foregoing Petition upon the fOllOwing by Certified Mail, return
receipt requested and addressed to:
Symetra Life Insurance Company
777-108th Avenue NE, SC-4
Bellevue, WA 98004-5135
Attn: Structured Settlement Department
Erie Insurance Group
100 Erie Insurance Place
Erie, PA 16530
Attn: Structured Settlement Department
Date:
'7 ~ !,.~ S.---
/~~~
Michael D. Rentschler, Esquire
28 N. 32nd Street
Camp Hill, PA 17011
(717) 975-9129
PA Supreme Court In # 45836
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RECEIVED JUL 18 20M!/, l
IN THE MATTER OF
LAWRENCE R HONAKER
: IN THE COURT OF COMMON PLEAS
: OF CUMBERLAND COUNTY, PENNSYLVANIA
: NO. IJS' - 3/p/O
4;t
ORDER
AND NOW, this aSZh day of --9~ ,2005,
upon consideration of the Petition for Approval of Lump Sum Payment of Structured Settlement
Pursuant to the Structured Settlement Protection Act, a hearing is hereby scheduled to occur on
:Jr,j/l'l.l.LJd-'(J ,the .3/AL-t daYOf--L?A-tffJAJ-:C , 2005, at
.;;); 300m., Courtroom Number L( of the Cumberland County Courthouse,
I
One Courthouse Square, Carlisle, Pennsylvania, the Honorable Jludge ~/7l (). ~
presiding.
BY THE COURT:
Distribution:
Michael D. Rentschler, Esquire
Erie Insurance Group
Symetra Life Insurance Company
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zon5 JUL 25 Ptl 3: I{ 7
C. .
UiJ,;.c
IN THE MATTER OF
LAWRENCE R HONAKER
: IN THE COURT OF COMMON PLEAS
: OF CUMBERLAND COUNTY, PENNSYLVANIA
: NO. 05-3610 CIVIL
AMENDED PETITION FOR APPROVAL OF LUMP SUM PAYMENT OF
STRUCTURED SETTLEMENT PURSUANT TO THE STHUCTURED SETTLEMENT
PROTECTION ACT
1l.
AND NOW, this.;<l day of July, 2005, comes Lawrlence R Honaker, by and
through his attorney Michael D. Rentschler, Esquire, who 'flles the within Amended
Petition, as follows:
1. The Petitioner is Lawrence R Honaker, an adult individual who is currently
residing at 231 Lincoln Street, Enola, Cumberland County" Pennsylvania 17025
(hereinafter referred to as "Petitioner/Payee").
2. This Petition is being filed pursuant to the Structured Settlement Protection
Act, 40 P.S. 4000, et sea. (The "Act"). The Act requires CI:>urt approval of transactions
such as the one contemplated herein.
3. Following a personal injury case that was asserted against the tortfeasor,
PetitionerlPayee, through his attorney settled a claim against the tortfeasor and
Defendant's insurance carrier, Erie Insurance Company. The matter was settled
without having had to institute a lawsuit. The settlement amount or a portion thereof,
was placed in an annuity. The current owner of the annuity is Erie Insurance Group.
The issuer of the annuity is Symetra Life Insurance Compatny, formerly Safeco Life
Insurance Company.
4. Petitioner/Payee now desires to sell a portion of the structured settlement
annuity comprising an aggregate amount of $15,970.50, which represents one hundred
seventeen (117) monthly payments of $136.50 each, beginning on September 25,2005
and ending on May 25, 2015. The discounted present value of the aggregate payments
at 4.6 is $12,828.32. The discounted present value is the, calculation of the current
value of the transferred structured settlement payments under federal standards for
valuing annuities. The gross amount due to the Seller is $6,600.00. From that amount,
$200.00 is deducted as a compliance and administrative fee, thereby creating a net
payment to the Seller of $6,400.00. Petitioner/Payee intends to use the proceeds of
this transaction to pay bills and other necessary expenses..
5. Prior to the enactment of the Act, Court approvatl was not necessary in order
to effect a transaction sale such as the one contemplated herein.
6. On July 14, 2005, Petitioner/Payee executed a Purchase Agreement with 321
Henderson Receivables Limited Partnership, whereby 321 Henderson Receivables
Limited Partnership agrees to purchase those structured settlement payments and give
Petitioner/Payee a lump sum payment. A true and correct copy of the Purchase
Agreement is incorporated herein, made a part hereof, and attached as Exhibit "A".
7. Schedule 1, entitled "Disclosure Statement", advises Petitioner/Payee of
certain disclosures and statements concerning the transaction. Said Disclosure
Statement is incorporated herein, made a part hereof, and attached as Exhibit "B".
8. The legal fees and costs incident to this transactiion, which are agreeable to
Petitioner/Payee, is a legal fee of $750.00 to the undersigned counsel, the filing fee of
$55.00, notary fees of $50.00 and certified mailings to the owner and issuer of the
annuity.
9. According to Exhibit "B", the Petitioner/Payee will be entitled to a lump sum
payment of $6,400.00 which amount is the lump sum payment from J.G. Wentworth as
described in Exhibit "B". Seller understands that the attorney's fee, notary fees, the
filing fee and postal fees will be deducted from the $6,400.00 lump sum.
1 O. This transfer is in Petitioner/Payee's best interest and represents the
settlement of his own personal injury claim that originally arose out of an automobile
accident. Erie Insurance Group, the current owner of the annuity, and Symetra Life
Insurance Company, the issuer of the annuity, will receive a copy of this Petition.
WHEREFORE, it is respectfully requested that this Honorable Court
grant the within Petition and, therefore, approve the lump :sum payment from the
Petitioner/Payee's structured settlement, pursuant to the Act, consistent with the
statements contained herein.
Respectfully submitted,
~;;~
MICHAEL D. ENTSCHLER, ESQUIRE
28 North 32"d Stmet
Camp Hill, PA 17011
(717) 975-9129
Attorney for Petitic)ner/Payee
VERlFICA nON
I, Michael D. Rentschler, Esquire, attorney for the Petitioner do hereby swear and/or affirm that
based upon information provided to me by Petitioner, the infomlation contained in the forgoing
Amended Petition is true and correct to the best of my information and belief. I am authorized to
sign this verification on behalf of the Petitioner. I understand that any false statements may be
punishable pursuant to 18 PaCS Section 4904, relating to unsworn falsification to authorities.
~~
Michael D. Rentschler, Esquire
PURCHASE AGREEMENT
This is a Purchase Agreement. The date of this Agreement is , 200 . Lawrence Honaker is
the Seller. 321 Henderson Receivables Limited Partnership, a Nevada Limited Partnership, its successors
and/or assigns is the Buyer. In this Agreement, Lawrence Honaker is refetTed to as "Vou" or .'Your" and
321 Henderson Receivables Limiled Partnership or its nominee, is ref"rred 10 as "We", "Us" or "Our"_
BACKGROUND OF THIS AGREEMENT
I. On, You signed a Settlemel\! Agreement with
(" ") and possibly others (the "Release" or the "Settlement Agreemenl"). Under the
Scltle;nei,\ Agreement, You are entitled to receive certain payments (d,e .Paymenls") because You settled a
personal injury claim with
2. andlor its insurer funded Ihe Payments by buying an annuily conlracl (the
"Annuily") issued by Symetra Life Insurance Company, fonnerly known as Safreo Lire Insurance
Company (the" Annuity Company").
3. A lisl of the Payments being sold under this Agreement is attnched to Ihis Agreemenl as
Exhibit" A" . You have supplied uS with a copy of the Release and a copy of the Annuity or a leller thaI
describes the obligationsofSymetra Lire Insurnnce Company, formerly known as Safeco Lire Insurance
Company undel" the Annuity.
4. You desire to sell and assign 10 Us all of Your rights 10 receive all or a portion oflhe Payments
under the Release, as described on Exhibit "A", all ofd.e other rights You have under the Release and the
olher rights as described in Section I (a) below. We desire 10 purchase all of Your righls and benefils, on
the teOlls and under Ihe condilions described in this Agreement.
Y nu and We agree as follows:
I. I~rchase and Sale.
a. 'I' on now sell, transfer and assign 10 Us all of 'I' oUr righlS in the "Assigned Assets" as
listed in Exhibit "A". As used in this Agreemenl, the term "Assigned Assets" means (I)
Your righls 10 receive all or a portion of Ihe Payments under Ihe Release, (2) the
Payments listed in Exhibit "A", (3) the righllO receive all or a portion of the "qualified
funding asset" defined in the Qualified Assignment described in e"hibit "C" and any
interest in the proceeds of the qualified fitnding assel relaled 10 the Assigned Assets, (4)
all of Your other rights (but none of Your obligations) under the Release and the
Qualified Assignment related to the Assigned Assets, and (5) all of Your present or rulure
righls 10 sell, assign, transfer, cause an early termilllation of, modify, waive, Sellle, or
receive value for, the Payments on Exhibit "A". By Our signing this Agreement We are
hereby purchasing and accepIing the sale and assignment of all of the Assigned Assets
described above.
b. 11.e purchase price is Six Thoosand Six Hundred Dollars and 001100 Cents ($6,600.00)
(the "Purchase Price"). The Purchase Price will be paid 10 You when both You and We
sign this Agreement and We have compleled Our inlelmal process.
2. ~.<:.knowledl!ment.
a. Wh~>Q this Agreemenl is signed by You and Us, You wiII deliver to Us a letter, addressed
10 the Annuity Company, stating that all payments to be made relating 10 any of the
Assigned Assets will be sent to Us (the ''Notice of Dilwion of Paymenl"). The Notice of
Direction of Pay men! will be in a fOllU satisfactory to Us. You will also, at the time of or
aller Your signing of this Agreement, deliver 10 Us, .ddressed as Wc may require, other
nOlices, instructions or documents, and copies of them, as We Chink are necessary or
I
proper 10 cany out this Agreement.
h. When You and We sign this Agreement, You will also deliver to Us: (I) a letter
addressed to the Annuity Company directing that .,11 payments of the Assigned Assets
after Your death shall be sent directly to Us. and (2) a Change of Beneficiary Form
changing the beneficiary of the Assigned Assets, afier Your death, to "32 J Henderson
Receivables Limited Partnership', as sole beneficiary [(I) and (2) above are referred to as
the Change of BenefICiary Fonn]. The Change of IllenefICiary Form will slate that the
illstruetions may never be revoked and that no chang,e may be made in the instructions or
in the payments (including as 10 the payee or tht, manner or place of making such
payments) without Our prior writb.'" consent. Yo" will also, when this Agreement is
signed by You and Us, deliver to Us, addressed as We may require, such other notices,
instructions or documents, and copies of them, as We think arc necessary or proper to
cany out this Agreement.
e. Before You and We sign this Agreement, Vou will deliver to Us an acknowledgment of
the Estate of Lawrence Honaker, as primary benefi"iary of the Assigned Assets, of the
terms of tbis Agreement. the EsIate of Lawrencc Honaker will agree tlmt they are not
entitled to any rights to any of the Assigned Assets.
d. You agree to sign all other documents which We may request forever naming Us as the
only beneficiary of the Assigned Assets, including hut not limited to an agreement to
provide in Vonr Last Will and Testament that all of Your rights to the Assigned Assets
were sold to Us (a "Testamentary Agreement").
e. You acknowledge that We advised You to obtain independent professional tax advice 10
determine whether this transaction will result in any adverse federal andlor slaCe tax
consequences.
I: Vou acknowledge that We advised Vou must obtain independent legal representation
prior to executing this Agreement and that We have advised you that We may not rerer
You to any specifie attorney for such purpose.
3. Y uur Repr<:sent200BS and Warranties, Yon now represent and warrantto Us that:
a. You own (and are selling and assigning to Us under this Agreement) all of the
Assigned Assets, free and clear of all claims, liens, charges, security interests,
encumbrances, and agreements of any natw'e (other !ban this Agreement), mId
when You and We sign Ibis Agreement, no one other than Us shall have any
present or future right to the As..igned Assets.
b. This Agreement and aU of the other documents signed in connection with this
Agreement have been properly signed by You, and Ihey represent Your legal,
valid and binding obligation, enfurceable agitinst You in accordance wilh their
terms. The copies of Ihe list of Payments, Release and Annuity or a letter that
describes the obligations of Symetra Life Insurance Company, formerly known
as Safeco Life Insurance Company und<:r the Annuity, attached to Ihis
Agreement as Exhibits A~ D and C arc ITUC' cl~pics of such agreements. and have
not been altered, amended or modified in any way since the date they were
signed. The Release is valid and binding on "II of the parties that have signed ii,
is in full force and eITecL, and no party has violated any of its terms.
c. The signing and perfonnance of this Agreement by You and tbe transactions
desenDcd in this Agreement
2
I. do not connia wilk any otbeT oblig;~lions of Yours;
II. will not cause a violation under (or creale any righl of termination,
cancellation or acceleration or similar righl omdcr) any conlract or
agreemenl by which You or Your assets, including lhe Rclease, are
bound or may be affected;
iiL will not creale, or give any party (0 ther Ikan Us) the righl to crcme, any
lien, charge, security inlerest or encumbrance in. to or on any of che
Assigned Assels; and
iv. will not create a present or fulure righc in any other party to makc any
claim against You or Your assets, or any ofthe Assigned Assets.
d. You understand the terms and provisions of this Agreement and You have bcen
represented by lax and accounting advisors and a lawyer in the signing of this
Agreement
e. Neither You nor anyonc else have to do anylhing else for (I) the proper signing
and perfurmance by You of this Agreement and any transactions intended to be
done in Ihis Agreement, or (2) the carrying oul by Us of any of Our rigllls and
remedies under this Agreement No other person has made a claim in any rights
in or to the Assigned Assets.
I' You have valid reasons for selling Your interest in the Assigned Assets rather
than obtaining a loan with the Assigned Ass..ts as collateral, and You agree that
the transaction set forth in this Agreement is not a loan or other financing
transaction.
g. This Agreement is a valid sale, transfer and assignment to Us of the Assigned
Assets.
h. Your residence and legal address is as described in Paragraph II of Ihis
Agreement. During the Iasl years, You have lived at such address.
I. No representation or warranty of Yours in. this Agreement or in any of the
documents delivered in connection with tltis Agreement or in any agreement
required by this Agreement, is inaccurate (J{' contains any untrue or misleading
statement.
j. The signing hy You of this Agreement will nol violate any other promise or
agreement you have made with anyone else. You understand that any and all
restriclions on the assignability of the Scheduled Payments were included in the
Release and/or Annuity at Your request, for Your benefit and not for the benefit
of any other person. These restrictions, if any, were included by You as a
precautionary measure to make sure You w<:re allowed favorable tax treatment
under the Internal Revenue Code. You understand that by entering into this
Agreement, you may be giving up this favomble tax treatment. You understand
chat any income earned by You on any inVCl<lmCnt or use of the Purchase Priee
may be taxable 10 You. You may bave to pny more in taxes as a result or this
Agreement. For Our benefit and the benefit of Our assigns or successors, Yau
agree to WAIVE AND RELEASE all of Your righls in, to, or under, such
rcslrictinlls on assignahility, if any.
3
k. You have not before the date of Ibis Agreement, sold or assigned Your right to
the Assigned Assets or any part of Ibe Assigned Assets. Yau do not owe any
money to Your present or fonner spouse for support maintenance or similar
obligations, nor do You owe any money to any of Your children or guardians of
Your children. The Assigned Assets are not subject to any community property
or similar marital rights of any person.
I. Your right to Chc Assigned Assets is not afiected by any mortgage, pledge, lien,
charge. security interest. encumbrance, n:strictiQn or adverse claim of an)'
nature. V ou understand that any violatiocl of any of Vour representations in
tllis agreement will result in an act of fraud by You wbieb conld result in
Von being held responsible ror damages in favor of Us, with money to be
paid by Vou to Us.
m. You are not in violation of any obligations concerning child-care, alimony or
SllpporL
n. You now give up forever all Your rights to any agreement that says that You
cannoC assign or sell Your righlS in the Assigned Assets to Us. You have not
requested and You do not expect to receive from Us, a F onn Hl99 or any other
documentation which could make Ibe transaction described by this Agreement
taxable to You in any way. Yon further understand that We have not given to
You any advice about any of Your taxes in this transaction. You have relied on
Your own professional advisors concerning taxes.
o. As oflbe date of this Agreement, You are of legal age in the state noted as Your
address in Section ] I of this Agreement, mentally sane, and of a sound mind.
You have never been convicted of a felony or any other crime involving
dishonesty.
p- You are very ramiliar with Your financial.ffilirs and condition. With that full
understanding, You certiJy tbat (I) on tbe dlrte We pay You the Purchase Price
and You sell to Us the Assigned Assets, W,e rair value of Your assets arc and
will be greater Iban all of Your debts; (2) You presently intend to pay all of
Your creditors when such payments are tine:; and (3) You have not intentionally
hidden !he fact from any creditor of Yours that You have entered inco this
Agreement and tbe oIher documents referred to in Ihis Agreement
q. You do not intend to file for bankruptcy and there are no lawsuits or other
efforts by any of Your creditors to put You into bankmptcy or to take the
Assigned Assets.
L The Purchase Price is nol Your only or most important source of income and
You do not have any mental or physical problems that would prevent You from
having a paying job.
s, You prom ise to us thai no broker, ftnder.. or other person olber than those
persons named in the broker statement signed by you in connection with this
Agreement was involved in or important in ammging Ibe purchase transaction in
this AgreemenC. No other person has a right to any fee, payment. commission,
or other compensation because of this Agreement.
L You agree that We have not forced You to give to Us copies of any confidential
documents. You agree that We told You that We only needed 10 see those
docwnents which described !he Assigned Assets so we could buy from You lhe
Assigned AsseIS. You agree Ihat We do uol intend to lell any other party about
4
what is included in those documenls. You undcrscand that if We do so, it will
only be for tbe sole purpose of buying the Assigned Assets.
u. You understand that il usually takes six 10 eight weeks 10 complete this process,
but lltal it could take longer. You understand Ihat we have 10 obtain court
approval of this leansfer. You understand that, due to the delays that may be
occasioned by the anouity company, we will escroW the amount eqdalto Ihe
nexllWO monthly payments due to you from Ihe annuity company to insure thaI
we receive all of the payments that we purchase. You understand that we may
either payor escrow funds to satisfy any judgments, lax liens or child support
against you or the assigned assets and deduct those amounts from the purchase
price. YOU UNDERSTAND THAT WF: WILL DEDUCT FROM THE
PURCHASE PRICE ANY AMOUNTS OF PAYMENTS RECEIVED BY
YOU PRIOR TO FUNDING, IF SUCH AMOUNTS ARE NOT COVERED
BY THE ESCROWED FUNDS.
4. You promise Us that:
a. You will not, and will not allow any other party (except Us or Our assignee.
if applicable) 10 take funds away from the Assigned Assets. You will not
do anything else 10 affect the Assigned Assels. You will nol say You still
own the Assigned Assets. You will Rl>t do anything or allow anyone else
10 do anything thaI could in any way ifl!erfere wich or lessen Our rights in
the Assigned Assets.
b. You will 001 do anything that will. ,O' could in the fuCUre, violale the
Release, or any of the agreemenlS required to be executed by this
Agreement You also agree to cooperate' with Us to help Us to obtain all of
the rights thaI We are buying from You in this Agreemenl and in Ihe
Release.
c. You will give to Us allcast Chiny (30) doys wrillen notice of Your intention
10 move Your reside<lce or change Y oor legal address from the addrcs.. in
Paragraph II of this Agreement.
d. You will not make any change in Your instructions to the Annuity
Company regarding payments to be mad" to Y 00.
e. You understand that the Annuity and the Release may say Ihat You agree
not 10 scll 'I' our rights to the Assigned Asscts.
f. You agree to continue to cooperate with Us. This includes Your obligation
10 immediately deliver to Us any checks. funds or other form of Payment
received after the date of this Agreement by You or anyone otller than Us. If
any Payment is ever denied, delayed, or withheld from Us, as determined by
Us in our reasonable discretion, directly or indirectly on accounl of any act
or omission by Yon or any person acting for Yon, then You shaJl be in
default under this Agreement (and an Event of Default under ~8 shall be
deemed to have occurred). Immediacely upon such default, and without any
funher uotice to Y 00. You will pay to Us the following amounlS:
(i) the ful~ dollar value of all remaining Assigned Assets as Ihey
become due alter the date of the defuult:
5
All of the remedies specified under this section sball be cumulalive with all
oftbe remedies for default pursuant to S;~.
g. If You learn before or aller the signing of this Agreement of the threat or
actual beginning of any lawsuit or proaoeding thaI has anything to do wilh
Our rights under this Agreement or the Assigned Assets, Ihen You will
immediately notify Us of that and You will give Us copies of all notices and
other wrilings relaling to it promptly after You receive them.
h. If You receive any notice relating to any supposedly unpaid claim affccting
the Annuily or the Assigned Assets or 10 any other claim against the
Annuity or the Assigned Assets, Ihen You will promptly noti ry Us and will
promptly give Us copies of all notices and olher writings relatiog to it
received by You promptly after You rec.,;ve them.
I. Y Oil give 10 Us Ihe rigbl (if We wanllo do it) 10 creale and use a signatllre
slamp from a specimen signature given by You to Us for use: (I) in
endorsing checks given under the Annuity or the Release in paymenl of the
Assigned Assets; and (2) to assist Us 10 do anything necessary so We can
gel all of the rights that We are paying You for under Ihis Agreemen~ cven
if You die or gel sick.
J. As described in the Notice of DireclitID of Paymen~ You will lell Ihe
Annuily Company (I) 10 mail all fulure Annuity payments for Ihe Assigned
Assets to the address We suggest and 10 change the mailing address of the
primary and contingent benefICiaries 10 Ihat address; (2) 10 ignore all future
requests, demands, and instructions received from You (or any olher person
besides Us) aboullhe Assigned Assets; and (3) 10 accept and honor ruture
requests, instructions, and orders about Ihe Assigned Assets only from Us.
5. RIGHT TO CANCELLATION. YOU MAY CANCEL THIS CONTRACT
WITHOUT PENALTY OR FURTHER OBLIGATION WITHIN TW'ENTy..oNE DAYS FROM THE
DATE YOU RECEIVE PAYMENT FROM 321 HENDERSON. In order for the cancellation to be
effeclive, You must mail a notice of cancellation by registered or ccrtiified u.s. mail, poslmarl<ed within
Iwenty-one (21) days ofreceipl of the Pun:hase Price 10 Us, do Vice Presidenl of Operations at 2215-B,
Suile 5, Renaissance Drive, Las Vegas, NY 89119. Furthermore. in order for Your nOlice or cancellation
to be effective, Your registered or certified U.S. mail package to lIS mlEa include a bank or certified check
for the full Purchase Price that We paid You under this Pun:hasc Agretmenl Any failure 10 comply wilh
the above procedure shall be a waiver of Your righllO cancel this transaction.
6. Your Further Promises. You agree that, from time 10 lime, at Youre"pense, Yoo will
promptly sign and give to Us any and all documents to help Us realize, our rights and benefits under Ihis
Agreement. This promise includes signing, filing or allowing Us 10 file fmancing or continuation
stalemenls. or arnendmenlS or assignmenlS of those docwncnts. You pumit Us or others acting for Us 10
sign our name andlor your name and file withouI Your signalure such financing statements, if Ihal is
permitted in Your state of residence. When You sign this Agreement, You will also sign and deliver to Us
a "Special Irrevocable Power of Anomey" You must relain the scrvi,c:cs of an alComey and deliver an
opinion of Your auomey about the sale of Assigned Assets 10 Us,. in a fmm acceptable to Us.
7. Continuation or Representations, Warm.ties and Covenants. All of Your
replCSentations. warranlies and promises made in this Agreement will ooolinne to be relied on by Us aner
this Agreement is signed.
6
8. Event ofOefault. Your fililure to comply with any t"rm of this Agreement or Your
breach of any of Your representations in this Agreement will mean that You will be in default. We refer to
this as an "Event of Default." If there is an Event of Defiwlt, We have Ithe right to sue You in court to make
You perfonn Your promises or to get money from Ynu. Your failure to comply with any malerial lermsof
this Agreement will be a defiwlt.
In Paragraph 4 (c) You agree to give US at least thirty (30) days written lIOtice aller Your move to
a new residence or change of Your legal address from the address in Paragraph II of this Agreemenl. If we
arc purchasing from Yoo certain lump sum payments, We will contact you at least 3 months before the
scheduled payment is duc 10 determine if the address change We have dfected with the annuity company is
in place and 10 del~'011inc if Your legal address has relI1ained the same. If We cannot contact you because
You IrAve changed Your legal addressor moved Your residence aUlI failed to notify Us, We will
consider sneh failure to notify Us to be all EVENT OF DEFAULT >lnd We will exercise all of our
legal rights ullder this Agreement. OUR RIGHT TO PROCEED AGAINST YOU UNDER THIS
AGREEMENT SHALL BE SOLELY LIMITED TO WHEN YOU IlIA VE COMMITIED AN
EVENT OF DEFAULT. WE SHALL NOT HAVE THE RIGHT TO SUE YOU IF OR BECAUSE
THE ANNUITY COMPANY IS NOT ABLE TO MAKE PAYMENTS BECAUSE IT IS NOT
FINANCIALLY ABLE TO DO SO.
9. Con1rollin~ Law. This Agreement shall be gov.:med, cons1JUcd and enforced in
accordance with tbe internal laws of the Stale of Pennsylvania without regard for the conflicts of law rules
ther~'Of or elsewhere. (For Court Orders or Notice Transfers obtained in the following jurisdiecions: AK,
~~~mQ~~~~~~~~n~~~-~~~~~
~~m~~OO~~~~~m~~~~~~the~~~
jurisdictioos sball be applied in the event of a dispute regarding the transfer.) Your domicile is the proper
place of venue to bring any action arising out ofa breach of this Agreement.
10. Responsibility for this A!!.reement. This Agreement will hold responsible Your heirs.
executors, successors and assigns and will benefit Our representillivc:s, successors., benefICiaries and
permitted assigns. Nothing in this Agreement is intended to give anyone other than You or Us or each or
Our successors or assigns any benefits.
It. Notices. All notices and other communications under this Agreement will be in wriCing
and will be made by delivery by means by wltich the sender obtains a receipt of delivery from the carrier
(including without limitation. certified mail recum receipt requested or overnight courier services),
addressed to the party to wbom a request or demand is to be made. Sud1 demand or notice or request shall
be deemed given on the date which is one business day after the date sent by overnight mail or three days
after the dale sent by certified mail.
The addresses of the parties are as follows:
lfto You:
Lawrence Honaker
231 Lincoln SI.
Enoln, P A 17025
If to Us:
321 Henderson Receivables Limited I'artnership
2215-B RenaiSSllllce Drive
Suile5
Las Vc;,oas, NV 89119
Atteution: Vice President - Operations
12. Past Actions. Anything either You or We did or said before this Agreement was signed
7
will not alTeet Your or Our rigbts under this Agreement in any way.
13. 1';~Jl"!!ftS. Except as otherwise affirmatively set rorth in this Agreement, You and We
agree that we will eacb pay our respective costs and expenses in e",,",:clion with tbe canying out of this
1\ greement.
14. HeadiJJgs. The section and subsection beadings conlaincd in this Agreemenc are lor
reference purposes only and will not affect in any WIlY the meaning or interpretation of this Agreement.
15. COlIJI(eqIarts.. One or more originals oflhis Agreeme", may be signed wilh Your or Ollr
signature. When put together they will make one agr
by all parties that need to sign. A racsimile signature will be considered an original.
16. .~igJo..",,!,I. We and anyone to whom We assign rhtl Agreement may assign Our right,
title and interest in and to this Agr.......'!. the Annuity and the Assigtoed Assets without Your approval.
You and We agree d1at if there is an assi~ by Us to someone else. We shall not be responsihle to
You. You musltookonly 10 theper.;on or company d1at We assign Ihis Agrecmenlto for any payment (for
example. of the Purchase Price) and perfunnanc:e of this Agree.'""d. When asked by Us or any assignee,
You will sign and deliver any such documents as We 1JIll}' require to perform Ibis transaction, as assigned.
17. Your spouse. You and Your spouse are fully aware of Your rights in the Assigned
Assets. You and Your spouse fully give up those rights. You and Your spouse undeIsland d1at by selling
Ihe Assigned t\sseIS to Us. You and Your spouse are not receiving the same amount of money as You
would if You waited for all oflbe scheduh:d PaymenlS of the Assigned Assets but, rather, arc receiving a
discomted value in return ror receipt of the Pun:basc Price immediately. Yau and Your spouse have valid
reasons ror selling the Assigned Assets. You and Your spouse fully umlerstand the terms of the Purchase
Agreement and mderstand d1at the sale or tbe Assigned Assets is final. You also understand d1at Your
spouse gives up any property right be or she may have iu the Assigned Assets d1at Your spouse could elainl
because of Your marriage.
18. I];DIi", Ag~eDt. This Agreement and the Exhibits and otber docwnents Y 011 signed
make up the entire understanding and agreement between You and Us about this Agreement. This
Agreement replaces all prior agreements, whether written or oral. abOOI this Agreement. TIlis Agreement
may not be changed lDlless in D \wiling signed by You and Us.
19. 1..",-i",I,ion flfLiabili!:y!'rllayer. You understand that Our liability to You under this
Agn:emcut is smetly limited to the requirement to pay tbe Purchase Price and under no ein:umstanccs will
We be respousible for consequential damages.
20. Cou.rt Approval. You undetstand that court approval is required for this ITallsfer.
You agree to eoupelllte wilh US 10 obtain such court approval.
21.
Ex"-ibils.
Attached to this Purchase Agreement are the following Exhibits:
F..xhibit . A.
List flfWhat Payments We arc Buyin.~.
8
Intending to be legally bound. You and We have signed this Agreement as of the date at the top of
the tlrst page of this Agreement..
321 HENDERSON RECEIVABLES LIMITED
PARTNERSHIP
Vice Presi
'--Cfi}I/c~-~____
Spouse
Sworn to and subscribed
before me this 14~ay of J~' 2005
_jJl-t0~cm, cfr '\
Notary-'---(l
COMMONWEALf". Of PENNSYLVANIA
ttW-rial Seal
Maty M. L(,. NolaIy PtmIic
Camp HilBorl' ;"mbetIan<I CoUntY
My~t:""""OclZ1.'J111l
Member. Pennsylvami! A.ssoctaOOn OfNolariBS
9
SCHEDULE 1
DISCWSURE STATEMENT.
PLEASE BE ADVISED THAT THE PROPOSED TRANSACTION IS A SALE,
NOT A LOAN, AND THAT YOU WILL BE SELLING ALL RIGHTS AND
TITLE TO THE ASSIGNED ASSETS ONCE TillS TRANSACTION IS
CONSUMMATED. PLEASE BE ADVISED THAT YOU MAY BE SUBJECT
TO ADVERSE FEDERAL AND STATE INCOME TAX CONSEQUENCES AS
A RESULT OF mE PROPOSED TRANSACTION. YOU SHOULD
CONSULT YOUR OWN COUNSEL. ACCOUNT ANT, OR FINANCIAL
ADVISOR REGARDING ANY FEDERAL OR STATE INCOME TAX
CONSEQUENCES ARISING FROM THE PROPOSED TRANSFER.
YOUR PURCHASE PRICE WAS DERIVED ASSUMING A DISCOUNT
RATE SIGNIFICANTLY HIGHER THAN THE PRIME INTEREST RATES
CHARGED BY COMMERCIAL BANKS, THEREFORE, WE URGE YOU TO
EXPWRE ALL FINANCIAL OPTIONS.
WE WILL PURCHASE FROM YOU A) 117 Monthly payments of $136.50
eacb, beginning on 9/25/2005 and ending on 5/25/2015
THE AGGREGATE AMOUNT OF THE PURCHASEU PAYMENTS IS
$15,970.50.
THE UlSCOUNTEU PRESENT V ALUE OF THE AGGREGATE PAYMENTS
AT 4.60% IS $12,828.32. THE DISCOUNTED PRESENT VALUE IS THE
CALCULATION OF THE CURRENT VALUE OF THE TRANSFERRED
STRUCTURED SETTLEMENT PAYMENTS UNDER FEDERAL
STANDARDS FOR VALUING ANNUITIES. THE GROSS AMOUNT
PAYABLE TO SELLER IS $6,600.00.
THE FOLLOWING EXPENSES ARE INCURRED BY TIlE SELLER (YOU)
AND WILL BE DEDUCTED FROM THE PURCHASJ<:: PRICE:
COMPLIANCE AND ADMINISTRATIVE FEE: $200.00
THE NET AMOUNT PAYABLE TO THE SELLER(YOU) IS $6.400.00. NO
OTHER EXPENSES ARE INCURRED BY YOU.
SCHEDULE] PAGE2
~. ...... ..._. ^.. '_'__".n__.',~_ _u.n_,
THE DISCOUNTED PRESENT VALUE OF PAYMENTS SHALL BE
CALCULATED AS FOLWWS: THE APPUCABLE IFEDERAL RATE USED
IN CALCULATING THE DISCOUNTED PRESENT VALUE IS 4.60%,
THE EFFECTIVE ANNUAL DISCOUNT RATE FOR THIS TRANSACTION
IS 24.19%. THE CASH PAYMENT YOU RECEIVE Il~ THIS
TRANSACTION FROM US WAS DETERMINED BY APPLYING THE
SPECIFIED EFFECTIVE ANNUAL DISCOUNT RATE. COMPOUNDED
MONTHLY, TO THE TOTALAMOUNTOFFUTURJ~ PAYMENTS TO BE
RECEIVED BY US, LESS THE TOTAL AMOUNT OF' COMMISSIONS,
FEES, COSTS, EXPENSES AND CHARGES PAYABLE BY YOU.
THE NET AMOUNT THAT YOU WILL RECEIVE FROM US IN
EXCHANGE FOR YOUR FUTURE STRUCTURED SETTLEMENT
PAYMENTS REPRESENTS 49.90% OF THE ESTIMATED CURRENT
VALUE OF THE PAYMENTS BASED UPON THE DISCOUNTED VALUE
USING THE APPLICABLE FEDERAL RATE.
THE QUOTIENT OBTAINED BY DIVIDING THE NJi:T PAYMENT BY THE
DISCOUNTED PRESENT VALUE IS 49.90%.
BASED ON THE NET AMOUNT THAT YOU WILL H:ECEIVE FROM US
AND TIlE AMOUNTS AND TIMING OF THE STRUCTURED-
SETTLEMENT PAYMENTS THAT YOU ARE TURNING OVER TO US,
YOU WILL, IN EFFECT, BE PAYING INTEREST TO US AT A RATE OF
24.19% PER YEAR. THE NET AMOUNT PAID TO YOU (THE PAYEE) BY
US (THE TRANSFEREE) REPRESENTS AN ESTIMATE OF THE FAIR
MARKET VALUE OF THE FUTURE PERIODIC PAYMENTS
TRANSFERRED UNDER TIlE STRUCUTRED SETILEMENT
AGREEMENT.
~<:J!~J}!lJ'I:l,PAGE 3
NOTICE OF CANCELLATION RIGHTS:
YOU MAY CANCEL THIS TRANSACOON AT ANY TIME PRIOR TO 5:00
P.M. OF THE TWENTY-FIRST DAY FOLLOWING THE LATER OF THE
EXECUTION OF THE PURCHASE AGREEMENT, OR THE DATE THE
PAYEE BECOMES OBLIGATED UNDER THE PURCHASE AGREEMENT
WITHOUT PENALTY OR FURTHER OBLIGATION.
THIS CANCELLATION RIGHT CANNOT BE WAIVED IN ANY MANNER.
TO CANCEL, YOU MUST PROVIDE WRITTEN NOTICE TO THE
TRANSFEREE. WRITTEN NOTICE SHOULD BE MAILED OR
DELIVERED TO THE ADDRESS BEWW BY 5:00 P.M. OF
(THE TWENTY-FIRST DAY FOLLOWING THE TRANSACTION). IT IS
BEST TO MAIL IT BY CERTIFIED MAIL, RETURN RECEIPT
REQUESTED, AND TO KEEP A PHOTOCOPY OF THE SIGNED FORM
AND YOUR POST OFFICE RECEIPT. ADDRESS TO WHICH
CANCELLATION IS TO BE RETURNED:
321 HENDERSON RECEIVABLES LlMffED PARTNERSHIP
2215-B RENAISSANCE DRIVE
SUITE 5
LAS VEGAS, NY 89119
ATTENTION: VICE PRESIDENT - OPERATIONS
IMPORTANT NOTICE: YOU ARE STRONGLY URGED TO CONSULT
WITH AN ATTORNEY WHO CAN ADVISE YOU OF THE POTENTIAL
TAX CONSEQUENCES OF THIS TRANSACTION.
SCHEDULE I,J;>AG~ 4
PLEASE BE ADVISED THERE ARE NO PENALTIES OR LIQUIDATED
DAMAGES PAYABLE BY YOU IN THE EVENT OF ANY BREACH OF THE
TRANSFER AGREEMENT BY YOU. THERE ARE NO BROKERS
COMMISSIONS, SERVI.CE CHARGES, APPLICATION FEES,
PROCESSING FEES, CLOSING COSTS, FILING FEJ<;S, ADMINISTRATIVE
FEES, LEGAL FEES, NOTARY FEES AND OTHER COMMISSIONS, FEES,
COSTS, EXPENSES AND CHARGES PAYABLE BY YOU OR DEDUCTED
FROM GROSS AMOUNT OTHERWISE PAYABLE TO YOU OTHER THAN
THE COMPLIANCE AND ADMINISTRATIVE FEE.
IF YOU BELIEVE YOU WERE TREATED UNFAIRLY OR WERE MISLED
AS TO THE NATURE OF THE OBLIGATIONS YOU ASSUMED UPON
ENTERING INTO THIS AGREEMENT, YOU SHOUl,D REPORT THOSE
CIRCUMSTANCES TO YOU WCAL DISTRICT ATTORNEY OR THE
OFFICE OF THE ATTORNEY GENERAL.
THE EFFECTIVE DATE OF THE TRANSFER AGREEMENT SHALL BE
DEEMED TO BE THE DATE THAT THE AGREEMENT WAS SIGNED BY
THE YOU (PAYEE).
PLEASE BE ADVISED THAT PAYMENT TO YOU PURSUANT TO THE
TRANSFER AGREEMENT IS CONTINGENT UPON COURT APPROVAL
OF THE TRANSFER AGREEMENT.
PLEASE BE ADVISED THAT PAYMENT TO YOU WILL BE DELAYED IJP
TO 30 DAYS OR MORE IN ORDER FOR THE COURT TO REVIEW AND
APPROVE THE TRANSFER AGREEMENT.
BY SIGNING BELOW YOU ARE CONFIRMING RECEIPT OF THIS
DISCWSURE AT LEAST 10 DAYS PRIOR TO RECE:IPT OF THIS
CONTRACT.
c;)~--
CERTIFICATE OF SERVICE
I, Michael D. Rentschler, Esquire, do hereby certify that, on the date stated below, I
served a copy of the foregoing Petition upon the following by First Class Mail, postage
prepaid and addressed to:
Syrnetra Life Insurance Company
777-108th Avenue NE, SC-4
Bellevue, WA 98004-5135
Attn: Structured Settlement Departrnent
Erie Insurance Group
100 Erie Insurance Place
Erie, PA 16530
Structured Settlement Department
Attn:
Date:
~~~~
Michael D. Rentschler, Esquire
28 N. 32nd Street
Camp Hill, P A 17011
(717) 975-9129
P A Supreme Court ID # 45836
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IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA
In Re: LAWRENCE R. HONAKER
CIVIL DIVISION
Petitioner,
No. 05-3610 CIVIL
ORDER OF COUR1:
AND NOW, to-wit, this 'J,. day of d"t...~, 2005, upon consideration of the Amended
J
Petition for Transfer of Structured Settlement Payments by Lawromce R. Honaker to 321 Henderson
Receivables Limited Partnership and its nominees, successors and assigns pursuant to 40 P.S. 4001
et seQ., and any response thereto, the Court hereby makes the following findings:
I. The transfer satisfies all statutory requirements of the Structured Settlement
Protection Act, 40 P.S. 4001 et ~., and will not contravene any other applicable Federal or State
statutes or regulations or the order of any court or responsible administrative authority; AND
2. Not less than ten days prior to the date on which the Payee first incurred any
obligation with respect to the transfer, the Transferee has provided to the Payee a disclosure
statement a~ required by 40 P.S. 4003(a)(2); AND
3. The transfer is in the best interests of the Payee, taking into accOlmt the welfare and
support of the Payee's dependents; AND
4. The Payee ha~ received independent legal advice regarding the implications of the
transfer, including considering the tax ramifications of the transfer; AND
5. Timely written notice of the Transferee's name, address and taxpayer identification
nwuber has been provided to the Annuity Issuer and the Structured Settlement Obligor a~ required
by 40 P.S. 4003(a)(6), neither of whom have o~iected to the transfcr.
""'T<i!8
9S:2 lid IS :Jnvsooz
"'\ii!",.r" ''''''':JH1:10
;',0_0. lUi'l.l,l..,'~a ,.../
3Ju:'o..mll:l
Based on the foregoing findings, and being satisfied that the proposed transfer
satisfies all applicable statutory requirements as set forth in 40 P.S. 4001 et ~., and is in the
best interests of the Payee, and that upon review and consider.ation of the pleadings on file and
thc argument of counsel, if any, and all evidence presented to the Court in this matter, the Court
is of the opinion that approval should be granted of the transfer by Petitioner, Lawrence R.
Honaker to 321 Henderson of the right of Annuitant to receive one hundred seventeen (I 17)
monthly payments of $136.50 each beginning on September 25, 2005 and ending on May 25,
2015 from structured settlement obligor as the party obligated by way of a Uniform Qualified
Assignment to make such payments under a settlement agreeme:~t, and which obligation has been
funded by its purchase of a annuity from Annuity Issuer bearing annuity contract number
AA0485655 with a contract date of May 21,1985.
IT IS THEREFORE ORDERED AND ADJUDGED that the assignment, per the terms of
the transfer agreement denominated "Purchase Agreement" attached hereto as Exhibit A, by
Lawrence R. Honaker to 321 Henderson of all his right, title and interest in and to the one
hundred seventeen (117) payments of $136.50 each beginning on September 25, 2005 and ending
on May 25, 2015 (the "Assigned Payment"), from Structured Settlement Obligor as the party
obligated by way of a Uniform Qualified Assignment, to make such payment under a settlement
agreement as funded by its purchase of a annuity from Structured Settlement Obligor bearing
annuity contract number AA0485655 with a contract date of May 21,1985 is hereby approved.
IT IS FURTHER ORDERED AND ADJUDGED that Structured Settlement Obligor and
Annuity Issuer be and are hereby directed to deliver the assigned payments, payable to Lawrence
R. Honaker, at the following address: 321 Henderson Receivables Limited Partnership at P.O.
Box 7780-4244, Philadelphia, PA 19182-4244.
IT IS THEREFORE ORDERED AND ADJUDGED that 321 Henderson, its successor or
affiliated companies, shall hold hannless, indemnit'y and defend Structured Settlement Obligor
and Annuity Company and Annuity Issuer and their successors and assigns, parents, affiliates,
subsidiaries, and the underlying parties to the Settlement Agreement or to the Uniform Qualified
Assignment, including without limitation, Erie Insurance Company and Symetra Life Insurance
Company ("Indernnitees") from and against any and all liability, claims, losses, damages, awards,
penalties and judgments, including reasonable costs and attorney's fees, arising from, relating to,
challenging or contesting the transfer of the Assigned Payment or from Indemnitees' compliance
with the within Order, including but not limited to claims which may be brought by Lawrence R.
Honaker (including his heirs, beneficiaries, contingent beneficiaries, or personal representative),
by any individual or entity to which 321 Henderson subsequently attempts to assign or transfer
the payment or any portion thereof, or by any other individual or entity.
IT IS THEREFORE ORDERED AND ADJUDGED that 321 Henderson will provide
written notice of this Order to Structured Settlement Obligor within 30 days of the date of this
Order. The Structured Settlement Obligor shall, within 30 days of receiving said notice from 321
Henderson of this Order, instruct the Annuity Issuer to redirect the transferred payment in
accordance with the notice provided by 321 Henderson.
IT IS THEREFORE ORDERED AND ADJUDGED that the Annuity Issuer, within 30
days of receiving said notice from Structured Settlement Obligor shall process the request and
implement the change.
IT IS THEREFORE ORDERED AND ADJUDGED, in conformation with 321
Henderson's acknowledgment and agrecment that the resolution of this matter is premised upon
the specific annuity file in issue, the specific language of the applicable underlying annuity
documents and the governing law, and further that the resolution of this matter is case specific,
that this Order and the resolution of this matter does not constitute waiver of any defenses or
claims of the Annuity Issuer and/or Structured Settlement Obligor in other annuity transactions
nor is it, nor shall it be used or cited to as, precedent or authority persuasive in any other
proceeding regarding any other annuity contract, transaction, attempted transfer of structured
settlement payments, or otherwise.
IT IS FURTHER ORDERED AND ADJUDGED that Petitioner, Lawrence R. Honaker
for himself and for his assigns, heirs and administrators, or individuals or entities that may claim
through his (the "ReIeasors"), hereby remise, release, and forever discharge the Annuity Issuer
and the Structured Settlement Obligor and its directors, shareholders, officers, agents, employees,
servants, reinsurers, successors, and assigns, and any parent, subsidiary, or affiliate thereof, and
their directors, shareholders, officers, agents, employees, attomcys, servants, successors, and
assigns, past and present (the "Releasces"), of and from any and all manner of actions and causes
of actions, suits, debts, dues, accounts, bonds, covenants, contracts, agreements, judgments,
settlements, damages, claims, and demands whatsoever, in law or in equity, arising out of, related
to, or in connection with the Assigned Payment identified herein, or the Annuity Issuer and the
Structured Settlement Obligor's compliance with this Order.
IT IS FURTHER ORDERED AND ADJUDGED that, upon payment by the Annuity
Issuer of the Assigned Payment identified herein and in conformity with this Order, Annuity
Issuer and Structured Settlement Obligor's obligations with regard to the structured settlement
payment will be forever and finally extinguished.
IT IS FURTHER ORDERED AND ADJUDGED that Petitioner, Lawrence R.
Honaker shall no longer have the power or authority to request changes of addxess or beneticiary
designation relating to the Assigned Payments, and no person or entity other than 321 Henderson
or affiliated companies shall have the power or authority to change the address for payment of
lhe Assigned Payments.
IT IS FURTHER ORDERED and ADJUDGED that neither Structured Settlement
Obligor nor Annuity Issuer shall change the payment address for the Assigned Payment except
upon receipt of written notice from 321 Henderson or its affiliated companies to do so.
IT IS FURTHER ORDERED and ADJUDGED that arty further attempted assignments,
in whole or in part, by Lawrence R. Honaker of any other struetured settlement payments, must
be submitted to this Court for approval, and neither Annuity Issuer nor Structured Settlement
Obligor have waived or prejudiced their right to object to any such further assigrunents.
IT IS FURTHER ORDERED AND ADJUDGED, as agreed to and understood by
Petitioners, that in the event that 321 Henderson attempts to further assign the Assigned Paymcnt
to another person or entity, neither Structured Settlement Obligor nor Annuity Issuer ever will be
obligated to re-direct or make payable the Assigned Paymcnt to .any such person or entity. If32J
Henderson is granted by Court Order approval to further assign the Assigned Payments, Annuity
Issuer and Structured Settlement Obligor will remain obljgated only to forward such Assigned
Payment without change to 321 Henderson as per this Court Order, then 321 Henderson shall
makc payments pursuant to its approved further assigrunent and 321 Henderson shall continue to
services the further Assigned Payment on June 30, 2008 through June 30, 2018.
IT IS FURTHER ORDERED and ADJUDGED that any Structured Settlement or
Assigned Payment that are distributed before the expiration of the Annuity Issuer's thirty-day
notice of this Order as provided for herein, extinguishes the Obligor and Annuity Issuer's
obligations and liabilities with respect to the payment and it IS solely 321 Henderson's
responsibility to collect the funds.
IT IS FURTHER ORDERED and ADJUDGED that this Order shall in no way modifY
nor negate the ownership of the underlying annuity contract number AA0485655 with a contract
date of May 21, 1985 issued by Symetra Life Insurance Comp;my and owned by Erie Insurance
Group.
BY THE COURT:
J.
DATED:
tlv ('1/ J J,
/
'31
,2005.
Distribution:
Michael D. Rentschler, Esquire
321 Henderson Receivables Limited Partnership
The Erie Insurance Group
Symetra Life Insurance Company
(of! q />1':0 \? - 31 0';-
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IN THE MATTER OF
LAWRENCE R. HONAKER
: IN THE COURT OF COMMON PLEAS
: CUMBERLAND COUNTY, PENNSYLVANIA
: NO. 05-3610 CIVIL.
CERTIFICATION OF SERVICE
I, MICHAEL D. RENTSCHLER, ESQUIRE, do hereby certify that I served a true
and correct copy of the Petition for Approval of Lump Sum Payment of Structured
Settlement Pursuant to the Structured Settlement Protection Act, and the attachments
thereto by certified mail, return receipt requested upon:
Erie Insurance Group
100 Erie Insurance Place
Erie, Pennsylvania 16530
ATTN: Structured Settlement Dept
Symetra Life Insurance Company
777_108Ih Avenue NE, SC-4
Bellevue, WA 98004-5135
ATTN: Structured Settlement Deopartment
As evidenced by the attached USPS Domestic Return Receipts.
Date:
dd~l~~
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MICHAEL D. RENTSCHLER, ESQUIRE
28 N. 32nd Street
Camp Hill, PA 17011
(717) 975-9129
Supreme Court ID# 45836
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SENOlh t !Jo,II'LI
. Complete items 1, 2, and 3. Also complete
Item 4 n Restricted Delivery is desired.
. Print your nJII18 and address on the revarse
so that we can return the card to you.
. Attech this card to the back of the mallplece,
or on front n space permits.
1. Article
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A. Signature
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4. R_cted Dellv",y? (&Ira Fee) D Yes
7004 1350 0003 72&7 1400
DorneMic RItum AIcIlIpt 102595-02*1540
. Complete hems 1, 2, and 3. Also complete
item 4 n Restricted OeUvery Is desired.
. Print your name and address on the reverse
so that we can return the card to you.
. Attach this card to the beck of the mallplace,
or on the front If space permits.
1~icIe Addressed to:
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IN THE MATTER OF
LAWRENCE R. HONAKER
: IN THE COURT OF COMMON PLEAS
: CUMBERLAND COUNTY, PENNSYLVANIA
: NO. 05-3610 CIVIL
CERTIFICATION OF SERVICE
I, MICHAEL D. RENTSCHLER, ESQUIRE, do hereby certify that on July 27,
2005, I served a true and correct copy of the Amended Petition for Approval of Lump
Sum Payment of Structured Settlement Pursuant to the Structured Settlement
Protection Act, and the attachments thereto as well as the Notice of Hearing by United
States Mail, First Class, Postage Prepaid and addressed to:
Erie Insurance Group
100 Erie Insurance Place
Erie, Pennsylvania 16530
ATTN: Structured Settlement Dept
Symetra Life Insurance Company
777-108th Avenue NE, SC-4
Bellevue, WA 98004-5135
ATTN: Structured Settlement Department
Date ~~,;,,/
:- .~~~~~?
MICHAEL D. RENTSCHLER, ESQUIRE
28 N. 32nd Street
Camp Hill, PA 117011
(717) 975-9129
Supreme Court 10# 45836
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