HomeMy WebLinkAbout06-2081
IN THE MATTER OF
JOSEPH CLARK
: IN THE COURT OF COMMON PLEAS
: OF CUMBERLAND COUNTY, PENNSYLVANIA
: ~t.o - ;)...6 <6 (
. NO, CIVIL
PETITION FOR APPROVAL OF LUMP SUM PAYMENT OF STRUCTURED
SETTLEMENT PURSUANT TO THE STRUCTURED SETTLEMENT PROTECTION
ACT
AND NOW, this
day of April, 2006, comes Joseph Clark, by and through his
attorney Michael D. Rentschler, Esquire, who files the within Petition, as follows:
1, The Petitioner is Joseph Clark, an adult individual who is currently residing at
95 Wagner Street, Carlisle, Cumberland County, Pennsylvania 17013 (hereinafter
referred to as "Petitioner/Payee"). Petitioner is married and has one child with his wife,
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 the wrongful death action relating to the death of his natural father
asserted against the tortfeasor, the matter was settled by Petitioner's natural mother
through her attorney. The settlement amount to Petitioner was placed in an annuity.
The current owner of the annuity is Fireman's Fund Insurance Company, The issuer of
the annuity is First Colony Life Insurance Company.
4. Petitioner/Payee now desires to sell the structured settlement annuity
comprising an aggregate amount of $125,000.00, which represents 2 payments, as
follows: one (1) payment of $50,000,00 on March 11,2011 and one (1) payment of
$75,000.00 on March 11, 2016. The discounted present value of the aggregate
payments at 5,60% is $81,854.68. 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 $53,500.00,
There is no compliance or administrative fee. Consequently, the net payment to the
Seller is $53,500.00, Petitioner/Payee intends to use the proceeds of this transaction to
pay credit card bills and to make improvements on their house.
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 April 12, 2006, 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, According to Exhibit "B", the Petitioner/Payee will be entitled to a lump sum
payment of $53,500.00 which amount is the lump sum payment from 321 Henderson
Receivables as described in Exhibit "B",
9. This transfer is in Petitioner/Payee's best interest and represents the
settlement of his settlement as a beneficiary of the wrongful death claim concerning his
father's death that originally arose out of a traffic accident. First Colony Life Insurance
Company, the issuer owner of the annuity, and Fireman's Fund Insurance Company,
the owner of the annuity, will receive a copy of this Petition,
10, First Colony Life Insurance Company and Fireman's Fund Insurance
Company may file comments indicating its respective agreement or disagreement with
this Petition by filing said comments in the Prothonotary's Office in the Cumberland
County Courthouse, Carlisle, Pennsylvania 17013.
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,
~~
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MICHAEL 0, RENTSCHLER, ESQUIRE
28 North 32nd Street
Camp Hill, PA 17011
(717) 975-9129
Attorney for Petitioner/Payee
VERIFICATION
I, Joseph Clark, 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 , 206__ Joseph Clark is the
Seller. 321 Henderson Receivables Lim.ited Partnership, a Nevada Limited Partnership, its successors
and/or assigns is the Buyer. In this Agreement, Joseph Clark is referred to as "You. or "Your" and 321
Henderson Receivables Limited Partnership or its nominee, is referred to as "We", ~sn or "Our".
BACKGROUND OF THIS AGREEMENT
1, Your or someone on your behalf signed a Settlement Agreement (the ~Release" or the
"Settlement Agreement"), in connection with the resolution of a personal injury claim,
2, The insurer funded the Payments by buying an annuity contract (Ihe "Annuity") issued by First
Colony Life Insurance Company (the "Annuity Company"),
3, A list of the Payments being sold under this Agreement is attached to this Agreement as
Exhibit "AIf,
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 under the Release and the
other rights as described in Section l(a) below, We desire to purchase all of Your rights and benefits, on
the terms and under the conditions described in this Agreement.
You and We agree as follows:
I. 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"_ 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 Gross Purchase Price is Fifty-Two Thousand Eight Hundred Eighty-Five Dollars
and 69/100 Cents ($52,885.69), The Net Purchase Price payable to You is $52,885,69
(the "Purchase Price"). The Net Purehase Price will be paid to You when both You and
We sign this Agreement and We have completed Our internal process,
2, Acknowled1!ment.
a, You will agree after Your signing of this Agreement to deliver to Us, addressed as We
may require, other notices, instructions or documents, and copies of them, as We think
are necessary or proper to carry out this Agreement.
b, When You and We sign this Agreement, You will also deliver to Us: (1) a letter
addressed to the Annuity Company direcling thaI all paymenls of Ihe Assigned Assets
after Your death shall be sent directly to Us, and (2) a Change of Beneficiary Form
changing Ihe beneficiary of Ihe Assigned Assets, after Your death, to "321 Henderson
Receivables Limiled Partnership", as sole beneficiary [(1) and (2) above are referred to as
the Change of Beneficiary Form], The Change of Beneficiary Form will slate Ihal the
instructions may never be revoked and that no change may be made in the instructions or
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in the payments (including as to the payee or the manner or plaee of making such
payments) without Our prior written consent You will also, wflen this Agreement is
signed by You and Us, deliver to Us, addressed as We may rtlquire, 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
Estate of Joseph Clark, as primary beneficiary of the Assigned Assets, of the terms of this
Agreement. Estate of Joseph Clark will agree that 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 but not limited to an agreement to
provide in Your 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 to
detennine whether this transaction will result in any adverse federal and/or 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 Renresentations 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 future right to the Assigned Assets,
b, This Agreement and all of the other documents signed in connection with 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.
c, The signing and perfonnance of this Agreement by You and the transactions
described in this Agreement:
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 contract or
agreement by which You or Your assets, including the Release, are
bound or may be affected;
Ill. 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 party to make any
claim against You or Your assets, or any of the Assigned Assets.
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Initial:
d. You understand the terms and provisions of this Agreement and You have been
represented by tax and accounting advisors and a lawyer ill the signing of this
Agreement. '
e, Neither You nor anyone else have to do anything else for (I) the proper signing
and performanee by You of this Agreement and any transactions intended to be
done in this Agreement, or (2) the carrying out by Us of any of Our rights and
remedies under this Agreement. No other 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 connecti@n 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 other 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 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 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 understand
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 assignability, if any.
k, You have not before the date of this Agreement, sold or assigned Your right to the
Assigned Assets or any part of the Assigned Assets, You do not owe any money
to Your present or former 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,
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L Your right to the Assigned Assets is not affected by ~ny mortgage, pledge, lien,
charge, security interest, encumbrance, restriction or adverse claim of any
nature, You understand that any violation of any of Your representlll:ions in
this agreement will result in an act of fraud by You which could result in
You being held responsible for damages in favor of Us, with money to be
paid by You to Us,
m, You are not in violation of any obligations concerning child-care, alimony or
support,
n, You now give up forever all Your rights in any agreement that says that You
cannot assign or sell Your rights in the Assigned Assets to Us, You have not
requested and You do not expect to receive from Us, a Form 1099 or any other
documentation which could make the transaction described by this Agreement
taxable to You in any way. You 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.
0, As of the date of this Agreement, You are of legal age in the state noted as Your
address in Section 11 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 Your tinancial affairs and condition. With that full
understanding, You certify that (I) on the date We pay You the Purchase Price
and You sell to Us the Assigned Assets, the fair value of Your assets are and
will be greater than all of Your debts; (2) You presently intend to pay all of
Your creditors when such payments are due; and (3) You have not intentionally
hidden the fact from any creditor of Yours that You have entered into this
Agreement and the other documents referred to in this 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 bankruptcy or to take the
Assigned Assets,
r. The Purchase Price is not 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 promise to us that no broker, tinder, or other person other than 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 You to give to Us copies of any confidential
documents, You agree that We told You that We only needed to see those
documents which described the Assigned Assets so we could buy from You the
Assigned Assets, You agree that We do not intend to tell any other party about
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,
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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 OCCASIONAL DELAYS, WE WILL ESCROW
THE AMOUNT EQUAL TO THE NEXT TWO
MONTHLY PAYMENTS DUE TO YOU FROM
THE ANNUITY COMPANY TO INSURE THAT
WE RECEIVE ALL OF THE PAYMENTS THAT
WE PURCHASE. YOU UNDERSTAND THAT WE
MAY EITHER PAY OR 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 Assets, You will not
do anything else to affect the 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 to help Us to obtain all of
the rights that Weare buying from You in this Agreement and in the
Release,
c, You will give to Us at least thirty (30) days written notice of Your intention
to move Your residence or change Your legal address from the address in
Paragraph II of this Agreement
d, You will not make any change in Your instructions to the Annuity
Company regarding payments to be made to You,
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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 fonn 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 frnm Us, as detennined by
Us in our reasonable discretion, directly or indirectly on account of any act
or omission by You or any person acting for Y 011, then You shall be in
default 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;
All of the remedies specified under this section shall be cumulative with all
of the remedies for default pursuant to 58,
g, If You learn before or after the signing of this Agreement of the threat or
actual beginning of any lawsuit or proceeding that bas 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
other writings relating to it promptly after You receive them,
h, If You receive any notice relating to any supposedly unpaid claim affeeting
the Annuity or the Assigned Assets or to any other claim against the
Annuity 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 reeeive them,
5, RIGHT TO CANCELLATION. YOU MAY CANCEL THIS CONTRACT
WITHOUT PENALTY OR FURTHER OBLIGATION WITHIN TWENTY-ONE DAYS FROM THE
DATE YOU RECEIVE PAYMENT FROM 321 HENDERSON. In order for the cancellation to be
effective, You musl mail a notice of eancellation by registered or certified U,S, mail, postmarked within
twenty-one (21) days of receipt of the Purchase Price to Us, clo Yice President of Operations at 2215-B,
Suite 5, Renaissance Drive, Las Vegas, NV 89119, Furthennore, in order for Your notice of cancellation
to be effeclive, Your registered or certified U,S, mail package to us must include a bank or certified check
for the full Purchase Price that We paid You under this Purchase Agreement. Any failure to comply with
the above procedure shall be a waiver of Your right to cancel this transaction,
6, Your Further Promises. You agree that, from time to time, at Your expense, You will
promptly sign and give to Us any and all documents to help Us realize our rights and benefits under this
Agreement. This promise includes signing, filing or allowing Us to file financing or continuation
statements, or amendments or assignments of those documents, You penn it 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
pennitted 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 fonn acceptable to Us,
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7. Continuation or Representations, Warranties and Covenants, All or Your
representations, warranties and promises made in this Agreement will conlinue 10 be relied on by Us after
this Agreement is signed,
8, Event or Default. Your failure to eomply with any term or this Agreement or Your
breach of any of Your representations in this Agreement will mean that YOll will be in default We refer to
this as an "Event of Default." Ifthere is an Event of Default, We have the right to sue You in court to make
You perform Your promises or to get money from You, Your failure to comply with any material terms of
this Agreement will be a default.
In Paragraph 4 (c ) You agree to give US at least thirty (30) days written notice after Your move to
a new residence or change of Your legal address from the address in Paragraph 11 ofthis Agreement If we
are purchasing from You certain lump sum payments, We will contact you at least 3 months before the
scheduled payment is due to determine if the address change We have effected with the annuity company is
in place and to determine if Your legal address has remained the same, If We cannot contact you because
You have changed Your legal address or moved Your residence and failed to notify Us, We will
consider such failure to notify Us to be an EVENT OF DEFAULT and We will exercise all of our
legal rights under this Agreement, OUR RIGHT TO PROCEED AGAINST YOU UNDER THIS
AGREEMENT SHALL BE SOLEL Y LIMITED TO WHEN YOU HAVE COMMITTED AN
EVENT OF DEFAULT. WE SHALL NOT HAVE THE RIGHT TO SUiE YOU IFOR BECAUSE
THE ANNUITY COMPANY IS NOT ABLE TO MAKE PAYMENTS 8lEcAUSE IT IS NOT
FINANCIALLY ABLE TO DO SO.
9. Controlling Law, This Agreement shall be governed. construed and enforced in
accordance with the internal laws of the State of Pennsylvania without regard for the conllicts of law rules
thereof or elsewhere, (For Court Orders or Notice Transfers obtained in the following jurisdictions: AK,
AR, AZ, CA, CO, CT, DE, FL, GA, lA, !D, IL, IN, KS, KY, LA, MA, MD. ME, MI, MN, MO, MS, MT,
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jurisdictions shall be applied in Ihe event of a dispute regarding the transfer,) Your domicile is the proper
place of venue to bring any action arising out of a breach of this Agreement
10, Responsibility for this Agreement This Agreement will hold responsible Your heirs,
executors, successors and assigns and will benefit Our representatives, successors, beneficiaries and
pcrmitted assigns, Nothing in this Agreement is intended to give anyone otlter than You or Us or each of
OUf successors or assigns any benefits.
1 L Notices, All notices and other communications under this Agreement will be in writing
and will be made by delivery by means by which the sender obtains a receipt of delivery from the carrier
(including without limitation, certified mail return receipt requested or overnight courier services),
addressed to the party to whom a request or demand is to be made, Such 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 date sent by certified mail.
The addresses of the parties are as follows:
If to You:
Joseph Clark
95 Wagner Street
Carlise, PA 17013
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If to Us;
321 Henderson Receivables Limited Partnership
22I5-B Renaissance Drive
SuiteS
Las Vegas, NV 89119
Attention: Vice President - Operations
12, Past Actions. Anything either You or We did or said before this Agreement was signed
will not affect Your or Our rights under this Agreement in any way_
13, Exeenses, Except as otherwise affirmatively set forth in this Agreement, You and We
agree that we will each pay our respective costs and expenses in connection with the carrying out of this
Agreement.
14, Headin2s, 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
\5. Counterearts. One or more originals of this Agreement may be signed with Your or Our
signature, When put together they will make one agreement and the Agreement will be considered signed
by all parties that need to sign, A facsimile signature will be considered an original.
16. Assi2ument. We and ar.yor,e to whom We assign this Agreement may assign Our right,
title and interest in and 10 this Agreement, the Annuity and 1he Assigned Assets without Your approval.
You 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 performance of this Agreemenl, When asked by Us or any assignee,
You will sign and deliver any such documents as We may require to perform this transaction, as assigned,
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17 , Your soouse. 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 You waited for all of the scheduled Payments of the Assigned Assets but, rather, are receiving a
discounted value in return for receipt 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 finaL You also understand that Your
spouse gives up any property right he or she may have in the Assigned Assets that Your spouse could claim
because of Your marriage,
18, Entire Aereement. This Agreement and the Exhibits and other doeuments 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, Limitation of Liability of Buyer. You understand that Our liability to You under this
Agreement is strictly limited to the requirement to pay the Purchase Price and under no circumstances will
We be responsible for consequential damages.
20, Court AooroyaL You understand that court approval is required for this transfer.
You agree to cooperate with us to obtain such court approvaL ,
2L
Exhibits,
Attached to this Purchase Agreement are the following Exhibits:
Exhibit nA"
List of What Payments We are Buying,
Intending to be legally bound, You and We have signed this Agreement as of the date at the top of
the first page of this Agreement.
321 HENDERSON RECElV ABLES LIMITED
PARTNERSHIP
<3IGN HERE I
Spouse
Sworn to and subscribed t!;. ,
before me this a day of lit. ( ,20ot
c<h rlt--#'_q & i;?iV
Notary
NOtARIAl. SEAl.
ANNETTE PERKINS
Notary Public
CAAf> HllllOROUGH, CUM!EIllANOCOUNIY
My ComrnIsaIon exp<<.. JuI 22. 2009
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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 MAY BE
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 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 EXPLORE ALL FINANCIAL OPTIONS.
WE WILL PURCHASE FROM YOU A) 1 payment of $50,000.00 on
3/11/2011 B) 1 payment of $75,000.00 on 3/11/2016
THE AGGREGATE AMOUNT OF THE PURCHASED PAYMENTS IS
$125,000.00.
THE DISCOUNTED PRESENT VALUE OF THE AGGREGATE
PAYMENTS AT 5.60% IS $81,842.45. 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 $52,885.69.
THE FOLLOWING EXPENSES ARE INCURRED BY THE SELLER
(YOU) AND WILL BE DEDUCTED FROM THE PURCHASE PRICE:
COMPLIANCE AND ADMINISTRATIVE FEE: $0.00
FILING AND RELATED EXPENSES FEE: $0.00
THE NET AMOUNT PAYABLE TO THE SELLER(YOU) IS $52,885.69.
NO OTHER EXPENSES ARE INCURRED BY YOU.
SCHEDULE 1. PAGE 2
THE DISCOUNTED PRESENT VALUE OF PAYMENTS SHALL BE
.
CALCULATED AS FOLLOWS: THE APPLICABLE FEDERAL RATE
USED IN CALCULATING THE DISCOUNTED PRESENT VALUE IS
5.60%.
THE EFFECTIVE ANNUAL DISCOUNT RATE FOR THIS
TRANSACTION IS 12.00%. 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.
THENETAMOUNT THAT YOU WILL RECEIVE FROM US IN
EXCHANGE FOR YOUR FUTURE STRUCTURED SETTLEMENT
PAYMENTS REPRESENTS 64.60% 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 64.60%.
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 EFFECT, BE PAYING INTEREST TO US AT A RATE OF
12.00% 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 THE STRUCTURED SETTLEMENT
AGREEMENT.
SCHEDULE 1. PAGE 3
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, NY 89119
ATTENTION: VICE PRESIDENT - OPERATIONS
IMPORT ANT NOTICE: YOU ARE STRONGLY URGED TO CONSULT
WITH AN ATTORNEY WHO CAN ADVISE YOU OF THE POTENTIAL
TAX CONSEQUENCES OF THIS TRANSACTION.
SCHEDULE 1. PAGE 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 THAN THE COMPLIANCE AND
ADMINISTRATIVE FEE AND THE FILING AND RELATED EXPENSES
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 SHOULD REPORT
THOSE CIRCUMSTANCES TO YOUR LOCAL 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
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.
<:3IGN HERE I
Exhibit A
Weare hereby purchasing from You under the Annuity:
A) I payment of $50,000,00 on 3/11/2011 B) 1 payment of $75,000,00 on 3/1112016
<3IGN HERE I
STATE OF fA- :
cOUNTYOF CurYIbf,Ic.."[1. :
On this ~ day of Ii /),,: I , 200~ before me, the above signed personally appeared before me, personally known to
me to be the person w~ subscribed to the within instrument and acknowledged to me that he executed it.
f/V1 n,dL ;1'/) /2t/~'-<J
,
Notary
NOTAK~ SE:Al
ANNETTE PERKINS
Notor\;' Public
CNIIP HIU BOROUGH. CUMBERlAND COUNTY
My Com_ Ellpl'" Jul22, 2009
CERTIFICATE OF SERVICE
I, Michael D. Rentschler, Esquire, do hereby certiry that, on the date stated below, I
served a copy of the foregoing Petition and the attachments as required thereto upon the
following by Certified Mail, return receipt requested and addressed to:
First Colony Life Insurance Company
700 Main Street
Lynchburg, VA 24505-1280
Attn: Structured Settlement Department
Fireman's Fund Insurance Company
777 San Marin Drive
Novato, CA 94998
Attn: Structured Settlement Department
Date:
-~~~~
Michael D. Rentschler, Esquire
28 N, 32nd Street
Camp Hill, PA 170Il
(717) 975-9129
PA Supreme Court ID # 45836
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IN THE MATTER OF
JOSEPH CLARK
: IN THE COURT OF COMMON PLEAS
: CUMBERLAND COUNTY, PENNSYLVANIA
: NO. 06-2081 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 necessary
notices and information in accordance with the Act by USPS Express mail upon:
Fireman's Fund Insurance Company
777 San Martin Drive
Novato, CA 94998
ATTN: Structured Settlement Dept
And
First Colony Life Insurance Company
700 Main Street
Lynchburg, VA 24505-1280
ATTN: Structured Settlement Department
As evidenced by the attached USPS delivery confirmations
Date: May 9,2006
~~~
MICHAEL D. RENTSCHLER, ESQUIRE
28 N. 32"d Street
Camp Hill, PA 17011
(717) 975-9129
Supreme Court ID# 45836
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LabellReceipt Number; EQ15 8481 697U S
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LabellReceipl Number: EQ15 8481 706U S
Status: Delivered
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IN THE MATTER OF
JOSEPH CLARK
: IN THE COURT OF COMMON PLEAS
: OF CUMBERLAND COUNTY, PENNSYLVANIA
: NO. 06-2081 CIVIL
ORDER OF COURT
'\~
AND NOW, to-wit this , day of
M "'f
, 2006, upon
consideration of the Petition for Transfer of Structured Settlement Payments by Joseph
Clark to 321 Henderson Receivables Limited Partnership and its nominees, successors
and assigns pursuantto 40 P.S. 4001 et sea., and any response thereto, the Court hereby
makes the following findings:
1. 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 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 as required by 40 P.S. 4003(a)(2); AND
3. The transfer is in the best interests of the Payee. taking into account the welfare
and support of the Payee's dependents; AND
4. The Payee has 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 number has been provided to the Annuity Issuer and Structured
Settlement Obligor as required by 40 P.S. 4003(a)(6), neither of whom have
objected to the transfer.
6. The Transferee shall be liable to the Structured Settlement Obligor and to the
Annuity Issuer:
a. If the transfer contravenes the terms of the structured settlement, for any
taxes incurred by the Structured Settlement Obligor or the Annuity Issuer as a
consequence of the transfer, and
b. For any liabilities or costs, including reasonable costs and attorney's fees,
arising from compliance by such parties with this order of the Court or arising as
a consequence of the Transferee's failure to comply with the Act.
The Structured Settlement Obligor and Annuity Issuer shall irrevocably change
the beneficiary for the Transferred payments to the transferee, and no other
individual or entity other than the transferee shall have the authority to change
beneficiary for the Transferred Payments.
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 ofthe Payee, and that upon review and consideration ofthe pleadings on
file and the 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, Joseph Clark to 321 Henderson of the right of Annuitant to receive two (2)
payments comprising the aggregate amount of $125,000.00; as follows: one (1) payment
of $50,000.00 on March 11, 2011 and one (1) payment of $75,000.00 on March 11,2016,
from structured settlement obligor as the party obligated by way of a Uniform Qualified
Assignment to make such payment under a settlement agreement, and which obligation
has been funded by its purchase of an annuity from Annuity Issuer bearing annuity contract
number 0303344.
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 Joseph Clark to 321 Henderson of all his right, title and interest in and to the
two (2) payments comprising the aggregate amount of $125,000.00; as follows: one (1)
payment of $50,000.00 on March 11, 2011 and one (1) payment of $75,000.00 on March
11,2016 (the "Assigned Payments"), from Structured Settlement Obligor bearing annuity
contract number 0303344 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 payment, payable to
Joseph Clark, 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 Receivables
Limited Partnership, its successors or affiliated companies, shall hold harmless, indemnify
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, First Colony Life Insurance Company and Fireman's Fund Insurance Company
("Indemnitees") from any against any and all liability, claims, losses, damages, awards,
penalties and judgments, including but not limited to claims which may be brought by
Joseph Clark (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 ADGUDGED, in conformation with 321
Henderson's acknowledgement and agreement 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, Joseph Clark for
herself and his assigns, heirs and administrators, or individuals or entities that may claim
through his (the "Releasors"), 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, attorneys, servants, successors, and assigns, past and present (the
"Releasees"), 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, Joseph Clark shall no
longer have the power or authority to request changes of address or beneficiary
designation relating to the Assigned Payment, 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 the 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 any further attempted
assignments, in whole or in part, by Joseph Clark, of any other structured 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 assignments.
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
Payment to another person or entity, neither Structured Settlement Obligor nor Annuity
Issuer ever will be obligated to re-direct or make payable the Assigned Payment to any
such person or entity. If 321 Henderson is granted by Court Order approval to further
assign the Assigned Payments, Annuity Issuer and Structured Settlement Obligor will
remain obligated only to forward such Assigned Payment without change to 321
Henderson as per this Court Order, then 321 Henderson shall make payments pursuant to
its approved further assignment and 321 Henderson shall continue to service the further
Assigned Payments.
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 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 under1ying annuity contract number 0303344
issued by First Colony life Insurance Company and owned by Fireman's Fund Insurance
Company.
IT IS THEREFORE ORDERED AND ADJUDGED that the Transferee shall be liable
to the Structured Settlement Obligor and to the Annuity Issuer:
a. If the transfer contravenes the terms of the structured settlement, for any taxes
incurred by the Structured Settlement Obligor or the Annuity Issuer as a
.
consequence of the transfer; and
b. For any liabilities or costs, including reasonable costs and attorney's fees, arising
from compliance by such parties with this order of the Court or arising as a
consequence of the Transferee's failure to comply with Act.
The Structured Settlement Obligor and Annuity Issuer shall irrevocably change the
beneficiary for the Transferred payments to the Transferee, and no other individual or
entity other than the Transferee shall have the authority to change beneficiary for the
Transferred Payments.
BY THE COURT,
J.
DISTRIBUTION:
Prothonotary's Office
Court Administrator's Office
321 Henderson Receivables
First Colony Life Insurance Company
Fireman's Fund Insurance Company
Michael D. Rentschler, Esquire
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