HomeMy WebLinkAbout06-6534
IN RE: TRANSFER OF STRUCTURED
SETTLEMENT PAYMENT RIGHTS BY
VICKIE DAVIS A/KiA VICKIE THORSON
COURT OF COMMON PLEAS
CUMBERLAND COUNTY
CIVIL DIVISION
No. Ol- - l,S3'(
VICKIE DAVIS
111 West South Street
Carlisle, P A 17013
(717) 258-6033
Joint Petitioner, pro se
LAW OFFICES OF MICHAEL A. GREEN, P.c.
By: Michael A. Green, Esquire
LD. No. 73450
1831 Chestnut Street Suite 300
Philadelphia, P A 19103
(215) 972-5520
Attorney for Joint Petitioner Stone Street Capital, Inc.
JOINT PETITION FOR COURT APPROVAL OF A
TRANSFER OF STRUCTURED SETTLEMENT PAYMENT RIGHTS
TO THE HONORABLE JUDGES OF THIS COURT:
Petitioners, VICKIE DAVIS and STONE STREET CAPITAL, INC. hereby jointly
petition this Honorable Court for approval of a transfer of structured settlement payment rights
pursuant to the Pennsylvania Structured Settlement Protection Act, 40 P.S. ~ 4001 et. ~ (the
"Act"), and in support thereof state as follows:
1. Vickie Davis, formerly known as Vicki Thorson (hereinafter "Davis" or "Payee")
is an adult individual who resides at 111 West South Street, Carlisle, Cumberland County, PA
17013.
2. Stone Street Capital, Inc. ("Stone Street") is a Pennsylvania corporation which
has a primary place of business at 7316 Wisconsin Avenue, Suite 500, Bethesda, MD 20814.
2
3. By the terms of a 1994 settlement related to an action arising out of the 1992
wrongful death of her husband (the "Settlement"); Davis became entitled to receive periodic
payments.
4. The structured settlement obligor is Continental Insurance Company
("Continental" or "Obligor").
5. Pursuant to the Settlement, the Obligor purchased annuity number WS 19456-1 A
and WS 19456-1 B (the "Annuities") from Aetna Life Insurance and Annuity Company, now
known as ING Life Insurance and Annuity Company ("ING" or "Annuity Issuer"), naming
Davis as annuitant.
6. Pursuant to the Annuity, ING makes the Periodic Payments required of the
Obligor pursuant to the Settlement directly to the Payee.
7. Pursuant to the Settlement and Annuities, Davis became entitled to receive the
following Periodic Payments:
. $750.00 per month for 30 years, commencing on July 9, 1994;
(WS19456-1A)
. $6,000.00, payable on June 9,1999; (WS19456-1B)
. $10,000.00, payable on June 9, 2004; (WS 19456-1 B)
. $14,000.00, payable on June 9, 2009; (WS19456-1B)
. $18,000.00, payable on June 9, 2014; (WS19456-1B)
. $22,000.00, payable on June 9, 2019; (WS19456-1B) and
. $28,409.00, payable on June 9, 2024 (WS19456-1B).
(the "Periodic Payments.")
3
8. Davis, desiring to receive a lump sum payment in lieu of a portion of the Periodic
Payments she would otherwise receive pursuant to the Settlement and annuity, has agreed to
transfer to Stone Street and its successors and assigns the following Periodic Payments:
. 131 monthly payments of Seven Hundred Fifty and 00/1 00 Dollars
($750.00), beginning with the August 9, 2013 payment through and
including the final payment due on June 9, 2024;
. Eighteen Thousand and 00/100 Dollars ($18,000.00), payable on June 9,
2014;
. Twenty-Two Thousand and 00/100 Dollars ($22,000.00), payable on June
9,2019; and
. Twenty-Eight Thousand Four Hundred Nine and 00/1 00 Dollars
($28,409.00), payable on June 9,2024.
(sometimes the "Assigned Payments").
9. On October 24,2006, Davis executed a Purchase, Transfer and Assignment
Agreement (defined as a "Transfer Agreement" under 40 P.S. S 4002) to effect the transfer ofth
Assigned Payments. A true and correct copy of the Transfer Agreement and certain exhibits
thereto is attached and incorporated as Exhibit A.
10. Stone Street timely provided to Davis a Disclosure Statement, as required by 40
P.S. S 4003 (a)(2), more than ten days prior to the date on which the Payee was first to incur any
obligation with respect to the transfer. A true and correct copy of the Disclosure Statement is
collectively attached and incorporated as Exhibit B.
11. The aggregate total of the Purchased Payments is $166,659.00.
12. The discount rate used to calculate the purchase price is 16.41 %.
13. The gross payment to Payee is $31,249.00.
14. The net payment to Payee is $29,049.00.
4
15. The Payee has been provided with the required "IMPORTANT NOTICE" in the
form and manner prescribed by 40 P.S. S 4003 (3)(b). A true and correct copy of the notice is
attached hereto and incorporated as Exhibit C.
16. The Payee has duly executed a separate written acknowledgment which
acknowledges she waived the opportunity to receive independent legal advice regarding this
transaction. A true and correct copy of the acknowledgment is attached and incorporated as
Exhibit D.
17. Davis previously entered into a transaction with Stone Street and that transaction
was approved by this Court on July 14,2003.
18. Ms. Davis' husband, Joe Davis, consents to this transaction. A true and correct
copy of the Affidavit of Spousal Consent is attached an incorporated as Exhibit E.
19. Timely written notice of the transfer and the transferee's name, address, and
taxpayer identification number was given to the Annuity Issuer and the Obligor. A true and
correct copy of the Notices of Assignment is attached and incorporated as Exhibit F.
20. Additionally, the Annuity Issuer and Obligor have also been timely provided wit
a copy of the instant Petition, the exhibits hereto, and the proposed form of Order. See
Certificate of Service attached hereto.
21. The transfer complies with the requirements of 40 P.S. S 4001 et ~ and does n t
contravene any other applicable federal or state statutes or the order of any court or responsible
administrative or governmental authority or any applicable law limiting the transfer of workers'
compensation claims.
22. Subsequent to its agreement with Davis, Stone Street transferred its interest in t s
transaction to Stone Street Settlement Funding, LLC ("SSSF"), 39121 Treasury Center, Chicag ,
IL 60694, tax identification number 20-3369290; the Stone Street - SSSF transaction will not
Respectfully submitted,
affect Davis in any way.
23. The transfer is in the best interest of the Payee, taking into account the welfare
and support of her dependents.
WHEREFORE, having satisfied all applicable statutory requirements for the transfer of
the structured settlement payment rights identified in this Petition, Petitioners respectfully
request that this Honorable Court grant the instant Petition and enter the attached Order.
VICKIE DAVIS
~[ tJ '
i uK;; ~,-0
Vickie Davis I
Pro se
Michael A. G
Attorney for Petitioner Stone Street Capital, Inc.
5
VERIFICATION
I, Vickie Davis, verify and state that the facts contained in the foregoing Joint Petition fo
Approval of a Transfer of Structured Settlement Payment Rights and the exhibits thereto are true
and correct to the best of my knowledge, information and belief. I make this Verification subjec
to 18 P A. C.S.A. ~ 4904, relating to penalties for unsworn falsification to authorities.
~V'k'D~'4 ~
IC Ie aVls
6
VERIFICATION
I, John Ryan, am President and Chief Operating Officer of the Structured Settlement
Division of Stone Street Capital, Inc. I am familiar with the file that Stone Street Capital, Inc.
maintains for Vickie Davis and I am authorized to make this Verification.
I verify and state that the facts contained in the foregoing Joint Petition for Approval of a
Transfer of Structured Settlement Payment Rights and the exhibits thereto are true and correct to
the best of my knowledge, information and belief. I make this Verification subject to 18 PA.
C.S.A. * 4904, relating to penalties for unsworn falsification to authorities.
Date:
7
CERTIFICATE OF SERVICE
I, MICHAEL A. GREEN, ESQUIRE, certify that I caused to be served a true and carre t
I
copy of the foregoing Petition for Approval of a Transfer of Structured Settlement Payme t
Rights, the exhibits thereto and proposed form of Order, this 7~day of ~
200", via certified mail, return receipt requested, upon the following:
Ms. Vickie Davis
111 West South Street
Carlisle, PAl 70 13
Continental Insurance Company
CNA Plaza
Chicago, IL 60685
Aetna Life Insurance and Annuity Company
n/k/a ING Life Insurance and Annuity Company
151 Farmington Avenue
Hartford, CT 06101-627.1
f'xh,' bj'r~ f} ~
Disclosure Statement. To comply with state and federal law, we gave you a Disclosure Statement th t
explained the financial terms of this Agreement. Among other things, the Disclosure Stateme t
describes the fees that you will be responsible for at the time of funding. The tenns set forth of t e
Disclosure Statement, including any later amendments to the document, are considered a part of th s
Agreement. You agree that you had the opportunity to read and review the Disclosure Statement,
that you agree to its terms.
. StoneStreet PURCHASE, TRANSFER AND ASSIGNMENT AGREEMENT
This Purchase, Transfer and Assignment Agreement, which along with the Tenns and Conditi s
attached hereto is referred to herein as the "Agreement", is a contract between Stone Street Capital, I c.
its successors and/or assigns ("Stone Street" or "we," "us", or "our"), a Pennsylvania Corporation, d
Vickie L. Davis (referred to as "you" or ..your"). The purpose of this Agreement is to set forth t e
tenns of a legally binding contract where you agree to sell us your structured settlement payments.
SUMMARY OF KEY TERMS:
You agree to sell, and Stone Street agrees to purchase the following payments:
One hundred thirty-one (131) monthly payments of Seven Hundred Fifty and 001100 Dolla s
($750.00) beginning with the payment on August 9, 2013 through and including the final payment n
June 9, 2024; plus one (1) lump sum payment of Eighteen Thousand and 00/100 Dollars ($18,000. )
due and payable on June 9, 2014; plus one (1) lump sum payment of Twenty-Two Thousand a d
00/100 Dollars ($22,000.00) due and payable on June 9, 2019; plus one (1) lump sum payment f
Twenty-Eight Thousand Four Hundred Nine and 00/100 Dollars ($28,409.00) due and payble n
June 9, 2024 ("the Assigned Payments")
You have agreed to accept the following purchase price in exchange for the Assigned Payments:
$31,249.00 (the "Purchase Price")
Date of the Ae-reement. The date of this Agreement is November 2,2006, and you have no obligati
under this Agreement before that date.
By signing below, the parties agree to be bound to the terms of the agreement, including the provisio
set forth in the Terms and Conditions attached hereto and incorporated herein by reference.
SELLER:
STONE STREET C1)IT AL,Ine:
By: ~\I\~
David M. Lewis, Senior Vice President
Ii(j(u' ~ ~
This foregoing inst~~~was acknowledged before
e thi~ day 0(...)(-7 , 200~ by Vickie L. Davis,
is either (i) personally known tome or (ii) who
duced i n 'fica on,
..----.-." -.,................-.
Notary Signature
, Notary Public in and for the State of
My Commission Expires:
COMMOt"'4WEAllH OF PENNSVlV.
NOTARIAL SEAl
OAWN M. SHUGHART. Notary Pu
IJCXO of cartllle. cumbel1and
TERMS AND CONDITIONS
The purpose of this Terms Summary is to set forth additional terms of a legally binding contract whe e
you agree to sell structured settlement payments to Stone Street
Background
A. You (or someone acting on your behalf) settled a lawsuit or a claim sometime before the da e
of this Agreement, and as a result of that settlement, you became entitled to receive paymerts
payable over time. The terms of that agreement are documented in a Settlement Agreeme 1t
or a similar document (the "Settlement Agreement"). The defendants or their insurers n
your lawsuit or claim assigned their obligation to make those payments to a third party, tJ e
Settlement Obligor (the "Obligor"). The Settlement Obligor purchased an annuity (t e
"Annuity") from an insurance company (the "Issuer") to make sure that you would recei e
the payments according to the terms of the Settlement Agreement. You are entitled 0
receive payments from the Annuity.
B. You have decided that receiving your payments according to the timetable set forth in tJ e
Settlement Agreement does not satisfy your financial needs. After thinking about other wa s
of addressing your financial situation, you have decided to sell some of your payments 0
Stone Street in exchange for a cash payment.
1. The Sale and Purchase. You agree to sell the settlement payments identified as the "Assign d
Payments" on the Summary of Key Terms to which this Terms Summary was attached. Stone Stre "t
agrees to pay you, and you agree to accept, cash in the amount identified as the "Purchase Price" stat d
on the Summary of Key Terms to which this Terms Summary was attached
2. How the Purchase Price Will be Paid to You. We will pay you by any means you choos ",
including an electronic wire transfer directly to your bank account or by check. If you elect n
electronic wire transfer, we will only make payment to a bank account in your name.
3 What Must HaDDen Before Fundin!!. Before the Assigned Payments are transferred to Sto e
Street, a court must approve this Agreement. After court approval, there are additional conditions th t
must be met before we can pay you your Purchase Price. First, the Issuer must acknowledge, in writin:;,
the receipt of a court order that: (a) directs the Obligor and Issuer to make the Assigned Payments 0
Stone Street to the address and entity that we name; (b) makes all findings required by applicable la' ;
and ( c) cannot be appealed. Second, we must confirm that all of your obligations under the Agreeme t
have been satisfied including providing us with all necessary documentation. Last, we must review t e
transaction, the supporting documents, lien, judgment, bankruptcy and other searches to verify that the e
is no right or condition that exists that would require us to terminate this Agreement. When these ste s
are satisfied, your transaction will close and fund.
4. The Payments We Do Not Buv. If you decided to sell us only a portion of your payments, th s
Agreement does not affect the payments that you did not sen. You will continue to receive the unso d
portion of the payments unless those payments were previously sold, encumbered or subject to cou:t
ordered garnishment or execution. In some cases, the court, the Obligor or the Issuer may require th t
the entire structured settlement payment be paid to us, and, upon receipt, we shall remit the unassigm d
portion of the structured settlement payment back to you. If such a circumstance arises in yo r
transaction, you agree to this payment servicing arrangement.
5. Other Documents. Stone Street will expeditiously and diligently work to get a court or er
approving this Agreement. To assist us in this process, you agree to execute additional documents t at
may be required by the court, the Obligor or the Issuer. You agree to provide us with complete copie. of
your Settlement Agreement and Annuity, and other documents necessary to complete the transaction.
6. You Own and Can Sell Your Payments. We must establish that you own the payments 1 at
you are selling to us, and that no one else could claim an interest in the Assigned Payments. Unless ou
tell us in writing otherwise, you represent and promise to us that:
(a) You have the right to receive and sell the Assigned Payments;
(b) This Agreement does not conflict with any of your other obligations;
(c) The Assigned Payments are not subject to any community property or spousal rights of l ny
person;
(d) There is no dispute, lawsuit, or challenge relating to your right to receive the payments un er
the Settlement Agreement;
(e) Neither you nor anyone else has sold, pledged or otherwise transferred he
Assigned Payments nor attempted to do so;
(f) No other person or business claims a security interest, 1 ien, right, title, or interest of any k nd
in the Assigned Payments;
(g) All applicable child support, alimony, and tax obligations are up to date;
(h) There are no unsatisfied judgments against you;
(i) You are not in bankruptcy; and
(j) If one or more of these statements becomes untrue before the Purchase Price is paid to y u,
you agree to notify us in writing. In. all events, you, authorize us to conduct credit chec r..S,
judgment and lien searches, and criminal background searches to confirm that there are no
claims against the Assigned Payments.
r. Your Promises to Us. Stone Street is relying upon the statements you have made to us and he
dlocuments you have provided regarding you, your situation, the payments you are receiving, and he
payments you are now selling, including the following:
(a) You completed and signed an application along with this Agreement, and the informat on
contained in the application is complete and correct;
(b ) You believe that selling the Assigned Payments is in the best interest of you and y ur
dependents;
(c) You are 18 years of age or older, are of sound mind, not under the influence of drugs or
alcohol;
( d) You understand and agree that you are not considered a "consumer" in this transaction, ~ nd
that you waive the protection of various consumer protections laws;
(e) You understand that we are not assuming any of your obligations under the Settlem nt
Agreement, Annuity, Uniform Qualified Assignment or other related documents;
(f) You understand and agree to the terms of this Agreement;
(g) No one has forced you to sign this Agreement nor has anyone promised you anything ot er
than what is stated in this Agreement in an effort to persuade you to sign it.
8. Independent Advisor. Before you sign this Agreement, you may wi~h to consult with IlD
independent advisor to seek legal, financial or other expert advice regarding the legal,financi "I,
~nd tax consequences of this Agreement. By signing this Agreement, you acknowledge that 8to lle
Street has advised you of this right in writing.
~. Deductions from the Purchase Price. We will deduct from your Purchase Price any fees tJ at
o/e set forth on your Disclosure Statement. In addition, you may have elected to sell payments to J: ay
~ff debts, liens, and past due obligations. If you owe back taxes, past due child support, or hG ve
judgments or liens recorded against you or your assets, we may require that some of those debts, clai as,
or liabilities be paid at the time the transaction is funded. If it is reasonably necessary to pay cert in
debts before funds are released to you so that the Assigned Payments are not subject to such debts, Stc ne
Street will pay those debts for your account and deduct the payment from your Purchase Price. A so,
you may have received a partial advance of the Purchase Price, usually in the amount of One Hund ed
and 001100 Dollars ($100.00), at the time that you executed this Agreement. This advance paym nt,
along with any other advances that you may have received prior to Closing, will also be deducted frbm
the Purchase Price.
[0. Payments Received Before Fundine:. You acknowledge that it may take some time for he
bbligor and Issuer to receive and process the court order. Accordingly, you could receive payments bat
were supposed to be sold to Stone Street. If you receive some payments before we pay you he
Purchase Price, the amount of payments received by you will be deducted from the Purchase Price.
11. Amount Heldback from Purchase Price. As set forth above, it may take the Obligor md
Issuer some time to process the court order. We may withhold an amount from the Purchase Price ec ual
to the amount of the payments to be paid within two to six months of the closing (depending upon the
insurer and its practices). When the Assigned Payments begin to be received by Stone Street, the
amount withheld will be released to you, less the amount of any payments paid over to you in e "'or
while the insurance company was processing the address change. ,
12. Receivine: Payments In Error. The Obligor and Issuer may send an Assigned Payment to ,'ou
in error. In the event that you receive a payment that you have sold to Stone Street, you agree to laid
those payments in trust and immediately turn them over to Stone Street.
n. Limited Power of Attornev. Some insurance companies will continue to make the Assigled
payments payable in your name after the transaction is closed. You hereby grant Stone Street, 0 its
~uccessors, assigns or agents, an irrevocable limited "power of attorney" granting us the right to (ash
these checks and to deposit the money into our collection account.
I
i
e. Chane:es in the Terms of your Structured Settlement bv the Issuer. From time to tUne,
nSUfance companies have financial problems that cause them to be placed in receiversl1ip,
ehabilitation, liquidation or subject them to other similar proceedings. As a result, the payments I aid
der your structured settlement could be reduced. If the payments are reduced, you agree that the
teduction is first taken from any payments that we did not purchase. Also, if there is a payment fron an
ins~rance fund benefit to make up for the reduction, the payment is first distributed to make up for my
deficiency in the Assigned Payments so that Stone Street is made whole. After we are made whole, the
remaining insurance fund payment shall be attributed to payments that Stone Street did not purchase.
:i5. Grant of Security Interest. You intend to sell and Stone Street intends to purchase your ri~ hts,
title and interest in and to the Assigned Payments. This Agreement is not a loan. Subject to the co rt's
~pproval of the sale, you grant to Stone Street a security interest under Article 9 of the Uni:6 rm
Commercial Code in your rights and interest in the Assigned Payments. These rights have teen
~ssigned to Stone Street as a payment intangible or general intangible under Article 9 of the UniD rm
Commercial Code. This Agreement shall function as a security agreement, and the security inte est
sequres payment of the rights assigned and perfornlance of your obligations under this Agreement. In
the event that the transaction is for any purpose characterized as a loan, a financing or extensio of
~rel(iit or anything other than a true sale by any court, you grant us a security interest and all rights )f a
seoured party lender under the Unifonn Commercial Code. We may file a UCC-l financing statemert or
continuation statement evincing and perfecting our rights in the jurisdictions that we deem appropria ".
16. Testamentary Aereement.lfyou should die prior to the due date of the last Assigned Payment,
Stone Street will continue to receive the Assigned Payments on the dates set forth in the Summary of
Key Terms. You are giving up your rights to the Assigned Payments, and the rights of your he' s,
suocessors, beneficiaries, and/or any other person claiming by, through or under you. Accordingly, t is
Agreement is a Testamentary Agreement in which you irrevocably agree to name Stone Street or its
assigns as the party that will inherit the Assigned Payments upon your death. You understand that ) ou
no longer have the power to amend, modify, alter or otherwise change this beneficiary designati n.
Al~o, you agree to sign a form designating Stone Street as the sole beneficiary under the Annuity during
the: term of the Assigned Payments.
17.; Restrictions on Assienment. Your Settlement Agreement may contain language prohibit' ng
YOlir right or power to accelerate, defer, increase, decrease or assign your payments. You hereby wa've
and release any such restriction if your Settlement Agreement or the Annuity contains this or simi ar
lan~uage, As such, you understand and agree that you will never claim or assert that the payments y:m
arelnow selling were not transferable, or that this language renders this Agreement void.
18.: Arbitration. Any claim or dispute ("Claim") by either you or us against the other, or against he
employees, agents, successors or assigns of the other, arising from or relating in any way to t is
Agteement or any prior agreement (whether under a statute, in contract, tort, or otherwise and whet er
for: money damages, penalties or declaratory or equitable relief) including Claims regarding he
applicability of this arbitration clause or the validity of the entire Agreement or any prior agreeme 1t,
sh~l be resolved by binding arbitration. The arbitration shall be conducted by National Arbitrati:m
FoJjum ("NAF") under the Code of Procedure in effect at the time the Claim is filed. NAF Rules a 1d
fo$s may be obtained and Claims may be filed at any NAF office, www.arb-forum.com. or at PO B JX
50191, Minneapolis, Minnesota 55405, telephone (800) 474-2371. We or you may, upon approval of
the, other, substitute another nationally recognized, independent arbitration organization that use~ a
similar code or procedure. This arbitration agreement is made pursuant to a transaction involvi 19
int~rstate commerce, and shall be governed by the Federal Arbitration Act, 9 U.S.c. SS 1-16 ("FAA ').
Any arbitration award shall be final, and judgment upon the award may be entered in an court havi 19
judsdiction. No Claim submitted to arbitration is heard by a jury, and no Claim may be brought a a
class action or as a private attorney general. You do not have the right to act as a class representative or
participate as a member of a class of claimants with respect to any Claim. I KNOWINGL Y,
INtENTIONALLY AND VOLUNTARILY WAIVE MY RIGHT TO A JURY TRIAL UNDER TH S
AQREEMENT.
I
I
19. Construction of this Aereement. All of the headings contained in this Agreement are or
cor venience only. They are not part of this Agreement, and that shall not affect its meanil g,
cor struction or interpretation. This Agreement, the Disclosure Statement, and the attached exhib ts
ma e up the entire agreement between you and Stone Street and replace aU prior arrangements a d
Ul!1e erstandings, written or spoken. If we amend this Agreement, the terms of the amendment sh II
cor trol-over terms that set forth herein.
I
20.1 Severability. Should any provisions of this Agreement is held to be invalid, illeg 1,
ulll~nforceable or in conflict with the law of any jurisdiction, that provisions shall be deemed to Je
mo(lified to the extent necessary to render it lawful and enforceable. If such a modification is rot
Po.1ISible, that provisions shall be severed from. the Agreement and shall not in any way affect or imp ir
the validity, legality and enforceability of the remaining provisions in this Agreement.
21. Future Assienment Bv Stone Street. Stone Street (and any future assignee) may assign all :>f
itsf'ght, title, and interest in and to this Agreement, the other related documents, the Annuity, and t e
As igned Payments either before or after the closing and without any requirement of prior consent fre m
or notice to you.
22. Annlicable Law. Except as otherwise required by applicable statutory law, this Agreement s all
be Igovemed by and interpreted in accordance with the law of the jurisdiction where we sought c( urt
ap]j)roval of this Agreement.
,
I
E
J: x h I" b d" i'13"
DISCLOSURE STATEMENT
This Disclosure Statement is being provided by Stone Street Capital,
Inc. ("Stone Street") to you, Vickie L. Davis, on October 23, 2006 in
connection with your agreement to transfer and assign to Stone Street
Capital, Inc. or its assigns certain structured settlement payment rights.
1. Amounts and Due Dates of Payments to be Transferred. You
will assign to Stone Street all of your right, title and interest in
and to one hundred thirty-one (131) monthly payments of
Seven Hundred Fifty and 00/100 Dollars ($750.00) beginning
with the payment on August 9, 2013 through and including the
final payment on June 9, 2024; plus one (1) lump sum payment
of Eighteen Thousand and 00/100 Dollars ($18,000.00) due and
payable on June 9, 2014; plus one (1) lump sum payment of
Twenty- Two Thousand and 00/100 Dollars ($22,000.00) due
and payable on June 9,2019; plus one (1) lump sum payment
of Twenty-Eight Thousand Four Hundred Nine and 00/100
Dollars ($28,409.00) due and payble on June 9, 2024 out of
those certain payments due under the Settlement Agreement
and Release.
2. A!!!!re!!ate Amount of Payments Transferred. The aggregate
amount of the payments to be transferred to Stone Street totals
One Hundred Sixty-Six Thousand Six Hundred Fifty-Nine and
00/100 Dollars ($166,659.00).
3. Internal Revenue Service Discounted Present Value. The
Internal Revenue Service discounted present value of the
payments to be transferred is Eighty-Two Thousand Eight
Hundred Thirty-Eight and 71/100 Dollars ($82,838.71)
determined by discounting the future payments to be
transferred using a rate most recently published for
determining the present value of an annuity by the Internal
Revenue Service, which rate is 5.80/0. This is a calculation of
the current value of the transferred structured settlement
payments under federal standards for valuing annuities. THIS
IS NOT THE RATE USED TO CALCULATE YOUR
PURCHASE PRICE. It is also not the market rate for
v 1-1).
(Initial here)
transfers of annuity payments of structured settlement
payments.
4. Gross Amount Payable. The gross amount payable to you in
exchange for the transferred payments is Thirty-One
Thousand Two Hundred Forty-Nine and 00/100 Dollars
($31,249.00).
5. Good Faith Estimate of Fees and Expenses. You will be
responsible for paying the following commissions, fees,
expenses, charges, and costs in connection with the closing of
this transaction: Processing fees of $2,200
6. Net Amount Pavable. The net amount payable to you in
exchange for the transferred payments is Twenty-Nine
Thousand Forty-Nine and 00/100 Dollars ($29,049.00).
7. Quotient. The net amount that you will receive from us in
exchange for your future structured settlement payments
represent 35.070/0 (#6 DIVIDED BY #3) of the estimated
current value of the payments based upon the discounted value
using the applicable federal rate.
8. Effective Annual Interest Rate. 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
16.41 % per year.
9. Breach of Contract. The amount of any penalty and the
aggregate amount of any liquidated damages (inclusive of
penalties) payable by the payee in the event of any breach of
the transfer agreement by the payee shall be: None.
10.Effective Date. Stone Street commitment or obligation to enter
into this transaction is conditional and contingent upon the
execution and your return of this Disclosure Statement and
execution of a Periodic Payment Right Purchase Agreement
and related documents by all parties. The effective date of the
Periodic Payment Right Purchase Agreement shall be the date
\/ GO
(Initial here)
on which the transaction is closed and funded to you, which
date shall not, under any circumstances, be less than ten (10)
days after the date of this Disclosure.
1l.Best Interests. The best interests oryou and your dependants,
if applicable, render the transfer appropriate.
By signing tbis Disclosure Statement where provided below,
you acknowledge and agree that you have read and fully
understand the foregoing Disclosure Statement, that you have
been advised by Stone Street to discuss the Disclosure
Statement and the details of the proposed transaction with
your financial advisors and attorneys and have been provided
an opportunity to do so.
RECEIVED, AGREED AND ACKNOWLEDGED:
.~~u~ fJl1~
Vic . e I.;. Davis
/0 - c2(j'-d(-;
Date
J!l1L
(Initial here)
. H~.'
f'i h:b, r
,
IMPORTANT NOTICE:
YOU ARE STRONGLY URGED TO CONSULT WITH AN ATTORNEY WHO C N
ADVISE YOU OF THE POTENTIAL TAX CONSEQUENCES OF THIS
TRANSACTION.
Ex J,,'/:'; f hO"
-OR-
. I'
STATEMENT ON INDEPENDENT PROFESSIONAL ADVICE
Stone Street Capital, Inc. is required by law to advise you of your right to consult
with an independent professional advisor regarding the legal, tax and financial
implications ofthe transfer of your structured settlement payment rights.
Acknowledgement
I, Vickie L. Davis understand that I may consult with an independent professional
advisor and acknowledge that Stone Street has infonned me of that right.
Choose one:
o
I have received independent professional advice from
(an Attorney, Licensed Financial Planner or CPA) whose office is located at
, phone number L-)
regarding the legal, tax and financial implications of the transfer of my structured
settlement payment rights.
Ii
I have knowingly and voluntarily chosen not to consult with an independent
professional advisor and hereby expressly waive the right to do so.
I am aware of the legal, tax and financial implications of the proposed transfer
and I desire to have the court approve the transfer of structured settlement payment rights
as described in the Purchase, Transfer and Assignment Agreement.
v~ -- ~~{b
LCtLu ('--/ "-(J
Vickie L. Davis
I
Ii \ \
f rJ"ba' "E'
~C?P~~
Joseph DavIs
v
~
SPOUSAL CONSENT, APPROVAL. WAIVER AND ASSIGNMENT
I, Joseph Davis am currently married to Vickie L. Davis ("my spouse"). My
spouse has entered into a Purchase, Transfer and Assignment Agreement with Stone
Street Capital, Inc. ("Stone Street"). Under the terms of the Purchase, Transfer and
Assignment Agreement, my spouse has agreed to sell, transfer and assign to Stone Street
the right to receive certain structured settlement payments (the "Periodic Payment
Rights"). I have been given the opportunity to review the Purchase and Transfer
Agreement and all other related agreements. I have also discussed this transaction with
my spouse.
I hereby knowingly and voluntarily agree and consent to the transaction described
in the Purchase and Transfer Agreement and waive all right to or interest in the Periodic
Payment Rights, including, without limitation, any community property interests.
I hereby knowingly and voluntarily waive all rights as an interested party to the
action in which my spouse seeks Court approval of this transaction. No one has forced
me to sign this Spousal consent, nor has anyone promised me or my spouse anything
other than what is stated in the Purchase and Transfer Agreement.
State of ~ )
County of /{));{6u- kA::I j
Acknowledgment
SS:
The above person, known to me to be the person whose name is subscribed to this
instrument, personally appeared before me and acknowledged to me that he/she has read
this inst:nJment and that thcY1)~nt has been executed by him/her. Given under my
hand thi~ day of G . /" 200~.
Print Name Her~h&
My Commission Expires:
lI1S)j:wI
<?n"^~M)NWEALTH QF PENNSVI.V~tjlA
NOTARIAL SEAL
C'A~NN M. SHUGHART. Notary Public
Bora 01 Carlisle. Cumberland CO\Iltv
"~; ':::::l."Tlmlsslon EXP'ref 1\1..,'1. ?8._~
.. .....--,--,.._~_...
/~
\
\
\
I
II
'I
\
I
I
\
\
\
\
\
\
\
\
\
\
\
\
\
\
\
\
\
\
,
"'i .. F'
~)ln" h' 1
VICKIE DAVIS
111 West South Street
Carlisle, P A 17013
(717) 258-6033
Joint Petitioner, pro se
LAW OFFICES OF MICHAEL A. GREEN, P.C.
By: Michael A. Green, Esquire
I.D. No. 73450
1831 Chestnut Street Suite 300
Philadelphia, P A 19103
(215) 972-5520
Attorney for Joint Petitioner Stone Street Capital, Inc.
IN RE: TRANSFER OF STRUCTURED
SETTLEMENT PAYMENT RIGHTS BY
VICKIE DAVIS A/KJA VICKIE THORSON
COURT OF COMMON PLEAS
CUMBERLAND COUNTY
CIVIL DIVISION
No.
NOTICE OF ASSIGNMENT
Transferor:
Transferee:
Annuity Owner:
Annuity Issuer:
Vickie Davis
Stone Street Capital, Inc, and its successors and assigns
Continental Insurance Company
Aetna Life Insurance and Annuity Company n/k/a ING Life Insurance and
Annuity Company
WS 19456-1A
Annuity Number:
Pursuant to Section 4003 of the Pennsylvania Structured Settlement Protection Act, 40
P.S. ~ 4001 et seq. (the "Act"), notice is hereby given that the above-referenced transferor has
interest in certain payments due under the above-referenced annuity in exchange for
I
I
I
entered into agreements with the above-referenced transferee to transfer all of his right, title, and!
I
I
I
I
I
I
I
I
consideration. The transferred payments are as follows:
· 131 monthly payments of$750.00, beginning with the August 9, 2013
payment through and including the final payment due on June 9, 2024;
The Transferee's taxpayer identification number is 23-2617276.
Neither the Annuity Issuer nor the Annuity Owner is being asked to honor the transfer at
this time. Pursuant to the Pennsylvania Structured Settlement Protection Act, the Transferee and
.
Transferor will be seeking court approval of the transfer in the Court of Common Pleas of the
County in which the Annuitant resides and will provide both the Annuity Owner and the Annuity :
Issuer with a copy of the court's order.
!
!
While neither the Annuity Issuer nor Annuity Owner is required to appear or participate i
I
I
in the court approval proceedings, the Annuity Issuer and Annuity Owner are entitled, under the :
I
I
!
Act, to support, oppose, or otherwise respond to the Petition, either in person or by counsel, or by:
I
I
I
submitting written comments to the court or by participating in the hearing. Any such written :
!
I
comments or objections must be filed with the Court and served upon the undersigned counsel i
for Petitioners within twenty (20) calendar days from the date of this Notice.
I
I
I
I
I
I
I
I
I
I
I
making the payments which are the subject of the assignment to all parties except the Transferee.]
I
I
!
I
I
I
I
interpreted to negate, impair or modify the ownership or control over the annuity contract by the:
Under Section 4004 of the Act, upon entry of an order by the court approving the
transaction, the Annuity Issuer and Annuity Owner will both be released from all liability for
The form of order submitted to the court will also provide that nothing in the order shall be
Annuity Owner or Annuity Issuer.
LAW OFFICE~ MICHAEL A. GREEN
~.(L.' /'
It'/ 'L.7
/ /1 ../. ./
;,1, ../4;.. ~/.'(" d
. I / 1/ Gl . .... //
V ' ,;, -.
Michael A. breen v)
Attorney for Petitioner Stone Street Capital, Inc.
Dated: I! 17 ( OG
2
I
I
!
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
~'J ) 11
'1 /1 ,,'
II/it: ~
I J/
MICHAt& A." GREEN
.
CERTIFICATE OF SERVICE
I, MICHAEL A. GREEN, certify that I caused to be served a true and correct
copy of the foregoing Notice of Assignment this ,?C" day of (\JovtlNV ,2006 via certified
mail, return receipt requested, upon the following:
Ms. Vickie Davis
111 West South Street
Carlisle, P A 17013
Continental Insurance Company
CNA Plaza
Chicago, IL 60685
Aetna Life Insurance and Annuity Company
n/kJa ING Life Insurance and AIIDuity Company
151 Farmington Avenue
Hartford, CT 06101-6271
')
.)
IN RE: TRANSFER OF STRUCTURED
SETTLEMENT PAYMENT RIGHTS BY
VICKIE DAVIS A/K/A VICKIE THORSON
COURT OF COMMON PLEAS
CUMBERLAND COUNTY
CIVIL DIVISION
No.
, .
VICKIE DAVIS
111 West South Street
Carlisle, P A 17013
(717) 258-6033
Joint Petitioner, pro se
LA W OFFICES OF MICHAEL A. GREEN, P.C.
By: Michael A. Green, Esquire
J.D. No. 73450
1831 Chestnut Street Suite 300
Philadelphia, P A 19103
(215) 972-5520
Attorneyfor Joint Petitioner Stone Street Capital, Inc.
NOTICE OF ASSIGNMENT
Transferor:
Transferee:
Annuity Owner:
Annuity Issuer:
Vickie Davis
Stone Street Capital, Inc. and its successors and assigns
Continental Insurance Company
Aetna Life Insurance and Annuity Company n/k/a ING Life Insurance and
Annuity Company
WS19456-1B
Annuity Number:
Pursuant to Section 4003 of the Pennsylvania Structured Settlement Protection Act, 40
P.S. ~ 4001 et ~ (the "Act"), notice is hereby given that the above-referenced transferor has
entered into agreements with the above-referenced transferee to transfer all of his right, title, and i
interest in certain payments due under the above-referenced annuity in exchange for
consideration. The transferred payments are as follows:
. $18,000.00, payable on June 9, 2014;
. $22,000.00, payable on June 9, 2019; and
. $28,409.00, payable on June 2, 2024.
The Transferee's taxpayer identification number is 23-2617276.
2
. I I If
Neither the Annuity Issuer nor the Annuity Owner is being asked to honor the transfer at
this time. Pursuant to the Pennsylvania Structured Settlement Protection Act, the Transferee and
Transferor will be seeking court approval of the transfer in the Court of Common Pleas of the
County in which the Annuitant resides and will provide both the Annuity Owner and the Annuity
Issuer with a copy of the court's order.
While neither the Annuity Issuer nor Annuity Owner is required to appear or participate
in the court approval proceedings, the Annuity Issuer and Annuity Owner are entitled, under the
Act, to support, oppose, or otherwise respond to the Petition, either in person or by counsel, or by
submitting written comments to the court or by participating in the hearing. Any such written
comments or objections must be filed with the Court and served upon the undersigned counsel
for Petitioners within twenty (20) calendar days from the date of this Notice.
Under Section 4004 of the Act, upon entry of an order by the court approving the
transaction, the Annuity Issuer and Annuity Owner will both be released from all liability for
making the payments which are the subject of the assignment to all parties except the Transferee.
The form of order submitted to the court will also provide that nothing in the order shall be
interpreted to negate, impair or modify the ownership or control over the annuity contract by the
Annuity Owner or Annuity Issuer.
Michael A. Gt,ee11
Attorney for Petitioner Stone Street Capital, Inc.
Dated: ! ( /1 (O~
.. I r ...
CERTIFICATE OF SERVICE
I, MICHAEL A. GREEN, certify that I caused to be served a true and correct
copy of the foregoing Notice of Assignment this 1f:day of ~bVt~/ ,2006 via certified
mail, return receipt requested, upon the following:
Ms. Vickie Davis
111 West South Street
Carlisle, PA 17013
Continental Insurance Company
CNA Plaza
Chicago, IL 60685
Aetna Life Insurance and Annuity Company
n/k/a ING Life Insurance and Annuity Company
151 Farmington Avenue
Hartford, CT 06101-6271
")
.)
'}::::) (:\ w
\l ~ en
,lrt
" .......
~ ~ ()
~ --< -v
J
C) ~-J
,'- ~,.~ q r
... j ~~f~
C,,)
~~.-."
rm, ,~,
~....j
\,!.:) -<
INRE:
PETITION OF
VICKIE DAVIS
AJKlA VICKIE THORSON
TO TRANSFER STRUCTURED
SETTLEMENT PAYMENT RIGHTS
: IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
06-6534 CIVIL
ORDER OF COURT
AND NOW, this 1ih day of November, 2006, bases upon the averments
presented in the Joint Petition to Transfer Structured Settlement Payment Rights, the
Court finds,
1. That under the proposed settlement agreement the Petitioner is
surrendering a discounted present value of $82,838.71 in exchange
for a transferred payment of $31,249.00.
2. That the Petitioner will be required to pay "commissions, fees,
expense charges and costs" of $2,200.00.
3. That after payment of the "commissions, fees, expense charges and costs",
the Petitioner will receive only $29,049.00 which represents less than 36% of
the discounted present value.
4. That this Transfer of Structured Settlement Payment Rights as currently
proposed is not in the best interest of the Petitioner.
IT IS HEREBY ORDERED AND DIRECTED that the Petition to Transfer
Structured Settlement Payment Rights is DENIED without a hearing. See In Re: Johnny
Bush, 152 Pitts.Leg.J. 207 (2004); In Re: Marshall, No. Civ.A. 06 CV 1186, 2006 WL
1682793 (Pa.Com.PI. April 12, 2006); In Re: Bendowski, No. 06 CV 3056,2006 WL
2988465 (Pa.Com.P1. August 24,2006).
By the Court,
~'\.~
J.
M. L. Ebert, Jr.,
bas
120:[: ffd L I liON9DDZ
AI:NjL/ 3i-{1 :10
'iJJ:f:D 0:771d
VICKIE DAVIS
111 West South Street
Carlisle, P A 17013
(717) 258-6033
Joint Petitioner, pro se
LAW OFFICES OF MICHAEL A. GREEN, P.C.
By: Michael A. Green, Esquire
LD. No. 73450
1831 Chestnut Street Suite 300
Philadelphia, P A 19103
(215) 972-5520
Attorney for Joint Petitioner Stone Street Capital, Inc.
IN RE: TRANSFER OF STRUCTURED
SETTLEMENT PAYMENT RIGHTS BY
VICKIE DAVIS A/KJA VICKIE THORSON
COURT OF COMMON PLEAS
CUMBERLAND COUNTY
CIVIL DIVISION
No. 06-6534
JOINT PETITIONERS' MOTION FOR RECONSIDERATION OF THE COURT'S
NOVEMBER 17.2006 ORDER DENYING THE JOINT PETITION WITHOUT A
HEARING
Joint Petitioners Vickie Davis and Stone Street Capital, Inc. ("Stone Street"), by and
through the undersigned counsel, hereby submit the following Motion for Reconsideration of the
Court's November 17, 2006 Order denying the subject Joint Petition without a hearing and in
support thereof state as follows:
1. Joint Petitioners Davis and Stone Street filed the subject Joint Petition along with
a proposed Order and Rule on November 9,2006.
2. The Joint Petition seeks court approval of a transfer of structured settlement
payment rights by Davis to Stone Street pursuant to the Structured Settlement Protection Act, 40
P.S. ~4001 et seq.
6. Petitioner Davis, a married 48 year old woman with no dependent children, seeks
this transaction to help support her business and to payoff personal and business bills. See
Affidavit of Vickie Davis, attached and incorporated as Exhibit B, ~~I, 10-11.
7. Davis does not need the payments she seeks to transfer to meet her monthly
obligations and she believes this transfer is in her best interests. See Exhibit B, ~~] 0, 12.
8. In order to address the Court's concerns, Stone Street has agreed to waive its
request for $2,200.00 in costs from Davis in connection with this proposed transaction; the fees
and expenses assessed by Stone Street in this transaction are $0. See revised Disclosure
Statement, ~5 attached and incorporated as Exhibit C.
9. Interest rates, not percentage of discounted present value, are the best way to
evaluate whether a proposed structured settlement transfer is an appropriate financial decision.
See Rate Affidavit of Patricia LaBorde, Esquire, ~~1 ] -14, attached and incorporated as Exhibit
D.l
10. The nominal annual rate in this proposed transaction is 14.597%. See Exhibit D,
~15.
11. The effective discount rate in this proposed transaction is 15.62%. See Exhibit C,
~8.
I Regarding the interest rate, this figure is best analyzed by examining the interest rate Davis would receive if the
transaction were a loan from Stone Street (the transaction is a sale of payments, not a loan of money) or, conversely,
the rate of return Davis would need to receive on the lump sum she receives pursuant to this transfer to yield the
amount of the lump sums she is transferring.
3
12. Both the nominal and effective rates of the transaction are within industry
standards and are in fact lower than the interest rate charged on many credit cards. See Exhibit
D, ~15.
13. Ms. Davis wants to proceed with this transaction and it is fair and reasonable
relative to the market. See Exhibits B-D inclusive.
14. Ms. Davis and Stone Street should have the opportunity to present this Joint
Petition to the Court in person.
WHEREFORE, Joint Petitioners Vickie Davis and Stone Street Capital, Inc. respectfully
request that this Honorable Court vacate its November 17,2006 Order and schedule this matter
for a hearing on its merits.
Respectfully submitted,
VICKIE DAVIS
/} f/ ,l , J7
,/ ,~iYtw-u (~V't4c )
Vickie Davis
Pro se
LAW OFFICES OF MICHAEL A. GREEN
I~~
It//; "
Michael Aj. Gr en
Attorney tOr Petitioner Stone Street Capital, Inc.
4
CERTIFICATE OF SERVICE
I, MICHAEL A. GREEN, ESQUIRE, certify that I caused to be served a true and correct
copy of the foregoing Motion for Reconsideration, the exhibits thereto and proposed form of
Order, this li~'ay of /)e~ , 2006, via regular mail, upon the following:
Ms. Vickie Davis
111 West South Street
Carlisle, P A 17013
Continental Insurance Company
CNA Plaza
Chicago, IL 60685
Aetna Life Insurance and Annuity Company
n/k1a ING Life Insurance and Annuity Company
151 Farmington Avenue
Hartford, CT 06101-6271
MICHAEL A. GREEN
w
A
A
IN RE:
PETITION OF
VICKIE DAVIS
A/KlA VICKIE THORSON
TO TRANSFER STRUCTURED
SETTLEMENT PAYMENT RIGHTS
~
: IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
: 06-6534 CIVIL
ORDER OF COURT
AND NOW, this 1 ih day of November, 2006, bases upon the averments
presented in the Joint Petition to Transfer Structured Settlement Payment Rights, the
Court finds,
1. That under the proposed settlement agreement the Petitioner is
surrendering a discounted present value of $82,838.71 in exchange
for a transferred payment of $31,249.00.
2. That the Petitioner will be required to pay "commissions, fees,
expense charges and costs" of $2,200.00.
3. That after payment of the "commissions, fees, expense charges and costs",
the Petitioner will receive only $29,049.00 which represents less than 36% of
the discounted present value.
4. That this Transfer of Structured Settlement Payment Rights as currently
proposed is not in the best interest of the Petitioner.
IT IS HEREBY ORDERED AND DIRECTED that the Petition to Transfer
Structured Settlement Payment Rights is DENIED without a hearing. See In Re: Johnny
Bush, 152 Pitts.Leg.J. 207 (2004); In Re: Marshall, No. Civ.A. 06 CV 1186, 2006 WL
1682793 (Pa.Com.PI. April 12, 2006); In Re: Bendowski, No. 06 CV 3056, 2006 WL
2988465 (Pa.Com.PI. August 24, 2006).
By the Court,
~()Qp\f
.~~, -~~
'... ~,y~nf,+(~.1 l here .' ';;
~ ;', '~'c UlJt)fIraI-..II:.......,
.. " '7" '~'..'" ...~.,,< 1IIUiII...., ~
i,.~ ;'~ ',< '" ". fit!!'..............'. ";
\ \ -1" \' l' j --....10 '"
'....~ / \ ..: U L I )
, ~ /- .. ~ oJ r'i/'/
_~J 5as'-~'-'--'~~1,i~~~~~~~':."
.,.~~ -'-----..
~:. ' :7 it~p\.' -"
~-f '.)
~l.~
J.
M. L. Ebert, Jr.,
.......
6
J?
----
12/14/2006 14:47
7172459777
PAGE 132
VICKIE DAVIS
J 11 West South Street
CarlisleJ P A 17013
(717) 258-6033
Joint Petitioner, pro se
LAW OFFICES OF MICHAEL A. GREEN
By: Michael A. Green, Esquire
I.D. No. 73450
1831 Chestnut Street Suite 300
Philadelphia. PA 19103
(215) 972-5520
Attorney for Joint Petitioner Stone Street Capital, Inc.
COURT OF COMMON PLEAS
CUMBERLAND COUNTY
CML DNISION
No.
IN RE: TRANSFER OF STRUCTURED
SETTLEMENT PAYl\1ENT RIGHTS BY
VICKIE DAVIS AlIDA VICKlE THORSON
AFFIDAVIT OF VICKIE DAVIS
Vickie Davis, under penalties of perjury, being duly sworn, deposes and says:
1. 1 am a resident of the Commonwealth of Pennsylvania, Cumberland County, and I
reside at 111 West South Street, Carlisle, Permsylvania. I am forty-eight years old, married, and I am
no longer financially responsible for any children. I submit this affidavit in support of Stone Street
Capital, Inc.'s (Petitioner) petition, seeking approval of the transfer of certain structured settlement
payments due to me under a structured settlement agreement.
2. In or about 1992, my husband, Thomas Thorson, was killed as the result of an
accident, giving rise to a wrongful death claim against the certain defendants who were insured by
Continental Insurance Company.
12/14/2006 14:47
71 72459777
PAGE 63
3. My claim against the defendants was resolved through a settlement agreement, which
provided for a series of three lump sum cash payn.lents that would be paid to me, over time, under a
structured settlement. It is my understanding that the Continental Insurance purchased an annuity
from INO Life Insurance and Annuity Compa.ny (hereafter "ING"), who is responsible to make the
annuity payments to me.
4. My estate is the beneficiary ofthe structured settlement payment rights, subject to my
right to change or revoke such designation.
5. I seek to sell, assign and transfer to Petitioner certain payments remaining under the
structured settlement agreeme.nt, in exchange for a lump sum payment, pursuant to the terms of a
purchase and sale agreement I made with Petitioner on October 24, 2006. Pursuant to the tenus of
the agreement, I would sell, assign and transfer to Petitioner a portion of my rights, title and interest
in: one hundred thirty-one (131) monthly payments of Seven Hundred Fifty and 00/1 00 Dollars
($750.00) beginning with the payment on August 9, 2013 through and including the final payment on
June 9, 2024; plus one (1) hunp sum payment of Eighteen Thousand and 00/100 Dollars
($18,000.00) due and payable on June 9,2014; plus one (1) lump sum payment of Twenty-Two
Thousand and 00/100 Dollars ($22,000.00) due and payable on June 9,2019; plus one (1) lump sum
payment of Twenty-Eight Thousand Four Hundred Nine and 00/100 Dollars ($28,409.00) due and
payble on June 9, 2024. I am not seeking to sell monthly payments that I rely upon to support myself.
2
12/14/2806 14:47
71 72459777
PAGE 04
6. Prior to the agreement) on October 23,2006, Petitioner provided me with a disclosure
statement, which I read and understood. See copy of disclosure statement annexed hereto as Exhibit
"A. "
7. Although I have been instructed to obtain my own counsel, I have waived my right to
independent professional advice regarding the proposed transfer, as I believe I fully understand the
transaction, and do not wish to incur additional legal expenses. I understand that it is a condition of
the purchase and sale agreement that the transfer be approved by court order.
8. In June 2003, I entered into another transaction with the Petitioner. On July 14, 2003,
I appeared in the Court of Common Plea~ for Cumberland County and testified concerning that
transaction. I explained in detail that I understood that I was giving up a large sum of money in order
to receive an immediate lump swn payment. r also testified that I understood that once the
transaction is approved, I would not receive the payments that I have sold to the Petitioner. I
explained to the Court in that transaction that I was in debt, and I needed to payoffmy outstanding
bills. The Court approved the transaction, and 1 received a lump sum payment of Fifty-Two
Thousand Seven Hundred Seventy-Six and 00/100 Dollars ($52,776.00). I used the lump sum
payment to payoff all of my outstanding bills. At this time, the only'bills that I still pay are my
mortgage, utilities, and car insurance. After completing the transaction with Stone Street, I was able
to payoff my debts.
9. My husband, Joe Davis, currently receives a pension, social security, and worker's
compensation payments. He takes home over Four Thousand and 0011 00 Dollars ($4000.00) per
3
12/14/2005 14:47
71 72459777
PAGE 05
month. Our monthly bills are between Fifteen Hundred and Two Thousand Dollars ($1500.00-
$2000.00) per month.
lO. While we can afford to support ourselves off of my husband's income, r recently
started another small business. As we live near Dickinson College, I recently opened a consignment
(thrift) shop because I believe that the local college students would be interested in that type of store.
The store sells gently used items that both students and individuals with young children would find
beneficial. I entered into this agreement with Stone Street so that r could have the money to really get
this business up and going. I used all of our savings to open the business, which has left me with
some personal and business debt. By entering into this contract with Stone Street, 1 will be able to
achieve my goals for my business and get out of debt.
11. Specifically, I intend to use the proceeds from this transaction in order to pay down
both my personal and business debts. I am currently behind on my home mortgage, therefore I will
use approximately $5,000.00 in order to get back on track. I also intend to use approximately
$2,000.00 to payoff outstanding utilities bill, which have gone up since the start of the winter
season. Regarding my business, at this time we only bring in a net gain of approximate! y $600.00 a
month, which is not yet enough to cover all business expenses. Therefore, I intend to use $5,000.00
in order to replenish our stock so that we have more of a variety that our customers can choose from.
I also want to pay approximately $16,200.00 on the rent for our facility (for one year) and past due
utilities bills
12. For the reasons stated herein, I ask that the Court approve the transfer, as it is in my
best interests and the best interests of my family. I have already appeared in Court and testified about
4
12/14/2006 14:47
71 72459777
PAGE 06
these types of transactions, and I still understand the significance of entering into this agreement with
the Petitioner. For this reason, I also ask that the Court approve this transaction without my presence
at a hearing. I ask that this affidavit be submitted to the Court in lieu of live testimony.
WHEREFORE, I respectfully request that this Court enter an Order approving the transfer.
Ji4.~/J/ il;
Vicki Davis .
Sworn to before me this
J!i- day of~ 2006.
\.)~C~M. ~e'i2.....
o~\0 .~~
Notary Public
NOTARIAL SEAL
JUDITH D. KAUFFMANt Notary Public
Borough of Carlisle, Cumberland County
My Commission Expires March 10, 2007
5
-
~
c
12/14/2006 14:47 7172459777
PAGE 07
DISCLOSURE STATEMENT
This Disclosure Statement is being provided by Stone Street Capital,
Inc. ("Stone Street") to you, Vickie L. Davis, on October 23, 2006 in
connection with your agreement to transfer and assign to Stone Street
Capital, Inc. or its assigns certain structured settlement payment rights.
1. Amounts and Due Dates of Payments to be Transferred. You
will assign to Stone Street all of your right, title and interest in
and to one hundred thirty-one (131) monthly payments of
Seven Hundred Fifty and 00/100 Dollars ($750.00) beginning
with the payment on August 9, 2013 through and including the
final payment on June 9, 2024; plus one (1) lump sum payment
of Eighteen Thousand and 00/100 Dollars ($18,000.00) due and
payable on June 9, 2014; plus one (1) lump sum payment of
Twenty-Two Thousand and 00/100 Dollars ($22,000.00) due
and payable on June 9,2019; plus one (1) lump sum payment
of Twenty-Eight Thousand Four H.undred Nine and 00/100
Dollars ($28,409.00) due and payble on June 9, 2024 out of
those certain payments due under the Settlement Agreement
and Release.
2. A2:!!rel!ate Amount of Payments Transferred. The aggregate
amount of the payments to be transferred to Stone Street totals
One Hundred Sixty-Six Thousand Six Hundred Fifty-Nine and
001100 Dollars ($166,659.00).
3. Internal Revenue Service Discounted Present Value. The
Internal Revenue Service discounted present value of the
payments to be transferred is Eighty-Two Thousand Eight
Hundred Thirty-Eight and 71/100 Dollars ($82,838.71)
determined by discounting the future payments to be
transferred using a rate most recently published for
determining the present value of an annuity by the Internal
Revenue Service, which rate is 5.80/0. This is a calculation of
the current value of the transferred structured settlement
payments under federal standards for valuing annuities. THIS
IS NOT THE RATE USED TO CALCULATE YOUR
PURCHASE PRICE. It is also not the market rate for
VJ~D.
Qciti;t hc(e)
12/14/2005 14:47
71 72459777
transfers of annuity payments of structured settlement
payments.
4. Gross Amount Pavable. The gross amount payable to you in
exchange for the transferred payments is Thirty-One
Thousand Two Hundred Forty-Nine and 00/100 Dollars
($31,249.00).
5. Good Faith Estimate of Fees and Expenses. You will be
responsible for paying the following commissions, fees,
expenses, charges, and costs in connection with the closing of
this transaction: Processing fees of $0.
6. Net Amount Payable. The net amount payable to you in
exchange for the transferred payments is Thirty-One
Thousand Two Hundred Forty..Nine and 00/100 Dollars
($31,249.00).
7. Quotient. The net amount that you will receive from us in
exchange for your future structured settlement payments
represent 37.72% (#6 DMDED BY #3) of the estimated
current value of the payments based upon the discounted value
using the applicable federal rate.
8. Effective Annual Interest Rate. Based on the net amount that
you will rece.ive 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
15.620/0 per year.
9. Breach of Contract. The amount of any penalty and the
aggregate amount of any liquidated damages (inclusive of
penalties) payable by the payee in the event of any breach of
the transfer agreement by the payee shall be: None.
to.Effective Date. Stone Street commitment or obligation to enter
into this transaction is conditional and contingent upon the
execution and your return of this Disclosure Statement and
execution of a Periodic Payment Right Purchase Agreement
and related documents by all parties. The effective date of the
\I ~b.
(Initial here)
PAGE 08
12/14/2005 14:47
7172459777
PAGE 69
Periodic Payment Right Purchase Agreement shall be the date
on which the transaction is closed and funded to YOll, which
date shall not, under any circumstances, be less than ten (10)
days after the date of this Disclosure.
11.Best Interests. The best interests OfYOll and your dependants,
if applicable, render the transfer appropriate.
By signing this Disclosure Statement where provided below,
you acknowledge and agree that you have read and fully
understand the foregoing Disclosure Statement, that you have
been advised by Stone Street to discuss the Disclosure
Statement and the details of the proposed transaction with
your financial advisors and attorneys and have been provided
an opportunity to do so.
RECEIVED, AGREED AND ACKNOWLEDGED:
~ .\
I / .
'a{y.t/~
Vickie L. avis
j;) - /t./-'{)0
Date
V L- (),
(Initial here)
IN RE: TRANSFER OF STRUCTURED
SETTLEMENT PAYMENT RIGHTS BY
VICKIE DAVIS AlK/A VICKIE THORSON
COURT OF COMMON PLEAS
CUMBERLAND COUNTY
CIVIL DIVISION
No.
LAW OFFICES OF MICHAEL A. GREEN
By: Michael A. Green, Esquire
LD. No. 73450
1831 Chestnut Street Suite 300
Philadelphia, P A 19103
(215) 972-5520
Attorney for Joint Petitioner Stone Street Capital, Inc.
RATE AFFIDAVIT
BEFORE ME, the undersigned authority, on this day personally appeared Patricia
LaBorde, Esq., who, being by me first duly sworn, upon her oath did depose and state as follows:
1. I am over twenty-one (21) years of age, am of sound mind, am capable of making this
affidavit, and am fully competent and authorized to testify to the matters stated herein. Unless
otherwise indicated, all of the matters stated in this affidavit are within my personal knowledge.
2. I am the Division Counsel of the Structured Settlement Department of Stone Street
Capital, Inc., a company that purchases various deferred assets, including structured settlement
payment streams.
3. I have been involved in reviewing, negotiating and purchasing unusual types of
deferred payment obligations, including, without limitation, structured settlement payments for
over seven (7) years and have significant experience in the purchase and transfer of structured
settlement payment rights.
4. Due to my experience in the field and work experience, I am an expert in the arena of
structured settlement payment purchases.
5. Stone Street Capital, Inc. is a pioneer in the factoring industry_ It has been providing
individuals with lump sum payments for their future payment streams since 1989.
- 1 -
> .
- 2 -
6. The secondary market for structured settlements is a market whereby recipients of
structured settlements are able to access their future payments and achieve liquidity in
connection with their future payments, by way of an assigmnent of the right to receive the
payments to a third party in return for the payment of a lump sum cash payment.
7. Stone Street Capital, Inc. is a founding member of the National Association of
Settlement Purchasers ("NASP"), a not-for-profit trade organization of structured settlement
purchase companies. NASP was formed to ensure, among other things, that its members follow
guidelines in purchases of structured settlement payment rights. In particular, NASP and its
members promote the highest standards of commercial honor and just and equitable principles of
trade. These standards and principles include: not engaging in any unfair methods of
competition; not taking advantage of any prospective customer; insuring that customers are
legally capable of contracting; and insuring that customers have full disclosure and the right to
cancel a transaction within three (3) days offunding. NASP worked with various insurance
companies and their various trade organizations in negotiating, drafting and promoting the model
structured settlement transfer legislation around the country. The purpose of such legislation is
to protect not only the individuals selling the payment streams, but also the structured settlement
obligors and annuity issuers. There are presently 46 other states in the country with structured
settlement protection acts similar to the Pennsylvania Act.
8. A variety of factors are taken into account when detennining at what value Stone
Street will purchase a structured settlement. These include the size and timing of payments,
internal cost of funds, servicing expenses, the cost of locating potential clients, and the expenses
associated with obtaining court orders under various state statutes. These factors also include
expenses associated with insuring that the annuity companies comply with the court orders. With
regard to structured settlement payment rights, the recipients of said payments cannot use these
,) 0#-
payment rights as collateral for "traditional" loans through banks. or other traditional lending
institutions. These payment rights can only be sold to factoring companies, companies that are
in the business of deferred streams of income such as structured settlement payments. Thus, the
true value of the Assigned Payments in the present case is properly based on what a willing
buyer agrees to pay a willing seller in this factoring market. In determining rate, factoring
companies evaluate a number of factors including, but not limited to the complexity of these
transactions, the costs of complying with multiple state and federal laws, the indemnification
provided by the Transferee to the Annuity Issuer and Settlement Obligor, the relatively small
size and long duration of the transactions, the credit worthiness of the Transferor and the credit
quality of the underlying insurance c.ompanies.
9. To enter into these transactions, Stone Street and its competitors must locate
institutional investors who can provide a source of capital for these transactions. In return, Stone
Street and its competitors must agree to provide these investors with a specified rate of return on
the investment.
10. Institutional investors have raised serious concerns about purchasing a long-term
investments guaranteed by an insurance company. While the insurance companies may have
excellent ratings at the time that Stone Street enters into its contract with the annuitant, there is
no guarantee that the rating will remain at that level during the time period of the investment.
Recent history indicates that insurance companies can go from an "excellent" rating by A.M.
Best to a "fair" rating in a very short period of time. For example, Reliance Insurance Company
was an A rated insurance company in June 2000. A mere fourteen months later, October 2001,
the company was in liquidation. Similarly, Conseco Insurance was an "A" rated insurance
company. In December 2002, Conseco filed for bankruptcy. Accordingly, institutional investors
do not take much comfort in the current ratings of individual insurers.
- 3 -
,) ...
. 11. Because of the cost associated with purchasing structured settlement payment rights,
the secondary market for the sale of structured settlement payment rights is small. There are a
handful of companies currently purchasing these rights. Competition in this marketplace dictates
the discount rates that can be obtained given the cost of acquiring these payment rights. Although
competition exists among companies that acquire payment rights, because of the expenses
involved, the typical effective discount rate charged to the seller is between 13% and 18%.
12. Some transfer statues require that the purchaser disclose the effective discount rate
that the seller is receiving, as well as the value of the payments using the Applicable Federal
Rate ("AFR") established by the IRS for valuing annuities. The AFR is a rate that is used by the
IRS for valuing annuities for estate tax purposes, and is typically very close to a seven-year
treasury rate. The valuation obtained using the AFR is in no way reflective of the cost to set up a
structured settlement, nor is it reflective of the value that a seller could obtain in the secondary
marketplace
13. All transfer statutes require that the purchaser disclose to the seller the ratio of what
the seller is receiving as compared to the AFR valuation. Because the timing of the payments
may be very far into the future, there can be a dramatic difference between these valuations. This
difference occurs because of the compounding effects when determining the time value of
money. To illustrate this point, following is a comparison of two potential transactions:
Option One Option Two
Payment Amount $100,000.00 $100,000.00
Date of Payment January 1,2027 January 1,2008
Discount Rate 10% 30%
I Valuation $13,579.13 $73,271.57
- 4 -
.
14. On the face, the individual might believe that Option Two in which s/he receives the
large payment for the $100,000.00 lwnp sum payment is a better deal. In reality, however,
Option One with lower discount rate would be a better financial decision. The reason for this
difference is date that the payments are due. A seller would only have to invest $13,000 today
at 10% interest rate to have $100,000 in 20 years. This is an achievable goal. An annuitant,
however, would hard pressed to find an investment opportunity that would pay the 30% interest
necessary to turn $75,000 into $100,000 in one year. As such the "cents on dollar" evaluation,
does not accurately assess the financial soundness of a factoring transaction, and can be very
misleading. To accurately evaluate this transaction, the Court should rely on the disCOl.mt rate
disclosed to the Court and Ms. Davis.
15. The nominal annual rate of Mrs. Davis's transfer is 14.597%, which is within industry
standards for these types of transfers and is comparable to major credit card rates. As a
comparison, Chase MasterCard currently charges between 13.49 and 17.49%, Household Bank
charges 19.90%, and Citibank charges up to 22.49% on its cards. The Thirty-One Thousand Two
Hundred Forty-Nine and 00/100 Dollars ($31,249.00) that Mrs. Davis is receiving is the present
fair market value for this type of transaction.
16. It is respectfully submitted that taking all factors into account, the discount rate used
in the transaction between Stone Street Capital, Inc. and Mrs. Davis is fair and reasonable
relative to the market at this time.
,-..L ..
FURTHER AFFIANT SAITH NAUGHT.
SUBSCRIBED AND SWORN TO BEFORE ME, on this , tlfV\ day of ~ (' e VI) be r
2006.
- 5 -
N~i~Yl~d
\\,,'11I11I11",/
'1<."", ~Y YA 11111"
~... ......... ~ #'-;.
S "oy ,.... "-
~ ...~,..t' r-U>'" ~
~.:O ~~" ~
~ f~ MY 0\ ~
~ . . -
; :. COMMISSION g E
\ \ EX~RES ! $
\ ~"... 811812009 ....~ g
~ ~A .... .....:..a. $'
~;.7i~ .h..... ...\"\ .,~,"
";""c8 CO\J~ "",.....
"'''11I111\\'\''
- 6 -
r--
~
r
IN RE:
PETITION OF
VICKIE DAVIS
A/K/A VICKIE THORSON
TO TRANSFER STRUCTURED
SETTLEMENT PAYMENT RIGHTS
: IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
06-6534 CIVIL
ORDER OF COURT
AND NOW, this 20th day of December, 2006, upon consideration of the Joint
Petitioners' Motion for Reconsideration of the Court's November 17, 2006 Order and any
response thereto,
IT IS HEREBY ORDERED AND DIRECTED that the November 17, 2006 Order
is VACATED.
IT IS FURTHER ORDERED AND DIRECTED that a hearing on the merits of
whether the proposed transfer is in the best interest of the Petitioner shall be heard on
Thursday, March 1, 2007 at 3:30 p.m. in Courtroom No.5 of the Cumberland County
Courthouse, Carlisle, Pennsylvania.
By the Court,
M.~~.. ~~.
~hael A. Green, Esquire
Attorney for Joint Petitioner
Aie Davis, Pro Se
Joint Petitioner
bas
VICKIE DAVIS
111 West South Street
Carlisle, P A 17103
(717) 258-6033
Joint Petitioner, pro se
LAW OFFICES OF MICHAEL A. GREEN, P.e.
By: Michael A. Green, Esquire
LD. No. 73450
1831 Chestnut Street Suite 300
Philadelphia, P A 19103
(215) 972-5520
Attorneyfor Joint Petitioner Stone Street Capital, Inc.
IN RE: TRANSFER OF STRUCTURED
SETTLEMENT PAYMENT RIGHTS BY
VICKIE DAVIS A/KiA VICKIE THORSON
COURT OF COMMON PLEAS
CUMBERLAND COUNTY
CIVIL DIVISION
No. O(p- &53'1
ORDER
AND NOW, this ~ day of March, 2007, upon consideration of the unopposed joint
petition of Vickie Davis aJk/a Vickie Thorson ("Ms. Davis") and Stone Street Capital, Inc.
("Stone Street"), the Court hereby finds as follows:
1. The transfer of the structured settlement proceeds, specifically, monthly payments
of $750.00 each, commencing August 9, 2013, and continuing through and including June 9,
2024, one lump sum payment of $18,000.00 due on June 9, 2014, one lump sum payment of
$22,000.00 due on June 9, 2019, and one lump sum payment of $28,409.00 due on June 9, 2024
(the "Assigned Payments"), by Ms. Davis to Stone Street has described in the petition in this
matter (the "Proposed Transfer") (i) does not contravene any applicable state statute or the order
of any court or responsible governmental or administrative authority, and (ii) is in the best
interest of Ms. Davis, taking into account the welfare and support of Ms. Davis' dependents, if
any.
2. The Proposed Transfer complies with the requirements of the Pennsylvania
Structured Settlement Protection Act, 40 P.S. S 4001, et seq. (the "Pennsylvania Act").
3. The Court has appropriate jurisdiction over the parties in this matter.
4. Not less than ten days prior to the date on which Ms. Davis first incurred any
obligation with respect to the transfer, Stone Street provided Ms. Davis with a disclosure
statement, setting forth all of the following:
(i) the amounts and due dates of the structured settlement payments to be
transferred;
(ii) the aggregate amount of such payments;
(iii) the discounted present value of such payments, together
with the discount rate or rates used in determining such discounted present
value;
(iv) the gross amount payable to Ms. Davis in exchange for such payments;
(v) an itemized listing of all brokers' commissions, service charges,
application of processing fees, closing costs, filing or administrative
charges, legal fees, notary fees and other commissions, fees, costs,
expenses, and charges payable by Ms. Davis or deductible from the
gross amount otherwise payable to Ms. Davis;
(vi) the net advance amount payable to Ms. Davis after deduction of all
commissions, fees, costs, expenses and charges described in subparagraph
(v);
(vii) the quotient, expressed as a percentage, obtained by dividing the net
amount by the discounted present value of the payments; and
(viii) the amount of any penalty and the aggregate amount of any liquidated
damages, inclusive of penalties, payable by the payee in the event of any
breach of the transfer agreement by the payee.
5. Ms. Davis has received or expressly waived in a separate written
acknowledgement signed by Ms. Davis, independent legal advice regarding the implications of
the Proposed Transfer, including consideration of the tax ramifications of the Proposed Transfer
6. Stone Street has given written notice of Stone Street's name, address and taxpayer
identification number to Continental Insurance Company ("Continental") and Aetna Life
Insurance and Annuity Company nlkla ING Life Insurance and Annuity Company ("ING"), and
has filed a copy of such notice with the Court.
7. Ms. Davis has been provided, and has acknowledged receipt of the "Important
Notice" in bold type 12-point type, stating: "IMPORTANT NOTICE: You are strongly urged to
consult with an attorney who can advise you of the potential tax consequences of this
transaction."
8. Stone Street Capital, Inc. has assigned all of its contract rights to Stone Street
Capital, LLC. Stone Street Capital, Inc. no longer has any interests in the agreements with Payee
or Payee's structured settlement payments.
9. Stone Street Capital, LLC has assigned, to Stone Street Settlement Funding, LLC
("SSSF"), all of its rights under the Transfer Agreement and the right to received the Assigned
Payments.
Based on the foregoing findings, IT IS HEREBY ORDERED THAT:
1. Pursuant to the Pennsylvania Act, the Proposed Transfer is approved.
During the period the structured settlement payment rights are being assigned or of the periodic
payments due under the settlement agreement and annuities shall be the Estate of Vickie Davis.
However, SSSF shall be entitled to receive the Assigned Payments even in the event of Ms.
Davis' death.
2. Continental shall instruct ING to forward the Assigned Payments to SSSF,
within 7 days of the date due, by check made payable to Stone Street Settlement Funding, LLC,
(Tax Id. No. 20-3369290), at 39121 Treasury Center, Chicago, IL 60694-9100, as follows:
· Monthly payments of$750.00 each, commencing August 9, 2013, and
continuing through and including June 9, 2024;
· One lump sum payment of$18,000.00 due on June 9, 2014;
· One lump sum payment of$22,000.00 due on June 9, 2019; and
· One lump sum payment of $28,409.00 due on June 9, 2024.
3. It is understood and agreed that in the event SSSF further assigns or
otherwise transfers the Assigned Payments (or any portion thereof or interest therein) to another
person or entity (a "Reassignment"), neither Continental nor ING will not be obligated to
redirect the Assigned Payments (or any portion thereof) to any such person or entity other than
SSSF or to any payment address other than specified herein, and Stone Street Capital, LLC and
SSSF shall remain obligated to comply with the terms and conditions set forth herein.
4. Stone Street Capital, LLC and SSSF shall defend, indemnify, and hold
harmless Continental and ING, and their respective directors, shareholders, officers, agents,
employees, servants, successors, and assigns, and any parent, subsidiary, or affiliate thereof, and
their directors, shareholders, officers, agents, employees, servants, successors, and assigns, past
and present, from and against any and all liability, including but not limited to costs and
reasonable attorney's fees, for any and all claims made in connection with, related to, or arising
out of the Transfer Agreement, the Proposed Transfer, the Assigned Payments, any
Reassignment, or the compliance of Continental and/or ING with this Order, except with respect
to claims by Stone Street Capital, LLC or SSSF against Continental and/or ING to enforce the
obligations of Continental and/or ING under this Order. To the extent Stone Street Capital, LLC
and SSSF fail to honor this indemnification and defense obligation, Continental and ING may, in
addition to all other remedies afforded by law, satisfy the same by withholding to their credit any
remaining Assigned Payments.
5. The lack of opposition to this matter, or the other parties' stipulation
hereto or compliance herewith, shall not constitute evidence in this or any other matter, and is
not intended to constitute evidence in this or any other matter, that:
a. payments under a structured settlement contract or annuity or
related contracts can be assigned or that "anti-assignment" or
"anti-encumbrance" provisions in structured settlement contracts
or annuities or related contracts are not valid and enforceable; or
b. other transactions entered into by Stone Street Capital, LLC and its
customers constitute valid sales and/or loans; or
c. Continental and ING have waived any right in connection with any other
litigation or claims; or
d. Stone Street Capital, LLC and/or SSSF have waived any right other than
as expressly set forth in this Order.
6. For good and valuable consideration, and intending to be legally bound
hereby, Stone Street Capital, LLC, SSSF and Ms. Davis, for themselves and for their respective
shareholders, officers, agents, employees, servants, successors, heirs, beneficiaries, contingent
beneficiaries, executors, trustees, administrators, and assigns, and any parent, subsidiary, or
affiliate thereof, and their directors, shareholders, officers, agents, employees, servants,
successors, heirs, beneficiaries, contingent beneficiaries, executors, trustees, administrators, and
assigns, past and present (the "Releasors"), hereby remise, release, and forever discharge
Continental and ING, and their respective directors, shareholders, officers, agents, employees,
servants, successors, and assigns, and any parent, subsidiary, or affiliate thereof, and their
directors, shareholders, officers, agents, employees, servants, successors and assigns, past and
present (the "Releasees"), of and from any and all manner of actions and causes of action, suits,
debts, dues, accounts, bonds, covenants, contracts, agreements, judgments, settlements, damages,
claims, and demands whatsoever, in law or in equity, in connection with, related to, or arising
out of, any claim or allegation that was or could have been asserted in connection with, related
to, or arising out of the Transfer Agreement, the Assigned Payments, any Reassignment, the
Proposed Transfer, or the Releasees' compliance with this Order, which the Releasors have or
had from the beginning of the world through the date of this Order, except for claims of
Releasors against the Releasees to enforce the Releasees' obligations to Releasors, if any, under
this Order.
s1'
DONE IN OPEN COURT this \ day of March, 2007.
JUD~ ~ u~
~
c::>
-..1
:::r:
')?'"
;;0
,
-
~
-l
:C-n
rllf"
-...,m
-;)0
;),b
"-.~- ,-~:
7''"' -:-
;~~\<M
.~.>'
,!:;:)
::<.
4:')
:;
'1?
(J1
o