Nevada Structured Settlements Law

Yes, you can trade Nevada structured settlement payments for upfront cash.

Statute and Bill #: NRS § 42.030 (NV A.B. 166)
Enacted 5/20/2003 Effective 10/1/2003
Summary: Permits the sale or assignment of Nevada structured settlement payment rights, subject to a court's review and approval based on showing that the proposed transfer is in the consumer's "best interests," taking into account the welfare of the consumer's dependents (if any). Requires certain disclosures and other consumer protections.


Full Text Of Bill:

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. Chapter 42 of NRS is hereby amended by adding thereto a new section

to read as follows:

1. AN AGREEMENT TO TRANSFER THE RIGHT TO RECEIVE PAYMENTS PURSUANT TO A

STRUCTURED SETTLEMENT TO A TRANSFEREE IS VALID AND ENFORCEABLE ONLY IF THE

TRANSFER IS APPROVED BY A DISTRICT COURT. THE TRANSFEREE MUST PETITION THE

DISTRICT COURT FOR SUCH APPROVAL AND THE COURT SHALL APPROVE THE TRANSFER IF IT

DETERMINES THAT:

(A) THE TRANSFER IS IN THE BEST INTEREST OF THE PAYEE, CONSIDERING THE

TOTALITY OF THE CIRCUMSTANCES, INCLUDING, WITHOUT LIMITATION, THE WELFARE AND

SUPPORT OF THE DEPENDENTS OF THE PAYEE;

(B) THE PAYEE HAS BEEN ADVISED IN WRITING BY THE TRANSFEREE TO SEEK

INDEPENDENT PROFESSIONAL ADVICE REGARDING THE TRANSFER AND HAS RECEIVED SUCH

INDEPENDENT PROFESSIONAL ADVICE OR HAS KNOWINGLY WAIVED SUCH ADVICE IN WRITING;

AND

(C) THE TRANSFER DOES NOT VIOLATE ANY APPLICABLE LAW OR THE ORDER OF ANY

COURT.

2. AN ACTION PURSUANT TO SUBSECTION 1 MUST BE COMMENCED IN THE DISTRICT COURT:

(A) LOCATED WHERE THE ORIGINAL CLAIM WHICH GAVE RISE TO THE STRUCTURED

SETTLEMENT WAS FILED; OR

(B) WITHIN THE COUNTY IN WHICH THE PAYEE RESIDES.

3. NOT LATER THAN 7 DAYS BEFORE A HEARING ON A PETITION PURSUANT TO SUBSECTION

1, THE TRANSFEREE MUST FILE WITH THE DISTRICT COURT AND SERVE ON ALL INTERESTED

PARTIES AND ANY ATTORNEY WHO REPRESENTED THE PAYEE IN THE ACTION WHICH RESULTED

IN THE SETTLED CLAIM A NOTICE OF THE PROPOSED AGREEMENT AND THE PETITION FOR

AUTHORIZATION OF THE PROPOSED AGREEMENT. THE NOTICE MUST INCLUDE, WITHOUT

LIMITATION:

(A) A COPY OF THE PETITION OF THE TRANSFEREE;

(B) A COPY OF THE PROPOSED AGREEMENT;

(C) A COPY OF THE DISCLOSURE REQUIRED PURSUANT TO SUBSECTION 4;

(D) A LIST WHICH INCLUDES THE NAME AND AGE OF EACH DEPENDENT OF THE PAYEE;

(E) A STATEMENT THAT ANY INTERESTED PARTY MAY SUPPORT, OPPOSE OR OTHERWISE

RESPOND TO THE PETITION OF THE TRANSFEREE BY APPEARING IN PERSON OR BY COUNSEL

DURING THE HEARING ON THE PETITION OR BY SUBMITTING WRITTEN COMMENTS TO THE

COURT; AND

(F) NOTICE OF THE TIME AND PLACE OF THE HEARING, THE MANNER IN WHICH A WRITTEN

RESPONSE TO THE APPLICATION MUST BE FILED AND THE DATE BY WHICH A WRITTEN

RESPONSE TO THE PETITION MUST BE FILED FOR CONSIDERATION BY THE COURT.

4. A TRANSFEREE WHO COMMENCES AN ACTION PURSUANT TO SUBSECTION 1 MUST PROVIDE

TO THE COURT WITH THE PROPOSED AGREEMENT A DISCLOSURE SETTING FORTH:

(A) THE AMOUNTS AND DUE DATES OF THE PAYMENTS UNDER THE STRUCTURED SETTLEMENT

PROPOSED TO BE TRANSFERRED;

(B) THE AGGREGATE AMOUNT OF THE PROPOSED PAYMENTS TO BE TRANSFERRED;

(C) THE AMOUNT TO BE PAID TO THE PAYEE FOR THE TRANSFER BEFORE DEDUCTING ANY

EXPENSES;

(D) AN ITEMIZED LIST OF ALL EXPENSES THAT THE PAYEE WILL BE REQUIRED TO PAY

OTHER THAN ATTORNEY'S FEES AND WHICH WILL BE DEDUCTED FROM THE AMOUNT PAID TO

THE PAYEE FOR THE TRANSFER, INCLUDING, WITHOUT LIMITATION, ANY COMMISSION OWED

TO A BROKER, SERVICE CHARGES, APPLICATION OR PROCESSING FEES, COSTS OF CLOSING

ON THE AGREEMENT, FILING OR ADMINISTRATIVE CHARGES AND FEES PAID TO A NOTARY

PUBLIC;

(E) THE AMOUNT TO BE PAID TO THE PAYEE FOR THE TRANSFER AFTER DEDUCTING THE

EXPENSES;

(F) THE AMOUNT OF ANY LIQUIDATED DAMAGES WHICH THE PAYEE IS REQUIRED TO PAY IF

HE BREACHES THE TRANSFER AGREEMENT;

(G) THE DISCOUNTED PRESENT VALUE OF THE PAYMENTS UNDER THE STRUCTURED

SETTLEMENT THAT ARE PROPOSED TO BE TRANSFERRED AND THE DISCOUNT RATE USED TO

DETERMINE THAT VALUE; AND

(H) IF ADVERSE TAX CONSEQUENCES EXIST, A STATEMENT WHICH INFORMS THE PAYEE

THAT SUCH A TRANSFER MAY SUBJECT HIM TO ADVERSE TAX CONSEQUENCES WITH REGARD TO

THE PAYMENT OF FEDERAL INCOME TAX.

5. COMPLIANCE WITH THE REQUIREMENTS SET FORTH IN THIS SECTION MAY NOT BE

WAIVED.

6. AS USED IN THIS SECTION:

(A) "ANNUITY ISSUER" MEANS AN INSURER WHO HAS ISSUED A CONTRACT TO FUND

PERIODIC PAYMENTS UNDER A STRUCTURED SETTLEMENT.

(B) "DEPENDENTS" INCLUDE, WITHOUT LIMITATION, THE SPOUSE OF A PAYEE, ANY MINOR

CHILD OF A PAYEE AND ANY OTHER PERSON FOR WHOM THE PAYEE IS LEGALLY OBLIGATED

TO PROVIDE SUPPORT, INCLUDING, WITHOUT LIMITATION, ALIMONY;

(C) "INDEPENDENT PROFESSIONAL ADVICE" MEANS ADVICE OF AN ATTORNEY, CERTIFIED

PUBLIC ACCOUNTANT, ACTUARY OR OTHER LICENSED PROFESSIONAL ADVISER;

(D) "INTERESTED PARTIES" MEANS THE PAYEE, ANY BENEFICIARY IRREVOCABLY

DESIGNATED UNDER THE ANNUITY CONTRACT TO RECEIVE PAYMENTS FOLLOWING THE DEATH

OF THE PAYEE, THE ANNUITY ISSUER, ANY PERSON WHO IS OBLIGATED TO MAKE PAYMENTS

PURSUANT TO THE STRUCTURED SETTLEMENT AND ANY OTHER PARTY WHO HAS CONTINUING

RIGHTS OR OBLIGATIONS UNDER THE STRUCTURED SETTLEMENT;

(E) "PAYEE" MEANS A PERSON WHO IS RECEIVING TAX-FREE PAYMENTS UNDER A

STRUCTURED SETTLEMENT AND PROPOSES TO MAKE A TRANSFER OF THE RIGHT TO RECEIVE

PAYMENTS UNDER THAT STRUCTURED SETTLEMENT;

(F) "PERIODIC PAYMENTS" INCLUDES, WITHOUT LIMITATION, BOTH RECURRING PAYMENTS

AND SCHEDULED FUTURE LUMP SUM PAYMENTS;

(G) "SETTLED CLAIM" MEANS THE ORIGINAL TORT CLAIM OR WORKERS' COMPENSATION

CLAIM RESOLVED BY A STRUCTURED SETTLEMENT.

(H) "STRUCTURED SETTLEMENT" MEANS AN ARRANGEMENT FOR PERIODIC PAYMENT OF

DAMAGES FOR PERSONAL INJURIES OR SICKNESS ESTABLISHED BY SETTLEMENT OR JUDGMENT

IN RESOLUTION OF A TORT CLAIM OR FOR PERIODIC PAYMENTS IN SETTLEMENT OF A

WORKERS' COMPENSATION CLAIM;

(I) "TRANSFER" MEANS ANY SALE, ASSIGNMENT, PLEDGE, HYPOTHECATION OR OTHER

ALIENATION OR ENCUMBRANCE BY A PAYEE FOR CONSIDERATION OF THE RIGHT TO RECEIVE

PAYMENTS PURSUANT TO A STRUCTURED SETTLEMENT; AND

(J) "TRANSFEREE" MEANS A PARTY ACQUIRING OR PROPOSING TO ACQUIRE THE RIGHT TO

PAYMENTS PURSUANT TO A STRUCTURED SETTLEMENT THROUGH A TRANSFER.

Sec. 2. NRS 104.9406 is hereby amended to read as follows:

104.9406 1. Subject to subsections 2 to 8, inclusive, an account debtor on an

account, chattel paper or a payment intangible may discharge its obligation by

paying the assignor until, but not after, the account debtor receives a

notification, authenticated by the assignor or the assignee, that the amount

due or to become due has been assigned and that payment is to be made to the

assignee. After receipt of the notification, the account debtor may discharge

its obligation by paying the assignee and may not discharge the obligation by

paying the assignor.

2. Subject to subsection 8, notification is ineffective under subsection 1:

(a) If it does not reasonably identify the rights assigned;

(b) To the extent that an agreement between an account debtor and a seller of a

payment intangible limits the account debtor's duty to pay a person other than

the seller and the limitation is effective under law other than this article; or

(c) At the option of an account debtor, if the notification notifies the

account debtor to make less than the full amount of any installment or other

periodic payment to the assignee, even if:

(1) Only a portion of the account, chattel paper or payment intangible has been

assigned to that assignee;

(2) A portion has been assigned to another assignee; or

(3) The account debtor knows that the assignment to that assignee is limited.

3. Subject to subsection 8, if requested by the account debtor, an assignee

shall seasonably furnish reasonable proof that the assignment has been made.

Unless the assignee complies, the account debtor may discharge its obligation

by paying the assignor, even if the account debtor has received a notification

under subsection 1.

4. Except as otherwise provided in subsection 5 and NRS 104.9407 and 104A.2303,

and subject to subsection 8, a term in an agreement between an

account debtor and an assignor or in a promissory note is ineffective to the

extent that it:

(a) Prohibits, restricts or requires the consent of the account debtor or

person obligated on the promissory note to the assignment or transfer of, or

the creation, attachment, perfection or enforcement of a security interest in,

the account, chattel paper, payment intangible or promissory note; or

(b) Provides that the assignment or transfer, or the creation, attachment,

perfection or enforcement of the security interest may give rise to a default,

breach, right of recoupment, claim, defense, termination, right of termination,

or remedy under the account, chattel paper, payment intangible or promissory

note.

5. Subsection 4 does not apply to the sale of a payment intangible or

promissory note.

6. Subject to subsections 7 and 8, a rule of law, statute, or regulation, that

prohibits, restricts, or requires the consent of a government, governmental

body or official, or account debtor to the assignment or transfer of, or

creation of a security interest in, an account or chattel paper is ineffective

to the extent that the rule of law, statute or regulation:

(a) Prohibits, restricts, or requires the consent of the government,

governmental body or official, or account debtor to the assignment or transfer

of, or the creation, attachment, perfection, or enforcement of a security

interest in, the account or chattel paper; or

(b) Provides that the assignment or transfer, or the creation, attachment,

perfection, or enforcement of the security interest may give rise to a default,

breach, right of recoupment, claim, defense, termination, right of termination,

or remedy under the account or chattel paper.

7. Subject to subsection 8, an account debtor may not waive or vary its option

under paragraph (c) of subsection 2.

8. This section is subject to law other than this article which establishes a

different rule for an account debtor who is an individual and who incurred the

obligation primarily for personal, family or household purposes.

9. This section does not apply to an assignment of a health- care-insurance

receivable . OR TO A TRANSFER OF A RIGHT TO RECEIVE PAYMENTS PURSUANT TO

SECTION 1 OF THIS ACT.