Section 33.860 - Disclosure statementNot less than 14 days before a payee signs a transfer agreement, a transferee shall provide the payee with a disclosure statement in not less than 14-point type that sets forth:
(1) The amounts and due dates of the structured settlement payments to be transferred.(2) The aggregate amount of the payments to be transferred.(3) The discounted present value of the payments and the rate used in calculating the discounted present value. The discounted present value shall be calculated by using the most recently published applicable federal rate for determining the present value of an annuity, as issued by the Internal Revenue Service.(4) The amount payable to a payee as the result of a transfer. The amount set forth in this subsection shall be calculated before any reductions are made for transfer expenses required to be listed under subsection (5) of this section or any related disbursements.(5) An itemized listing of all applicable transfer expenses and the transferee's best estimate of the amount of any attorney fees and disbursements. For the purposes of this subsection, "transfer expenses":(a) Includes all fees, costs and expenses of a transfer that are required under the transfer agreement to be paid by the payee to the transferee or deducted from the amount payable to a payee as the result of a transfer.(b) Does not include preexisting obligations of the payee payable for the payee's account from the proceeds of a transfer.(6) The amount calculated by subtracting the aggregate amount of the actual and estimated transfer expenses required to be listed under subsection (5) of this section from the amount identified in subsection (4) of this section.(7) The amount of any penalties or liquidated damages payable by the payee in the event of a breach of the transfer agreement by the payee.(8) A statement that the payee has the right to cancel the transfer agreement, without penalty or further obligation, before the approval of the transfer by the court or responsible administrative authority.(9) A statement that the payee is entitled to, and should, seek independent professional advice regarding the proposed transfer.(10) A statement that transferring payment rights may or may not be financially appropriate for the payee and the payee should not proceed without first weighing and considering other offers and alternate means of obtaining funds through borrowing or the sale of other assets.(11) A statement that the transferee's attorney does not represent the payee in connection with the proposed transfer.(12) A statement that the court or responsible administrative authority may require the payee to seek independent professional advice and that the expenses for the independent professional advice may be paid out of the amount paid by the transferee to the payee. Amended by 2013 Ch. 736,§ 6, eff. 1/1/2014.