Section 5-1701. Definitions

For purposes of this title:
    (a)  "annuity  issuer"  means  an insurer that has issued an insurance
  contract used to fund periodic payments under a structured settlement;
    (b) "dependents" include a payee's spouse and minor children  and  all
  other  persons  for  whom  the  payee  is  legally  obligated to provide
  support, including alimony or maintenance;
    (c) "discounted present value"  means  the  present  value  of  future
  payments,  as  determined  by  discounting  such payments to the present
  using  the  most  recently  published  applicable   federal   rate   for
  determining  the  present  value  of an annuity, as issued by the United
  States Internal Revenue Service;
    (d) "gross advance amount" means the sum payable to the payee  or  for
  the  payee's  account  as  consideration  for  a  transfer of structured
  settlement payment rights before any reductions for transfer expenses or
  other deductions to be made from such consideration;
    (e) "independent professional advice" means  advice  of  an  attorney,
  certified  public  accountant,  actuary  or  other licensed professional
  adviser:
    (i) who is engaged by a claimant or payee to render advice  concerning
  the  legal, tax and financial implications of a structured settlement or
  a transfer of structured settlement payment rights;
    (ii) who is not in any manner affiliated with or  compensated  by  the
  defendant in such settlement or the transferee of such transfer; and
    (iii)  whose compensation for rendering such advice is not affected by
  whether a settlement or transfer occurs or does not occur;
    (f)  "interested  parties"  means,  with  respect  to  any  structured
  settlement,  the payee, any beneficiary irrevocably designated under the
  annuity contract to receive payments following the  payee's  death,  the
  annuity  issuer,  the structured settlement obligor, and any other party
  that  has  continuing  rights  or  obligations  under  such   structured
  settlement;
    (g)  "net  advance  amount"  means  the  gross advance amount less the
  aggregate  amount  of  the  expenses  required  to  be  disclosed  under
  subdivision (f) of section 5-1703 of this title;
    (h)  "payee"  means  an  individual who is receiving tax free payments
  under a structured settlement and proposes to make a transfer of payment
  rights thereunder;
    (i) "periodic payments" includes both recurring payments and scheduled
  future lump sum payments;
    (j) "qualified assignment agreement" means an agreement providing  for
  a  qualified  assignment within the meaning of section 130 of the United
  States Internal Revenue Code, United States Code Title  26,  as  amended
  from time to time;
    (k)  "settled  claim"  means  the  original  tort  claim resolved by a
  structured settlement;
    (l) "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;
    (m) "structured settlement agreement" means the  agreement,  judgment,
  stipulation, or release embodying the terms of a structured settlement;
    (n)  "structured  settlement  obligor"  means,  with  respect  to  any
  structured settlement, the party that has the continuing  obligation  to
  make  periodic  payments  to  the  payee  under  a structured settlement
  agreement or a qualified assignment agreement;
    (o) "structured settlement payment rights"  means  rights  to  receive
  periodic  payments  under  a  structured  settlement,  whether  from the
  structured settlement obligor or the annuity issuer, where:

    (i) the payee is domiciled in, or the domicile or principal  place  of
  business  of  the structured settlement obligor or the annuity issuer is
  located in, this state;
    (ii)  the  structured  settlement agreement was approved by a court in
  this state; or
    (iii) the structured settlement agreement is expressly governed by the
  laws of this state;
    (p) "terms of the structured settlement" include, with respect to  any
  structured settlement, the terms of the structured settlement agreement,
  the  annuity  contract, any qualified assignment agreement and any order
  or approval of  any  court  authorizing  or  approving  such  structured
  settlement;
    (q)  "transfer  means  any  sale, assignment, pledge, hypothecation or
  other alienation or encumbrance of structured settlement payment  rights
  made  by  a  payee  for consideration; provided that the term "transfer"
  does not include the creation or perfection of a  security  interest  in
  structured  settlement payment rights under a blanket security agreement
  entered into with an insured depository institution, in the  absence  of
  any  action  to  redirect  the  structured  settlement  payments to such
  insured depository institution, or an agent  or  successor  in  interest
  thereof,  or otherwise to enforce such blanket security interest against
  the structured settlement payment rights;
    (r) "transfer agreement" means the agreement providing for transfer of
  structured settlement payment rights from a payee to a transferee;
    (s) "transfer expenses" means all expenses  of  a  transfer  that  are
  required  under  the  transfer  agreement  to  be  paid  by the payee or
  deducted from the gross advance amount, including,  without  limitation,
  court  filing  fees, attorneys fees, escrow fees, lien recordation fees,
  judgment and lien search fees, finders'  fees,  commissions,  and  other
  payments  to  a broker or other intermediary; "transfer expenses" do not
  include preexisting obligations of the payee  payable  for  the  payee's
  account from the proceeds of a transfer; and
    (t)  "transferee"  means  a  party  acquiring  or proposing to acquire
  structured   settlement   payment   rights   through   a   transfer   or
  restructuring.