STRUCTURED SETTLEMENT TRANSFER PROCESS:
The transfer process making you a new payee under an existing payment stream is also very safe. There is a relatively uniform process adopted in 49 states that requires notifications, disclosures, and procedures to be followed. While the majority of the documentation is contractual, there is one step in the process where a court with jurisdiction over the original settlement also needs to rule that the transfer is in the seller’s interest.
While the court order is one key piece among several that properly document a transfer of payment rights, it actually does nothing to verify the payments. An investor’s name in the court order simply exposes the investor in a public manner. The process we use through our firm DCF Exchange protects investor confidentiality.
There are a variety of additional reasons that structured settlements are extremely safe. These are summarized below.
SAFETY FACTOR #1
An insurance company issuing an annuity that backs payments due under a structured settlement is a party to the court ordered transfer process. The payment stream remains in force throughout the transfer process regardless of who receives the checks. Just because the payee changes as a result of a court- ordered transfer does not change the underlying payment stream or give the carrier any right to stop making payments.
SAFETY FACTOR #2
There are five key items that document a case transfer and ensure legal safety of payments to you:
- Benefits letter from the issuer to the payee, which establishes that the Payee has the payments to sell,
- Court order changing the payee name to you or an entity that benefits you, such as our Business Trust
- Acknowledgement letter or stipulation agreement after the court hearing from the Issuer naming you or an entity that benefits you as the new payee of the specific payment stream you purchased.
- Legal Review reviewing all documents, notices, filings, UCC statements and procedures in each case and every jurisdiction the case is subject to.
- Absolute Assignment of the cash flows from our entity that purchased the payments assigning the payments to you forevermore.
SAFETY FACTOR #3
Because a typical client of ours purchases multiple DCF Income Payments, purchasing contracts in the secondary market virtually assures that you will place assets in several companies with no sacrifice to average yield or overall performance. You will spread your risk among many carriers, all generally highly rated, and achieve high yield diversification.
DCF Income Payments are extremely safe investments. If you haven’t yet, sign up to the right to view our live inventory and get started today!