Structured Settlement Purchasers

Vermont Enacts Settlement Payment Right Transfer Statute

NASP Staff

June 22, 2012

Vermont Governor Peter Shumlin signed HB 778 into law, legislation that includes a structured settlement payment right transfer statute. NASP worked actively with the Vermont Attorney General’s office and other interested parties, including a representative of the Vermont judiciary, to enact this legislation. Our objective was to ensure that Vermont residents who seek liquidity relative to their structured settlement payment rights each year would be have it, with minimal delay and costs.
NASP has always supported transfer statutes that (i) require detailed disclosures be provided to the payee/consumer before they sign any binding contracts relative to a proposed transfer; (ii) written admonishments that the payee should secure independent professional advice regarding the transaction, leaving the ultimate decision as to whether or not to secure such advice with the payee; (iii) require court review and approval of ALL transfers of structured payment rights; and (iv) include provisions and procedures which minimize the costs and delays for securing court approval of these transactions and recognize the payee’s inherent property rights in the payment rights and the ability and right of a payee to manage their financial affairs as they deem appropriate.  NASP advocated enactment of the NCOIL Model Structured Settlement Transfer Statue in Vermont.
Ultimately, the Vermont Structured Settlement Transfer Statute reflected in HB 778 deviated from the NCOIL Model Act and most other state transfer statutes in a number of ways. During the legislative process, NASP reached an agreement with the Vermont AG’s office on a bill that would have achieved the stated goals of the Vermont AG and other interested parties, was fully supported by NASP, and which was ultimately enacted by the Vermont Senate. In the waning hours of the legislative session, changes were made to the legislation that was ultimately signed by the governor.

NASP is concerned that the costs of compliance (in terms of money and time) with Vermont HB 778, as enacted, will be significant for transactions involving Vermont residents, relative to statutes in other states, and will potentially inhibit the payee’s personal choices in the management and disposition of their financial affairs and property rights. However, NASP and its members remain committed to fully complying with Vermont HB 778 when it becomes law on July 1, 2012 and continuing to work with Vermont legislators, Vermont judges, and the Vermont AG’s office to make the process and procedures for these transactions as efficient as possible for Vermont residents.