§ 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.