895.66 Mandatory disclosures. Not less than 5 business days before a payee signs a transfer agreement, the transferee shall provide to the payee a separate disclosure statement, in bold type no smaller than 14 points, that contains all of the following:
(1) The amounts and due dates of the structured settlement payments to be transferred.
(2) The aggregate amount of the payments.
(3) The discounted present value of the payments to be transferred and the amount of the applicable federal rate used in calculating the discounted present value.
(4) The gross advance amount.
(5) An itemized listing of all applicable transfer expenses, other than attorney fees and related disbursements payable in connection with the transferee's petition for approval of the transfer, and the transferee's best estimate of the amount of any such fees and disbursements.
(6) The net advance amount.
(7) The amount of any penalties or liquidated damages payable by the payee in the event of any 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, not later than the 3rd business day after the date the agreement is signed by the payee.
(9) The effective annualized rate of interest on the net advance amount, calculated by treating the transferred structured settlement payments as if they were installment payments on a loan, with each payment applied first to accrued unpaid interest and then to principal, and written in the following format: “YOU WILL BE PAYING THE EQUIVALENT OF AN INTEREST RATE OF __% PER YEAR.".
(10) A statement that the transferee's attorney does not represent the payee in connection with the proposed transfer.
(11) A statement informing the payee that structured settlement transfers have financial consequences and advising the payee to seek independent professional advice regarding the transfer agreement.
History: 2015 a. 94; 2017 a. 365 s. 111.
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