Illinois General Assembly - Illinois Compiled Statutes

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215 ILCS 153/5

(215 ILCS 153/5)

Sec. 5. Definitions. For purposes of this Act:

"Annuity issuer" means an insurer that has issued a contract to fund
periodic payments under a structured settlement.

"Dependents" include a payee's spouse and minor children and all other
persons for whom the payee is legally obligated to provide support, including
maintenance.

"Discounted present value" means the present value of future payments
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.

"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.

"Independent professional advice" means advice of an attorney,
certified public accountant, actuary, or other licensed professional adviser.

"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 to the structured settlement that has continuing rights or
obligations
to receive or make payments under such structured settlement.

"Net advance amount" means the gross advance amount less the
aggregate amount of the actual and estimated transfer expenses required to be
disclosed under item (5) of Section 10 of this Act.

"Payee" means an individual who is receiving tax free payments under a
structured settlement and proposes to make a transfer of payment rights
thereunder.

"Periodic payments" includes both recurring payments and scheduled
future lump sum payments.

"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.

"Settled claim" means the original tort claim resolved by a structured settlement.

"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.

"Structured settlement agreement" means the agreement, judgment,
stipulation, or release embodying the terms of a structured settlement.

"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.

"Structured settlement payment rights" means rights to receive periodic
payments under a structured settlement, whether from the structured settlement
obligor or the annuity issuer, when:

(1) 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;

(2) the structured settlement agreement was approved

by a court in this State; or

(3) the structured settlement agreement is expressly

governed by the laws of this State.

"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 other
approval of any court or other
government authority that authorized or approved such structured settlement.

"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.

"Transfer agreement" means the agreement providing for a transfer of
structured settlement payment rights.

"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.

"Transferee" means a party acquiring or proposing to acquire structured
settlement payment rights through a transfer.

(Source: P.A. 99-286, eff. 8-5-15.)