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  • Mastiles Assignments, Llc v. New York Life Insurance And Annuity Corporation, New York Life Insurance Company, A. RiveraSpecial Proceedings - Other (Sale / Transfer) document preview
  • Mastiles Assignments, Llc v. New York Life Insurance And Annuity Corporation, New York Life Insurance Company, A. RiveraSpecial Proceedings - Other (Sale / Transfer) document preview
  • Mastiles Assignments, Llc v. New York Life Insurance And Annuity Corporation, New York Life Insurance Company, A. RiveraSpecial Proceedings - Other (Sale / Transfer) document preview
  • Mastiles Assignments, Llc v. New York Life Insurance And Annuity Corporation, New York Life Insurance Company, A. RiveraSpecial Proceedings - Other (Sale / Transfer) document preview
  • Mastiles Assignments, Llc v. New York Life Insurance And Annuity Corporation, New York Life Insurance Company, A. RiveraSpecial Proceedings - Other (Sale / Transfer) document preview
  • Mastiles Assignments, Llc v. New York Life Insurance And Annuity Corporation, New York Life Insurance Company, A. RiveraSpecial Proceedings - Other (Sale / Transfer) document preview
  • Mastiles Assignments, Llc v. New York Life Insurance And Annuity Corporation, New York Life Insurance Company, A. RiveraSpecial Proceedings - Other (Sale / Transfer) document preview
  • Mastiles Assignments, Llc v. New York Life Insurance And Annuity Corporation, New York Life Insurance Company, A. RiveraSpecial Proceedings - Other (Sale / Transfer) document preview
						
                                

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FILED: BRONX COUNTY CLERK 04/28/2021 01:42 PM INDEX NO. 805858/2021E NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 04/28/2021 "C" EXHIBIT FILED: BRONX COUNTY CLERK 04/28/2021 01:42 PM INDEX NO. 805858/2021E NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 04/28/2021 DISCLOSURE STATEMENT PURSUANT TO NEW YORK LAW DATE RECElVED: April 16, 2021 PAYEE: A Rivera This Disclosure Statement is being provided b Mastiles Assignments, LLC Assignments" ("Payee" ("Mastiles or "Us") to Rivera or "You") in connection with Payee's agreement to transfer and assign to Mastiles Assignments certain structured settlement payment rights due Payee. This Disclosure Statement is being provided pursuant to New York Structured Settlement Protection Act,(the"NewYork Transfer Statute"). 1. Schedule of Payments Transferred. The Payee intends to assign, transfer or sell to Mastiles Assignmentsallof Payee's right, title and interest in and to the following payments: 240 payments of S1,195.30 commencing February 15, 2027 Monthly continuing through and including January 15, 2047 2. Aggregate Amount of Payments Transferred. The aggregate amount of payments to be transferred to Mastiles Assignments, LLC totals $286,872.00. 3. Calculation of the Current Value of the Transferred Structured Settlement Payments under Federal Standards for Valuing Annuities. The discounted present value of the payments transferred at 1.0% is $245,399.79. The discounted present value is the calculation of current value of the transferred structured settlement payments under federal standards for valuing annuities. THIS IS NOT THE RATE USED TO CALCULATE THE PURCHASE PRICE. 4. Calculation of Discounted Present Value. The discounted present value of payments shall be calculated as follows: The applicable federal rate used in calculating the discounted present value is 1.0%. 5. Two (2) Price Quotes. The following represents two quotes from two annuity issuers (other than the original Annuity Issuer that issued Payee's FILED: BRONX COUNTY CLERK 04/28/2021 01:42 PM INDEX NO. 805858/2021E NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 04/28/2021 structured settlement payments). The quotes reflect the current cost of purchasing a comparable annuity for the aggregate amount of payments to be transferred: $237,953.14 from Symetra; and $230,764.25 from AIG. Two comparable annuity price quotes are used here, since a quote from the original Annuity issuer is not readily available. 6. Gross Advance Amount. In exchange for these payments, the Payee will receive the gross amount of $103,573.83 which represents a nominal annual discount rate of 6.98% assuming monthly compounding and an assumed funding date of April 16, 2021. Funding will not occur until everything necessary under the Assignment Agreement has taken place. 7. Fees and Expenses. The Payee will be responsible for the following approximate commissions, charges, fees, expenses, and costs in connection with the closing of this transaction: Legal Fees - $ 0.00 Fees - $ 0.00 Processing 8. Net Advance Amount The net cash payment the Payee will receive in this transaction from Mastiles Assignments, was determined the by applying specified discount rate to the amount of future payments received by Mastiles Assignments, less the total amount of commissions, fees, costs, expenses and charges payable by you. The net amount is $103,573.83. 9. Penalty In The Event Of Breach Of Contract. The amount of any and the aggregate amount of any liquidated damages (inclusive of penalty penalties), payable to Mastiles Assignments, by the Payee in the event of the Payee's breach of the transfer agreement are NONE. 10. Right To Cancel. The Payee shall have the right to cancel the Assignment Agreement without penalty or further obligation not later than the third (3d) business day after the date the Assignment Agreement is signed by the Payee. 11. independent Professional Advice. The Payee understands that the Payee should consult with the Payee's own attorney, certified public accountant, actuary or other licensed professionai adviser regarding any federal and state income tax consequences arising from the proposed transfer of payments. 2 FILED: BRONX COUNTY CLERK 04/28/2021 01:42 PM INDEX NO. 805858/2021E NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 04/28/2021 I have read and understand in this Disclosure Statement. everything [The remainder of this page intentionally left blank] . .-. 3 FILED: BRONX COUNTY CLERK 04/28/2021 01:42 PM INDEX NO. 805858/2021E NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 04/28/2021 . SUPREMB COURT-COUNTY OPBRONX NEW YORK CaeDisposed O SetdoOader O : SOPREMBCOURT OP THB STATB OPNBW YORK SchmMaAppeamnoe O : COUNTY OPBRONX: IndezNL MEDETA,CHERLEE W.HUNTER.Jth . -against- Justice. X MISCELLANEDUS i to...(|_Readoatidamation. The fonmmingpapmenumbmed Nolinden QggghgEg01998anddulysdnattledasNo. ontheModam Calem arof- PAPERSNUMBERED - NodneWBandon-OnlertoSlmwomme-Bedt sandAfB RsAnammi | (( . AnswerbgAsiestandBahnss maplplagAGMavhanded s asarmasanded $s Pleading- EnMbh Uponh pape W . a ill ---- t-4 /h or mad: Nan. ALEXANDERW. 3R., 48,C. . -12/17/2008 2:16:08 PM Bronx County Clerk Filed on FILED: BRONX COUNTY CLERK 04/28/2021 01:42 PM INDEX NO. 805858/2021E NYSCEF DOC. NO. 5 . RECEIVED NYSCEF: 04/28/2021 SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF BRONX: PART IA23 X In Re: the Matter of the Sale and Transfer of Index No.: 260363/08 Structured Settlement Payment Rights of Charlee Medina, Pursuant to and in Acconiance whh Decision/Order Ocn. Oblig. Law §5-1701, et seq. X HON. ALEXANDER W.ItUNTER, JR The motion by petitioner, Structured Asset Funding, 11C, for an order seeking approval ofthe sale and transfer of certain structured settlement payment rights due inder a structumd settlement agreement obtained on behalf of mspondent/payee, Cheries Modina. is denied without prejudice. . h only details provided by Ms. Medina with respect to the structured settlement that is the subject of this application is that said structmed settlement entitled her to the following payments: twelve (12) annual paymems, each in the amount of S1,000 beginning on September 1, 1993 through to and including September 1, 2004; four (4) annual payments, each in the amount of S16,900 beginning with the paymera on June 5, 2005 thmugh to and including June 5, 2008; one (1) lump sum payment in the amount of S55,000 due and payable on June 5, 2012; one lump sum payment in the amount of S87,500 due and payable on June 5, 2017. According to the Disclosure Statement that was signed by Ms. Medina, which is annexed to petitioncr's motion as Exhibit E, the discounted present value of the aggregate payments to be transf brred is $47,296.71. The annual discount rate fbr this transaction is 13.92%. The discounted present value is calculated by using the applicablo federal rate of 3.6%. h petitioner is not charging any commissions, foes, costs or expenses to the payee, Ma Medina. The Structured Settlement Protection Act (SSPA) codified under General Obligations . Law , Title 17, was enacted in July of 2002 because of the concem that "...a growing number of factoring companies have used aggressive advertising, plus the allare of quick and easy cash, to induce settlement recipients to cash out fhture payments, oAen at substantial discounts, depriving victims and their famihes of the long-term financial security their structmed settlements were designed to pmvide. Although transfers of structured settlements payments are generally pmhibited by contract..fhotoring companies have built a rapidly expanding business amund prohibitions." circumventing these (NY Spons.Memo., 2002 Ch. 537). A detennination would be made by a Supreme Comt judge as to whether the transfer is "in compliance with applicable law, that key terms have been disclosed, that the transfer meets a hardship standard, and that obtained." independent professional advice has been (NY Bill Jacket, 2002 A.B. 6936, Ch. 537). In 2004, the SSPA was amended in that the hardship requirement was "eliminated as a end' precondition to transfers and the requirement that disclosures be made 'at the front was . added." (NY Spons. Memo., 2004 Ch. 480). The procedmal requirements that must be met for approval of a transfer are found under General Obligations Law §5-1705. The requirements am that a copy of the notice of petition and petition by order to show cause be served upon all interested parties at least twenty days before the time at which the petition is noticed to be heard, the petition must include a copy of the transfer agmement, a copy of the disclosme stmement and proof of notice of that statement as dependents' well as a listing of esch of the payee's dependents along with the age. Procedurally. Filed on - 12tl7/2008 2·16:08 PM Bronx Clerk County FILED: BRONX COUNTY CLERK 04/28/2021 01:42 PM INDEX NO. 805858/2021E NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 04/28/2021 the petitioner herein has met all ofthe aforementioned requirements. Pursuant to General Obligations Law §5-1706, the comt must make the following findings before a transfer can be effectuated. These are that: "(a) the transfer complies with the requirements of this title; (b) the transfer is in the best imerest of the payee, taking into account the welfhre and support of the payee's dependants; and whether the transaction, including the discount rate used to determine the gross advance amount and the fees and expenses used to determino the not advance amount, are fair and reasonable. Provided the cost makes the findings as outlined in this subdivision, these is no tequirement for the comt to find that an applicant is suffering from a hardship to approve the transfer of structured settlement payments under this subdivision; ( c) the payee has been advised in writing by the transforcc to seek independent professional advico regarding the transfer and has either received such advice or knowingly waived such advice in wnting; (d) the transfer does not contravene any applicabic statute or the order of any comt or other govemment authority; and (e) is written in plain article." language and in compliance with section 5-702 of this In the case at bar, Ms. Roman was advised in writing to seek independent professional advice. which she claims to have sought from an anomey by the name of Jed Marcus, Esq. (Exhibit G). The two most important components of the SSPA are whether or not the tranmation, including the discount rate and the amount of fees and expenses, is fair and reasonable and whether the transaction is in the best interest of the payee. The trial courts have mled on what is detennined to be fair and reasonable and whether the transfer is in the best interest of the payee on a case by case basis viewing the totality of the circumstances. Matter of Settlement Canital Corp. v. Yates. 12 Mise. 3d 1198(A) (2006). This court finds that the transaction is fhir taking into account the totality of the herein circumstances and the interest rate of 13.92% is reasonable. However, this court cannot state with any certainty whether or not the transaction is in the best interest of the payee. Ms. Medina states in her affidavit that she seeks to transfer to the payor, the lump sum payment of $$5,000 that is payable to her on June 5, 2012. in her affidavit in support of the petition, Ms. Medina states that she is twenty (20) yoms old, she is unmarried and has two (2) dependents one is four (4) years old and the other is three (3) months old. Ms. Medina states that she intends to use the money that she receives from the transfer to find a place of her own as she and her children are carently living at her aunt's house and she wishes to relieve her aunt of the burden. She also plans to use some ofthe proceeds to purchase furniture for herself and ber children and to pay for the livag expenses other children. However, Ms. Medina does not indicate whether or not she is employed or otherwisc receives a monthly income in order to enable her to pay her monthly rent, utilities and other household expenses. Moreover, she does not indicate how long she intends to live off of the $31,500 she will be receiving from said transfer. She also recently received an annual payment of $16,900 on June 5, 2008 that could have been applied toward relocating to a placc other own. Accordingly, the application for the transfer of the stmctured settlement payment is denied without prejudice and with leave to renew upon submission of a more detailed aflidavit 2 Filed On - 12/17/2008 2·16:08 PM Brorst County Clerk FILED: BRONX COUNTY CLERK 04/28/2021 01:42 PM INDEX NO. 805858/2021E NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 04/28/2021 from Ms. Medina with respect to her monthly household income and the amount of rent she intends to pay on a basis in order for this court to determine whether or not the transfer monthly is in the best interest of the payee into account the welfare and support of her dependents taking This constitutes the decision and order of this court. . Dated:_December 12. 2008 J.S.C. . . . . 3 Filed On - 12/17/2008 2·16:08 PM Bronx County Cierk FILED: BRONX COUNTY CLERK 04/28/2021 01:42 PM INDEX NO. 805858/2021E NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 04/28/2021 At an All Purpose Term of the Supreme Court of the State of New York, held in and for the County of Ulster, Kingston, New York, on the 4th day of December, 2008. PRESENT: HON. HENRY F. ZWACK Acting Supreme Court Justice STATE OF NEW YORK SUPREME COURT COUNTY OF ULSTER InRe:the Matterofthe Sale and TransferofStructured Settlement DEGHON Payment Rights of Khaberly Whispell, pursuant to and in accordance with General Obligation Law et. seq. Index No. 08-4095 § 5-1701, Structured Asset Funding, LLC (petitioner) is seeking approval of the sale and transfer of certain structured settlement payment rights due Kimberly Whispell (Whispell) under a structmed settlement agreement. Whispell has consented to and joined in this application by petitioner. . . The Court has received and considered the verified petition, with exhibits A thrcügh J, the testimony of Whispell at the hearing held on December 4, 2008, and the post hearing submission by Whispell dated December 29, 2008. Whispell, who is32 years ofageand has custody and care offour minor childrenranging in ages one throughthirteen, is requesting to tranafar 121 monthly payment portions ofS745.00 each to petitioner. In exchange, petitioner would provide a gross advance of$47,000.00. The aggregate amount of payments to be transferred by Whispell is $90,145.00, the discounted . FILED: BRONX COUNTY CLERK 04/28/2021 01:42 PM INDEX NO. 805858/2021E NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 04/28/2021 . . present value of the payments to be transferred is $75,017.24, and the annual discount rate, compounded monthly, used to detamine the gross advance amount is 15.66%. Whispell presently receives $2,121.80 monthly under the structured settlement'. Whispell's other income includes rents of S400.00 per month, and either ients or resumption of mortgage payments from a mortgage held by her. In her afBdavit, she stated her intention was to use the proceeds from petitioner to "make a large down payment on a house for me and my children." At the hearing, Whispell testified she was at risk of mortgage foreclosure other present home in Ulster County, and that her original plan to sell her home in Ulster County and purchase a more affordable home in Washington County had changed. Whispell's post hearing submission dated December 29, 2008 recites an offer from her present mortgage holder to modify the terms of . the mortgage, in exchange for a lump sum payment, that would reduce the interest rate from 9.25% to 5.2%, with a monthly escrow for tax and insurance. The Settlement Protection Act requires court approval of all transfers of structured settlements after July 1, 2002 (General Obligations Law § 5-1706). This legislation was enacted, in part, to pmvide protection to those individuals seeking to transfer payments under a structured settlementagreement(Inre Settlement CapitalCorp. [Ballos], 1 Misc3d 446, 455 [Sup. Ct. Queens Co. 2003]). In analyzing the transfer, courts consider whether the transfer is in the best interest of the payee, whetherthe transfer is fair and reasonable, whether the payeehas been advised in writing to seekindependentprofessionaladviceand has sweived orwaivedsuch advice, wherhar the transfer is written in plain language, and whether the transfer complies with the other provisions of the as disclosme requiremanta Law [b]-[e]). statute, such (General Obligations § 5-1706 'In televant Whispell is entitled under the structured settlement to monthly payments part, of $2,000.00, November 1, 2006, at 3% annually, guaranteed through beginning increasing October 1, 2036 and contianitig for life thereafter. 2 o.winewnivememiaw . FILED: BRONX COUNTY CLERK 04/28/2021 01:42 PM INDEX NO. 805858/2021E NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 04/28/2021 . . . . To detannina whetherthe transferis in thebestinterestofthepayee,the court must analyze each transfer on acase-by-case basis(Inre Settlement Cqpital Corp. [Ballos], 1 Misc3d 450). Factorsforthecomttoconsidermayinclude: . (a) the physical age, level of maturity, physical and mental capacity of the beneficiary; (b)thebeneficimy'sabilitytoeamalivingandsupporthisorherdependent••(c)the beneficimy'sintendedusageoftheproceeds; (d)the beneficimy'spresentenanaia1situationand whetherhoor sheislaboring undersuchahardshipastobeindireandimmediateneedoftheproceeds; (e)whetherthebeneficimyhasobtainedindependertoounselregardingthefinancial consequencesofthe proposed transfer; (f)thelevelofnnancialsophistication,orlackthereof,ofthebeneSciary;and(g)the timingoftheapplicationwithotherscheduledpayments. (Inres)aetraAssignedBenefkrServiceCo.[McGuire],13Misc3d1208[A][Sup. Ct. Suffolk Co. 2006D. Courtshaveheldtransferstobeinthebestinteresisofbeneaciarywhenthebeneficiaryhas pursued altematives to thetransfer, has researched other potential purchasers ofthe structmed settlement, and has a clear plan for use of theproceeds (1nreSettlementFumtirgofNY[Platt],2 Misc3d872,879[Sup.Ct.Lewisco.2003D.However,inthe absenceofthessfactors,transfersof stmetmedsettlementsgenerallyarenotinthebestinterestsofthebeneficiary. Specifically,courts denythetransferwhenthebeneficiarydoesnothavea"pressingneed"forthoproceeds,doesnot haveaplanfortheproceeds,orbasnotpassedaltamativestothetransfer(sece.g,1areSettlement CqpitalCorp.[Yates], 12Misc3d1198[A][Sup.Ct.KingsCo.2006][denyingtransferofstructured settlement wherefundswouldbensedto Anthersupportfivechildren becauseadequate=c=thly incomeaheadyerinted] ; In re 321HemiersonReceivables, 11 Misc.3d 892[Sup.Ct.NYCo.2006) [denyingtransferofstructuredsettlementwherebeneficiarywouldliketostatabarbershop,buthas notdemonstratedanycommitmenttotheendeavorD. 3 osneeawnispermassision.wpa FILED: BRONX COUNTY CLERK 04/28/2021 01:42 PM INDEX NO. 805858/2021E NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 04/28/2021 . . , . . To determine whetherthetransferis thirand reasonable, the comtmustevaluate thodiscount rate used to compute the gross advance amount and the fees and expenses charged, if any (General ObligaticasLaw§5-1706). To make adeterminationregardingwhetherthe discountrate is fair and reasonable, courts have compared discountrates to cumet credit card and unsecmed loan rates, and transfer fees to closing costs (In re Settlement naufing of New York, LLC [Csamingham], 195 Misc2d 721 [Sup. Ct. Rense. Co. 2003]). As noted in several decisions, it is more financially advantageous forthe beneficimy to obtain an unsecured loan or a home equity loan, when available (fd). Currently, with the prime rate below 10 percent, unseemed loan rates are apprMtv 13 percent,and homeequityloan tates rangeup to apprmrimately 10 percent, based ona cursoryreview