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http://nycourts.law.com/CourtDocumentViewer.asp?view=Document&docID=46714 Justice Phelan A WOMAN was awarded five $100,000 annuity payments. She and a financing firm sought judicial approval under the Structured Settlement Protection Act of a proposed transfer of a 2007 payment, in exchange for which she was to receive a $55,135 gross payment less $2,500 in legal fees, for a $52,635 net payment. The transferee firm had provided a disclosure statement outlining the net payment’s calculation. The woman pursued the transfer to reduce debt and refinance a mortgage so as to qualify to place a downpayment on a new home that she and her unemployed husband could reside in. The court ordered a hearing on the transfer’s fairness and reasonability. It noted that the effective discount rate exceeded 18.5 percent and that no evidence justified the $2,500 in legal costs. It also noted that specifics of the woman’s financial situation – particularly as to her current mortgage, how prior annuity payments were spent and her husband’s future employment prospects – were lacking.

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