Texas § CP.141.005 - EFFECTS OF TRANSFER OF STRUCTURED SETTLEMENT PAYMENT RIGHTS

§ CP.141.005. EFFECTS OF TRANSFER OF STRUCTURED SETTLEMENT PAYMENT RIGHTS

EFFECTS OF TRANSFER OF STRUCTURED SETTLEMENT PAYMENT RIGHTS. Following a transfer of structured settlement payment rights under this chapter: (1) the structured settlement obligor and the annuity issuer shall, as to all parties except the transferee, be discharged and released from any and all liability for the transferred payments; (2) the transferee shall be liable to the structured settlement obligor and the annuity issuer: (A) if the transfer contravenes the terms of the structured settlement, for any taxes incurred by the parties as a consequence of the transfer; and (B) for any other liabilities or costs, including reasonable costs and attorney's fees, arising from compliance by the parties with the order of the court or arising as a consequence of the transferee's failure to comply with this chapter; (3) the transferee shall be liable to the payee: (A) if the transfer contravenes the terms of the structured settlement, for any taxes incurred by the payee as a consequence of the transfer; and (B) for any other liabilities or costs, including reasonable costs and attorney's fees, arising as a consequence of the transferee's failure to comply with this chapter; (4) neither the structured settlement obligor nor the annuity issuer may be required to divide any periodic payment between the payee and any transferee or assignee or between two or more transferees or assignees; and (5) any further transfer of structured settlement payment rights by the payee may be made only after compliance with all of the requirements of this chapter. Added by Acts 2001, 77th Leg., ch. 96, Sec. 1, eff. Sept. 1, 2001.