The Georgia Structured Settlement Protection Act (Georgia House Bill 443) sets new requirements regarding structured settlement payment rights transfers.
This includes, among other things, registration and surety bond requirements. Amending Chapter 12 of Title 51 of the Official Code of Georgia Annotated, this legislation aims to protect persons who do business with settlement payment transfer companies.
What are GA H 443 bond requirements?
Effective July 2021, transferees acquiring payment rights in the state of Georgia are required to register with the Secretary of State. This process requires the warranty that the applicant has secured a surety bond in the amount of fifty thousand dollars ($50,000). Additionally, this bond is required to be:
- Payable to the state of Georgia.
- Effective alongside the applicant’s registration with the Secretary of State, and remain in effect for no less than three years after expiration or termination of that registration.
- Renewed annually when the registration of the applicant is renewed.
In the event of a cancellation of the bond, the registration of the structured settlement purchase company shall automatically expire. Unless a new surety bond, letter of credit, or cash bond is filed with the Secretary of State.
If you’re required to obtain this bond, you can get a free surety bond quote here.
How does this affect structured settlement payment transfers in Georgia?
While previously transfers had to be approved by final court order, GA H 443 has replaced this requirement with registration with the Secretary of State (as outlined in the section below).
What do you need to register for a transfer of structured settlement payment rights?
To obtain issuance of registration, qualifying applicants need to submit an application with the following:
- A form prescribed by the Secretary of State.
- The payee’s name, age, county of domicile, and the number and ages of each of the payee’s dependents.
- A sworn certification by the owner.
- Proof that they are bonded and insured with a qualifying surety bond, letter of credit, or cash bond.
- Proof of registration to conduct business in Georgia as a structured settlement purchase company.
- A summary of any prior transfers, proposed transfers, or transfer applications made by the payee.
The application shall be processed in superior court in the county in which the payee is domiciled. Note that additional information may be required at the time of application, along with a fee for processing and maintaining the application.