S T A T E O F N E W Y O R K
2009-2010 Regular Sessions
I N S E N A T E
March 27, 2009
Introduced by Sen. SAMPSON -- (at request of the Office of Court Admin-
istration) -- read twice and ordered printed, and when printed to be
committed to the Committee on Judiciary
AN ACT to amend the general obligations law, in relation to court
approvals of transfers of structured settlements
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 5-1705 of the general obligations law, as added by
chapter 537 of the laws of 2002, is amended to read as follows:
S 5-1705. Procedure for approval of transfers. (a) An action for
approval of a transfer of a structured settlement shall be by a special
proceeding BROUGHT ON ONLY BY ORDER TO SHOW CAUSE.
(b) Such proceeding shall be commenced to obtain approval of a trans-
fer of structured settlement payment rights. Such proceeding shall be
(i) in the supreme court of the county in which the payee resides; or
(ii) in any court which approved the structured settlement agreement.
(c) A copy of the [notice of petition and petition or] order to show
cause and petition shall be served upon all interested parties at least
twenty days before the time at which the petition is noticed to be
heard. A response shall be served at least seven days before the peti-
tion is noticed to be heard.
(d) A petition for approval of a transfer of structured settlement
payment rights shall include:
(i) a copy of the transfer agreement;
(ii) a copy of the disclosure statement and proof of notice of that
statement required under section 5-1703 of this title; [and]
(iii) a listing of each of the payee's dependents, together with each
dependent's age; AND
(IV) A STATEMENT SETTING FORTH WHETHER THERE HAVE BEEN ANY PREVIOUS
TRANSFERS OR APPLICATIONS FOR TRANSFER OF THE STRUCTURED SETTLEMENT
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
S. 3681 2
PAYMENT RIGHTS AND GIVING DETAILS OF ALL SUCH TRANSFERS OR APPLICATIONS
(E) ON THE HEARING, THE PAYEE SHALL ATTEND BEFORE THE COURT UNLESS
ATTENDANCE IS EXCUSED FOR GOOD CAUSE.
S 2. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law.