                                 CODE OF VIRGINIA

REQUIRED DISCLOSURES TO PAYEE (§ 59.1-475.1)

Not less than three days prior to the date on which a payee signs a transfer
agreement, the transferee shall provide to the payee a separate disclosure
statement, in bold type no smaller than fourteen points, setting forth:

1. The amounts and due dates of the structured settlement payments to be
transferred;

2. The aggregate amount of such payments;

3. The discounted present value of the payments to be transferred, which shall
be identified as the &#8220;calculation of current value of the transferred
structured settlement payments under federal standards for valuing
annuities,&#8221; and the amount of the Applicable Federal Rate used in
calculating such discounted present value;

4. The gross advance amount;

5. An itemized listing of all applicable transfer expenses, other than attorney
fees and related disbursements payable in connection with the transferee&#8217;s
application for approval of the transfer, and the transferee&#8217;s best
estimate of the amount of any such fees and disbursements;

6. The effective annual interest rate, which shall be disclosed in a statement
in the following form: &#8220;On the basis of the net amount that you will
receive from us and the amounts and timing of the structured settlement payments
that you are transferring to us, you will in effect be paying interest to us at
a rate of _____ percent per year&#8221;;

7. The net advance amount;

8. The amount of any penalties or liquidated damages payable by the payee in the
event of any breach of the transfer agreement by the payee; and

9. A statement that the payee has the right to cancel the transfer agreement,
without penalty or further obligation, not later than the third business day
after the date the agreement is signed by the payee.

HISTORY: 2001, c. 537; 2016, cc. 273, 739.