In April Governor Patton signed into law HB 312/HCS, "AN ACT relating to structured settlements." This new law severely limits the ability of payees to sell structured settlements. It was passed in response to reports of high pressure tactics by settlement purchasers that resulted in unsophisticated payees selling at a considerable disadvantage. The new law applies to payment transfer agreements reached after its effective date. Key points are:
Clients negotiating a structured settlement should be advised of the limitations of HB 312 as part of the settlement evaluation process. Consider informing former clients with structured settlements about this law to help them avoid problems. You can obtain the text of the law on the internet at the Kentucky Legislature Home Page.