Page:United States Statutes at Large Volume 115 Part 3.djvu/363

 PUBLIC LAW 107-134-^AN. 23, 2002 115 STAT. 2437 asset for the structured settlement is domiciled or has its principal place of business. "(4) APPLICABLE STATE COURT.— For purposes of this section— "(A) IN GENERAL. —The term 'applicable State court' means, with respect to any applicable State statute, a court of the State which enacted such statute. "(B) SPECIAL RULE. — In the case of an applicable State statute described in paragraph (3)(B), such term also includes a court of the State in which the payee of the structured settlement is domiciled. "(5) QUALIFIED ORDER DISPOSITIVE.— ^A qualified order shall be treated as dispositive for purposes of the exception under this subsection. "(c) DEFINITIONS.— For purposes of this section— "(1) STRUCTURED SETTLEMENT.—The term 'structured settlement' means an arrangement— "(A) which is established by— "(i) suit or agreement for the periodic pa3anent of damages excludable from the gross income of the recipient under section 104(a)(2), or "(ii) agreement for the periodic payment of compensation under any workers' compensation law excludable from the gross income of the recipient under section 104(a)(1), and "(B) under which the periodic payments are— "(i) of the character described in subparagraphs (A) and (B) of section 130(c)(2), and "(ii) payable by a person who is a party to the suit or agreement or to the workers' compensation claim or by a person who has assumed the liability for such periodic payments under a qualified assignment in accordance with section 130. "(2) STRUCTURED SETTLEMENT PAYMENT RIGHTS. —The term 'structured settlement payment rights' means rights to receive payments under a structured settlement. " (3) STRUCTURED SETTLEMENT FACTORING TRANSACTION. — "(A) IN GENERAL.— The term 'structured settlement factoring transaction' means a transfer of structured settlement payment rights (including portions of structured settlement payments) made for consideration by means of sale, assignment, pledge, or other form of encumbrance or alienation for consideration. "(B) EXCEPTION.— Such term shall not include— "(i) the creation or perfection of a security interest in structured settlement payment rights under a blanket security agreement entered into with an insured depository institution in the absence of any action to redirect the structured settlement payments to such institution (or agent or successor thereof) or otherwise to enforce such blanket security interest as against the structured settlement payment rights, or "(ii) a subsequent transfer of structured settlement payment rights acquired in a structured settlement factoring transaction. "(4) FACTORING DISCOUNT.—The term 'factoring discount' means an amount equal to the excess of—

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