In the purchase process of a Secondary Market Annuity, you will encounter the following documents:
48 Hour Hold:
Agents hold a case with a phone call or email, or web-based form submission for their exclusive consideration. Backup holds are also accepted. Agents often hold one or more cases in advance of a client meeting to ensure they offer clients certainty of execution.
Purchase Offer Form:
Advisors can fax, scan, or email the Purchase Offer to DCF Exchange, LLC, thus reserving the cash flow. The reservation form simply provides us with the necessary information needed to complete the transaction, like name/ address details, banking information for ACH deposits, and proper account titling and separate ownership details if applicable. A blank Purchase Offer is HERE.
Depending on the status of the case you reserve, if may be 1 to 60 days before the next move – In Stock cases can close right away, while Coming Soon case timelines vary. No documentation or deposit is required during this time period.
Once we receive all the transfer documentation and the case is court approved, a thorough legal review is undertaken and a complete closing book documenting the contractual transfer of the asset is prepared.
With every case, DCF Exchange commits capital to buy the case and has a deeply vested interest in making sure the payment stream is transferred fully and completely.
Only after the transfer is done, and done right, is it made available to the Purchaser to fund and close. The review process involves the following steps:
- Thorough review of the court order and supporting court documents, including:
- Proof of service on all interested parties
- Final signed and file stamped court order
- Review of all of the disclosures to the original annuitant and interested parties required by state law
- Verification with the insurance carrier that the assigned payments exist and are available to be transferred
- Confirmation of a clean credit check, lien search, and docket search on the original annuitant to verify that the structured settlement payments can be transferred free and clear.
- Confirmation by the insurance carrier via acknowledgement or stipulation agreement of the court ordered transfer of the payments.
- Examination of the transfer and assignment documents to ensure that all right, title, and interest in the cash flows are conveyed absolutely and irrevocably to the purchaser.
- Preparation of Absolute Assignment of Cash Flows
A thorough legal review checklist with case-specific findings is included in each Closing Book. The Closing Book is supplied to the agent and purchaser two days before the purchaser is expected to fund the transaction, allowing ample time for review.
Contact Us to get a copy of a sample redacted closing book to review.
After receipt and review of the Closing Book, the purchaser signs the Absolute Assignment of Cash Flows and the Payment Servicing Agreement. This is done electronically by Docusign in a seamless and simple process.
Once purchaser signatures are in place, the document is executed by GoldStar Trust as payment servicer and escrow agent, and upon receipt of the purchaser’s funds, full title is transferred and the transaction is complete.
For clients purchasing multiple SMA’s we prepare a summary table showing your annual income amounts from all your SMA’s for easy planning. A sample is HERE.