Structured Settlement Securities definition
Structured Settlement Securities means Asset-Backed Securities that entitle the holders thereof to receive payments that depend (except for rights or other assets designed to assure the servicing or timely distribution of proceeds to holders of the Asset-Backed Securities) on the cash flow from receivables representing the right of litigation claimants to receive future scheduled payments under settlement agreements that are funded by annuity contracts, which receivables may have varying maturities. [**] CONFIDENTIAL TREATMENT REQUESTED
Structured Settlement Securities means Asset-Backed Securities that entitle the holders thereof to receive payments that depend (except for rights or other assets designed to assure the servicing or timely distribution of proceeds to holders of the Asset-Backed Securities) on the cash flow from receivables representing the right of litigation claimants to receive future scheduled payments under settlement agreements that are funded by annuity contracts, which receivables may have varying maturities.
Structured Settlement Securities means Asset-Backed Securities that entitle the holders thereof to receive payments that depend (except for rights or other assets designed to assure the servicing or timely distribution of proceeds to holders of the Asset-Backed Securities) upon structured settlements. A structured settlement ("structured settlement") describes an arrangement that compensates a claimant (a former plaintiff that has settled a lawsuit (the "claimant")) over time, rather than with a current lump sum payment. Under the terms of an agreement (the "settlement agreement") between the claimant and the payor of the claim, either the former defendant or the defendant's property and casualty insurer (collectively, the "liable parties") are obligated to pay, either jointly or severally, to the claimant one or more future payments (the "scheduled payments") in satisfaction of damages suffered by the claimant. The casualty insurer may elect to remove the payment obligations under a settlement agreement from such insurer's balance sheet by entering into an arrangement (a "qualified assignment") whereby the casualty insurer assigns its liability under the settlement agreement to an assignee (the "assignee" or "obligor") that assumes the casualty insurer's liability in exchange for a payment to such assignee by such casualty insurer. The assignee or the casualty insurer, if such casualty insurer has not elected to make an assignment of its liability to an assignee, then purchases an annuity contract (the "annuity contract") from a life insurance company (the "annuity provider") naming the assignee (or casualty insurer, where applicable) as the owner of such annuity contract and providing for the payment of the scheduled payments as set forth in the related settlement agreement directly to the claimant (or pursuant to the claimant's instructions). The qualified assignment transfers the periodic payment obligation and default risk under the settlement agreement from the liable parties to the assignee. Frequently, an assignee is a wholly-owned subsidiary of either the annuity provider or the casualty insurer, created for the sole purpose of accepting such qualified assignments, assuming the payment liability under structured settlements and purchasing and owning annuity contracts and other assets to fund such structured
More Definitions of Structured Settlement Securities
Structured Settlement Securities means Asset-Backed Securities that entitle the holders thereof to receive payments that primarily depend (except for rights or other assets designed to assure the servicing or timely distribution of proceeds to holders of the Asset-Backed Securities) on the cash flow from an annuity or other contractual obligation, generally having the following characteristics: (1) the receivables are backed by existing annuity contracts or other contractual obligations; (2) the receivables are subject to the credit risk of (i) the provider of such annuity or (ii) the obligors under such other contractual obligation; and (3) the receivables represent obligations from a limited number of obligors and accordingly represent an undiversified pool of obligor credit risk.
Structured Settlement Securities means Asset-Backed Securities that entitle the holders thereof to receive payments that depend (except for the rights or other assets designed to assure the servicing or timely distribution of proceeds to holders of the Asset-Backed Securities) on the cash flow from the right of litigation claimants to receive future settlement payments under a settlement agreement that are funded by an annuity contract. A Structured Settlement Security related to tobacco litigation is referred to as "Structured Settlement Security (Tobacco)."