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Did you know that as of January 1, 2024, the Corporate Transparency Act enacted by Congress requires many companies to report beneficial ownership information to the US Treasury Financial Crimes Enforcement Network (FinCEN)? Beneficial ownership information (BOI), as defined by FinCEN, is identifying information about the individuals who directly or indirectly own or control a company. Please review the BOI links on our website to see if you are required to report to FinCEN.

Mark Hammond

Structured Settlements

 

During the 2023 legislative session, the General Assembly passed The Structured Settlement Protection Act. The Act sets forth definitions related to structured settlements, structured settlement purchase company prohibitions, disclosure requirements, approval hearing provisions, and other information related to structured settlement purchase companies operating in the State of South Carolina.

Registration as a Structured Settlement Purchase Company

As of January 1, 2024, structured settlement payment companies operating in South Carolina must register with the South Carolina Secretary of State. Specifically, the Act provides that “no person shall act as a transferee, attempt to acquire structured settlement payment rights through a transfer from a payee who resides in this State, or file a structured settlement transfer proceeding unless the person is registered with the Secretary to do business in this State as a structured settlement purchase company.”

Each structured settlement purchase company that registers with the Secretary of State must complete an application for registration. The fee for initial applications is $1,250.00. Registration must be renewed each year on or before the expiration date of the registration. The fee for a renewal application is $200.00.

A structured settlement purchase company that fails to register when required by law to do so may be subject to an administrative fine of $10,000.00.

To register as a structured settlement purchase company in the state of South Carolina, please complete the Application for Registration as a Structured Settlement Purchase Company. You may file online here. The same application is used for renewal of registration. Please carefully read all instructions and information in the application.

Start the online filing process.
 

Bond Requirements

As part of its registration, a structured settlement purchase company must certify that it has secured a surety bond or a cash bond in the amount of $50,000.00. A copy of the bond must be submitted with each application for registration and must be payable to the State of South Carolina. The bond must be effective concurrently with an applicant’s registration with the Secretary and remain in effect at least 3 years after expiration or termination of the registration. A company cannot cancel or modify the bond during its term unless it sends written notice to the Secretary at least 20 (twenty) days before the cancellation or modification. If a bond is cancelled, the company’s registration automatically expires unless the company files a new surety or cash bond with the Secretary that complies with statutory requirements.

Reporting Judgments

Within 10 (ten) days after a judgment is secured against a registered structured settlement purchase company by a payee, the company must file a notice with the Secretary and the surety, providing a copy of the judgment, the name and address of the judgment creditor, and the status of the matter, including if the judgment will be appealed or if the judgment has been paid or satisfied.

Cancellations, modifications, and filing of judgments do not have standard forms. Copies of these documents must be provided to the Secretary of State for filing along with any additional information required for filing by statute. Required judgment information may be filed using the online filing system.

Questions regarding the application forms or process for registering or renewing a structured settlement purchase company may be directed to legal@sos.sc.gov.