18.__Transfer.__"Transfer" means any sale, assignment, pledge, hypothecation or other form of alienation or encumbrance made by a payee for consideration.

19.__Transfer agreement.__"Transfer agreement" means the agreement providing for transfer of structured settlement payment rights from a payee to a transferee.

§2242.__Transfer of structured settlement payment rights

1.__Application.__This section applies to any transfer of structured settlement payment rights under a transfer agreement entered into on or after the effective date of this section.__ This section may not be construed to imply that any transfer under a transfer agreement reached prior to the effective date of this section is effective.

2.__Requirements for transfer.__A direct or indirect transfer of structured settlement payment rights is not effective and a structured settlement obligor or annuity issuer is not required to make any payment directly or indirectly to any transferee of structured settlement payment rights unless the transfer has been authorized in advance in a final order of a court of competent jurisdiction or a responsible administrative authority, based on express findings by that court or responsible administrative authority that:

A.__The transfer complies with the requirements of this chapter and does not contravene other applicable law;

B.__Not less than 10 days prior to the date on which the payee first incurred any obligation with respect to the transfer, the transferee provided to the payee a disclosure statement in bold type, no smaller than 14 points, setting forth:

(1)__The amounts and due dates of the structured settlement payments to be transferred;

(2)__The aggregate amount of those payments;