N.J. Stat. tit. 2A, ch. 16

in effect

N.J. Stat. § 2A:16-1 Effective from time of entry

2A:16-1. No judgment of the Superior Court shall affect or bind any real estate, but from the time of the actual entry of such judgment on the minutes or records of the court. L.1951 (1st SS), c.344; amended 1981,c.388,s.1.

N.J. Stat. § 2A:16-2 Minute entry of verdict or judgment as record of judgment

Until the clerk of any court enters the record of a judgment in any action which has been finally determined, the verdict or judgment entered in the minutes shall be held and taken in the court in which the judgment is obtained to be the record of the judgment in such action, and shall be received in evidence in such court as such judgment, as fully as if the record had been made up and signed. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:16-3 Security for payment of judgment; order discharging real estate from lien

2A:16-3. If appellant, in an appeal from a judgment of the Superior Court, deposits with the clerk of the court such an amount as shall be deemed by that court to be sufficient, as security for the payment of such amount as may finally be determined to be due in the action, the court may by order discharge the real estate of appellant from the lien of the judgment appealed from. The amount deposited shall be subject to the lien of the judgment appealed from and of any subsequent judgment recovered in the action, and shall be retained by the clerk until the final determination of the action. When the order has been filed and the deposit made as required, the clerk shall enter in the margin of the record of the judgment or at a discernible place at the entry of the judgment, the words "lien of judgment discharged by order of the court," with the date of the discharge. Thereupon and thereafter the real estate of appellant shall be absolutely discharged and freed from any claim on account of the judgment appealed from or the action in which the judgment was rendered. L.1951 (1st SS), c.344; amended 1991,c.91,s.34.

N.J. Stat. § 2A:16-4 Cash deposit in lieu of supersedeas bond

When a cash deposit is made in lieu of a supersedeas bond on appeal, the cash deposit shall be retained until the final determination of the cause and shall be subject to the lien of the judgment appealed from and costs, interest thereon and the costs of the appeal. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:16-5 Interest of purchasers and mortgagees, etc., saved

No proceedings to be relieved of a final judgment shall, unless the judgment be void, in any wise affect the title of a purchaser or mortgagee for value, of any property derived under such judgment or process issued thereon or the right of any person who has acquired an interest therein for value depending upon any such judgment or process, or of their respective successors in interest. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:16-6 Setting aside fraudulent judgment on motion of judgment creditor

A judgment entered in any action in any court by confession or otherwise which was confessed or obtained for the purpose of defrauding the creditors of the defendant, may be set aside by proceedings in the action taken by any judgment creditor of the defendant as though the judgment creditor were a party to the action. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:16-7 Judgment for conveyance of land; effect.

2A:16-7. When a judgment of the Superior Court is entered for a conveyance, release, or acquittance of real estate or an interest therein, and the party against whom the judgment is entered has failed to comply by the time specified in the judgment, or within 15 days after entry of the judgment if no time is specified therein, the judgment shall have the same operation and effect in all courts as if the conveyance, release, or acquittance had been executed in conformance with the judgment, notwithstanding any disability of the party because of not having reached the age of majority pursuant to section 3 of P.L.1972, c.81 (C.9:17B-3), mental incapacity, or otherwise. amended 2013, c.103, s.5.

N.J. Stat. § 2A:16-8 Offset against judgment of taxes, etc., due municipality

Whenever any judgment is recovered in an action in any court of competent jurisdiction in this state, against any municipality by any person who is, at the time of the recovery of the judgment, indebted to such municipality upon any indebtedness of a public nature, including taxes, assessments or water rates which constitute an indebtedness, or who shall become so indebted before the satisfaction of the judgment, such municipality may apply to the court in the action for an order to reduce or extinguish the judgment, and any execution issued thereon, by offsetting and crediting against the same any such indebtedness. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:16-9 Warrant of attorney to confess judgment not revocable; ineffectual if found in instrument

A warrant of attorney to confess judgment shall not be revocable by the party making it. No judgment by confession shall be entered upon a warrant of attorney which is included in the body of a bond, note or any instrument for the payment of money. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:16-9.1 Business financing not extended to concern containing a judgment by confession.

1. a. (1) No provider of business financing shall extend business financing to a concern in this State that contains a judgment by confession. (2) No judgment shall be entered on warrant of attorney in any action on a bond or other instrument for the payment of money, except on motion after notice to the defendant served in lieu of summons in accordance with applicable court rules or by registered or certified mail. b. A provision of any contract for business financing that provides for a judgment by confession that does not meet the requirements of subsection a. of this section shall be invalid and unenforceable against any concern. c. As used in this section: "Business financing" means a loan, line of credit, cash advance, factoring or asset-based transaction made for a business purpose. "Concern" means any trade, business or professional entity conducted for profit, and includes, but is not limited to, individuals, partnerships, corporations, joint ventures, associations and cooperatives. "Judgment by confession" means a written agreement that accepts liability and specifies damages in cases in which a concern is in violation of a business financing agreement. L.2019, c.430, s.1.

N.J. Stat. § 2A:16-9.2 Violations, civil action.

2. a. The Attorney General shall investigate violations of this act. If the Attorney General finds that a person has violated or is violating this act, the Attorney General may bring a civil action in State or federal court against the person. The Superior Court shall have jurisdiction over a State action brought pursuant to this act. b. Any person who violates this act shall be liable for a penalty of not more than $5,000 for the first violation, $10,000 for the second violation and $15,000 for each subsequent violation. The court shall also award court costs and reasonable attorneys' fees to the Attorney General. L.2019, c.430, s.2.

N.J. Stat. § 2A:16-11 Civil judgment and order docket

2A:16-11. The Clerk of the Superior Court shall keep a book known as a civil judgment and order docket in which shall be entered an abstract of each judgment or order for the payment of money, submitted for entry, including a judgment or order to pay counsel fees and other fees or costs, entered from, or made in, the Superior Court. A judgment of the Special Civil Part of the Law Division shall not be entered unless it is docketed in the manner specifically provided for Special Civil Part judgments. A judgment or order for the payment of money is one which has been reduced to a fixed dollar amount. Any judgment for periodic payments where a total amount has not been fixed shall not be considered as having been reduced to a fixed dollar amount unless a judgment fixing arrearages has been entered. The entry required by this section shall constitute the record of the judgment, order or decree and a transcript thereof duly certified by the clerk of the court shall be a plenary evidence of such judgment, order or decree. The clerk shall also make an entry upon the civil judgment and order docket indicating the nature of every judgment or order and an entry on return showing execution of process and the date when such judgment or order was entered. L.1951 (1st SS), c.344; amended 1981,c.388,ss.2,5(amended 1982,c.65,s.3); 1982,c.65,s.1; 1983,c.299; 1991,c.91,s.35; 1994,c.81,s.2.

N.J. Stat. § 2A:16-11.1 Issuance of certificate of debt; definitions.

1. a. In addition to any other remedy provided by law, where a debt is owed to a State department or agency, and the person who owes the debt has failed to comply within 30 days after service of any notice, demand or order directing payment of any amount found to be due, the Department of the Treasury, on behalf of the department or agency, may issue a certificate of debt to the Clerk of the Superior Court stating that the person identified in the certificate of debt is indebted to the State in such amount as shall be stated in the certificate of debt. b. The certificate of debt shall reference the statute, regulation or other legal authority under which the indebtedness arises. Thereupon the clerk to whom such certificate of debt shall have been issued shall immediately enter upon the record of docketed judgments the name of such person or entity as debtor; the State as creditor; the address of such person or entity, if shown in the certificate of debt; a reference to the statute, regulation or other legal authority under which the debt arises; and the date of making such entries. c. The docketing of the certificate of debt shall have the same force and effect as a civil judgment docketed in the Superior Court subject to the procedures for appeal as set forth in section 4 of P.L. 2005, c. 124 (C.52:18-38). The docketing of the certificate of debt shall be without prejudice to the right of appeal to the Appellate Division of the Superior Court. d. As used in this section, in sections 2, 3, 4, 5, 6, and 8 of P.L.2005, c.124 (C.52:18-36, C.52:18-37, C.52:18-38, C.52:14F-22, C.52:18-39 and C.52:14F-23), and in sections 3 and 4 of P.L.2008, c.24 (C.52:18-40 and C.52:18-41): "Debt" means a fee, fine, cost, penalty or assessment that has been due and owing a State department or agency for 90 days or more. "Debt" does not include inter-agency debts and debts associated with loans, notes, grants, and contracts. e. As used in this amendatory and supplementary act, "State department or agency" does not include an independent authority or instrumentality that is independent of the operational and budgetary control of the department to which it is allocated. L.2005, c.124, s.1; amended 2008, c.24. s.1.

N.J. Stat. § 2A:16-12 Recording of judgments, orders and proceedings

The clerk of the superior court shall record every judgment and appealable order and in actions in which any writ or other proceeding shall require the removal of the record of any judgment to any other court, or other circumstances render it necessary, the clerk shall record also the proceedings in the action in full, by entering the warrants of attorney, process and return, pleadings, proceedings and judgment, so as to make a complete record thereof, which entry shall constitute the record. In each such case, the clerk shall enter on the civil docket and, when the judgment is recorded therein, on the civil judgment and order docket, the date and place where the judgment is recorded in full as provided by this section. The photographing and placing in suitable secured binders of photostats, or the microphotographing and development of the microfilm reel, or the placing of carbon copies in suitable secured binders, of any pleading, judgment, order or any instrument filed with the clerk of the court, with a suitable index thereto, shall constitute a recording as required by this section. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:16-13 Judgments by confession

The clerk shall record by similar entry in the civil judgment and order docket all judgments by confession entered in his office and shall record in the manner provided in section 2A:16-12 of this title, all documents filed or lodged with him to be recorded in his office in connection with the entry of any such judgment. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:16-15 Assignments of, postponement of lien of or warrant to satisfy judgments; recording; entry of satisfaction

The clerk shall enter upon the civil judgment and order docket, if the judgment is entered therein, and otherwise in the civil docket, a notation of the filing or lodging with him for record of any assignment of, postponement of the lien of, or warrant to satisfy, any judgment, indicating when and where the same is recorded or filed, at a discernible place on or at the entry of such judgment in said docket and shall cause all such assignments of judgments and all postponements or warrants to satisfy judgments to be recorded in the manner provided by section 2A:16-12 of this title. Judgments shall be satisfied of record as required by law but the entry of satisfaction may be made at any discernible place on or at the entry of such judgment on the civil judgment and order docket and upon any other record of such judgment. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:16-16 Indices

The clerk shall keep and maintain suitable indices in alphabetical order of the civil judgment and order docket and the record of all judgments, assignments of judgments, postponement of the lien of judgments, or warrants to satisfy judgments, in such form as shall be prescribed by the administrative director with the approval of the chief justice. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:16-17 Notation of filing or lodging for record

The entry upon the civil judgment and order docket of a notation of the filing or lodging for record of any instrument required so to be entered by this article shall be a sufficient compliance with any provision of law requiring notations thereof on the margin or at the foot or in any other location on any book or record thereof. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:16-18 Judgments or orders for payment of money; operation and effect

Every judgment, or order for the payment of money, entered in the Superior Court, Chancery Division, from the time of its entry upon the civil judgment and order docket, and every decree or order for the payment of money, of the former court of chancery, from the time it was signed, shall have the force, operation and effect of a judgment of the Superior Court, Law Division, and execution may issue thereon as in other cases. L.1951 (1st SS), c.344; amended by L.1981, c. 388, s. 3, eff. July 1, 1982; L.1982, c. 65, s. 2, eff. July 12, 1982.

N.J. Stat. § 2A:16-28 Statement and affidavit

The statements provided for by section 2A:16-27 and section 2A:16-29 of this title shall be certified by the surrogate and shall contain the names of the parties to the judgment or order (designating particularly those against whom it was rendered), the time when it was signed, the amount of the money therein ordered to be paid or allowances made, the fine imposed and costs, with an affidavit annexed thereto stating the amount due on the judgment or order at the time of the filing of the statement. The affidavit shall be sworn to by the filing party or his attorney. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:16-29 Liens and priorities of judgments or orders on filing statement in superior court clerk's office

Upon the filing by a party in interest with the clerk of the superior court of a statement thereof and affidavit in the form provided in section 2A:16-28 of this title, judgments or orders referred to in section 2A:16-27 of this title shall have the same liens and priorities as judgments of the superior court, and like executions may issue thereon. The clerk shall forthwith record the statement and affidavit in a proper public record book kept and indexed by him for that purpose. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:16-31 Fees and costs

The fees and costs allowed by law for services rendered under this article shall be a part of the amount due on the judgments or orders therein involved. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:16-32 Remedy against principal or surety

Nothing in this article shall be construed to affect any remedy against, or to make liable or release, any principal or surety on a bond heretofore or hereafter made or given. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:16-33 Judgment; effect on real estate

2A:16-33. Where an appeal is taken from a municipal court in a civil action to the Superior Court, the judgment of the court on appeal shall not be binding on real estate unless an order is or has been entered in the minutes of the Superior Court directing the judgment to be recorded. From the time of the entry of the order, the judgment binds and shall bind all real estate of the judgment debtor in the State. Such order may be entered at any time without notice. When entered, the judgment shall be recorded and indexed as other judgments of the court. L.1951 (1st SS), c.344; amended 1991,c.91,s.36.

N.J. Stat. § 2A:16-36 Effect of docketing in superior court

A judgment duly docketed in the superior court shall, from the time it is docketed, operate as a judgment obtained in the superior court. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:16-41 Requisites of assignment to entitle it to record

An assignment of a judgment, to be entitled to record, shall be in writing, and acknowledged or proved as conveyances of real estate are required to be acknowledged or proved for the purposes of recording. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:16-42 Record of assignment as notice

The record of an assignment of a judgment shall, from the time the assignment is left for record, be notice to all persons concerned that such judgment is so assigned, except that a sheriff or other officer having in his hands an execution delivered to him by a person who at the time of the delivery was the owner of the judgment, shall not be liable to an assignee of the judgment unless the officer has notice of such assignment or fails to return such execution at the time when it is returnable. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:16-44 Postponement of lien of judgment

2A:16-44. All postponements of the lien of judgments appearing of record in the office of the clerk of the Superior Court shall contain a full description of the property as to which the judgment lien is proposed to be postponed, together with the book and page of the record of the judgment to be postponed. L.1951 (1st SS), c.344; amended 1991,c.91,s.37.

N.J. Stat. § 2A:16-45 Court order of satisfaction; moneys paid into court in satisfaction

When a judgment is satisfied or the court in which a judgment is rendered or finally docketed allows moneys to be paid into court in satisfaction of a judgment, the court may direct the clerk to enter satisfaction on the record. Any such payment into court shall not affect the right of any party to appeal or to apply for relief from the judgment or for a new trial. When moneys are paid into court in satisfaction of a judgment or order, any interest in the judgment or order, or claim thereon, including the lien for costs and compensation, if any, of the attorney for the party recovering the judgment or order, shall be transferred to the moneys paid into court. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:16-46 Acknowledgment of satisfaction or warrant to satisfy required

When a party in whose favor a judgment is entered or docketed, any assignee of record, anyone entitled to receive satisfaction, or the legal representative of a deceased party or a guardian, shall have received satisfaction thereof, he or his attorney shall either enter an acknowledgment of satisfaction on the record of the judgment, or shall deliver to the party making satisfaction or his representative, guardian or attorney or to the clerk of the court in which the judgment is entered or docketed, a warrant directing and authorizing the clerk to satisfy the same of record. Any such warrant shall set forth the book and page wherein the judgment is recorded or docketed. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:16-47 Entry of satisfaction by clerk

Upon the filing of the warrant, the clerk shall forthwith enter satisfaction on the record. All satisfactions entered in a county clerk's office shall be in the margin of the record of the judgment. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:16-48 Acknowledgement of satisfaction on record when execution is returned satisfied

2A:16-48. When the sheriff or other officer returns, satisfied, execution issued on any judgment recovered or docketed in the Superior Court, Law Division, the clerk of the court issuing the execution shall enter "cancelled by execution returned, satisfied." Upon request the clerk shall tax the fee duly received by him as part of the execution fees. L.1951 (1st SS), c.344; amended 1991,c.91,s.38.

N.J. Stat. § 2A:16-49 Effect of entry of satisfaction on lien of attorney

The provisions of this article as to the entry of satisfaction of a judgment shall not be deemed to deprive an attorney at law of a lien which he may have on the judgment. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:16-49.1 Application; hearing; order; cancellation and discharge; effect on lien; notice of application; set-off

At any time after 1 year has elapsed, since a bankrupt was discharged from his debts, pursuant to the acts of Congress relating to bankruptcy, he may apply, upon proof of his discharge, to the court in which a judgment was rendered against him, or to the court of which it has become a judgment by docketing it, or filing a transcript thereof, for an order directing the judgment to be canceled and discharged of record. If it appears upon the hearing that he has been discharged from the payment of that judgment or the debt upon which such judgment was recovered, an order shall be made directing said judgment to be canceled and discharged of record; and thereupon the clerk of said court shall cancel and discharge the same by entering on the record or in the margin of the record of judgment, that the same is canceled and discharged by order of the court, giving the date of entry of the order of discharge. Where the judgment was a lien on real property owned by the bankrupt prior to the time he was adjudged a bankrupt, and not subject to be discharged or released under the provisions of the Bankruptcy Act, the lien thereof upon said real estate shall not be affected by said order and may be enforced, but in all other respects the judgment shall be of no force or validity, nor shall the same be a lien on real property acquired by him subsequent to his discharge in bankruptcy. Notice of the application, accompanied with copies of the papers upon which it is made, must be served upon the judgment creditor, or his attorney of record in said judgment, in the manner prescribed in R.R. 4:5-1, et cetera, of The Revision of The Rules Governing the Courts of the State of New Jersey (1953); provided, however, nothing herein contained shall prevent said judgment notwithstanding such discharge of record from being used as a set-off in any action in which it otherwise could be used. L.1967, c. 151, s. 1, eff. July 10, 1967.

N.J. Stat. § 2A:16-50 "Person" defined

As used in this article, "person" includes any person, partnership, joint stock company, unincorporated association or society, and municipal or other corporation of any character. L.1951 (1st SS), c.344

N.J. Stat. § 2A:16-51 Construction and citation of article

This article is declared to be remedial. Its purpose is to settle and afford relief from uncertainty and insecurity with respect to rights, status and other legal relations. It shall be liberally construed and administered, and shall be so interpreted and construed as to effectuate its general purpose to make uniform the law of those states which enact it, and to harmonize, as far as possible, with federal laws, rules and regulations on the subject of declaratory judgments. It may be cited as the uniform declaratory judgments law. L.1951 (1st SS), c.344

N.J. Stat. § 2A:16-52 Declaration of rights, status and other legal relations

All courts of record in this state shall, within their respective jurisdictions, have power to declare rights, status and other legal relations, whether or not further relief is or could be claimed; and no action or proceeding shall be open to objection on the ground that a declaratory judgment is demanded. The enumeration in other sections of this article of the questions determinable and rights declarable in a proceeding brought under the provisions of this article does not limit or restrict the exercise of the general powers conferred by this section in a proceeding for declaratory relief, in which a judgment will terminate the controversy or remove an uncertainty. L.1951 (1st SS), c.344

N.J. Stat. § 2A:16-53 Questions determinable and rights declarable

A person interested under a deed, will, written contract or other writing constituting a contract, or whose rights, status or other legal relations are affected by a statute, municipal ordinance, contract or franchise, may have determined any question of construction or validity arising under the instrument, statute, ordinance, contract or franchise and obtain a declaration of rights, status or other legal relations thereunder. L.1951 (1st SS), c.344

N.J. Stat. § 2A:16-54 Contract construed

A contract may be construed either before or after a breach thereof. L.1951 (1st SS), c.344

N.J. Stat. § 2A:16-55 Declaration of rights or legal relations of interested parties in relation to estate, wills and other writings.

2A:16-55. A person interested as or through an executor, administrator, trustee, guardian, receiver, assignee for the benefit of creditors, or other fiduciary, creditor, devisee, legatee, heir, next of kin, or cestui que trust, in the administration of a trust or the estate of a decedent, a minor, a person who is mentally incapacitated, a person who is insolvent, or other person, may have a declaration of rights or legal relations in respect thereto, to: a. Ascertain any class of creditors, devisees, legatees, heirs, next of kin, or others; or b. Direct the executor, administrator, trustee, guardian, receiver, assignee for the benefit of creditors, or other fiduciary to do or abstain from doing any particular act in his fiduciary capacity; or c. Determine any question arising in the administration of the estate, trust, or guardianship, including the construction of wills and other writings. amended 2013, c.103, s.6.

N.J. Stat. § 2A:16-56 Parties interested as parties to proceedings

When declaratory relief is sought, all persons having or claiming any interest which would be affected by the declaration shall be made parties to the proceeding. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:16-57 Persons not parties not prejudiced by declaration

No declaratory judgment shall prejudice the rights of persons not parties to the proceeding. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:16-58 Determination of issues of fact

When a proceeding under this article involves the determination of an issue of fact, such issue may be tried and determined in the same manner as issues of fact are determined in other actions in the court in which the proceeding is pending. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:16-59 Declaratory judgment; form and effect

A declaratory judgment may be either affirmative or negative in form and effect, and shall have the force and effect of a final judgment. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:16-60 Further relief

Further relief based on a declaratory judgment may be granted whenever necessary or proper, by application to a court having jurisdiction to grant the relief. If the application is deemed sufficient, the court shall, on reasonable notice, require any adverse party whose rights have been adjudicated by the declaratory judgment to show cause why further relief should not be granted forthwith. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:16-61 Declaratory judgment refused

The court may refuse to render or enter a declaratory judgment, when, if rendered or entered, it would not terminate the uncertainty or controversy giving rise to the proceeding. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:16-62 Review of orders and judgments

All orders and judgments under the provisions of this article may be reviewed as other orders and judgments. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:16-63 Short title

1. This act shall be known and may be cited as the "Structured Settlement Protection Act." L.2001,c.139,s.1.

N.J. Stat. § 2A:16-64 Definitions relative to structured settlements

2. For the purposes of this act: "Annuity issuer" means an insurer that has issued a contract to fund periodic payments under a structured settlement. "Dependents" includes a payee's spouse and minor children and all other persons for whom the payee is legally obligated to provide support, including alimony. "Discounted present value" means the present value of future payments determined by discounting those payments to the present using the most recently published applicable federal rate for determining the present value of an annuity, as issued by the United States Internal Revenue Service. "Gross advance amount" means the sum payable to the payee or for the payee's account as consideration for a transfer of structured settlement payment rights before any reductions for transfer expenses or other deductions to be made from that consideration. "Independent professional advice" means advice of an attorney, certified public accountant, actuary or other licensed professional adviser. "Interested parties" means, with respect to any structured settlement, the payee, any beneficiary irrevocably designated under the annuity contract to receive payments following the payee's death, the annuity issuer, the structured settlement obligor, and any other party that has continuing rights or obligations under the structured settlement. "Net advance amount" means the gross advance amount less the aggregate amount of the actual and estimated transfer expenses required to be disclosed under subsection e. of section 3 of this act. "Payee" means an individual who is receiving tax free payments under a structured settlement and proposes to make a transfer of payment rights thereunder. "Periodic payments" includes both recurring payments and scheduled future lump sum payments. "Qualified assignment agreement" means an agreement providing for a qualified assignment within the meaning of 26 U.S.C. s.130. "Responsible administrative authority" means, with respect to a structured settlement, any government authority vested by law with exclusive jurisdiction over the settled claim resolved by the structured settlement. "Settled claim" means the original tort claim or workers' compensation claim resolved by a structured settlement. "Structured settlement" means an arrangement for periodic payment of damages for personal injuries or sickness established by settlement or judgment in resolution of a tort claim or for periodic payments in settlement of a workers' compensation claim. "Structured settlement agreement" means the agreement, judgment, stipulation or release embodying the terms of a structured settlement. "Structured settlement obligor" means, with respect to any structured settlement, the party that has the continuing obligation to make periodic payments to the payee under a structured settlement agreement or a qualified assignment agreement. "Structured settlement payment rights" means rights to receive periodic payments under a structured settlement, whether from the structured settlement obligor or the annuity issuer, if: (1) the payee is domiciled in, or the domicile or principal place of business of the structured settlement obligor or the annuity issuer is located in, this State; or (2) the structured settlement agreement was approved by a court or responsible administrative authority in this State; or (3) the structured settlement agreement is expressly governed by the laws of this State. "Terms of the structured settlement" include, with respect to any structured settlement, the terms of the structured settlement agreement, the annuity contract, any qualified assignment agreement and any order or other approval of any court or responsible administrative authority or other government authority that authorized or approved the structured settlement. "Transfer" means any sale, assignment, pledge, hypothecation or other alienation or encumbrance of structured settlement payment rights made by a payee for consideration; except that the term "transfer" does not include 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 the insured depository institution, or an agent or successor in interest thereof, or otherwise to enforce the blanket security interest against the structured settlement payment rights. "Transfer agreement" means the agreement providing for a transfer of structured settlement payment rights. "Transfer expenses" means all expenses of a transfer that are required under the transfer agreement to be paid by the payee or deducted from the gross advance amount, including, without limitation, court filing fees, attorneys' fees, escrow fees, lien recordation fees, judgment and lien search fees, finders' fees, commissions, and other payments to a broker or other intermediary; "transfer expenses" does not include preexisting obligations of the payee payable for the payee's account from the proceeds of a transfer. "Transferee" means a party acquiring or proposing to acquire structured settlement payment rights through a transfer. L.2001,c.139,s.2.

N.J. Stat. § 2A:16-65 Provision of separate disclosure statement to payee, contents

3. Not less than three days prior to the date on which a payee signs a transfer agreement, the transferee shall provide to the payee a separate disclosure statement, in bold type no smaller than 14 points, setting forth: a. the amounts and due dates of the structured settlement payments to be transferred; b. the aggregate amount of the payments; c. the discounted present value of the payments to be transferred, which shall be identified as the "calculation of current value of the transferred structured settlement payments under federal standards for valuing annuities" and the amount of the applicable federal rate used in calculating the discounted present value; d. the gross advance amount; e. an itemized listing of all applicable transfer expenses, other than attorneys' fees and related disbursements payable in connection with the transferee's application for approval of the transfer, and the transferee's best estimate of the amount of any of those fees and disbursements; f. the net advance amount; g. the amount of any penalties or liquidated damages payable by the payee in the event of any breach of the transfer agreement by the payee; and h. a statement that the payee has the right to cancel the transfer agreement, without penalty or further obligation, not later than the third business day after the date the agreement is signed by the payee. L.2001,c.139,s.3.

N.J. Stat. § 2A:16-66 Approval required for payment

4. No direct or indirect transfer of structured settlement payment rights shall be effective and no structured settlement obligor or annuity issuer shall be required to make any payment directly or indirectly to any transferee of structured settlement payment rights unless the transfer has been approved in advance in a final court order or order of a responsible administrative authority based on express findings by the court or responsible administrative authority that: a. the transfer is in the best interest of the payee, taking into account the welfare and support of the payee's dependents; b. the payee has been advised in writing by the transferee to seek independent professional advice regarding the transfer and has either received the advice or knowingly waived the right to seek that advice in writing; and c. the transfer does not contravene any applicable statute or the order of any court or other government authority. L.2001,c.139,s.4.

N.J. Stat. § 2A:16-67 Procedures following transfer

5. Following a transfer of structured settlement payment rights under this act: a. The structured settlement obligor and the annuity issuer shall, as to all parties except the transferee, be discharged and released from any and all liability for the transferred payments; b. The transferee shall be liable to the structured settlement obligor and the annuity issuer: (1) if the transfer contravenes the terms of the structured settlement, for any taxes incurred by those parties as a consequence of the transfer; and (2) for any other liabilities or costs, including reasonable costs and attorneys' fees, arising from compliance by those parties with the order of the court or responsible administrative authority or arising as a consequence of the transferee's failure to comply with this act; c. Neither the annuity issuer nor the structured settlement obligor shall be required to divide any periodic payment between the payee and any transferee or assignee or between two or more transferees or assignees; and d. Any further transfer of structured settlement payment rights by the payee shall be made in compliance with all of the requirements of this act. L.2001,c.139,s.5.

N.J. Stat. § 2A:16-68 Application for approval of transfer, procedure

6. a. An application under this act to a court or responsible administrative authority for approval of a transfer of structured settlement payment rights shall be made by the transferee and may be brought in the jurisdiction in which the payee resides, in the jurisdiction in which the structured settlement obligor or the annuity issuer maintains its principal place of business, or in any court or before any responsible administrative authority which approved the structured settlement agreement. b. Not less than 20 days prior to the scheduled hearing on any application for approval of a transfer of structured settlement payment rights under section 4 of this act, the transferee shall file with the court or responsible administrative authority and serve on all interested parties a notice of the proposed transfer and the application for its authorization, including with the notice: (1) a copy of the transferee's application; (2) a copy of the transfer agreement; (3) a copy of the disclosure statement required under section 3 of this act; (4) a listing of each of the payee's dependents, together with each dependent's age; (5) notification that any interested party is entitled to support, oppose or otherwise respond to the transferee's application, either in person or by counsel, by submitting written comments to the court or responsible administrative authority or by participating in the hearing; and (6) notification of the time and place of the hearing and notification of the manner in which, and the time by which, written responses to the application shall be filed, which shall be not less than 15 days after service of the transferee's notice, in order to be considered by the court or responsible administrative authority. L.2001,c.139,s.6.

N.J. Stat. § 2A:16-69 Provisions of act not waivable; controlling law; prohibitions

7. a. The provisions of this act shall not be waived by any payee. b. Any transfer agreement entered into on or after the effective date of this act by a payee who resides in this State shall provide that disputes under the transfer agreement, including any claim that the payee has breached the agreement, shall be determined in and under the laws of this State. No transfer agreement shall authorize the transferee or any other party to confess judgment or consent to entry of judgment against the payee. c. No transfer of structured settlement payment rights shall extend to any payments that are life-contingent unless, prior to the date on which the payee signs the transfer agreement, the transferee has established and has agreed to maintain procedures reasonably satisfactory to the annuity issuer and the structured settlement obligor for: (1) periodically confirming the payee's survival; and (2) giving the annuity issuer and the structured settlement obligor prompt written notice in the event of the payee's death. d. No payee who proposes to make a transfer of structured settlement payment rights shall incur any penalty, forfeit any application fee or other payment, or otherwise incur any liability to the proposed transferee or any assignee based on any failure of the transfer to satisfy the conditions of this act. e. Nothing contained in this act shall be construed to authorize any transfer of structured settlement payment rights in contravention of any law or to imply that any transfer under a transfer agreement entered into prior to the effective date of this act is valid or invalid. f. Compliance with the requirements set forth in section 3 of this act and fulfillment of the conditions set forth in section 4 of this act shall be solely the responsibility of the transferee in any transfer of structured settlement payment rights, and neither the structured settlement obligor nor the annuity issuer shall bear any responsibility for, or any liability arising from, non-compliance with those requirements or failure to fulfill those conditions. L.2001,c.139,s.7.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://www.njleg.state.nj.us/legislative-activity/statutesFetched: 10/17/2026