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1998 SESSION

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HB 837 Assignment of lottery proceeds.

Introduced by: Eric I. Cantor | all patrons    ...    notes | add to my profiles

SUMMARY:

Assignment of lottery proceeds. Provides that lottery winners who receive their lottery winnings in installments may assign those winnings or pledge the winnings as collateral for a loan pursuant to a written contract signed by both parties and approved by a court of appropriate jurisdiction. Lenders and assignees must register with the State Lottery and are prohibited from making any communication with a lottery winner which implies that the assignee or lender is affiliated with the Lottery. The assignor or borrower must have received independent legal counsel and financial counsel prior to entering into the contract and have three business days after the contract is signed to cancel the contract. The contract must also fully disclose the terms of the contract. The interest rate on any loan or assignment may not exceed 12 percent.

The Lottery Department is required to submit a report and recommendations to the 1999 General Assembly on such borrowings and assignments.

The bill is subject to a July 1, 1999, sunset.


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