CHAPTER
Lot 500 RULES FOR PRIZE ASSIGNMENTS
Statutory
Authority: RSA 284:21-i, II(c)(4)
REVISION
NOTE:
Pursuant to 2004, 97:1-9, effective
7-10-04, the Sweepstakes Commission was renamed the Lottery Commission. The rules filed in Chapter Sw 500 by the Sweepstakes Commission before 7-10-04 and by
the Lottery Commission after 7-10-04 reflected the title “Sw”
of the former Sweepstakes Commission.
They were editorially renumbered as Chapter Lot 500 in November, 2020 to indicate rules of the Lottery Commission.
PART
Lot 501 SCOPE
Lot 501.01 Scope.
These rules shall apply to all prize assignments whether original,
modifications or amendments.
Source. #7094, eff 9-15-99; ss
by #8898, eff 9-15-07; ss by #10987, eff 12-3-15 (See Revision Note at chapter
heading for Lot 500)
PART
Lot 502 DEFINITION
502.01
Definition. The following
definition shall apply for rules for assignments of prize winnings:
(a) "Commission" means the
Source. #7094, eff 9-15-99; ss
by #8898, eff 9-15-07; ss by #10987, eff 12-3-15 (See Revision Note at chapter
heading for Lot 500)
PART
Lot 503 ASSIGNABILITY OF WINNING TICKETS
Lot 503.01 Prize Payments. Payment of any prize shall be made to a
person other than the winner as follows:
(a)
To the estate of a deceased prize winner upon receipt by the commission
of a certified court order appointing an executor or administrator;
(b)
To any person pursuant to a certified final order of a court of
competent jurisdiction, including orders pertaining to:
(1) Claims of ownership in the prize;
(2) Division of marital property in divorce actions;
(3) Bankruptcy;
(4) Child support;
(5) Appointment of a guardian or conservator; and
(6) Distribution of an estate;
(c)
To any person, including a trustee, pursuant to a certified final order
of a court of competent jurisdiction approving the voluntary assignment of the
right to a prize provided that the court affirmatively finds all
of the following:
(1) The assignor and the assignee are not represented
by the same counsel;
(2) The assignment is in writing and represents
the entire agreement between the parties;
(3) The assignment agreement contains the
following provisions:
a. The assignor's name, social security number,
or tax identification number and address;
b. The assignee's name, social security number
or tax identification number, citizenship or resident alien number, if
applicable, and address;
c. The specific prize payment or payment
assigned, or any portion thereof, including:
1. The payable due dates and amounts of each
payment to be assigned; and
2. The gross amount of the annual payment or
payments to be assigned before taxes; and
d. A notice of right to cancel in immediate
proximity to the space reserved for the signature of the assignor in bold face
type of a minimum size of 10 points which shall provide that:
1. The assignor may cancel the assignment
without cost until midnight of the fifteenth business day after the day on
which the assignor has signed an agreement to assign a prize or portion of a prize;
2. Cancellation occurs when notice of
cancellation is given to the assignee;
3. Notice is sufficient if it indicates the
intention of the assignor not to be bound; and
4. Notice of cancellation, if given by mail,
shall be deemed given when deposited in a mailbox properly addressed and first class mail postage prepaid;
(4) Prior to execution of the assignment
agreement, the assignee has provided to the assignor in writing, on a
disclosure form separate and apart from the agreement, the following:
a. The aggregate dollar value of payments assigned;
b. The total consideration paid to the assignor
by the assignee; and
c. An itemization of all other fees or costs to
be paid by the assignor, or deducted from the payment to the assignor;
(5) The assignor has represented to the court in Lotorn testimony if a personal appearance is required by
the court, or in the assignor's written affidavit Lotorn
to under penalty of perjury, that:
a. Prior to signing the assignment agreement,
the assignor reviewed the agreement and understood its terms and effects;
b. The assignor has consulted with independent
financial and tax advisors not referred by or associated with the assignee;
c. The assignor has signed the assignment
agreement acting under free will without undue influence or duress;
d. The assignor is not under any obligation to
pay child support, or is under such obligation and is in good standing with
respect to that obligation or has agreed to a payment plan with the state
agency responsible for child support and in full compliance with that plan; and
e. The assigned payment or payments are not
subject to any claims, liens, levies, security interests, assignments, or
offsets asserted by other persons or the state or has provided the court with
written consent of each person having such an interest; and
(6) If the assignor is married, the assignor has
submitted to the court a signed and notarized statement of the spouse
consenting to the assignment; and
(d) An assignment in violation of this section
shall be invalid. The commission shall not be liable to make payments pursuant
to an invalid assignment.
Source. #7094, eff 9-15-99; ss
by #8898, eff 9-15-07; ss by #10987, eff 12-3-15 (See Revision Note at chapter
heading for Lot 500)
Lot 503.02
Prize as Collateral.
(a)
A winner may pledge all or any part of a prize as collateral for a
loan. Perfection of a security interest
in a prize shall be completed by filing with the commission, in addition to any
other filings which shall be required, a Standard Uniform Commercial Code
Financing Statement containing the information required by RSA 382-A:9-402.
(b)
In order to be entitled to receive a prize payment or payments from the
commission, a secured party shall obtain a certified final order of a court of
competent jurisdiction which:
(1) Adjudges the prize winner in default of a
loan agreement with the secured party;
(2) Makes findings with respect to the loan
agreements and financing statements constituting the loan transaction which are
equivalent to those required pursuant to Lot 503.01(c) and, in addition, a
finding that truth-in-lending disclosures set forth in 12 CFR 226.17, 226.18,
226.19 and 226.20 were made; and
(3) Identifies specific payments and awards
ownership of such payments to the secured party.
(c)
Nothing in this section shall be construed to:
(1)
Create or enlarge a cause of action in favor of a secured party; or
(2) Alter or impair any rule of law applicable to
or governing the rights of a debtor under federal or state lending statutes.
Source. #7094, eff 9-15-99; ss
by #8898, eff 9-15-07; ss by #10987, eff 12-3-15 (See Revision Note at chapter
heading for Lot 500)
Lot 503.03 Filing Requirements. The assignor shall provide a certified copy
of the final court order approving a voluntary assignment in accordance with Lot
503.01 and Lot 503.02, and the assignor’s affidavit to the commission no later
than 14 days before the date on which the payment is to be made.
Source. #7094, eff 9-15-99; ss
by #8898, eff 9-15-07; ss by #10987, eff 12-3-15 (See Revision Note at chapter
heading for Lot 500)
Lot 503.04 Commission Obligations. Commencing on the thirtieth day after full
compliance with Lot 503.01 through Lot
503.03, or after final determination of any motion filed to vacate or modify a
final order, the commission shall make prize payments, subject to tax withholding,
in accordance with such order.
Source. #7094, eff 9-15-99; ss
by #8898, eff 9-15-07; ss by #10987, eff 12-3-15 (See Revision Note at chapter
heading for Lot 500)
Lot 503.05 Confidentiality. Any records resulting from an assignment
under this section shall be exempt from disclosure providing such records are
of the types specified in RSA 91-A:5. Upon
written request, the commission shall release the name, town or residence, date
of prize, and the gross and net amounts of the annual prize payment of a
winner. Financing statements filed with
the commission shall be public records.
Source. #7094, eff 9-15-99; ss
by #8898, eff 9-15-07; ss by #10987, eff 12-3-15 (See Revision Note at chapter
heading for Lot 500)
Lot 503.06 Suspension Due to Child Support. Upon receipt of notice, the commission shall
suspend payment of winnings in the amount of the child support debt or
arrearage and notify the winner. Child upport debts and arrearages of a winner shall be offset by
the commission in the manner required by RSA 4:21-v to offset such debts and
arrearages.
Source. #7094, eff 9-15-99; ss
by #8898, eff 9-15-07; ss by #10987, eff 12-3-15 (See Revision Note at chapter
heading for Lot 500)
APPENDIX
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Rule |
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Lot
500 |
RSA
284:21-i, II(c)(4) |
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