Statutory Authority: RSA 284:21-i, II(c)(4)




          Sw 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




          502.01  Definition.  The following definition shall apply for rules for assignments of prize winnings:


(a)  "Commission" means the New Hampshire lottery commission.


Source.  #7094, eff 9-15-99; ss by #8898, eff 9-15-07 ss by #10987, eff 12-3-15




          Sw 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 sworn testimony if a personal appearance is required by the court, or in the assignor's written affidavit sworn 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


           Sw 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 Sw 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; ss by #10987, eff 12-3-15


          Sw 503.03  Filing Requirements.  The assignor shall provide a certified copy of the final court order approving a voluntary assignment in accordance with Sw 503.01 and Sw 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


          Sw 503.04  Commission Obligations.  Commencing on the thirtieth day after full compliance with Sw 503.01 through  Sw 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


          Sw 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; ss by #10987, eff 12-3-15


          Sw 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





Specific State or Federal Statutes or Regulations which the Rule Implements



Sw 500

RSA 284:21-i, II(c)(4)