Non Qualified Assignments of non physical injury related periodic payment obligations have wide variety of practical applications including winnings from television contests such as television's "Who Wants to Be a Millionaire"**. Below is an excerpt of the disclosure posted on the show's website which sets forth the NABCO non qualified assignment and the purchase of an Allstate Life Insurance Company annuity as a funding asset.
"Contestant acknowledges and agrees that Game Sponsor may enter into a Non-Qualified Assignment with NABCO Assignments Ltd. ("NABCO") to assume Game Sponsor's Periodic Payment obligation to the Contestant. NABCO's obligation for payment of the Periodic Payments shall be no greater than that of the Game Sponsor immediately preceding the transfer of the Periodic Payment obligation. Any such transfer, if made, shall be accepted by the Contestant without right of rejection and shall completely release and discharge the Game Sponsor from the Periodic Payments obligation assigned to NABCO. The Contestant recognizes that, in the event of such an assignment, NABCO shall be the sole obligor with respect to the Periodic Payments obligation. NABCO reserves the right to fund the liability to make the Periodic Payments by purchasing an annuity from Allstate Life Insurance Company. NABCO may have Allstate Life remit payments directly to the Contestant. The Contestant shall be responsible for maintaining a current mailing address for Contestant with NABCO. "
If you are running a lottery, a contest or other type of prize or award consider a non qualified assignment as part of your business strategy.
For further information on non qualified assignments you may also wish to refer to my recent post on the subject
**produced by Valleycrest Productions Ltd. and Buena Vista Television
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