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4. <br />6. <br />of the Effective Date. Assignee is not <br />required to set aside specific assets to <br />secure the Periodic Payments, Claimant(s), <br />Payee(s) and Successor Payee(s) have no <br />rights against Assignee greater than those <br />of a general creditor. Assignee assumes no <br />liability other than the liability to make the <br />Periodic Payments. Assignee's liability to <br />make the Periodic Payments shall be <br />unaffected by any bankruptcy, insolvency, <br />liquidation or rehabilitation of Assignor. <br />Qualified Funding Asset. Assignee will <br />fund the Periodic Payments by purchasing <br />from Annuity Issuer a 'qualified funding <br />asset,' as defined in Section 130(d) of the <br />Code, in the form of an annuity contract (the <br />"Annuity") issued by Annuity Issuer and <br />providing for payments corresponding to the <br />Periodic Payments. Assignee shall be <br />designated as the owner of the Annuity. All <br />rights of legal ownership and control of the <br />Annuity shall (subject to paragraph 9 of this <br />Agreement) be and remain vested <br />exclusively in Assignee; provided, however, <br />that the Annuity shall be used by Assignee <br />to fund the Periodic Payments and shall at <br />all times be designated by Assignee on its <br />records as being taken into account, under <br />Section 130 of the Code, with respect to this <br />Agreement. Notwithstanding anything to the <br />contrary contained in this Agreement, <br />neither any Claimant, any Payee, nor any <br />Successor Payee (as defined in paragraph 8 <br />of this Agreement) shall have any rights with <br />respect to the Annuity or the payments <br />thereunder that would cause any amount <br />attributable to the Annuity to be currently <br />includable in the recipient's income or would <br />otherwise affect the determination of when <br />any recipient is treated as having received <br />any payment for income tax purposes, or <br />would otherwise prevent this Agreement <br />from satisfying all of the conditions for a <br />"qualified assignment" within the meaning of <br />Section '130(c) of the Code. <br />Delivery of Payments. Assignee may <br />instruct Annuity Issuer to send payments <br />directly to Payee or Successor Payee, or to <br />deliver payments by electronic funds <br />transfer ("EFT') to an FDIC -insured <br />depository institution in the United States for <br />credit (directly or indirectly) to an insured <br />account in the name of such Payee or <br />Successor Payee. Such direction of <br />payments under the Annuity shall not be <br />deemed to afford Claimant, Payee or any <br />Successor Payee any rights of ownership or <br />control of the Annuity. <br />Each Claimant, Payee and any Successor <br />Payee shall at all times keep Annuity Issuer <br />apprised of such Claimant's, Payee's or <br />Successor Payee's current mailing address <br />and telephone number and, If Payee or <br />Successor Payee receives payments by <br />EFT, the name, address, ABA routing <br />number and telephone number of the <br />applicable U.S. financial institution and the <br />account name and account number to which <br />the payments are to be credited. Such <br />notices shall be in a form provided by <br />Annuity Issuer and must be received at least <br />thirty (30) days prior to the date payment is <br />due. _ <br />6. Discharge of Liability. Assignee's liability <br />to make each Periodic Payment to any <br />Payee or Successor Payee designated to <br />receive such payment shall be fully <br />discharged upon: <br />I. the mailing of a valid check on or before <br />the due date for such payment to the <br />address of record specified by Payee or <br />Successor Payee; or <br />it. the initiation of an EFT payment on or <br />before the due date for such payment to <br />the United Sates financial institution <br />account designated by Payee or <br />Successor Payee <br />If Payee or Successor Payee does not <br />receive a scheduled payment by check, <br />Payee or Successor Payee shall notify <br />Assignee. Upon receipt of such notification, <br />Assignee shall Initiate a stop payment action <br />for such check and upon confirmation that <br />such check was not previously negotiated <br />shall promptly mail a replacement check; or <br />If Payee or Successor Payee does not <br />receive a scheduled EFT payment, Payee or <br />Successor Payee shall notify Assignee. <br />Upon receipt of such notification, Assignee <br />shall initiate a trace for such payment and <br />upon confirmation that such payment was <br />not credited to the account shall promptly <br />issue a replacement EFT payment. <br />7, Acceleration, Transfer of Payment <br />Rights. None of the Periodic Payments and <br />no rights to or interest in any of the Periodic <br />Payments (all of the foregoing being <br />hereinafter collectively referred to as <br />"Payment Rights) can be <br />SS -1000 (1212013) IS] Pago 2 of 6 <br />I. Accelerated, deferred, increased or <br />decreased by any recipient of any of the <br />Periodic Payments; or <br />i. Sold, assigned, pledged, hypothecated <br />or otherwise transferred or encumbered, <br />either directly or indirectly, unless such <br />sale, assignment, pledge, hypothecation <br />or other transfer or encumbrance (any <br />