Not less than three (3) days prior to the date on which a payee signs a transfer agreement, the transferee shall provide to the payee a separate disclosure statement, in bold type no smaller than fourteen (14) point, to include the following:
§ 3240.Disclosure Statement
Chapter 41A: Structured Settlement Protection Act of 2001 · Not amended since adoption on record · Last verified August 3, 2026
In one sentenceRequires a transferee to give the payee a separate, bold fourteen-point disclosure statement at least three days before signing, spelling out the payment amounts, present value, fees, net proceeds, and the payee's three-business-day right to cancel.
Full Text of § 3240
1. The amounts and due dates of the structured settlement payments to be transferred;
2. The aggregate amount of the payments;
3. The discounted present value of the payments to be transferred, which shall be identified as the "calculation of current value of the transferred structured settlement payments under federal standards for valuing annuities", and the amount of the applicable federal rate used in calculating such discounted present value;
4. The gross advance amount;
5. An itemized listing of all applicable transfer expenses, other than attorneys' fees and related disbursements payable in connection with the transferee's application for approval of the transfer, and the transferee's best estimate of the amount of any such fees and disbursements;
6. The net advance amount;
7. The amount of any penalties or liquidated damages payable by the payee in the event of any breach of the transfer agreement by the payee; and
8. A statement that the payee has the right to cancel the transfer agreement, without penalty or further obligation, not later than the third business day after the date the agreement is signed by the payee.
Amendment History
Added by Laws 2001, SB 545, c. 70, §3, eff. 11/1/2001.
Plain-English Summary
Before a payee can sign away future structured-settlement payments, Section 3240 makes the buyer show the numbers in plain sight. At least three days before the payee signs the transfer agreement, the transferee must hand over a disclosure statement, printed separately in bold type no smaller than fourteen points, covering the amounts and due dates of the payments being sold, their total, and their discounted present value calculated under federal annuity standards.
The statement must also show the gross advance amount -- what the transferee is paying before fees -- an itemized list of transfer expenses (apart from the transferee's own attorney's fees), and the net advance amount the payee will receive. It must spell out any penalty for the payee breaching the agreement, and state plainly that the payee can cancel the deal, without penalty, up to the third business day after signing.
Frequently Asked Questions
How much notice does a factoring company have to give before I sign?
At least three days before the date the payee signs the transfer agreement.
Does the disclosure have to look a certain way?
Yes. Section 3240 requires it to be a separate statement in bold type no smaller than fourteen points.
Can I cancel after I sign?
Yes. The disclosure statement must tell the payee they can cancel the transfer agreement, without penalty or further obligation, up until the third business day after signing.
Will the disclosure tell me how much money I'll get?
Yes. It must state the gross advance amount, an itemized list of transfer expenses, and the net advance amount -- the money left after those expenses.
Source & verification. Section text is reproduced verbatim from
Title 12 of the Oklahoma Statutes, enacted by the Oklahoma Legislature.
Last verified August 3, 2026.
· Official source
Also known as: structured settlement disclosure statement requirements oklahoma3 day right to cancel structured settlement12 O.S. § 3240net advance amount disclosure oklahoma