Under Virginia law, winners of Virginia Lottery prizes that are payable in installments over a period of time may be voluntary sold or assigned by the prizewinner in accordance with Va. Code Ann. § 58.1-4020.1 (Voluntary assignment of lottery prizes or pledge as collateral for a loan; requirements for the assignees and lenders). Individuals who win a lottery prize in Virginia often want to sell all or a portion of their future lottery prize payments in exchange for an immediate lump sum payment. Mike Bramnick represents investors and factoring companies that purchase Virginia lottery prize payment streams from such individuals.
The sale and assignment of Virginia lottery prize payments requires Court approval for a transaction to be completed. There are a number of specific technical requirements that must be strictly complied with in accordance with Va. Code Ann. § 58.1-4020.1 for a transaction to be approved, including but not limited to:
• The purchaser/assignee must be registered with the Virginia Lottery;
• The seller/assignor must be provided with a detailed disclosure statement clearly reflecting the material terms of the transaction;
• The seller/assignor must sign a contract and sworn affidavit in conformity with the requirements of the Virginia statute;
• A Petition must be filed in the Circuit Court for the City of Richmond, Virginia for approval of the transaction.
Mike Bramnick is experienced in this area of the law and represents investors, purchasers and factoring companies in their acquisition and assignment of Virginia lottery prize payments. If you or your company are purchasing a lottery prize and require legal representation contact Bramnick Creed today at (301) 547-3647 or by email at Mbramnick@BramnickCreed.com.