### Question
How does the law define structured settlement factoring transaction?


### Answer
Under *26 U.S.C. § 5891*, **structured settlement factoring transaction** is defined as:

> a transfer of structured settlement payment rights (including portions of structured settlement payments) made for consideration by means of sale, assignment, pledge, or other form of encumbrance or alienation for consideration

#### Citation:
  - *26 U.S.C. § 5891*
  - Heading: **Subtitle E-Alcohol, Tobacco, and Certain Other Excise Taxes > CHAPTER 55-STRUCTURED SETTLEMENT FACTORING TRANSACTIONS**

