GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1999

S	1 

SENATE BILL 794

Short Title:  Exempt Tobacco Settlement Payments.	(Public)

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Sponsors: Senators Wellons; Albertson, Gulley, Harris, Jordan, Kerr, Lucas, Martin of Pitt, Purcell, and Warren.

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Referred to:  Judiciary I.

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April 8, 1999

A BILL TO BE ENTITLED
AN ACT TO EXEMPT PAYMENTS UNDER PHASE I AND PHASE II OF THE TOBACCO SETTLEMENT AGREEMENT FROM EXECUTION EXCEPT FOR DEBTS INCURRED FOR FARMING OPERATIONS IN CALENDAR YEARS 1999 AND 2000.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 1C-1601(a) is amended by adding a new subdivision (10) to read:
"(10)	Payments distributed to an active tobacco farmer under the terms of the master settlement agreement between tobacco manufacturers and the states as ratified in North Carolina through a consent decree in the action of State of North Carolina v. Philip Morris, et al., 98 CVS 14377 in the General Court of Justice, Superior Court Division, Wake County (generally known as the 'Phase I' agreement), or from a national tobacco trust fund established by tobacco manufacturers to compensate tobacco farmers and quota holders for losses sustained as a result of the master settlement agreement (generally known as the 'Phase II' agreement).  This exemption shall not apply to the enforcement of the claims of creditors for annual operating loans obtained by farmers for crop year 1999 and crop year 2000.  For purposes of this section:
a.	'Active tobacco farmer' means a farmer who owns or leases tobacco quota and who is engaged in the actual production of tobacco.
b.	'Annual operating loan' means a loan from a lending institution as defined in G.S. 122D-3(8) for seeds, plants, fertilizers, herbicides, pesticides, feed, and other inputs used by a farmer in the planting, cultivating, harvesting, or curing of crops, fruits, or berries, or in the production of dairy products, eggs, poultry, livestock, aquacultural crops, or other horticultural products."
Section 2.   G.S. 1C-1603(c) reads as rewritten:
"(c)	Statement by the Debtor. – When proceedings are instituted, the debtor must file with the court a schedule of:
(1) 	His assets, including their location;
(2) 	His debts and the names and addresses of his creditors;
(3) 	The property which he desires designated as exempt.
The form for the statement must be substantially as follows:
NORTH CAROLINA	IN THE GENERAL COURT
................. COUNTY	 OF JUSTICE DISTRICT
COURT DIVISION
     CvD

Judgment Creditor	)	SCHEDULE OF DEBTOR'S
)	PROPERTY
     vs.	)	AND REQUEST TO
)	SET ASIDE EXEMPT
Judgment Debtor	)	PROPERTY

I, ........................, being duly sworn do depose and say:
(fill in your name)
1. That I am a citizen and resident of ............................. County, North Carolina;
2. That I was born on 	;
   (date of birth)
3. That I am (married to 	)
    (spouse's name)
.............................;
(not married)
4. That the following persons live in my household and are in substantial need of my support:
NAME	RELATIONSHIP TO DEBTOR	AGE

(Use additional space, as necessary)
5. That (I own) (I am purchasing) (I rent) (choose one; mark out the other choices) a (house) (trailer) (apartment) (choose one; mark out the other choices) located at ................................................................ which is my residence.
(address, city, zip code)
6. That I (do)	(do not) own any other real property. If other real property is owned, list that property on the following lines; if no other real property is owned, mark "not applicable"on the first line.

7. That the following persons are, so far as I am able to tell, all of the persons or companies to whom I owe money:

8. That I wish to claim my interest in the following real or personal property that I use as a residence or my dependent uses as a residence. I also wish to claim my interest in the following burial plots for myself or my dependents. I understand that my total interest claimed in the residence and burial plots may not exceed $7,500. I understand that I am not entitled to this exemption if I take the homestead exemption provided by the Constitution of North Carolina in other property.  I understand that if I wish to claim more than one parcel exempt I must attach additional pages setting forth the following information for each parcel claimed exempt.
Property Location:
County	Township
Street Address 
Legal Description:
Number by which county tax assessor identifies property
Description (Attach a copy of your deed or other instrument of conveyance that describes the property and indicate here:..................................... or describe the property in as much detail as possible.
Attach additional sheets if necessary.)

Record Owner(s)

Estimated Value:...............................................
Lienholders: ....................................................(1)	Name	Current Balance
Address
(2)	Name	Current Balance
Address
(3)	Name	Current Balance
Address
(4)  If others, attach additional pages.
	9. That I wish to claim the following life insurance policies whose sole beneficiaries are (my wife) (my children) (my wife and children) as exempt:
Name of Insurer	Policy Number	Face Value	Beneficiary(ies)

10. That I wish to claim the following items of health care aid necessary for (myself)	(my dependents) to work or sustain health:
Item	Purpose	Person using item

11. That I wish to claim the following implements, professional books, or tools (not to exceed $500), of my trade or the trade of my dependent. I understand that such property purchased within 90 days of this proceeding is not exempt:
Item	Estimated Value

12. That I wish to claim the following personal property consisting of household furnishings, household goods, wearing apparel, appliances, books, animals, crops or musical instruments as exempt from the claims of my creditors. I affirm, that these items of personal property are held primarily for my personal, family or household use or for such use by my dependents.
I understand that I am entitled to personal property worth the sum of $2,500. I understand that I am also entitled to $500 for each person dependent on me for support, but not to exceed $2,000 for dependents. I further understand that I am entitled to this amount after deduction from the value of the property the amount of any valid lien or purchase money security interest and that property purchased within 90 days of this proceeding is not exempt.
Item (or class)	Amount of Lien	Location	Estimated
of Property	or Security	Value of
Interest	Debtor's Interest
............	.............	............	................
............	.............	............	................
............	.............	............	................
13. That I wish to claim my interest in the following motor vehicle as exempt from the claims of my creditors. I understand that I am entitled to my interest in a motor vehicle worth the sum of $1,000 after deduction of the amount of any valid liens or purchase money security interest. I understand that a motor vehicle purchased within 90 days of this proceeding is not exempt.
Make and	Year	Name(s) of	Name(s) of	Estimated
Model of	Title Owner	Lien Holder(s)	Value of
Motor Vehicle	of Record	of Record	Debtor's
Interest
.............	.........	...............	...............	........
14. That I wish to claim as exempt the following compensation which I received for the personal injury of myself or a person upon whom I was dependent for support or compensation which I received for the death of a person upon whom I was dependent for support. I understand that this compensation is not exempt from claims for funeral, legal, medical, dental, hospital or health care charges related to the accident or injury which resulted in the payment of the compensation to me.
(a)	amount of compensation 
(b)	method of payment: lump sum or installments 
(If installments, state amount, frequency and duration of payments)

(c)	name and relationship to debtor of person(s) injured or killed giving rise to compensation
	(d) location of compensation if received in lump or installments
................................................................................
(e)	unpaid debts arising out of the injury or death giving rise to compensation 

Name and Address	Services Rendered	Amount of Debt

15. That I wish to claim the following property as exempt because I claimed residential real or personal property as exempt that is worth less than $2,500 or I made no claim for a residential exemption under section (8)	above. I understand that I am entitled to $2,500 in any property only if I made no claim under section (8) above and that if I make a claim under section (8) above, that I am entitled to $2,500 in any property minus any amount I claimed under section (8). (Examples: claim of $1,000 under section (8), $1,500 allowed here; claim of $2,450 under section (8), $50 allowed here; claim of $2,600 under section (8), no claim allowed here.) I further understand that the amount of my claim under this section is after the deduction from the value of this property of the amount of any valid lien or purchase money security interests and that tangible personal property purchased within 90 days of this proceeding is not exempt.
PERSONAL PROPERTY:
Property Location	Amount of Liens	Value of   
or Purchase Money	Debtor's   
Security Interests	Interest   

REAL PROPERTY (I understand that if I wish to claim more than one parcel exempt, I must attach additional pages setting forth the following information for each parcel claimed exempt):
Property Location
County 	Township
Street Address
Legal Description:
Number by which county tax assessor identifies property

Description (Attach a copy of your deed or other instrument of conveyance that describes the property and indicate here: ................................... or describe the property in as much detail as possible.
Attach additional sheets if necessary.)

Record Owner(s): 

Estimated Value:
Lienholders:
(1)	Name	Current Balance
	Address
(2)	Name	Current Balance
Address
(3)	Name	Current Balance
Address
(4)	If others, attach additional pages.
16.	That I wish to claim as exempt the following payments I received pursuant to the master settlement agreement between tobacco manufacturers and the states as ratified in North Carolina through a consent decree in the action of State of North Carolina v. Philip Morris, et al., 98 CVS 14377 in the General Court of Justice, Superior Court Division, Wake County (generally known as the 'Phase I' agreement), or from a national tobacco trust fund established by tobacco manufacturers to compensate tobacco farmers and quota holders for losses sustained as a result of the master settlement agreement (generally known as the 'Phase II' agreement).  I understand that these payments are not exempt from claims for annual operating loans for farm inputs for the 1999 crop year or the 2000 crop year.
(a)	amount of payments.....................
(b)	method of payments.................................
(c)	location of payments...................
(d)	unpaid debts for annual operating loans.......,,,,,
1999 Crop Year
Name and Address		Loan Purpose		Amount Owed
................		............		............
................		............		............
2000 Crop Year
Name and Address		Loan Purpose		Amount Owed
................		............		...........
................		............		...........
	 	17. That the following is a complete listing of all of my assets which I have not claimed as exempt under any of the preceding paragraphs:
Item	Location	Estimated value

This the ......... day of ............., 19....

Judgment Debtor
Sworn to and Subscribed before
me this ........ day of ............, 19.....
.....................................
         Notary Public	My Commission Expires:".

  	Section 3.  This act is effective when it becomes law and expires January 1, 2002.