The term Structured Settlement usually means an arrangement established by a suit or agreement for the periodic payment of damages excludable from the gross income of the recipient under section 104(a)(2), or; an agreement for the periodic payment of compensation under any workers' compensation act that is excludable from the gross income of the recipient under section 104(a)(1).

The term Periodic Payments usually refers to payments that are of the character described in subparagraphs (A) and (B) of section 130(c)(2), and payable by a person who is a party to the suit or agreement or to the workers' compensation claim or by a person who has assumed the liability for such periodic payments under a qualified assignment in accordance with section 130.

Please bear in mind that the above descriptions provide a close approximation of their meanings. Consult with your attorney if you need a more formal/official description of these terms than what we have informally provided above.

While we are at it, let us look at the meaning/definitions of a few other terms that you are likely to encounter in discussions related this subject matter:

Structured Settlement Payment Rights usually means rights to receive payments under a structured settlement.

Structured Settlement Factoring Transaction usually means 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.

Factoring Discount usually means an amount equal to the excess of (a) the aggregate undiscounted amount of structured settlement payments being acquired in the structured settlement factoring transaction, over (b) the total amount actually paid by the acquirer to the person from whom such structured settlement payments are acquired.

Relevant Court Or Administrative Authority usually refers to either (a) the court (or where applicable, the administrative authority) which had jurisdiction over the underlying action or proceeding that was resolved by means of the structured settlement, or (b) in the event that no action or proceeding was brought, a court (or where applicable, the administrative authority) which (i) would have had jurisdiction over the claim that is the subject of the structured settlement, or (ii) has jurisdiction by reason of the residence of the structured settlement recipient.

We have looked up the above descriptions/definitions from official legislative documents, but we strongly recommend that you consult with your attorney if you are looking for the strict or authoritative definitions or explanations of these terms.