A Qualfied Assignment Release and Pledge Agreement (QARP) is a type of qualified assignment that gives a structured settlement payee a security interest in the qualified funding asset pursuant to the Uniform Commercial Code (UCC). 

What is a Qualified Assignment? (4structures.com)

What is the Uniform Commerical Code?

The Uniform Commercial Code (UCC) is a standardized set of regulations for conducting business and financial transactions in any state in the USA as well as the District of Columbia and US Territories. The UCC governs a wide range of transactions, including the sale of goods, secured transactions, negotiable instruments, as well as others. It provides rules and guidelines for parties engaged in business dealings, ensuring consistency and predictability.

State-specific variations exist within the Uniform Commercial Code (UCC). While the UCC is standardized across states, each state may introduce slight modifications or adaptations to particular sections. Generally, these alterations are minor and do not substantially affect the UCC's overall uniformity.

How Does Article 9 of the UCC and Impact the Rights of a Structured Settlement Payee?

Article 9 of the UCC overrides any language in the QARP that would restrict the claimant's ability to assign the right to receive their payment. This poses a problem for the QARP because structured settlement annuities must restrict the claimant's ability to assign their payments, While many states have carved out an exception for structured settlement agreements, some have not and this may impact choice of law selection for the QARP with certain annuity issuers.

Seven States and DC That Have Not Expressly Exempted Structured Settlement Agreements from the UCC

Alabama

Alaska

New Mexico

North Dakota 

Texas

Wisconsin

Wyoming

District of Columbia

These 8 juridictions may not be permitted to be used for Choice of law on the QARP.