N.Y. Civil Practice Law & Rules § 5046: Adjustment of payments

§ 5046. Adjustment of payments. (a) If, at any time after entry of

judgment, a judgment creditor or successor in interest can establish

that the continued payment of the judgment in periodic installments will

impose a hardship, the court may, in its discretion, order that the

remaining payments or a portion thereof shall be made to the judgment

creditor in a lump sum. The court shall, before entering such an order,

find that: (i) unanticipated and substantial medical, dental or other

health needs have arisen that warrant the payment of the remaining

payments, or a portion thereof, in a lump sum; (ii) ordering such a lump

sum payment would not impose an unreasonable financial burden on the

judgment debtor or debtors; (iii) ordering such a lump sum payment will

accommodate the future medical, dental and other health needs of the

judgment creditor; and (iv) ordering such a lump sum payment would

further the interests of justice.

(b) If a lump sum payment is ordered by the court, such lump sum shall

be calculated on the basis of the present value of remaining periodic

payments, or portions thereof, that are converted into a lump sum

payment. Unless specifically waived by all parties, the annuity contract

executed pursuant to section five thousand forty-two of this article

shall contain a provision authorizing such a lump sum payment if such

payment is approved pursuant to this section. The remaining future

periodic payments, if any, shall be reduced accordingly. For the

purposes of this section, present value shall be calculated based on the

interest rate and mortality assumptions at the time such a lump sum

payment is made as determined by the insurer who has provided the

annuity contract, in accordance with regulations issued by the

superintendent of financial services.