58.1-4013 - Right to prize not assignable; exceptions. - Virginia Statutes

§ 58.1-4013. Right to prize not assignable; exceptions.

A. No right of any person to a prize drawn shall be assignable, except that:(i) payment of any prize drawn may be paid according to the terms of adeceased prize winner's beneficiary designation or similar form filed withthe Department or to the estate of a deceased prize winner who has notcompleted such a form; (ii) the prize to which the winner is entitled may bepaid to a person pursuant to an appropriate judicial order; and (iii) paymentof any prize drawn may be paid in accordance with the provisions of §58.1-4020.1. Payments made according to the terms of a deceased prizewinner's beneficiary designation or similar form filed with the Departmentare effective by reason of the contract involved and this statute and are notto be considered as testamentary or subject to Chapter 3 (§ 64.1-45 et seq.)of Title 64.1. The Director shall be discharged of all liability upon paymentof a prize pursuant to this section.

B. Investments of prize proceeds made by the Department to fund the paymentof an annuitized prize are to be held in the name of the Department or theCommonwealth and not in the name of the prize winner. Any claim of a prizewinner to a future payment remains inchoate until the date the payment is dueunder Department regulations.

C. Except as provided in Chapter 19 (§ 63.2-1900 et seq.) of Title 63.2 andthis chapter, no lottery prize or installment thereof may be subject togarnishment or to a lien of any kind until such prize or installment thereofhas been paid or distributed.

D. Whenever the Department or the Director is or may be named as a party inany proceeding instituted by or on behalf of one or more persons who claimownership of a winning lottery ticket, prize, share or portion thereof forthe purpose of determining the ownership or right to such ticket, prize,share or portion thereof, the Director may voluntarily pay or tender theprize, share or portion thereof into the circuit court where the action isfiled, or may be ordered to do so by the court, and shall thereupon bedischarged from all liability as between the claimants of such ticket, prize,share or portion thereof without regard to whether such payment was madevoluntarily or pursuant to a court order.

Nothing in this section shall be deemed to constitute a waiver of thesovereign immunity of the Commonwealth or to authorize any attachment,garnishment, or lien against the prize, share or portion thereof paid intothe court except as permitted by subsection C.

(1987, c. 531; 1992, c. 449; 1995, c. 423; 2003, c. 924.)