Assembly Bill A6866

2019-2020 Legislative Session

Relates to third party litigation financing

download bill text pdf

Sponsored By

Archive: Last Bill Status - In Assembly Committee


  • Introduced
    • In Committee Assembly
    • In Committee Senate
    • On Floor Calendar Assembly
    • On Floor Calendar Senate
    • Passed Assembly
    • Passed Senate
  • Delivered to Governor
  • Signed By Governor

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2019-A6866 (ACTIVE) - Details

See Senate Version of this Bill:
S4478
Current Committee:
Assembly Consumer Affairs And Protection
Law Section:
General Business Law
Laws Affected:
Add Art 39-H §§899-ccc - 899-ggg, Gen Bus L
Versions Introduced in Other Legislative Sessions:
2015-2016: S8006
2017-2018: A8653, S3911

2019-A6866 (ACTIVE) - Summary

Establishes contract requirements for third party litigation financing which includes requiring contracts to contain a right of rescission, a written acknowledgement by the attorney retained, a clear outline of the scheduled fee structure and a no penalty provision.

2019-A6866 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6866
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 22, 2019
                                ___________
 
 Introduced  by  M.  of  A.  MAGNARELLI  -- read once and referred to the
   Committee on Consumer Affairs and Protection
 
 AN ACT to amend the general business law, in  relation  to  third  party
   litigation financing
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. The general business law is amended by adding a new article
 39-H to read as follows:
                                ARTICLE 39-H
                     THIRD PARTY LITIGATION FINANCING
 SECTION 899-CCC. DEFINITIONS.
         899-DDD. CONTRACT REQUIREMENTS.
         899-EEE. PROHIBITIONS.
         899-FFF. REGISTRATION.
         899-GGG. PENALTY FOR VIOLATION.
   § 899-CCC. DEFINITIONS. AS USED IN THIS ARTICLE, THE  FOLLOWING  TERMS
 SHALL HAVE THE FOLLOWING MEANINGS:
   1. "CHARGES" SHALL MEAN THE AMOUNT OF MONEY TO BE PAID TO THE CONSUMER
 LITIGATION  FUNDING  COMPANY THAT EXCEEDS THE FUNDED AMOUNT OF PRINCIPAL
 LOAN.
   2. "CONSUMER LITIGATION FUNDING COMPANY" SHALL MEAN A PERSON OR ENTITY
 THAT ENTERS INTO A CONSUMER LITIGATION FUNDING CONTRACT TO PROVIDE  NON-
 RECOURSE  FUNDING  OF  NO  MORE  THAN FIVE HUNDRED THOUSAND DOLLARS TO A
 CONSUMER.
   3. "CONSUMER LITIGATION FUNDING CONTRACT" SHALL  MEAN  A  CONTRACT  TO
 PROVIDE  NON-RECOURSE  FUNDING  OF  NO  MORE  THAN FIVE HUNDRED THOUSAND
 DOLLARS TO A CONSUMER ON THE CONTINGENT  RIGHT  TO  RECEIVE  THE  FUNDED
 AMOUNT  AND  AGREED  UPON CHARGES OBTAINED IN THE EVENT OF A SETTLEMENT,
 JUDGMENT OR AWARD.
   4. "FUNDED AMOUNT" SHALL MEAN THE AMOUNT  OF  MONEY  PROVIDED  TO  THE
 CONSUMER IN CONSUMER LITIGATION FINANCING.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

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