Legislation
SECTION 1001
Definitions
Financial Services Law (FIS) CHAPTER 18-A, ARTICLE 10
* § 1001. Definitions. As used in this article, the following terms
shall have the following meanings:
(a) "Advertise" means publishing or disseminating any written, oral,
electronic or printed communication or any communication by means of
recorded telephone messages or transmitted or broadcast on radio,
television, the internet or similar communications media, including
audio recordings, film strips, motion pictures and videos, published,
disseminated, circulated or placed before the public, directly or
indirectly, for the purpose of inducing a consumer to enter into a
litigation funding contract.
(b) "Charges" means anything to be paid to a litigation funding
company by or on behalf of a consumer pursuant to a litigation funding
contract. Charges includes all administrative, origination,
underwriting or other fees, including interest and payment of the funded
amount, no matter how denominated.
(c) "Funding litigation" or "to fund litigation" means providing no
more than five hundred thousand dollars to a consumer in exchange for
the consumer's agreement to pay the litigation funding company from the
potential proceeds of any settlement, judgment, award or verdict that
may be paid to resolve that consumer's legal claim.
(d) "Litigation funding contract" or "contract" means an agreement
between a litigation funding company and a consumer to fund litigation.
(e) "Litigation funding company" or "company" means a person or entity
that is engaged in the business of funding litigation. This term shall
not include an immediate family member of the consumer or an attorney
representing a consumer on a contingency basis that is not a litigation
funding company on the basis of such representation.
(f) "Consumer" means a natural person who has a legal claim and who
resides or is domiciled in New York state and the claim is or will be
filed in a New York state or federal court.
(g) "Funded amount" means the amount of monies provided to, or on
behalf of, a consumer pursuant to a litigation funding contract.
(h) "Funding date" means the date on which the funded amount is
transferred to the consumer by the litigation funding company.
(i) "Immediate family member" means a parent; sibling; child by blood,
adoption, or marriage; spouse; grandparent; or grandchild.
(j) "Legal claim" means a civil claim or cause of action.
* NB Effective June 17, 2026
shall have the following meanings:
(a) "Advertise" means publishing or disseminating any written, oral,
electronic or printed communication or any communication by means of
recorded telephone messages or transmitted or broadcast on radio,
television, the internet or similar communications media, including
audio recordings, film strips, motion pictures and videos, published,
disseminated, circulated or placed before the public, directly or
indirectly, for the purpose of inducing a consumer to enter into a
litigation funding contract.
(b) "Charges" means anything to be paid to a litigation funding
company by or on behalf of a consumer pursuant to a litigation funding
contract. Charges includes all administrative, origination,
underwriting or other fees, including interest and payment of the funded
amount, no matter how denominated.
(c) "Funding litigation" or "to fund litigation" means providing no
more than five hundred thousand dollars to a consumer in exchange for
the consumer's agreement to pay the litigation funding company from the
potential proceeds of any settlement, judgment, award or verdict that
may be paid to resolve that consumer's legal claim.
(d) "Litigation funding contract" or "contract" means an agreement
between a litigation funding company and a consumer to fund litigation.
(e) "Litigation funding company" or "company" means a person or entity
that is engaged in the business of funding litigation. This term shall
not include an immediate family member of the consumer or an attorney
representing a consumer on a contingency basis that is not a litigation
funding company on the basis of such representation.
(f) "Consumer" means a natural person who has a legal claim and who
resides or is domiciled in New York state and the claim is or will be
filed in a New York state or federal court.
(g) "Funded amount" means the amount of monies provided to, or on
behalf of, a consumer pursuant to a litigation funding contract.
(h) "Funding date" means the date on which the funded amount is
transferred to the consumer by the litigation funding company.
(i) "Immediate family member" means a parent; sibling; child by blood,
adoption, or marriage; spouse; grandparent; or grandchild.
(j) "Legal claim" means a civil claim or cause of action.
* NB Effective June 17, 2026