Legislation

* § 899-ccc. Definitions. As used in this article, the following terms
shall have the following meanings:

1. "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
consumer litigation funding.

2. "Charges" means the amount of money to be paid to the consumer
litigation funding company by or on behalf of the consumer, above the
funded amount provided by or on behalf of the company to a New York
consumer pursuant to this article. Charges include all administrative,
origination, underwriting or other fees, including interest, no matter
how denominated.

3. "Consumer litigation funding" means a non-recourse transaction in
which a consumer litigation funding company purchases and a consumer
assigns to the company a contingent right to receive an amount of the
potential proceeds of a settlement, judgment, award, or verdict obtained
in the consumer's legal claim.

4. "Consumer litigation funding company" or "company" means a person
or entity that enters into a consumer litigation funding contract of no
more than five hundred thousand dollars with a consumer. This term shall
not include:

(a) an immediate family member of the consumer;

(b) a bank, lender, financing entity, or other special purpose entity:

(i) that provides financing to a consumer litigation funding company;
or

(ii) to which a consumer litigation funding company grants a security
interest or transfers any rights or interest in a consumer litigation
funding; or

(c) an attorney or accountant who provides services to a consumer.

5. "Consumer" means a natural person who has a pending legal claim and
who resides or is domiciled in New York.

6. "Funded amount" means the amount of monies provided to, or on
behalf of, the consumer in the consumer litigation funding. "Funded
amount" excludes charges.

7. "Funding date" means the date on which the funded amount is
transferred to the consumer by the consumer litigation funding company
either by personal delivery or via wire, ACH or other electronic means
or mailed by insured, certified or registered United States mail.

8. "Immediate family member" means a parent; sibling; child by blood,
adoption, or marriage; spouse; grandparent; or grandchild.

9. "Legal claim" means a bona fide civil claim or cause of action.

10. "Resolution date" means the date the funded amount, plus the
agreed upon charges, are delivered to the consumer litigation funding
company by the consumer, the consumer's attorney or otherwise.

* NB Effective June 17, 2026