Legislation

* § 899-ggg. Disclosures. All consumer litigation funding contracts
shall contain the disclosures specified in this section, which shall
constitute material terms of the contract. Unless otherwise specified,
such disclosures shall be typed in at least twelve point bold type font
and be placed clearly and conspicuously within the contract, as follows:

1. On the front page under appropriate headings, language specifying:

(a) the funded amount to be paid to the consumer by the consumer
litigation funding company;

(b) an itemization of one-time charges;

(c) the maximum total amount to be assigned by the consumer to the
company, including the funded amount and all charges; and

(d) a payment schedule to include the funded amount and charges,
listing all dates and the amount due at the end of each one hundred
eighty day period from the funding date, until the date the maximum
amount due to the company pursuant to the contract is paid.

2. Pursuant to the provisions set forth in this section, within the
body of the contract: "Consumer's right to cancellation: you may cancel
this contract without penalty or further obligation within ten business
days after the funding date if you return to the consumer litigation
funding company the full amount of the disbursed funds."

3. The consumer litigation funding company shall have no role in
deciding whether, when and how much the legal claim is settled for,
however, the consumer and consumer's attorney must notify the company of
the outcome of the legal claim by settlement or adjudication prior to
the resolution date. The company may seek updated information about the
status of the legal claim but in no event shall the company interfere
with the independent professional judgement of the attorney in the
handling of the legal claim or any settlement thereof.

4. Within the body of the contract, in all capital letters in at least
twelve point bold type font contained within a box: "THE FUNDED AMOUNT
AND AGREED UPON CHARGES SHALL BE PAID ONLY FROM THE PROCEEDS OF YOUR
LEGAL CLAIM, AND SHALL BE PAID ONLY TO THE EXTENT THAT THERE ARE
AVAILABLE PROCEEDS FROM YOUR LEGAL CLAIM. YOU WILL NOT OWE (INSERT NAME
OF THE CONSUMER LITIGATION FUNDING COMPANY) ANYTHING IF THERE ARE NO
PROCEEDS FROM YOUR LEGAL CLAIM, UNLESS YOU HAVE VIOLATED ANY MATERIAL
TERM OF THIS CONTRACT OR YOU HAVE COMMITTED FRAUD AGAINST (INSERT NAME
OF CONSUMER LITIGATION FUNDING COMPANY)."

5. Located immediately above the place on the contract where the
consumer's signature is required, in twelve point bold type font: "Do
not sign this contract before you read it completely. Do not sign this
contract if it contains any blank spaces. You are entitled to a
completely filled-in copy of the contract before you sign this contract.
You should obtain the advice of any attorney. Depending on the
circumstances, you may want to consult a tax, public or private benefits
planning, or financial professional. You acknowledge that your attorney
in the legal claim has provided no tax, public or private benefit
planning, or financial advice regarding this transaction. You further
acknowledge that your attorney has explained the terms and conditions of
the consumer litigation funding contract."

6. A copy of the executed contract shall promptly be delivered to the
attorney for the consumer.

7. The following shall be printed within the body of the contract in
all capital letters in at least twelve point bold type font: "PURSUANT
TO THE LAWS OF THE STATE OF NEW YORK, THE MAXIMUM CHARGES RELATED TO THE
FUNDED AMOUNT CANNOT EXCEED 25% OF THE GROSS RECOVERED AMOUNT RECEIVED
FOR THE CLAIM, PROVIDED THE ATTORNEY AND/OR THE CONSUMER HAS DELIVERED
TO THE CONSUMER LITIGATION FUNDING COMPANY AN ATTESTATION DISCLOSING THE
GROSS PROCEEDS FOR THE CLAIM."

* NB Effective June 17, 2026