HB23-1162 Summary

• Authorizes the administrator of the Uniform Consumer Credit Code to adopt rules regulating deferral charges for nonrecourse consumer credit transactions secured by settlement or judgment proceeds from a legal claim.

• Applies to consumer credit transactions that have no periodic payments and are secured by an unvested, contingent future interest in potential net proceeds from a legal settlement or judgment.

• Takes effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly.

• Subject to referendum petition; if challenged within the ninety-day period, the act will not take effect unless approved by voters at the November 2024 general election.