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IN SB0353
Bill
AI Summary
SB 353 Summary
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Establishes procedure for "civil justice funding" allowing companies to provide cash advances to plaintiffs in exchange for a contingent right to a portion of settlement, judgment, award, or verdict proceeds.
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Requires civil justice funding companies to register with the attorney general; initial registration fee is $1,500 and renewal fee is $500 every two years.
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Prohibits funding companies from paying referral fees to attorneys or medical providers, making specific attorney referrals, interfering with legal claims, or paying court costs and attorney fees.
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Mandates contracts include 5-day rescission rights, predetermined time-based charges (not percentage-based), detailed disclosures in 12-point bold font, and consumer initials on each page.
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Establishes that civil justice funding transactions are nonrecourse (consumer owes nothing if claim yields no proceeds) and are not subject to Indiana loan regulations; effective July 1, 2016.
Legislative Description
Funding of lawsuits. Establishes a procedure by which a company may provide funding to the plaintiff in an action in exchange for the contingent right to receive a part of the potential proceeds of the action. Requires a company that offers funding to plaintiffs to register with the attorney general.
Last Action
First reading: referred to Committee on Financial Institutions
2/9/2016