MA H1861

Creates a new Chapter 167K requiring consumer litigation funding companies and commercial litigation financiers to register with the Massachusetts Division of Banks before operating in the state, with registrations renewed every two years

Caps annual charges on consumer litigation funding at 36% plus a one-time document preparation fee set by the Division of Banks, with contracts exceeding this rate considered usurious

Requires mandatory disclosure to opposing parties and insurers within 30 days when a plaintiff enters into a consumer litigation funding contract, with contract contents subject to discovery in civil proceedings

Prohibits funding companies from paying referral fees to attorneys, law firms, or healthcare providers, and bars attorneys representing a consumer from having financial interests in the funding company

Bans commercial litigation financing agreements with foreign entities of concern, including those on the OFAC sanctions list or designated as foreign terrorist organizations