MD SB894

Litigation financiers must obtain a license under the Maryland Consumer Loan Law or installment loan provisions before providing financing to consumers involved in civil actions

Litigation financing is legally classified as a loan, subjecting it to existing consumer lending regulations under the Commercial Law Article

Parties in civil actions must automatically disclose any litigation financing contracts to all other parties and insurers within 30 days of entering or amending such agreements

The existence, participants, and contents of litigation financing contracts are permissible subjects of discovery in civil actions, even before formal commencement

Effective October 1, 2026, with provisions applying prospectively to contracts entered into after that date