RI H7751

Litigation lending agreements (LLAs) are defined as agreements where companies advance money to civil litigants in exchange for repayment from litigation proceeds, often with annual interest rates exceeding 100%

All payments made by litigants above the amount received would be classified as interest subject to Rhode Island's usury laws under Chapter 26 of Title 6

The law applies regardless of how the agreement characterizes itself—whether as a "loan," "advance," "investment," or "assignment of proceeds"

Attorney expense advances to clients permitted under Rhode Island Rule of Professional Conduct 1.8(e) are specifically excluded from the definition of litigation lending agreements

The act takes effect immediately upon passage