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New York Consolidated Laws, Financial Services Law - FIS § 1009. Registration

Current as of January 01, 2026 | Updated by Findlaw Staff

<[Eff. Dec. 19, 2026.]>

(a) Except as provided in this section, no person may engage in litigation funding in this state without being registered with the department.  The registration requirement shall not apply to a banking organization as defined in subdivision eleven of section two of the banking law or a licensed lender licensed pursuant to article nine of the banking law.

(b) An application for registration shall be filed in the manner prescribed by the superintendent and must contain all the information required by the department.  The application shall be accompanied by a five hundred dollar fee.  The superintendent shall have the power to approve or deny a registration application, based on whether such application is complete, accurate and otherwise in compliance with applicable laws or regulations.

(c) The superintendent may revoke or suspend the registration of any litigation funding company if, upon notice and a hearing, the superintendent determines that the litigation funding company or any member, principal, officer, director or controlling person of the litigation funding company has:

(i) committed a violation of the insurance law, banking law or this chapter or any regulation promulgated thereunder, an order or subpoena of the superintendent or the head of another state's insurance, banking or financial services regulatory agency or federal agency with authority to regulate litigation funding companies, or has violated any other law in the course of engaging in the business of a litigation funding company;

(ii) provided materially incorrect, materially misleading, materially incomplete or materially untrue information in the registration application;

(iii) failed to comply with the requirements of this article or any other applicable provision of the banking law or the insurance law;

(iv) used fraudulent, coercive or dishonest practices in the conduct of litigation funding company business;

(v) improperly withheld, misappropriated or converted any monies or properties received in the course of business in this state or elsewhere;

(vi) admitted or been found to have committed any unfair trade practice or fraud;  or

(vii) had its registration, or its equivalent, denied, suspended or revoked in any other state, province, district or territory.

(d) Upon the revocation or suspension by the superintendent of the registration of a litigation funding company, the superintendent shall forthwith notify such litigation funding company.  The revocation or suspension of any registration pursuant to this section shall terminate or suspend, respectively, such registration immediately upon the issuance of such notice.

(e) All litigation funding contracts entered into prior to the effective date of this article are not subject to the terms of this article.

(f) A litigation funding company that has filed an application for registration with the department, within one hundred eighty days of when the department first makes such applications available, may enter into litigation funding contracts, while their application remains pending with the department.

(g) The superintendent is hereby authorized to adopt rules and regulations to implement the provisions of this article as needed.

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Cite this article: FindLaw.com - New York Consolidated Laws, Financial Services Law - FIS § 1009. Registration - last updated January 01, 2026 | https://codes.findlaw.com/ny/financial-services-law/fis-sect-1009/

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