New York Consolidated Laws, General Business Law - GBS § 899-ccc. Definitions

1. “Advertise” means publishing or disseminating any written, oral, electronic or printed communication or any communication by means of recorded telephone messages or transmitted or broadcast on radio, television, the internet or similar communications media, including audio recordings, film strips, motion pictures and videos, published, disseminated, circulated or placed before the public, directly or indirectly, for the purpose of inducing a consumer to enter into a consumer litigation funding.

2. “Charges” means the amount of money to be paid to the consumer litigation funding company by or on behalf of the consumer, above the funded amount provided by or on behalf of the company to a New York consumer pursuant to this article.  Charges include all administrative, origination, underwriting or other fees, including interest, no matter how denominated.

3. “Consumer litigation funding” means a non-recourse transaction in which a consumer litigation funding company purchases and a consumer assigns to the company a contingent right to receive an amount of the potential proceeds of a settlement, judgment, award, or verdict obtained in the consumer's legal claim.

4. “Consumer litigation funding company” or “company” means a person or entity that enters into a consumer litigation funding contract of no more than five hundred thousand dollars with a consumer.  This term shall not include:

5. “Consumer” means a natural person who has a pending legal claim and who resides or is domiciled in New York.

6. “Funded amount” means the amount of monies provided to, or on behalf of, the consumer in the consumer litigation funding.  “Funded amount” excludes charges.

7. “Funding date” means the date on which the funded amount is transferred to the consumer by the consumer litigation funding company either by personal delivery or via wire, ACH or other electronic means or mailed by insured, certified or registered United States mail.

8. “Immediate family member” means a parent;  sibling;  child by blood, adoption, or marriage;  spouse;  grandparent;  or grandchild.

9. “Legal claim” means a bona fide civil claim or cause of action.

10. “Resolution date” means the date the funded amount, plus the agreed upon charges, are delivered to the consumer litigation funding company by the consumer, the consumer's attorney or otherwise.