§ 24-12-1-0.5 — "Civil proceeding advance payment transaction"

Indiana § 24-12-1-0.5

• Jurisdiction: Indiana
• Art. 12: CIVIL PROCEEDING ADVANCE PAYMENTS
• Ch. 1: Definitions

Text

5. (a) As used in this article and subject to IC 24-12-6-2, "civil proceeding advance payment transaction", or "CPAP
transaction", means a nonrecourse transaction in which a CPAP
provider provides a funded amount to a consumer claimant to use for
any purpose other than prosecuting the consumer claimant's civil
proceeding, if the repayment of the funded amount is:
(1) required only if the consumer claimant prevails in the civil
proceeding; and
(2) sourced from the proceeds of the civil proceeding, whether the
proceeds result from a judgment, a settlement, or some other
resolution.
(b) The term includes a transaction:
(1) that is termed or described as:
(A) a purchase; or
(B) an assignment of an interest in a consumer claimant's civil
proceeding, or in the proceeds of a consumer claimant's civil
proceeding;
by the CPAP provider; or
(2) with respect to which the CPAP provider sets forth in a CPAP
contract, an agreement by:
(A) the CPAP provider to purchase from the consumer
claimant; or
(B) the consumer claimant to assign to the CPAP provider;
a contingent right to receive a share of the potential proceeds of
the consumer claimant's civil proceeding, whether the proceeds
result from a judgment, a settlement, or some other resolution.

Legislative History

As added by P.L.176-2019, SEC.36.