§ 899-GGG — Disclosures

* § 899-ggg. Disclosures. All consumer litigation funding contracts\nshall contain the disclosures specified in this section, which shall\nconstitute material terms of the contract. Unless otherwise specified,\nsuch disclosures shall be typed in at least twelve point bold type font\nand be placed clearly and conspicuously within the contract, as follows:\n 1. On the front page under appropriate headings, language specifying:\n (a) the funded amount to be paid to the consumer by the consumer\nlitigation funding company;\n (b) an itemization of one-time charges;\n (c) the maximum total amount to be assigned by the consumer to the\ncompany, including the funded amount and all charges; and\n (d) a payment schedule to include the funded amount and charges,\nlisting all dates and the amount due at the end of each one hundred\neighty day period from the funding date, until the date the maximum\namount due to the company pursuant to the contract is paid.\n 2. Pursuant to the provisions set forth in this section, within the\nbody of the contract: "Consumer's right to cancellation: you may cancel\nthis contract without penalty or further obligation within ten business\ndays after the funding date if you return to the consumer litigation\nfunding company the full amount of the disbursed funds."\n 3. The consumer litigation funding company shall have no role in\ndeciding whether, when and how much the legal claim is settled for,\nhowever, the consumer and consumer's attorney must notify the company of\nthe outcome of the legal claim by settlement or adjudication prior to\nthe resolution date. The company may seek updated information about the\nstatus of the legal claim but in no event shall the company interfere\nwith the independent professional judgement of the attorney in the\nhandling of the legal claim or any settlement thereof.\n 4. Within the body of the contract, in all capital letters in at least\ntwelve point bold type font contained within a box: "THE FUNDED AMOUNT\nAND AGREED UPON CHARGES SHALL BE PAID ONLY FROM THE PROCEEDS OF YOUR\nLEGAL CLAIM, AND SHALL BE PAID ONLY TO THE EXTENT THAT THERE ARE\nAVAILABLE PROCEEDS FROM YOUR LEGAL CLAIM. YOU WILL NOT OWE (INSERT NAME\nOF THE CONSUMER LITIGATION FUNDING COMPANY) ANYTHING IF THERE ARE NO\nPROCEEDS FROM YOUR LEGAL CLAIM, UNLESS YOU HAVE VIOLATED ANY MATERIAL\nTERM OF THIS CONTRACT OR YOU HAVE COMMITTED FRAUD AGAINST (INSERT NAME\nOF CONSUMER LITIGATION FUNDING COMPANY)."\n 5. Located immediately above the place on the contract where the\nconsumer's signature is required, in twelve point bold type font: "Do\nnot sign this contract before you read it completely. Do not sign this\ncontract if it contains any blank spaces. You are entitled to a\ncompletely filled-in copy of the contract before you sign this contract.\nYou should obtain the advice of any attorney. Depending on the\ncircumstances, you may want to consult a tax, public or private benefits\nplanning, or financial professional. You acknowledge that your attorney\nin the legal claim has provided no tax, public or private benefit\nplanning, or financial advice regarding this transaction. You further\nacknowledge that your attorney has explained the terms and conditions of\nthe consumer litigation funding contract."\n 6. A copy of the executed contract shall promptly be delivered to the\nattorney for the consumer.\n 7. The following shall be printed within the body of the contract in\nall capital letters in at least twelve point bold type font: "PURSUANT\nTO THE LAWS OF THE STATE OF NEW YORK, THE MAXIMUM CHARGES RELATED TO THE\nFUNDED AMOUNT CANNOT EXCEED 25% OF THE GROSS RECOVERED AMOUNT RECEIVED\nFOR THE CLAIM, PROVIDED THE ATTORNEY AND/OR THE CONSUMER HAS DELIVERED\nTO THE CONSUMER LITIGATION FUNDING COMPANY AN ATTESTATION DISCLOSING THE\nGROSS PROCEEDS FOR THE CLAIM."\n * NB Effective June 17, 2026\n