§ 13-57-301 — Maintenance funding agreements.

(1) A maintenance funding agreement shall:

(1)(a) be in writing;
(1)(b) contain a right of rescission permitting the individual to cancel the agreement without penalty or further obligation, if the individual returns to the maintenance funding provider the full amount of the disbursed funds:
(1)(b)(i) within five business days after the day on which the individual and maintenance funding provider enter the agreement; and
(1)(b)(ii) (1)(b)(ii)(A) in person by delivering the maintenance funding provider's uncashed check to the maintenance funding provider's office; or
(1)(b)(ii)(B) by insured, certified, or registered United States mail to the address specified in the maintenance funding agreement in the form of the maintenance funding provider's uncashed check or a registered or certified check or money order;
(1)(c) contain the disclosures described in Section 13-57-302;
(1)(d) include the amount of money the maintenance funding provider provides to the individual;
(1)(e) include an itemization of one-time charges;
(1)(f) include a payment schedule that:
(1)(f)(i) includes the funded amount and all charges; and
(1)(f)(ii) lists the total amount of any realized settlement, judgment, award, or verdict to be paid to the maintenance funding provider at the end of each six-month period, if the contract is satisfied during that period; and
(1)(g) include a provision that the maintenance funding agreement includes no charge or fee other than the charges and fees disclosed in the maintenance funding agreement; and
(1)(h) include a provision that:
(1)(h)(i) if there are no available proceeds from the legal action, the individual will owe the maintenance funding provider nothing; and
(1)(h)(ii) the maintenance funding provider's total charges will be paid only to the extent there are available proceeds from the legal action after the settlement of all liens, fees, and other costs.
(2) A maintenance funding agreement may not require an individual to make a payment to the maintenance funding provider in an amount determined as a percentage of the recovery from the legal action.

Legislative History

Enacted by Chapter 118, 2020 General Session