7-10-6. Contract requirements; disclosures; representation by counsel.

The terms and conditions of a litigation financing agreement shall be set forth in a fully completed, written litigation financing contract with no material terms or conditions omitted, and such contract shall contain all material terms and conditions at the time it is signed by any party, including, but not limited to the right to cancel such litigation financing agreement without penalty or further obligation within five business days from the date the litigation financing contract is executed by or on behalf of the consumer or the date litigation financing is received from the litigation financier, whichever date is later.#

Upon execution of a litigation financing contract, a litigation financier shall not amend the terms or conditions of the litigation financing agreement that is memorialized by such contract without full disclosure to and prior written consent of all parties to such litigation financing agreement.#

Each litigation financing contract with a consumer shall set forth the name, principal business address, and preferred mailing address of the litigation financier on the first page of such contract, and the following disclosures shall be typed in at least 14 point bold font and placed clearly and conspicuously immediately above the consumer’s signature line in the litigation financing contract:#

1. “IMPORTANT DISCLOSURES — PLEASE READ CAREFULLY

2. 1. Right to Cancellation: You, the consumer, or your legal

3. representative may cancel this litigation financing agreement

4. without penalty or further obligation within five (5) business

5. days from the date you sign this contract or the date you

6. receive financing from the litigation financier, whichever date

7. is later. You or your legal representative may cancel this

8. litigation financing agreement by sending a notice of cancella-

9. tion to the litigation financier and returning to the litigation

10. financier any funds received from the litigation financier at the

11. litigation financier’s preferred mailing address set forth on

12. page 1 of this contract.

13. 2. The maximum amount the litigation financier may

14. receive or recover from any contingent payment provided for in

15. this litigation financing agreement shall be no more than an

16. amount equal to the share of the proceeds collectively recov-

17. ered by the plaintiffs or claimants in a civil action, administra-

18. tive proceeding, legal claim, or other legal proceeding seeking

19. to recover monetary damages financed by this litigation financ-

20. ing agreement after the payment of any attorney’s fees and

21. costs owed in connection to such action, claim, or proceedings.

22. 3. The litigation financier agrees that it has no right to,

23. and will not demand, request, receive, or exercise any right to,

24. influence, affect, or otherwise make any decision in the han-

25. dling, conduct, administration, litigation, settlement, or reso-

26. lution of your civil action, administrative proceeding, legal

27. claim, other legal proceeding. All of these rights remain solely

28. with you and your legal representative.

29. 4. You, the consumer, are not required by the terms of this

30. litigation financing agreement to continue to be represented by

31. any particular legal representative, and the litigation financing

32. agreement does not include any right for the litigation finan-

33. cier, any legal representative, or any other person to claim or

34. seek to recover any assessment, charge, fee, penalty, or dam-

35. ages of any kind if you elect to change legal representatives at

36. any time.

37. 5. If there is no recovery of any money from your civil

38. action, administrative proceeding, legal claim, or other legal

39. proceeding, or if there is not enough money to satisfy in full the

40. portion assigned to the litigation financier, you will not owe

41. anything in excess of your recovery.

42. 6. You are entitled to a fully completed litigation financing

43. contract with no material terms or conditions omitted prior to

44. signing. Before signing the litigation financing contract, or

45. authorizing anyone to sign it on your behalf, you should read

46. the contract completely and consult an attorney.”

Only the consumer shall be authorized to execute a litigation financing contract on his or her own behalf, except in such cases where the consumer lacks the legal capacity to execute a contract. The consumer’s legal representative in the civil action, administrative proceeding, legal claim, or other legal proceeding seeking to recover monetary damages financed by the corresponding litigation financing agreement shall not execute a litigation financing contract on behalf of the consumer. A litigation financing contract executed by such legal representative on behalf of such consumer shall be void and unenforceable as a matter of law.#

If the consumer is represented by a legal representative in the civil action, administrative proceeding, legal claim, or other legal proceeding that is the subject of the litigation financing agreement, the legal representative shall acknowledge in the litigation financing contract that the legal representative and the legal representative’s employer and employees have not received or paid a commission, referral fee, rebate, or any other consideration from or to the litigation financier and have no obligation to do so in the future.#

If the consumer’s legal representative is a party to a litigation financing agreement related to the consumer’s civil action, administrative proceeding, legal claim, or other legal proceeding that is the subject of the consumer’s litigation financing agreement, the legal representative shall disclose and deliver a copy of his or her litigation financing contract to the consumer. Following such disclosure and delivery, the consumer shall sign an acknowledgment that the consumer has read and understands the terms and conditions of his or her legal representative’s litigation financing contract. Such consumer shall be provided with a copy of such signed acknowledgment.#