* § 1001. Definitions. As used in this article, the following terms\nshall have the following meanings:\n (a) "Advertise" means publishing or disseminating any written, oral,\nelectronic or printed communication or any communication by means of\nrecorded telephone messages or transmitted or broadcast on radio,\ntelevision, the internet or similar communications media, including\naudio recordings, film strips, motion pictures and videos, published,\ndisseminated, circulated or placed before the public, directly or\nindirectly, for the purpose of inducing a consumer to enter into a\nlitigation funding contract.\n (b) "Charges" means anything to be paid to a litigation funding\ncompany by or on behalf of a consumer pursuant to a litigation funding\ncontract. Charges includes all administrative, origination,\nunderwriting or other fees, including interest and payment of the funded\namount, no matter how denominated.\n (c) "Funding litigation" or "to fund litigation" means providing no\nmore than five hundred thousand dollars to a consumer in exchange for\nthe consumer's agreement to pay the litigation funding company from the\npotential proceeds of any settlement, judgment, award or verdict that\nmay be paid to resolve that consumer's legal claim.\n (d) "Litigation funding contract" or "contract" means an agreement\nbetween a litigation funding company and a consumer to fund litigation.\n (e) "Litigation funding company" or "company" means a person or entity\nthat is engaged in the business of funding litigation. This term shall\nnot include an immediate family member of the consumer or an attorney\nrepresenting a consumer on a contingency basis that is not a litigation\nfunding company on the basis of such representation.\n (f) "Consumer" means a natural person who has a legal claim and who\nresides or is domiciled in New York state and the claim is or will be\nfiled in a New York state or federal court.\n (g) "Funded amount" means the amount of monies provided to, or on\nbehalf of, a consumer pursuant to a litigation funding contract.\n (h) "Funding date" means the date on which the funded amount is\ntransferred to the consumer by the litigation funding company.\n (i) "Immediate family member" means a parent; sibling; child by blood,\nadoption, or marriage; spouse; grandparent; or grandchild.\n (j) "Legal claim" means a civil claim or cause of action.\n * NB Effective June 17, 2026\n
‹ Prev All New York sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.