(1) A consumer maintenance funding agreement shall: (a) be in writing; (b) be written in a clear and coherent manner using words with common, everyday meanings so that the average consumer, who makes a reasonable effort under ordinary circumstances, can read and understand the terms of the consumer maintenance funding agreement without requiring the assistance of a professional; (c) be complete before the consumer signs the consumer maintenance funding agreement; (d) contain a right of rescission permitting the consumer to cancel the consumer maintenance funding agreement without penalty or further obligation, if the consumer returns to the consumer maintenance funding provider the full amount of the disbursed funds: (i) within 10 business days after the day on which the consumer and consumer maintenance funding provider enter the agreement; and (ii) (A) in person by delivering the consumer maintenance funding provider's uncashed check to the consumer maintenance funding provider's office; or (B) by insured, certified, or registered United States mail to the address specified in the consumer maintenance funding agreement in the form of the consumer maintenance funding provider's uncashed check or a registered or certified check or money order; (e) contain the disclosures described in Section 13-57-302; (f) include the amount of money the consumer maintenance funding provider provides to the consumer; (g) include an itemization of one-time charges; (h) include a payment schedule that: (i) includes the funded amount and all charges; and (ii) lists the total amount of any realized settlement, judgment, award, or verdict to be paid to the consumer maintenance funding provider at the end of each six-month period, if the consumer maintenance funding agreement is satisfied during that period; (i) include a provision that the consumer maintenance funding agreement includes no charge or fee other than the charges and fees disclosed in the agreement; (j) include a provision that: (i) if there are no available proceeds from the legal action, the consumer will owe the consumer maintenance funding provider nothing; and (ii) the consumer 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; and (k) if the consumer seeks more than one consumer maintenance funding agreement from the same company, a disclosure providing the cumulative amount due from the consumer for all transactions, including charges under all consumer maintenance funding agreements, if repayment is made any time after the consumer maintenance funding agreements are executed. (2) A consumer maintenance funding agreement may not require a consumer to make a payment to the consumer maintenance funding provider in an amount determined as a percentage of the recovery from the legal action. (3) A consumer maintenance funding agreement is not valid unless the agreement includes a written certification signed by the consumer stating that: (a) the consumer, with the consumer's attorney, reviewed the mandatory disclosures in Section 13-57-302; (b) the consumer is represented by an attorney in the legal claim on a contingency fee basis in accordance with a written fee agreement; (c) the consumer will direct the consumer's attorney to receive and disburse all proceeds of the legal claim through the attorney's trust account or a settlement fund established for the benefit of the consumer; and (d) the consumer will direct the consumer's attorney to disburse funds in accordance with the terms of the consumer maintenance funding agreement. (4) (a) The consumer maintenance funding agreement is null and void if the consumer does not provide the acknowledgment Subsection (3) requires. (b) The consumer maintenance funding agreement remains valid and enforceable if the consumer terminates an attorney or law firm that the consumer retains. (5) A consumer maintenance funding provider may not charge or collect a prepayment penalty or fee.
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