Indiana § 24-12-1-0.5 - "Civil proceeding advance payment transaction"

§ 24-12-1-0.5. "Civil proceeding advance payment transaction"

Sec. 0.5. (a) As used in this article and subject to IC 24-12-6-2, "civil proceeding advance payment transaction", or "CPAP transaction", means a nonrecourse transaction in which a CPAP provider provides a funded amount to a consumer claimant to use for any purpose other than prosecuting the consumer claimant's civil proceeding, if the repayment of the funded amount is:

(1) required only if the consumer claimant prevails in the civil proceeding; and

(2) sourced from the proceeds of the civil proceeding, whether the proceeds result from a judgment, a settlement, or some other resolution.

(b) The term includes a transaction:

(1) that is termed or described as:

(A) a purchase; or

(B) an assignment of an interest in a consumer claimant's civil proceeding, or in the proceeds of a consumer claimant's civil proceeding;

by the CPAP provider; or

(2) with respect to which the CPAP provider sets forth in a CPAP contract, an agreement by:

(A) the CPAP provider to purchase from the consumer claimant; or

(B) the consumer claimant to assign to the CPAP provider;

a contingent right to receive a share of the potential proceeds of the consumer claimant's civil proceeding, whether the proceeds result from a judgment, a settlement, or some other resolution.

As added by P.L.176-2019, SEC.36.