Vermont § 2253 - Contracts; disclosures and requirements

§ 2253. Contracts; disclosures and requirements

• (a) A contract shall be written in a clear and coherent manner using words with common,
  everyday meanings to enable the average consumer who makes a reasonable effort under
  ordinary circumstances to read and understand the terms of the contract without having
  to obtain the assistance of a professional. (b) Each contract shall include consumer disclosures on the front page. The consumer disclosures
  shall be in a form prescribed by the Commissioner and shall include: (1) a description of possible alternatives to a litigation funding contract, including
  secured or unsecured personal loans, and life insurance policies; (2) notification that some or all of the funded amount may be taxable; (3) a description of the consumer’s right of rescission; (4) the total funded amount provided to the consumer under the contract; (5) an itemization of charges; (6) the annual percentage rate of return; (7) the total amount due from the consumer, including charges, if repayment is made any
  time after the funding contract is executed; (8) a statement that there are no fees or charges to be paid by the consumer other than
  what is disclosed on the disclosure form; (9) in the event the consumer seeks more than one litigation funding contract, a disclosure
  providing the cumulative amount due from the consumer for all transactions, including
  charges under all contracts, if repayment is made any time after the contracts are
  executed; (10) a statement that the company has no right to make any decisions regarding the conduct
  of the legal claim or any settlement or resolution thereof and that the right to make
  such decisions remains solely with the consumer and his or her attorney; (11) a statement that, if there is no recovery of any money from the consumer’s legal claim,
  the consumer shall owe nothing to the company and that, if the net proceeds of the
  claim are insufficient to repay the consumer’s indebtedness to the company, then the
  consumer shall owe the company no money in excess of the net proceeds; and (12) any other statements or disclosures deemed necessary or appropriate by the Commissioner. (c) Each contract shall include the following provisions: (1) Definitions of the terms “consumer,” “consumer litigation funding,” and “consumer
  litigation funding company.” (2) A right of rescission, allowing the consumer to cancel the contract without penalty
  or further obligation if, within five business days following the execution of the
  contract or the consumer’s receipt of any portion of the funded amount, the consumer
  gives notice of the rescission to the company and returns any funds provided to the
  consumer by the company. (3) A provision specifying that, in the event of litigation involving the contract and
  at the election of the consumer, venue shall lie in the Vermont Superior Court for
  the county where the consumer resides. (4) An acknowledgment that the consumer is represented by an attorney in the legal claim
  and has had an opportunity to discuss the contract with his or her attorney. (Added 2015, No. 128 (Adj. Sess.), § A.1.)