Section 24-12-1-0.5 - "Civil proceeding advance payment transaction"(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:(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.
Added by P.L. 176-2019,SEC. 36, eff. 7/1/2019.