Okla. Stat. tit. 14A § 3-807

Current through Laws 2024, c. 453.

Section 3-807 - Disclosures

A. A consumer litigation funding agreement shall contain the disclosures required by this section. The disclosures shall be clear and conspicuous and in at least twelve-point bold type, except as provided by subsection F of this section.

B. On the front page of the agreement under appropriate headings, the agreement shall disclose:

1. The funded amount to be paid to the consumer by the consumer litigation funder;

2. An itemization of one-time charges;

3. The total amount to be assigned by the consumer to the funder, including the funded amount and all charges; and

4. A payment schedule that:

a. includes the funded amount and charges, and

b. lists all dates and the amount due at the end of each one-hundred-eighty-day period from the funding date until the due date of the maximum amount due to the funder by the consumer to satisfy the amount owed under the agreement.

C. Pursuant to the requirements set forth in this act, the agreement shall contain the following statement: "CONSUMER'S RIGHT TO CANCELLATION: You may cancel this agreement without penalty or further obligation within five business days after the funding date if you either:

1. Return to the consumer litigation funder the full amount of the disbursed funds by delivering the funder's uncashed check to the funder's office in person; or

2. Send, by insured, certified, or registered United States mail, to the funder at the address specified in the agreement, a notice of cancellation and include in the mailing a return of the full amount of disbursed funds in the form of the funder's uncashed check or a registered or certified check or money order."

D. The agreement shall disclose that:

1. The consumer litigation funder may not participate in deciding whether, when, or the amount for which a legal claim is settled;

2. The funder may not interfere with the independent professional judgment of the attorney handling the legal claim or any settlement of the legal claim; and

3. The consumer shall notify the funder of the settlement or adjudication of the legal claim before the resolution date.

E. The agreement shall contain in all capital letters the following text within a box: "THE FUNDED AMOUNT AND AGREED TO CHARGES SHALL BE PAID ONLY FROM THE PROCEEDS OF YOUR LEGAL CLAIM, AND SHALL BE PAID ONLY TO THE EXTENT THAT THERE ARE AVAILABLE PROCEEDS FROM YOUR LEGAL CLAIM. YOU WILL NOT OWE (INSERT NAME OF THE CONSUMER LITIGATION FUNDER) ANYTHING IF THERE ARE NO PROCEEDS FROM YOUR LEGAL CLAIM, UNLESS YOU HAVE VIOLATED ANY MATERIAL TERM OF THIS AGREEMENT OR YOU HAVE COMMITTED FRAUD AGAINST THE CONSUMER LITIGATION FUNDER."

F. Immediately above the line for the consumer's signature, the agreement shall contain the following disclosure in twelve-point type: "Do not sign this agreement before you read it completely or if it contains any blank spaces. You are entitled to a completed copy of the agreement. Before you sign this agreement, you should obtain the advice of an attorney. Depending on the circumstances, you may want to consult a tax, public or private benefits planning, or financial professional.

Okla. Stat. tit. 14A, § 3-807

Added by Laws 2013, c. 386,s. 7, eff. 11/1/2013.