Illinois General Assembly - Full Text of SB3322
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Full Text of SB3322  96th General Assembly


Sen. Don Harmon

Filed: 3/15/2010





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2     AMENDMENT NO. ______. Amend Senate Bill 3322 as follows:
3 on page 5, immediately below line 1, by inserting the
4 following:
5         "The contract shall contain the following statement
6     located above the signature line: "The consumer
7     understands and agrees that the funds received from this
8     Non-Recourse Civil Litigation Funding shall not be used to
9     pay for litigation costs related to the underlying Legal
10     claim.""; and
11 on page 5, by replacing line 2 through line 4 with the
12 following:
13         "(6) The contract for nonrecourse civil litigation
14     funding shall contain a written acknowledgement by the
15     consumer that he or she has reviewed the contract in its
16     entirety, that he or she shall notify his or her current



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1     attorney and any successor attorneys representing him or
2     her in the legal claim of the existence of the transaction
3     and shall instruct the nonrecourse civil litigation
4     funding company to provide the attorney with a copy of the
5     contract. Additionally, before obtaining any additional or
6     subsequent nonrecourse civil litigation funding, the
7     consumer will notify his or her attorney and receive prior
8     written permission for such transaction from the prior
9     civil litigation funding company."; and
10 on page 5, by deleting line 5 through line 24; and
11 by replacing line 25 on page 5 through line 21 on page 7 with
12 the following:
13     "Section 15. Priorities. Any attorney's lien, Medicare
14 lien, Medicaid lien, or health care provider lien against the
15 consumer's legal claim shall take priority over any lien of the
16 civil litigation funding company.
17     Section 20. Standards and practices. Each civil litigation
18 funding company shall adhere to the following:
19         (1) The civil litigation funding company shall not pay
20     or offer to pay commissions or referral fees to any
21     attorney or employee of a law firm or to any medical
22     provider, chiropractor, or physical therapist or their



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1     employees for referring a consumer to the civil litigation
2     funding company. The civil litigation funding company
3     agrees not to accept any commissions, referral fees, or
4     rebates from any attorney or employee of a law firm or any
5     medical provider, chiropractor, or physical therapist or
6     their employees, other than what is agreed to be paid to
7     the civil litigation funding company out of the proceeds of
8     the legal claim pursuant to the signed contract between the
9     consumer and the civil litigation funding company.
10         (2) The civil litigation funding company shall not
11     advertise false or intentionally misleading information
12     regarding its product or services.
13         (3) The civil litigation funding company shall not
14     knowingly provide funding to a consumer who has previously
15     sold and assigned an amount of his potential proceeds from
16     his legal claim to another civil litigation funding company
17     without first purchasing that civil litigation funding
18     company's entire accrued balance unless otherwise agreed
19     in writing by the civil litigation funding companies and
20     the consumer.
21         (4) The civil litigation funding company shall not
22     offer single premium credit life, disability, or
23     unemployment insurance that is to be financed through a
24     civil litigation funding transaction.
25         (5) For non-English speaking consumers, upon the
26     written request of the consumer, the principal terms of the



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1     contract must be translated in writing into the consumer's
2     primary language, the consumer must sign the translated
3     document containing the principal terms and initial each
4     page, and the translator or lawyer must sign an affirmation
5     confirming that the principal terms have been presented to
6     the consumer in the consumer's primary language and
7     acknowledged by the consumer. Principal terms shall
8     include all items that must be disclosed by this Section.".