Section 436.564

Title XXVIII CONTRACTS AND CONTRACTUAL RELATIONS

Chapter 436

Effective - 28 Aug 2023   

  436.564.  Assignment of potential proceeds of a legal claim — contract not a loan — priority of liens. — 1.  The contingent right to receive an amount of the potential proceeds of a legal claim is assignable.

  2.  Nothing contained in sections 436.550 to 436.572 shall be construed to cause any consumer legal funding contract conforming to sections 436.550 to 436.572 to be deemed a loan or to be subject to any of the provisions governing loans.  A consumer legal funding contract that complies with sections 436.550 to 436.572 is not subject to any other statutory or regulatory provisions governing loans or investment contracts.  To the extent that sections 436.550 to 436.572 conflict with any other law, such sections shall supersede the other law for the purposes of regulating consumer legal funding in this state.

  3.  Only attorney's liens related to the legal claim, Medicare, or other statutory liens related to the legal claim shall take priority over claims to proceeds from the consumer legal funding company.  All other liens and claims shall take priority by normal operation of law.

  4.  No consumer legal funding company shall report a consumer to a credit reporting agency if insufficient funds remain from the net proceeds to repay the company.

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(L. 2023 S.B. 103)