13-57-102. Definitions.

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A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Effective 5/6/2026

As used in this chapter:

(a)"Commercial maintenance funding agreement" means a written agreement:

(i)whereby a third party agrees to provide funds to a named party affiliated with a legal claim; and

(ii)that creates a direct or collateralized interest in the proceeds of a legal claim by settlement, verdict, judgment, or otherwise, which interest is based in whole or in part on a funding-based obligation to a legal claim.

(b)"Commercial maintenance funding agreement" does not include:

(i)a consumer maintenance funding agreement;

(ii)an agreement between an attorney and a client for the attorney to provide legal services on a contingency-fee basis or to advance the clients legal costs;

(iii)a health insurance plan or agreement;

(iv)a repayment agreement with a financial institution if the repayment is not contingent upon the outcome of the legal claim;

(v)a funding agreement to a nonprofit organization that represents a client on a pro bono basis;

(vi)an agreement of an assigned claim to prosecute an environmental contamination matter seeking remediation of, or to recover the cost of remediating, a site that has been on the U.S. Environmental Protection Agency's Superfund National Priorities List;

(vii)an agreement between a health care provider and a patient to provide medical treatment on a lien if the repayment is not contingent on the outcome of the legal claim; or

(viii)an agreement between a third party and a party to a legal claim to provide funding for medical treatment related to a legal claim on a lien if the repayment is not contingent upon the outcome of the legal claim.

(a)"Commercial maintenance funding provider" means a person that enters into a commercial maintenance funding agreement with a party to a legal claim.

(b)"Commercial maintenance funding provider" does not include a nonprofit organization exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code.

(3)"Consumer" means:

(a)an individual who resides or is domiciled in the state;

(b)an individual who is a plaintiff with a legal claim in the state; or

(c)an estate for a decedent in a wrongful death claim in the state.

(a)"Consumer maintenance funding agreement" means a non-recourse transaction in which a consumer maintenance funding provider purchases contingent rights to receive an amount of the potential proceeds of a settlement, judgment, award, or verdict obtained in the consumer's legal claim, with funds paid directly to the consumer.

(b)"Consumer maintenance funding agreement" does not include:

(i)an agreement between a health care provider and a patient for providing medical treatment on a lien basis if repayment is not contingent on the outcome of the legal claim; or

(ii)an agreement between a third party and a party to a legal claim for providing funds for medical treatment related to the legal claim on a lien basis if repayment is not contingent on the outcome of the legal claim.

(a)"Consumer maintenance funding provider" means a person that enters into a consumer maintenance funding agreement with a consumer.

(b)"Consumer maintenance funding provider" does not include:

(i)an immediate family member of a consumer;

(ii)an accountant providing accounting services to a consumer;

(iii)an attorney providing legal services to a consumer; or

(iv)a bank, lender, financing entity, or other special purpose entity:

(A)that provides financing to a consumer litigation funding company; or

(B)to which a consumer litigation funding company grants a security interest or transfers a right or interest in a consumer litigation funding agreement.

(6)"Director" means the director of the division.

(7)"Division" means the Division of Consumer Protection established in Section 13-2-102 .

(8)"Foreign country or person of concern" means:

(a)a foreign government or person listed in 15 C.F.R. Sec. 791.4; or

(b)an entity designated as a restricted foreign entity in accordance with Section 63L-13-101 .

(a)"Foreign entity of concern" means a partnership, association, corporation, organization, or other legal entity that:

(i)is organized or incorporated in a foreign country of concern;

(ii)is owned or operated by a government, a political subdivision, or a political party of a foreign country of concern;

(iii)has a principal place of business in a foreign country of concern; or

(iv)a foreign organization owns, organizes, or controls that:

(A)is on the federal Office of Foreign Assets Control specially designated nationals and blocked persons list; or

(B)the United States Secretary of State designates as a foreign terrorist organization.

(b)"Foreign entity of concern" includes an individual that owns, has a controlling interest in, or is a director or senior officer of any entity that falls within Subsection (10)(a) .

(10)"Health care provider" means the same as that term is defined in Section 78B-3-403 .

(11)"Maintenance funding provider" means a consumer maintenance funding provider or a commercial maintenance funding provider.

Amended by Chapter 121 , 2026 General Session