13-57-302. Required disclosures.

403 words·~2 min read·/ut/title-13/chapter-57/13-57-302

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

Effective 5/6/2026

A consumer maintenance funding provider shall disclose in a consumer maintenance funding agreement:

(1)that the consumer maintenance funding provider may not participate in deciding whether, when, or the amount for which a legal action is settled;

(2)that the maintenance funding provider may not interfere with the independent professional judgment of the attorney handling the legal action or any settlement of the legal action;

(3)the following statement in substantially the following form, in all capital letters and at least a 12-point font: "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 MAINTENANCE FUNDING PROVIDER HERE) ANYTHING IF THERE ARE NO PROCEEDS FROM YOUR LEGAL CLAIM, UNLESS YOU HAVE VIOLATED A MATERIAL TERM OF THIS AGREEMENT OR YOU HAVE COMMITTED FRAUD AGAINST THE CONSUMER MAINTENANCE FUNDING PROVIDER.";

(4)in accordance with Section 13-57-301 , the following statement in substantially the following form and at least a 12-point font: "CONSUMER'S RIGHT TO CANCELLATION: You may cancel this agreement without penalty or further obligation within 10 business days after the day on which you enter into this agreement with the consumer maintenance funding provider if you either: 1. return to the consumer maintenance funding provider the full amount of the disbursed funds by delivering the consumer maintenance funding provider's uncashed check to the consumer maintenance funding provider's office in person; or 2. send, by insured, certified, or registered United States mail, to the consumer maintenance funding provider at the address specified in this agreement, a notice of cancellation and include in the mailing a return of the full amount of disbursed funds in the form of the consumer maintenance funding provider's uncashed check or a registered or certified check or money order"; and

(5)immediately above the line for the consumer's signature, the following statement in at least a 12-point font: "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 your circumstances, you may want to consult a tax, benefits planning, or financial professional."

Amended by Chapter 121 , 2026 General Session