This bill, titled "Litigation Lending Agreements," seeks to amend Title 9 of the General Laws by adding a new chapter. The bill states that litigation financing contracts, where companies advance money to a litigant in return for payment from litigation proceeds at interest rates exceeding state usury limits, are detrimental to the citizens of the state. The bill defines a "litigation lending agreement" as any agreement where money is paid to parties involved in civil litigation in exchange for repayment from the proceeds of the litigation. The bill clarifies that advancements of litigation expenses made by attorneys on behalf of their clients are not included in this definition. The bill also states that all payments made by a litigant under a litigation lending agreement that exceed the amount received by the litigant shall be considered interest on loans subject to state usury laws, regardless of how the agreement characterizes itself or the terms used.

This bill aims to regulate litigation loan agreements by subjecting them to state usury laws. It defines a litigation lending agreement as an agreement where money is paid to litigants in exchange for repayment from the proceeds of the litigation. The bill clarifies that advancements of litigation expenses made by attorneys are not included in this definition. It states that all payments made by a litigant under a litigation lending agreement that exceed the amount received by the litigant shall be considered interest on loans subject to state usury laws, regardless of how the agreement characterizes itself or the terms used. The bill would take effect upon passage.