Sec. 0.5. (a) As used in this article and subject to IC 24-12-6-2, “civil proceeding advance payment transaction”, or “CPAP transaction”, means a nonrecourse transaction in which a CPAP provider provides a funded amount to a consumer claimant to use for any purpose other than prosecuting the consumer claimant’s civil proceeding, if the repayment of the funded amount is:

(1) required only if the consumer claimant prevails in the civil proceeding; and

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Terms Used In Indiana Code 24-12-1-0.5

  • Contract: A legal written agreement that becomes binding when signed.
  • Judgment: means all final orders, decrees, and determinations in an action and all orders upon which executions may issue. See Indiana Code 1-1-4-5
  • Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
(2) sourced from the proceeds of the civil proceeding, whether the proceeds result from a judgment, a settlement, or some other resolution.

     (b) The term includes a transaction:

(1) that is termed or described as:

(A) a purchase; or

(B) an assignment of an interest in a consumer claimant’s civil proceeding, or in the proceeds of a consumer claimant’s civil proceeding;

by the CPAP provider; or

(2) with respect to which the CPAP provider sets forth in a CPAP contract, an agreement by:

(A) the CPAP provider to purchase from the consumer claimant; or

(B) the consumer claimant to assign to the CPAP provider;

a contingent right to receive a share of the potential proceeds of the consumer claimant’s civil proceeding, whether the proceeds result from a judgment, a settlement, or some other resolution.

As added by P.L.176-2019, SEC.36.

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