Indiana Code 24-12-2-1. CPAP contract requirements; attorney’s written acknowledgment
(1) The CPAP contract must be completely filled in when presented to the consumer claimant for signature.
Terms Used In Indiana Code 24-12-2-1
- Attorney: includes a counselor or other person authorized to appear and represent a party in an action or special proceeding. See Indiana Code 1-1-4-5
- Contract: A legal written agreement that becomes binding when signed.
- 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:
Indiana Code 24-12-1-0.5
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Right of rescission: Right to cancel, within three business days, a contract that uses the home of a person as collateral, except in the case of a first mortgage loan. There is no fee to the borrower, who receives a full refund of all fees paid. The right of rescission is guaranteed by the Truth in Lending Act (TILA). Source: OCC
- 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.
- Trust account: A general term that covers all types of accounts in a trust department, such as estates, guardianships, and agencies. Source: OCC
- United States: includes the District of Columbia and the commonwealths, possessions, states in free association with the United States, and the territories. See Indiana Code 1-1-4-5
(A) returns to the CPAP provider the full amount of the disbursed funds by delivering the provider’s uncashed check to the provider’s office in person; or
(B) mails, by insured, certified, or registered United States mail, to the address specified in the contract, a notice of cancellation and includes in the mailing a return of the full amount of disbursed funds in the form of the provider’s uncashed check or a registered or certified check or money order.
(3) The CPAP contract must contain the initials of the consumer claimant on each page.
(4) If the consumer claimant is represented by an attorney in the civil proceeding on which a CPAP transaction is based, the CPAP contract must contain a written acknowledgment by the attorney that attests to the following:
(A) That to the best of the attorney’s knowledge, all costs and charges relating to the CPAP transaction have been disclosed to the consumer claimant.
(B) That the attorney is being paid by the consumer claimant on a contingency basis under a written fee agreement.
(C) That all proceeds of the civil proceeding will be disbursed through a trust account of the attorney, or through a settlement fund established to receive the proceeds of the civil proceeding on behalf of the consumer claimant.
(D) That the attorney is following the instructions of the consumer claimant with respect to the CPAP transaction.
(E) That the attorney has not received a referral fee or other consideration from the CPAP provider, and agrees not to receive a referral fee or other consideration from the CPAP provider at any time, in connection with the CPAP transaction.
If the attorney retained by the consumer claimant in the consumer claimant’s civil proceeding does not complete the acknowledgment required by this subdivision, the CPAP contract, and the CPAP transaction to which it pertains, are void. However, the CPAP contract, and the CPAP transaction to which it pertains, remain valid and enforceable if the consumer claimant or the attorney terminates the representation.
As added by P.L.153-2016, SEC.7. Amended by P.L.176-2019, SEC.38.