SF 1756

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 02:23am

A bill for an act
relating to commerce; clarifying the application of usury laws to certain loans
related to a right to sue; amending Minnesota Statutes 2008, section 334.01, by
adding a subdivision.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2008, section 334.01, is amended by adding a
subdivision to read:

new text begin Subd. 4. new text end

new text begin Contracts for presettlement funding arrangements. new text end

new text begin Subdivision 1
applies to any contract that provides for the advancement of money for the purchase of
any part of or any interest in an actual or potential lawsuit or cause of action, regardless
of whether or not the advance payment is repayable absolutely or conditioned upon the
successful conclusion or settlement of the actual or potential lawsuit or cause of action.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2009, and applies to
contracts entered into on or after that date.
new text end