9-A §12-106. Registration of litigation funding provider; fees
Title 9-A: MAINE CONSUMER CREDIT CODE
Article 12: LEGAL FUNDING PRACTICES
§12-106. Registration of litigation funding provider; fees
1. Unless a litigation funding provider has first registered pursuant to this article, the litigation funding provider may not engage in the business of legal funding.
[ 2007, c. 394, §1 (NEW); 2007, c. 394, §3 (AFF) .]
2. Registration must be filed in the manner prescribed by the administrator and must contain the information the administrator requires to make an evaluation of the character, fitness and financial responsibility of the applicant. The initial application must be accompanied by a $500 fee. A renewal registration must include a $200 fee. A registration must be renewed every 2 years and expires on September 30th.
[ 2007, c. 394, §1 (NEW); 2007, c. 394, §3 (AFF) .]
3. Registration may not be issued unless the administrator, upon investigation, finds that the character and fitness of the applicant, and of the members thereof if the applicant is a copartnership or association, and of the officers and directors thereof if the applicant is a corporation, are such as to warrant belief that the business will be operated honestly and fairly within the purposes of this article.
[ 2007, c. 394, §1 (NEW); 2007, c. 394, §3 (AFF) .]
4. For purposes of this section, an applicant demonstrates financial responsibility if:
A. The applicant has available for the operation of the registered business net assets of at least $25,000; and [2007, c. 394, §1 (NEW); 2007, c. 394, §3 (AFF).]
B. Following the issuance of a registration under this section, the registrant maintains net assets of at least $25,000 that are either used or readily available for use in the conduct of the business of each office of the registrant in which a legal funding is made. [2007, c. 394, §1 (NEW); 2007, c. 394, §3 (AFF).]
[ 2007, c. 394, §1 (NEW); 2007, c. 394, §3 (AFF) .]
5. Every applicant shall also, at the time of filing such an application, file with the administrator, if the administrator so requires, a bond satisfactory to the administrator in an amount not to exceed $50,000. In lieu of the bond at the option of the registrant, the registrant may post an irrevocable letter of credit. The terms of the bond must run concurrent with the period of time during which the registration will be in effect. The bond must run to the State for the use of the State and of any person who may have a cause of action against the registrant under this article. The bond must be conditional that the registrant will faithfully conform to this article and to all rules made by the administrator under this article and will pay to the State and to any person all money that may become due or owing to the State or to such a person from the registrant under and by virtue of this article during the period for which the bond is given.
[ 2007, c. 394, §1 (NEW); 2007, c. 394, §3 (AFF) .]
6. A separate registration is required for each place of business. A registration fee of $200 may be imposed for any registration issued for a place of business other than that of the first registered location of the registrant.
[ 2007, c. 394, §1 (NEW); 2007, c. 394, §3 (AFF) .]
7. A registrant may conduct the business of legal funding only at or from any place of business for which the registrant holds a license, including the names of other "doing business as" entities listed on the registration, and not under any other name than that on the registration.
[ 2007, c. 394, §1 (NEW); 2007, c. 394, §3 (AFF) .]
8. Upon written request, the applicant is entitled to a hearing on the question of the applicant's qualifications for a registration if:
A. The administrator has notified the applicant in writing that the application has been denied; or [2007, c. 394, §1 (NEW); 2007, c. 394, §3 (AFF).]
B. The administrator has not issued a registration within 60 days after the application for the registration was filed. [2007, c. 394, §1 (NEW); 2007, c. 394, §3 (AFF).]
A request for a hearing may not be made more than 15 days after the administrator has mailed a written notice to the applicant that the application has been denied and stating in substance the administrator's findings supporting denial of the application.
[ 2007, c. 394, §1 (NEW); 2007, c. 394, §3 (AFF) .]
SECTION HISTORY
2007, c. 394, §1 (NEW). 2007, c. 394, §3 (AFF).