AN ACT RELATING TO COURTS AND CIVIL PROCEDURE -- PROCEDURE GENERALLY -- LITIGATION LENDING AGREEMENTS

HB 7751 requires litigation financing agreements (where third parties advance money to litigants in exchange for repayment from case proceeds) to comply with the state’s interest rate limits. It directly affects individuals and businesses using these agreements to fund legal cases, as all repayment terms - regardless of contract wording like "investment" or "use fees" - are treated as interest under usury laws. The bill makes it illegal for lenders to charge rates exceeding state limits, even if repayment depends on case outcomes. This ensures such agreements cannot bypass standard loan regulations.