N.Y. Financial Services Law § 1009: Registration

§ 1009. Registration. (a) Except as provided in this section, no

person may engage in litigation funding in this state without being

registered with the department. The registration requirement shall not

apply to a banking organization as defined in subdivision eleven of

section two of the banking law or a licensed lender licensed pursuant to

article nine of the banking law.

(b) An application for registration shall be filed in the manner

prescribed by the superintendent and must contain all the information

required by the department. The application shall be accompanied by a

five hundred dollar fee. The superintendent shall have the power to

approve or deny a registration application, based on whether such

application is complete, accurate and otherwise in compliance with

applicable laws or regulations.

(c) The superintendent may revoke or suspend the registration of any

litigation funding company if, upon notice and a hearing, the

superintendent determines that the litigation funding company or any

member, principal, officer, director or controlling person of the

litigation funding company has:

(i) committed a violation of the insurance law, banking law or this

chapter or any regulation promulgated thereunder, an order or subpoena

of the superintendent or the head of another state's insurance, banking

or financial services regulatory agency or federal agency with authority

to regulate litigation funding companies, or has violated any other law

in the course of engaging in the business of a litigation funding

company;

(ii) provided materially incorrect, materially misleading, materially

incomplete or materially untrue information in the registration

application;

(iii) failed to comply with the requirements of this article or any

other applicable provision of the banking law or the insurance law;

(iv) used fraudulent, coercive or dishonest practices in the conduct

of litigation funding company business;

(v) improperly withheld, misappropriated or converted any monies or

properties received in the course of business in this state or

elsewhere;

(vi) admitted or been found to have committed any unfair trade

practice or fraud; or

(vii) had its registration, or its equivalent, denied, suspended or

revoked in any other state, province, district or territory.

(d) Upon the revocation or suspension by the superintendent of the

registration of a litigation funding company, the superintendent shall

forthwith notify such litigation funding company. The revocation or

suspension of any registration pursuant to this section shall terminate

or suspend, respectively, such registration immediately upon the

issuance of such notice.

(e) All litigation funding contracts entered into prior to the

effective date of this article are not subject to the terms of this

article.

(f) A litigation funding company that has filed an application for

registration with the department, within one hundred eighty days of when

the department first makes such applications available, may enter into

litigation funding contracts, while their application remains pending

with the department.

(g) The superintendent is hereby authorized to adopt rules and

regulations to implement the provisions of this article as needed.