RSA 294-F:1 Definitions.
294-F:1. Definitions.
In this chapter:
I. "Commercial litigation financier" means a person in the business of entering into commercial litigation financing agreements or lawyer financing agreements. The term "commercial litigation financier" shall not include a nonprofit organization exempt from federal income tax under 501(c)(3) of the United States Internal Revenue Code or its funders if the nonprofit organization represents the claimant on a pro bono basis, which may include an award of costs or attorney fees to the nonprofit organization or a related attorney.
II. "Consumer legal funding agreement" means a non-recourse transaction in which a consumer litigation funding company purchases, and a consumer assigns to the company, a contingent right to receive an amount of the potential proceeds of a settlement, judgment, award, or verdict obtained in the consumer's legal claim.
III. "Commercial litigation financing agreement" means, with respect to any civil action or group of civil actions, a written agreement:
(a) Whereby a third party agrees to provide funds to one of the named parties or any law firm affiliated with the action or group of actions; and
(b) Which creates a direct or collateralized interest in the proceeds of a civil action or group of civil actions, by settlement, verdict, judgment, or otherwise, where such interest is based in whole or in part on a funding obligation to the funded party in the action or group of actions.
(1) "Commercial litigation financing agreement" shall include any contract, including any option, forward contract, futures contract, short position, swap, or similar contract, or other agreement that is substantially similar to a litigation financing agreement.
(2) "Commercial litigation financing agreement" shall not include:
(A) A consumer legal funding agreement;
(B) An agreement by an attorney or law firm to provide legal services on a contingency fee basis to the claimant or to advance the claimant's legal costs in accordance with the New Hampshire rules of professional conduct;
(C) A health insurer, medical provider, or assignee that has paid, is obligated to pay, or is owed any sums for a person's health care under the terms of a health insurance plan or agreement;
(D) A financial institution providing loans to the claimant or the claimant's attorney or law firm when repayment is not contingent upon the outcome of the legal claim or on the outcome of any matter within a portfolio that includes the legal claim and involves the same attorney or law firm or affiliated attorney or law firm; or
(E) A person with a preexisting contractual obligation to indemnify or defend a party to a legal claim.
IV. "Foreign country of concern" means a foreign government or person listed as a "foreign adversary" under 15 C.F.R. 791.4.
V. "Foreign entity of concern" or "foreign person of concern" means an entity or person that:
(a) Is organized or incorporated in a foreign country of concern;
(b) Is owned or controlled by the government, a political subdivision, or a political party of a foreign country of concern;
(c) Has its principal place of business in a foreign country of concern; or
(d) Is owned, organized, or controlled by, affiliated with, or acting on behalf of an individual or entity that is or has been:
(1) On a sanctions list maintained by the Office of Foreign Assets Control, including:
(A) Specially Designated Nationals and Blocked Persons List (SDN List);
(B) Foreign Sanctions Evaders List;
(C) Non-SDN Iran Sanctions Act List;
(D) Sectoral Sanctions Identifications List; or
(E) List of Foreign Financial Institutions Subject to Correspondent Account and Payable-Through Account Sanctions; or
(2) Designated by the United States Secretary of State as a foreign terrorist organization.
[RSA 294-F:1 effective January 1, 2027.]
Source. 2026, 226:1, eff. Jan. 1, 2027.