Mo. Rev. Stat. § 436.552 — MO Code / Chapter 436 / Section 436.552
436.552 Definitions.
Status: in_force

436.552. Definitions. — As used in sections 436.550 to 436.572 , the following terms mean:

(1) "Advertise" , publishing or disseminating any written, electronic, or printed communication or any communication by means of recorded telephone messages or transmitted on radio, television, the internet, or similar communications media, including film strips, motion pictures, and videos, published, disseminated, circulated, or placed before the public, directly or indirectly, for the purpose of inducing a consumer to enter into a consumer legal funding contract;

(2) "Affiliate" , as defined in section 515.505 ;

(3) "Charges" , the amount of moneys to be paid to the consumer legal funding company by or on behalf of the consumer above the funded amount provided by or on behalf of the company to a consumer under sections 436.550 to 436.572 . Charges include all administrative, origination, underwriting, or other fees, no matter how denominated;

(4) "Consumer" , a natural person who has a legal claim and resides or is domiciled in Missouri;

(5) "Consumer legal funding company" or "company" , a person or entity that enters into a consumer legal funding contract with a consumer for an amount less than five hundred thousand dollars. The term shall not include:

(a) An immediate family member of the consumer;

(b) A bank, lender, financing entity, or other special purpose entity:

a. That provides financing to a consumer legal funding company; or

b. To which a consumer legal funding company grants a security interest or transfers any rights or interest in a consumer legal funding; or

(c) An attorney or accountant who provides services to a consumer;

(6) "Consumer legal funding contract" , a nonrecourse contractual transaction in which a consumer legal 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, so long as all of the following apply:

(a) The consumer, at their sole discretion, shall use the funds to address personal needs or household expenses;

(b) The consumer shall not use the funds to pay for attorneys' fees, legal filings, legal marketing, legal document preparation or drafting, appeals, expert testimony, or other litigation-related expenses;

(7) "Director" , the director of the division of finance within the department of commerce and insurance;

(8) "Division" , the division of finance within the department of commerce and insurance;

(9) "Funded amount" , the amount of moneys provided to or on behalf of the consumer in the consumer legal funding contract. "Funded amount" shall not include charges;

(10) "Funding date" , the date on which the funded amount is transferred to the consumer by the consumer legal funding company either by personal delivery, via wire, automated clearing house transfer, or other electronic means, or by insured, certified, or registered United States mail;

(11) "Immediate family member" , a parent; sibling; child by blood, adoption, or marriage; spouse; grandparent; or grandchild;

(12) "Legal claim" , a bona fide civil claim or cause of action;

(13) "Medical provider" , any person or business providing medical services of any kind to a consumer including, but not limited to, physicians, nurse practitioners, hospitals, physical therapists, chiropractors, or radiologists as well as any of their employees or contractors or any practice groups, partnerships, or incorporations of the same;

(14) "Resolution date" , the date the amount funded to the consumer, plus the agreed-upon charges, is delivered to the consumer legal funding company.

(L. 2023 S.B. 103)