N.Y. FIS Law § 1009 — New York Code / Act FIS / Article 10 / Section 1009
Registration
Status: in_force

§ 1009. Registration. (a) Except as provided in this section, no\nperson may engage in litigation funding in this state without being\nregistered with the department. The registration requirement shall not\napply to a banking organization as defined in subdivision eleven of\nsection two of the banking law or a licensed lender licensed pursuant to\narticle nine of the banking law.\n  (b) An application for registration shall be filed in the manner\nprescribed by the superintendent and must contain all the information\nrequired by the department. The application shall be accompanied by a\nfive hundred dollar fee. The superintendent shall have the power to\napprove or deny a registration application, based on whether such\napplication is complete, accurate and otherwise in compliance with\napplicable laws or regulations.\n  (c) The superintendent may revoke or suspend the registration of any\nlitigation funding company if, upon notice and a hearing, the\nsuperintendent determines that the litigation funding company or any\nmember, principal, officer, director or controlling person of the\nlitigation funding company has:\n  (i) committed a violation of the insurance law, banking law or this\nchapter or any regulation promulgated thereunder, an order or subpoena\nof the superintendent or the head of another state's insurance, banking\nor financial services regulatory agency or federal agency with authority\nto regulate litigation funding companies, or has violated any other law\nin the course of engaging in the business of a litigation funding\ncompany;\n  (ii) provided materially incorrect, materially misleading, materially\nincomplete or materially untrue information in the registration\napplication;\n  (iii) failed to comply with the requirements of this article or any\nother applicable provision of the banking law or the insurance law;\n  (iv) used fraudulent, coercive or dishonest practices in the conduct\nof litigation funding company business;\n  (v) improperly withheld, misappropriated or converted any monies or\nproperties received in the course of business in this state or\nelsewhere;\n  (vi) admitted or been found to have committed any unfair trade\npractice or fraud; or\n  (vii) had its registration, or its equivalent, denied, suspended or\nrevoked in any other state, province, district or territory.\n  (d) Upon the revocation or suspension by the superintendent of the\nregistration of a litigation funding company, the superintendent shall\nforthwith notify such litigation funding company. The revocation or\nsuspension of any registration pursuant to this section shall terminate\nor suspend, respectively, such registration immediately upon the\nissuance of such notice.\n  (e) All litigation funding contracts entered into prior to the\neffective date of this article are not subject to the terms of this\narticle.\n  (f) A litigation funding company that has filed an application for\nregistration with the department, within one hundred eighty days of when\nthe department first makes such applications available, may enter into\nlitigation funding contracts, while their application remains pending\nwith the department.\n  (g) The superintendent is hereby authorized to adopt rules and\nregulations to implement the provisions of this article as needed.\n