New York’s Litigation Funding Act took effect June 17, 2026. We help your firm stay compliant, protected, and informed.
Now in effect: New York’s Litigation Funding Act (Financial Services Law Article 10) caps a funder’s total charges at the funded amount plus 25% of the plaintiff’s gross recovery. An attorney who distributes settlement proceeds in excess of that limit may face exposure to their own client. Two steps protect your firm: (1) require a written compliance certification confirming the funding contract meets the Act’s terms — the funded-amount-plus-25% charge limit, 12-point bold disclosures, and the 10-business-day rescission right — before referring any client, and (2) require an indemnification agreement from every funding company before disbursing any settlement funds.
A funder’s total charges — the funded amount plus interest and fees — are capped at the funded amount plus 25% of the plaintiff’s gross recovery, measured on the gross settlement or judgment before any deduction for legal fees or expenses. If a funder’s payoff exceeds this limit, an attorney who distributes those funds may face exposure to their client. Where a client has agreements with more than one funding company on the same claim, the Act restricts multi-funder arrangements — see “The multi-funder problem” below. Applies to all contracts signed on or after June 17, 2026.
Originally enacted December 19, 2025 and re-enacted as Financial Services Law Article 10, effective June 17, 2026. New York’s first comprehensive regulatory framework for non-recourse legal funding — and a new source of liability for personal injury firms.
Concierge Funding’s contracts comply with the Act — total charges capped at the funded amount plus 25% of gross recovery, all required 12-point bold disclosures, and the 10-business-day right of rescission. We will register with New York State when the registration requirement takes effect February 13, 2027. We provide a Payoff Compliance Certificate at settlement confirming our charges comply with the statutory cap — and we execute a full indemnification agreement protecting your firm at the time of payoff.
Obligations and risks vary significantly by jurisdiction. Requirements for each state where your firm handles cases are set out below.
Comprehensive law in effect — June 17, 2026
No comprehensive statute — Florida Bar ethics rules apply
Every form your firm needs to document compliance, verify the charge limit, and protect against liability — available as PDF downloads.
The funding company certifies in writing that its contract meets the Act’s requirements and that its total charges comply with the funded-amount-plus-25% limit. Signed at time of initial funding.
Required at settlement disbursement. The funder certifies the payoff complies with the charge limit and agrees to indemnify and hold harmless your firm. Issued for single-funder matters; the Act restricts multi-funder arrangements and requires written consent of all parties.
Documents that the attorney remained neutral, did not accept referral fees, and confirmed the non-recourse nature of the funding. Creates a record that your firm met its professional obligations on every referral.
Issued by Concierge Funding with every payoff letter. Certifies the payoff amount, the gross recovery used to calculate the limit, and confirms total charges do not exceed the funded amount plus 25%. Signed by our compliance officer. Attach to your settlement file.
Before referring any client to any funder.
We publish updates here as the Act’s requirements take effect and as further guidance is issued.
DFS begins accepting funder registration applications. A funder that applies within 180 days of the window opening may continue to fund while its application is pending.
Coming Soon
Schedule a call with our team or reach us directly.
+1 (844) 360-1818
info@conciergefunding.com
100 Garden City Plaza, Suite 518
Garden City NY 11530