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IC 24-12-2
Chapter 2. CPAP Contract Requirements
IC 24-12-2-1
CPAP contract requirements; attorney's written acknowledgment
Sec. 1. Every CPAP transaction must meet the following
requirements:
(1) The CPAP contract must be completely filled in when
presented to the consumer claimant for signature.
(2) The CPAP contract must contain, in bold and boxed type, a
right of rescission, allowing the consumer claimant to cancel
the contract without penalty or further obligation if, not later
than five (5) business days after the funding date, the consumer
claimant either:
(A) returns to the CPAP provider the full amount of the
disbursed funds by delivering the provider's uncashed check
to the provider's office in person; or
(B) mails, by insured, certified, or registered United States
mail, to the address specified in the contract, a notice of
cancellation and includes in the mailing a return of the full
amount of disbursed funds in the form of the provider's
uncashed check or a registered or certified check or money
order.
(3) The CPAP contract must contain the initials of the consumer
claimant on each page.
(4) If the consumer claimant is represented by an attorney in the
civil proceeding on which a CPAP transaction is based, the
CPAP contract must contain a written acknowledgment by the
attorney that attests to the following:
(A) That to the best of the attorney's knowledge, all costs
and charges relating to the CPAP transaction have been
disclosed to the consumer claimant.
(B) That the attorney is being paid by the consumer claimant
on a contingency basis under a written fee agreement.
(C) That all proceeds of the civil proceeding will be
disbursed through a trust account of the attorney, or through
a settlement fund established to receive the proceeds of the
civil proceeding on behalf of the consumer claimant.
(D) That the attorney is following the instructions of the
consumer claimant with respect to the CPAP transaction.
(E) That the attorney has not received a referral fee or other
consideration from the CPAP provider, and agrees not to
receive a referral fee or other consideration from the CPAP
provider at any time, in connection with the CPAP
transaction.
If the attorney retained by the consumer claimant in the
consumer claimant's civil proceeding does not complete the
acknowledgment required by this subdivision, the CPAP
Indiana Code 2016
contract, and the CPAP transaction to which it pertains, are
void. However, the CPAP contract, and the CPAP transaction
to which it pertains, remain valid and enforceable if the
consumer claimant or the attorney terminates the representation.
As added by P.L.153-2016, SEC.7.
Indiana Code 2016
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