N.Y.
General Business Law Section 899-KKK
Registration
1.
Unless a consumer litigation funding company has first registered with the state of New York pursuant to this article, the company may not engage in the business of consumer litigation funding in this state.2.
An applicant’s registration must be filed in the manner prescribed by the secretary of state and must contain all the information required by the department of state to make an evaluation of the character and fitness of the applicant company. The initial application must be accompanied by a five hundred dollar fee. A renewal registration must include a two hundred dollar fee. A registration must be renewed every two years and expires on the thirtieth of September.3.
A certificate of registration may not be issued unless the department of state, upon investigation, finds that the character and fitness of the applicant company, and of the officers and directors thereof, are such as to warrant belief that the business will be operated honestly and fairly within the purposes of this article.4.
Every registrant shall also, at the time of filing such application, file with the department of state, if the department of state so requires, a bond satisfactory to the department of state in an amount not to exceed fifty thousand dollars. In lieu of the bond at the option of the registrant, the registrant may post an irrevocable letter of credit. The terms of the bond must run concurrent with the period of time during which the registration will be in effect. The bond must provide that the registrant will faithfully conform to and abide by the provisions of this article and to all rules lawfully made by the administrator under this act and to any such person or persons any and all amounts of money that may become due or owing to the state or to such person or persons from the registrant under and by virtue of this article during the period for which the bond is given.5.
Upon written request, the applicant shall be entitled to a hearing on the question of the applicant’s qualifications for registration if:(a)
the department of state has notified the applicant in writing that the application has been denied, or(b)
the department of state has not issued a registration within sixty days after the application for the registration was filed.6.
A request for a hearing may not be made more than fifteen days after the department has mailed a written notice to the applicant that the application has been denied and stating in substance the department of state’s findings supporting denial of the application.7.
Notwithstanding the prior approval requirement of subdivision one of this section, a consumer litigation funding company that registered with the department of state between the effective date of this article or when the department of state has made applications available to the public, whichever is later, and one hundred eighty days thereafter may engage in consumer litigation funding while the company’s registration is pending approval with the department of state. All funding agreements entered into prior to the effective date of this article are not subject to the terms of this article.8.
No consumer litigation funding company may use any form of consumer litigation funding contract in this state unless it has been filed with the department of state in accordance with the filing procedures set forth by the secretary of state.9.
The secretary of state is hereby authorized to adopt rules and regulations to implement the provisions of this section as needed. * NB Effective June 17, 2026
Source:
Section 899-KKK — Registration, https://www.nysenate.gov/legislation/laws/GBS/899-KKK (updated Dec. 26, 2025; accessed Jan. 10, 2026).
