Every CPAP transaction must meet the following requirements:

1. (1) The CPAP contract must be completely filled in when presented to the consumer claimant for signature.

2. (2) The CPAP contract must contain, in bold font contained within a box, 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:

   1. (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
   2. (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. (3) The CPAP contract must contain the initials of the consumer claimant on each page.

4. (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:

   1. (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.
   2. (B) That the attorney is being paid by the consumer claimant on a contingency basis under a written fee agreement.
   3. (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.
   4. (D) That the attorney is following the instructions of the consumer claimant with respect to the CPAP transaction.

   5. (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 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. Amended by P.L.176-2019, SEC.38.