Under the Tennessee Litigation Financing Consumer Protection Act, any business operating as a litigation financier in the state must be registered and provide a surety bond in compliance with Tennessee Code Annotated § 47-16-103. This bond serves as a financial guarantee that the litigation financier will adhere to the law and protect consumers from unfair or deceptive practices.

What Is a Litigation Financing Surety Bond?

A litigation financing surety bond is a license and compliance bond required by the State of Tennessee for any company or individual offering litigation funding. The bond provides protection for consumers by ensuring the financier abides by all applicable laws and ethical standards when providing cash advances in exchange for an interest in a pending lawsuit settlement.

Statutory Authority: T.C.A. § 47-16-103

According to Tennessee law:

• T.C.A. § 47-16-103(a): No person shall operate as a litigation financier without first filing a surety bond with the Secretary of State.
• T.C.A. § 47-16-103(b): The bond must be in the amount of $50,000 and remain in effect as long as the litigation financier is active.
• T.C.A. § 47-16-103(c): The bond ensures compensation for any person injured by a violation of the Act.

This requirement applies statewide and is enforced by the Tennessee Secretary of State or relevant regulatory agency.

Who Is Required to Post This Bond?

The surety bond is mandatory for any individual or business that:

• Engages in non-recourse civil litigation funding
• Provides advances to consumers based on pending legal claims
• Operates in Tennessee under the Litigation Financing Consumer Protection Act

If you are applying to become a registered litigation financier in Tennessee, you must secure this bond before conducting any business transactions.

Bond Details and Conditions

• Required Bond Amount: $50,000
• Average Bond Premium: $500
• Obligee: State of Tennessee (typically the Secretary of State)
• Bond Term: Annual renewal required to maintain license
• Claims Process: Consumers may file claims for damages resulting from the financier's breach of the Act

Why This Bond Matters

This bond is not just a formality—it serves a vital public protection role. It ensures that litigation financiers:

• Operate transparently and in compliance with Tennessee law
• Do not charge hidden or predatory fees
• Provide clear and accurate disclosures to consumers

How to Apply for a Tennessee Litigation Financing Bond

At A1SuretyBonds.com, we make the process quick, easy, and secure. Whether you're a new registrant or renewing an existing bond, we provide fast approval and competitive rates from A-rated carriers.

Why Choose A1SuretyBonds?

• Instant quotes and secure online application
• Expert guidance from surety professionals
• Low rates for qualified applicants
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Apply for Your TN Litigation Financing Bond Now

Additional Resources for TN Litigation Financier licensing

• Tennessee Secretary of State
• Full Text of the Litigation Financing Consumer Protection Act
• Contact A1SuretyBonds for expert assistance

*Rates and approval based on credit and underwriting criteria.