§ 25-3305.Assessment of fees; restrictions; calculations.
Article 33: Nonrecourse Civil Litigation Act · Last amended 2010 · Last verified July 22, 2026
In one sentenceThis section caps how long a civil litigation funding company may keep charging fees on an advance at thirty-six months, sets semiannual compounding as the least frequent allowed, and requires the annual percentage rate to be based only on amounts the consumer keeps.
Full Text of § 25-3305
Text size
(1) A civil litigation funding company may not assess fees for any period exceeding thirty-six months from the date of the contract with the consumer.
(2) Fees assessed by the civil litigation funding company shall compound at least semiannually but shall not compound based on any lesser time period.
(3) In calculating the annual percentage fee or rate of return, a civil litigation funding company shall include all charges payable directly or indirectly by the consumer and shall compute the rate based only on amounts actually received and retained by a consumer.
Source
Laws 2010, LB1094, § 5.
Plain-English Summary
Section 25-3305 puts limits on the cost side of a funding transaction, working alongside the disclosure requirements in section 25-3303. A funding company cannot assess fees for any period longer than thirty-six months from the date of the contract, so the meter cannot keep running indefinitely while a lawsuit drags on. Fees must compound at least semiannually, and the section forbids compounding on any shorter interval than that.
The section also fixes how the rate itself gets calculated. In figuring the annual percentage fee or rate of return, the company has to include every charge the consumer pays directly or indirectly, and it must compute that rate using only the amount the consumer receives and keeps — not the gross contract figure before fees and deductions. Read together with section 25-3303’s disclosure requirements, this gives a consumer a rate calculation that reflects the real cost of the money advanced.
Frequently Asked Questions
How long can a funding company keep charging fees on an advance?
No more than thirty-six months from the date of the contract with the consumer.
How often can fees compound under this section?
At least semiannually. The section does not allow compounding on any shorter interval.
Does the annual percentage rate include broker fees and other charges?
Yes. The company must include all charges the consumer pays directly or indirectly when calculating the annual percentage fee or rate of return.
Is the rate calculated on the full contract amount or on what the consumer keeps?
On what the consumer receives and keeps, not the gross figure before fees and deductions.
Why does the compounding frequency matter to a consumer?
More frequent compounding increases the effective cost of the funding faster over time, which is why the section sets semiannual compounding as the outer limit of frequency.
Source & verification. Section text and the amendment-history citation are
reproduced verbatim from the Nebraska Legislature, Revisor of Statutes, enacted by the
Nebraska Legislature. Last verified July 22, 2026. ·
Official source
Also known as:litigation funding fee cap Nebraskalawsuit funding APR calculationthirty-six month fee limit litigation fundingcompounding fees lawsuit loan contract