Can I get a cash advance on my lawsuit in North Dakota, and what does North Dakota law say?

By Michael Shemtoub, trial attorney, Beverly Law. Updated November 2026.

No statute and no court ruling we could find

We did not find a North Dakota statute, appellate decision or published regulator position on consumer lawsuit advances, and we did not verify any bill on the subject. That leaves the general law. The open question in every state without a statute is whether a non-recourse advance, repaid only if the case wins, is a “loan” at all. Courts in other states have answered differently, and our page on whether a lawsuit cash advance is a loan covers that split. No North Dakota court has answered it that we found.

North Dakota’s usury law

Chapter 47-14 of the North Dakota Century Code sets the general ceiling.

• The limit. Under section 47-14-09, no one lending money may charge more than “five and one-half percent per annum higher than the current cost of money,” and the ceiling “may not be less than seven percent.” The cost of money is the average rate on six-month U.S. Treasury bills over the prior six months, as declared monthly by the state banking commissioner. Interest “may not be compounded,” and “Any violation of this section is deemed usury.”
• What is exempt. The section does not apply to loans to corporations, LLCs, cooperatives, trusts and certain partnerships, to loans with a principal of “more than thirty-five thousand dollars,” or to loans by lending institutions regulated or funded by a state or federal agency.
• Penalties. Under section 47-14-10, a usurious charge forfeits “the entire interest” plus 25 percent of the principal. A borrower who already paid may recover “twice the amount of interest thus paid,” plus 25 percent of the principal, in an action brought within four years, or may offset that amount against what the borrower owes. Section 47-14-11 makes charging a usurious rate a class B misdemeanor.

Money broker licensing and the 36 percent cap

North Dakota licenses lenders through its money broker law, chapter 13-04.1 (text).

• Who is covered. “Money brokering” includes “arranging or providing loans or leases as a form of financing” for people or businesses seeking funds “for any purposes” (section 13-04.1-01.1(5)). A license is required, and a person engages in money brokering in the state “if the borrower resides in North Dakota” (section 13-04.1-02).
• The cap. A licensee “may not contract for or receive finance charges pursuant to a loan in excess of an annual rate of thirty-six percent,” counting charges and fees at origination (section 13-04.1-09.3(1)).
• Penalties. Doing business without a license is a prohibited act (section 13-04.1-09(7)) and a class C felony (section 13-04.1-13). The commissioner may also impose a civil penalty that may “not exceed one hundred thousand dollars for each occurrence.”

Whether a company advancing money against a North Dakota injury claim must hold this license depends on that same loan question. If you are offered an advance, you can ask the Department of Financial Institutions whether the company holds a license.

A North Dakota lawyer may act as guarantor on a loan

Many states follow ABA Model Rule 1.8(e), which lets a lawyer advance court costs and case expenses and little else. North Dakota adds a third exception. Under N.D.R. Prof. Conduct 1.8(e)(3), a lawyer may stand behind “a loan reasonably needed to enable the client to withstand delay in litigation that would otherwise put substantial pressure on the client to settle a case because of financial hardship rather than on the merits.” Two conditions apply: the client “remains ultimately liable for repayment of the loan without regard to the outcome,” and no promise of financial help was made before the client hired the lawyer. Comment [11] adds that the rule does not require any lawyer to do this. The current version has been in effect since August 1, 2009.

This is different from a lawsuit advance. A loan backed by your lawyer is a regular loan you must repay even if you lose, often from a bank. It is one of the options on our alternatives to pre-settlement funding page, and can my lawyer give me money before settlement compares the rules in other states.

Your filing deadline in North Dakota

North Dakota gives more time than most states for many injury claims. Section 28-01-16(5) sets six years for “any other injury to the person or rights of another not arising upon contract,” when not otherwise expressly provided. Section 28-01-18 sets two years for assault, battery and similar claims, and for “injuries done to the person of another, when death ensues from such injuries” (chapter 28-01). Other claims may have their own rules, and a lawsuit advance does not extend any of them.

What to ask before you sign

• Does the company hold a North Dakota money broker license, and if it says it does not need one, on what basis?
• What annual rate does the payoff equal at 12 and 24 months, and how does it compare with the 36 percent cap?
• Would a bank loan backed by your lawyer under Rule 1.8(e)(3) cost less, and can you carry the risk of owing it if the case is lost?
• Has your lawyer read the contract and agreed to any payment directions in it?

Common questions

Related pages

Cash advance on a lawsuit · Laws by state · Injury law FAQs

Important: This page is general information, not legal or medical advice, and reading it does not create an attorney-client relationship. Every case is different; talk to a lawyer about yours. Texas cases are handled by the firm’s Texas-licensed attorneys, Joyce Ondich and John Efstathiou. Last reviewed: November 7, 2026.