Terms of Service

Terms of Service for Capital Funding TX, LLC (d/b/a Sum Funding)

Effective Date: 9/26/25

1. Introduction and Acceptance

Welcome to Sum Funding, the d/b/a of Capital Funding TX, LLC (referred to as “Company,” “we,” “us,” or “our”). These Terms of Service (the “Terms” or “Agreement”) govern your access to and use of our website, products, and services. By using our services or website, you (the “user,” “client,” or “you”) acknowledge that you have read, understood, and agree to be bound by these Terms, together with any other documents or policies expressly incorporated by reference. If you do not agree with any part of these Terms, you must not use our website or services.

Eligibility: Our services are intended for individuals 18 years of age or older and residing in the United States. By agreeing to these Terms, you represent that you are at least 18 and legally capable of entering into a binding contract. If you are using our services on behalf of a company or as an attorney representing a client, you also represent that you have the authority to bind that entity or client to this Agreement.

Attorney Users: We provide services both to individual consumer clients and to legal professionals (e.g. attorneys) assisting those clients. The Terms below apply to all users. If you are an attorney using our services on behalf of your client or accessing attorney-specific resources, you are also agreeing to these Terms. Certain provisions below specifically address additional obligations of attorneys (see Section 8: Attorney Cooperation and Obligations). We have embedded attorney-specific terms within this Agreement for clarity, rather than issuing a separate attorney Terms of Service, so that all users can conveniently reference the complete set of provisions in one document.

By accessing or using our website or requesting our funding services, you accept these Terms and enter into a legally binding agreement with the Company. PLEASE READ THESE TERMS CAREFULLY. They include important disclaimers of liability (such as Sections on No Warranty and Limitation of Liability), an agreement to resolve disputes by binding arbitration on an individual basis (see Section 16), a waiver of class actions, and other provisions that affect your legal rights. If you do not agree to these Terms, you should not use our website or services.

2. Description of Services

Sum Funding provides pre-settlement legal funding services, sometimes called lawsuit advances. This means we can provide you, as a plaintiff in a legal claim, with an advance payment before your case is resolved. In exchange, you agree to sell and assign to us a portion of the potential proceeds from your legal claim or settlement. This is a non-recourse purchase of an interest in your future settlement, not a loan or credit extension. “Non-recourse” means that if you recover nothing from your lawsuit (for example, if you lose your case or there is no settlement), you owe us nothing and we will not seek repayment from you personally. We take the risk of no recovery. If there is a recovery in your case, then our payment comes only from an agreed portion of that recovery, as specified in a funding agreement that will be provided to you upon approval.

Our services are offered across the United States (except where prohibited or restricted by law). We make no representation that our services or website content are appropriate or available in jurisdictions outside the U.S., and accessing our site from other jurisdictions is at your own initiative and risk. Availability of funding and specific terms may vary by state and are subject to applicable law and underwriting criteria. We reserve the right to decline to provide funding in any particular case or jurisdiction in our sole discretion. All transactions are subject to our final approval and underwriting; we are under no obligation to fund any particular request. Any descriptions of our process on our website (such as “approval in 24 hours” or “get cash in as little as 24 hours”) are for general informational purposes and are not a guarantee of timing or approval in your specific situation.

No Guarantee of Outcome: While we strive to provide timely financial assistance, we do not guarantee that using our service will result in a successful legal outcome or any particular amount of settlement. The outcome of your case depends on many factors outside our control (such as facts of the case, legal merits, the actions of courts or juries, etc.), and we make no promise that our funding will lead to a higher settlement or verdict. You and your attorney remain solely responsible for decisions regarding your legal claim. We do not control or influence the prosecution, settlement, or strategy of your underlying legal case, and we do not guarantee that you will ultimately receive any funds from the case or that the funds we advance will be sufficient for your needs. All funding decisions and transaction terms are at our sole discretion and subject to conditions – we may approve or deny funding in each case as we deem appropriate, without liability. Furthermore, nothing on our website constitutes a guarantee that you will qualify for funding or that funding terms will be the same as examples provided. Until a definitive funding agreement is signed by all parties, any funding quotes or approvals (pre-approval) we provide are conditional and subject to change.

3. Non-Recourse Funding (Not a Loan)

It is **crucial to understand that our financial advances are non-recourse transactions, not loans. This means the money we provide is in exchange for an ownership interest in the future proceeds of your legal claim, and you will owe us nothing if you receive no recovery in your case. Because it is not a loan, our funding does not require monthly payments, does not charge “interest” in the traditional sense, and is not subject to usury laws or regulations governing loans. Instead, if your case is successful (through settlement or judgment), the funding is repaid from an agreed portion of that success (typically, the repayment amount is the original advance plus a predetermined fee or growth amount as specified in your contract). We do not require any collateral beyond the interest in your case proceeds, and we have no recourse against your personal assets beyond the recovery of the lawsuit.

You acknowledge and agree that this arrangement is a sale of a portion of your potential recovery and not an offer or extension of credit. Accordingly, you are not taking on a debt in the traditional sense, and no repayment is owed if you do not receive a settlement/judgment. We do not report our funding transactions to consumer credit bureaus, as they are not credit transactions. However, if you do receive proceeds from your case, you are contractually obligated to ensure we receive the agreed repayment from those proceeds (see Section 8 on Attorney cooperation). If you (the plaintiff) or your attorney fail to remit payment to us from a successful recovery despite receiving one, that will be considered a breach of these Terms and of the funding agreement, and we reserve the right to pursue all available legal remedies for such breach.

No Personal Liability: Consistent with the non-recourse nature of our funding, we do not hold you personally liable for the advance in the event your case yields no recovery. We cannot and will not pursue you for the advance if your case is unsuccessful. This is a key consumer protection of our service and is one way it differs from a traditional loan or debt. Please note: If we discover that your case was settled or recovered funds and you or your attorney failed to pay our portion, or if there was fraud or misrepresentation on your part in obtaining funding, those situations are outside the scope of the normal non-recourse arrangement and we reserve the right to enforce our contractual rights. But if your case truly fails to recover anything, you owe nothing.

4. No Financial, Legal or Tax Advice; No Fiduciary Relationship

No Advice: We are not a law firm, tax advisor, or financial planner, and we do not provide legal, tax, accounting, or financial advice. Any informational content on our website or communications from our staff (including AI-generated content, chat assistance, or marketing materials) is for general informational purposes only and should not be interpreted as professional advice on your case, tax situation, or financial decisions. You should consult your own attorney, tax advisor, or financial advisor before making legal or financial decisions. Entering into a funding transaction with us should be done only after you understand the terms and, if needed, have discussed it with your attorney or advisor. We encourage you to seek independent professional advice to ensure that our services meet your needs and that you fully understand any implications (for example, potential tax consequences of receiving a lump-sum advance or how it might affect your legal strategy).

No Fiduciary Duty: Your relationship with us is that of counterparties to a commercial transaction – it is not a fiduciary, confidential, or attorney-client relationship. We act in our own financial interest as a purchaser of an asset (a portion of your claim proceeds) and do not act as an agent or fiduciary for you. This means we have no special duty to act for your benefit beyond the obligations expressly set forth in this Agreement and the funding contract. For example, we are not obligated to advise you about whether taking an advance is in your best interest; those decisions are yours to make (preferably in consultation with your attorney). You acknowledge that we owe you no fiduciary duty or any duty of loyalty or care that would ordinarily arise in a professional advisory or trustee relationship, and you agree that you will not assert any claim that we have any such obligations. We will, of course, perform our explicit contractual obligations in good faith, but we are not your lawyer or financial advisor.

No Attorney-Client Relationship: Although your attorney may coordinate with us and you regarding the funding, our Company is not providing you any legal representation. Communications with us are not privileged in the way communications with your own attorney would be. Any involvement or cooperation we have with your attorney is solely to facilitate the transaction (such as getting case information or ensuring repayment from settlement). Neither this Agreement nor any communications from us should be construed as legal advice. Similarly, any information we provide about the legal process is purely for general understanding and should not be relied upon as advice for your specific situation.

No Tax or Financial Planning Advice: We do not provide tax advice or financial planning services. If your funding transaction could have tax implications (for example, some lawsuit proceeds or forgiven obligations might be taxable in certain situations), you should consult a qualified tax professional. We make no representations and assume no responsibility for any tax consequences of our transactions. Likewise, we do not advise you on managing the funds you receive; you are responsible for how you use the advance.

5. Application and Approval Process

To apply for our pre-settlement funding, you will need to submit certain information to us, which may include personal identification details, information about your legal claim (such as the type of case, the injuries or damages, insurance information, etc.), and contact details for your attorney. You represent and warrant that all information you provide to us (whether through an online form, by phone, or through your attorney) is true, accurate, and complete to the best of your knowledge. You agree not to omit any material facts that might affect our underwriting decision. Providing false or misleading information can result in denial of your application, termination of any funding agreement, and potential legal liability.

No Obligation Until Final Approval: When you apply, we will evaluate your case information and may contact your attorney to gather more details. Any indication that you are “pre-approved” or qualify for a certain amount is conditional and not binding on us until we complete review and issue final approval in writing. We may require you (and your attorney) to sign certain documents (such as a funding agreement, attorney acknowledgment, etc.) as a condition of funding. Your application is not a contract and we are not obligated to provide funding unless and until a formal agreement is executed by all required parties. We reserve the right, at our sole discretion, to decline your funding request or to offer a different amount or terms than you requested. Our underwriting criteria are confidential and may consider factors like the merits of your case, the estimated value of your claim, the stage of litigation, and our risk exposure. We do not discriminate in reviewing applications on any improper basis (such as race, gender, religion, etc.), but we do make decisions based on legitimate business and risk considerations.

Professional Fees and Disclosures: During the application process, we may require contact with your attorney. By applying, you authorize us to communicate with your attorney and obtain non-privileged information about your case (such as case status, insurance policy limits, etc.) as needed to evaluate your request. Your attorney may also provide us documents (e.g., police report, medical reports, demand letters) for underwriting. We will keep any sensitive case information confidential and use it only for evaluation and servicing of the transaction. If approved, the terms of the funding (amount advanced, the amount to be repaid from settlement, and any fees) will be clearly disclosed in a written funding agreement. Please review that agreement carefully with your attorney before signing. If you have any questions about terms or calculations, ask us or your attorney prior to signing. You will have the opportunity to cancel the transaction within any applicable rescission period (if required by state law) or as specified in the funding agreement.

No Guarantee of Funding Amount: The amount we advance is typically a fraction of the estimated value of your case (often we fund a certain percentage of what we believe you may recover). We are not obligated to advance the maximum potential amount. Even if your case might ultimately settle for a large sum, we may choose to fund a lesser amount for risk management. You should not assume you can continually obtain additional funding beyond the initial advance – any additional or repeat funding requests will require separate approval and are not guaranteed. We advise using any advance judiciously for your urgent needs.

Sole Discretion to Approve or Deny: All funding decisions are made by us at our sole discretion. We reserve the right to deny any application or rescind an approval prior to funding if we uncover new information or for any reason that makes the transaction commercially unreasonable for us. We may also withdraw an offer if you fail to sign the required documents in a timely manner or if your attorney does not provide cooperation or required acknowledgments. We shall not be liable for any damages or losses you suffer as a result of a denial of funding, a delay in funding, or a rescission of a conditional approval. Remember, until you have a signed contract and funds have been disbursed, you should not rely on receiving an advance for time-sensitive obligations.

6. Client Obligations During the Funding Relationship

By accepting a pre-settlement advance from us, you agree to certain ongoing obligations designed to protect our mutually agreed interest in your claim:

• Use of Funds: You have discretion to use the advanced funds for your needs (e.g., living expenses, medical bills, etc.), but you agree not to use the funds for any illegal purpose. You understand that the advance is meant to help alleviate financial pressure during your case; however, how you spend it will not affect your obligation to repay from your settlement. We do not control or monitor your use of the funds, but if we are required by law to restrict use for certain purposes (for example, some states may prohibit using such funds to pay for specific case costs), you agree to abide by such restrictions.

• No Additional Assignments Without Consent: You agree not to sell, assign, or pledge any further interest in your legal claim or its proceeds to any other person or funding company without our prior written consent. Taking multiple advances on the same claim from different funders can create complex lien priority issues and jeopardize repayment. Therefore, you agree that you will not obtain additional pre-settlement funding from another provider for the same case without notifying us and, if required, obtaining our consent. We may be willing to work with another funding if arranged, but if you secretly obtain additional funding that adversely affects our rights, it will be considered a breach of this Agreement. (This does not prevent you from obtaining loans or other financial assistance unrelated to the claim’s proceeds.)

• No Settlement Without Consideration of Our Interest: We will never interfere with your right to make decisions in your legal case, including whether and when to settle. However, by accepting our funds, you agree that you (and your attorney) will not deliberately settle or dispose of your legal claim in a manner intended to avoid paying our share. For example, you should not intentionally structure a settlement to exclude the portion assigned to us or otherwise act in bad faith to thwart our recovery. If you have questions about how a settlement will cover the obligation, you or your attorney should communicate with us before finalizing the settlement. In most cases, your attorney will include our lien in the settlement disbursement and there is no issue. We do not require court approval or our own approval of your settlement decisions; we only request honesty and fair dealing such that if there are sufficient proceeds to cover our agreed return, that portion will be paid to us.

• Preservation of Claim Proceeds: You agree not to do anything that intentionally compromises the value of your claim or our rights to the agreed portion of proceeds. This does not mean you must take the case to trial or refuse a settlement – you and your attorney should do what’s in your best interest. It simply means you shouldn’t, for example, waive your rights to a portion of the recovery that we purchased, or agree to a side deal that directs the proceeds elsewhere without satisfying our lien. If you were to violate this and prejudice our ability to be paid from a settlement, we reserve the right to seek appropriate relief (for instance, a court order to enforce the assignment of proceeds).

• Truthful Cooperation: You agree to cooperate in good faith with any reasonable requests we or our agents make in servicing the funding. This might include providing updates about the status of your case (typically we’ll get these through your attorney), notifying us of key events (like if you change attorneys, if a case settles or a judgment is entered, etc.), and providing forwarding information if you change contact details. You must not attempt to hide the outcome of your case or the receipt of funds. If you receive any portion of settlement funds directly (which usually should not happen if your attorney handles disbursement), you must notify us and remit our portion immediately. Your obligations here survive until our transaction is either paid in full or voided (if no recovery).

7. Attorney Cooperation and Acknowledgment

(This section applies to the involvement and obligations of attorneys representing clients who receive funding, and to any attorney or law firm user of our services.)

Attorney Involvement: If you are a client/applicant, you agree that your attorney may be involved in the funding process. Typically, we require the attorney’s cooperation to verify case details and to sign a written Acknowledgment and Agreement (sometimes called a “Attorney Acknowledgment” or “Direction to Pay”). By entering this Agreement, you (client) authorize and direct your attorney to provide information to us as needed and to honor any obligations regarding repayment out of the settlement. You also agree to inform your attorney that you are seeking this funding (if they are not already aware) and obtain their cooperation. If you are an attorney, by assisting your client in obtaining funding or by using our website’s attorney portal, you are agreeing to these Terms and specifically to the provisions in this Section 7.

Direction to Pay and Lien Acknowledgment: As an attorney for a funded client, you will likely be asked to execute a Letter of Direction to Pay or similar instrument, in which your client directs you to pay us from the case proceeds and you acknowledge our rights. By signing such a document, you confirm that your firm will honor our contractual right to payment from any recovery before disbursing funds to the client. You agree to treat our interest as you would a lien or assignment that must be satisfied at settlement. In many cases, our funding agreement with the client will specify that both the client and attorney are responsible for ensuring we are paid from the settlement. If you, as the attorney, receive settlement or judgment funds, you agree to promptly pay the Company the amount due to us (the purchased portion) out of your client trust account, prior to disbursing any remaining funds to the client. This obligation is subject to and subordinate to your own fees and any court-ordered fees or statutory liens (e.g., child support liens) that take legal priority, but aside from such amounts, our share should be reserved and paid as a priority.

Filing of UCC-1 Financing Statement: The client expressly consents to us filing a UCC-1 financing statement under the Uniform Commercial Code or similar notice of our interest, where appropriate, to perfect our assignment in the proceeds of the claim. The attorney should be aware of this practice. Filing a UCC-1 is a standard step to publicly document our secured interest in the future proceeds and does not mean we are treating the transaction as a loan (it is simply a measure to protect our rights in the collateral, i.e., the claim proceeds). The client and attorney agree not to oppose or interfere with such filings. We will usually list the client as debtor and describe the collateral as the proceeds of the legal claim (and related files). This filing should not adversely affect the client’s credit; it is not a notation of debt but of a contingent interest in specific assets.

Priority of Our Lien/Assignment: You (client and attorney) acknowledge that by entering into the funding agreement, the client is assigning a portion of the case proceeds to us. This creates a lien or ownership interest in those proceeds in our favor. You agree that, except for attorney’s own fees and reasonable case costs or any superior liens by operation of law, our lien has priority over other voluntary liens or assignments on the same proceeds. If the client had previously assigned or is contemplating assigning any interest in the case proceeds to another party, you must inform us, as that could affect our decision to fund or the amount. In the event of any dispute over lien priority or multiple claims to the same settlement dollars, you agree to work in good faith with us and any other claimants to resolve the dispute (for example, through interpleader of funds with a court if necessary). The attorney, as an officer of the court, may hold disputed funds in trust until the dispute is resolved. The client and attorney shall not assert the “funding agreement is void” as a reason to disburse proceeds to someone else; if there is a concern about enforceability, that should be resolved through legal channels, not unilateral disregard of our claim.

Communication and Updates: The attorney agrees to keep us reasonably updated on significant developments in the case that could affect our interest, such as the case’s resolution, changes in representation, or if they become aware of any situation that might materially affect the case value (e.g., death of client, bankruptcy, etc.). We do not require detailed privileged information, only the broad status needed for us to monitor our investment. The client consents to these communications between the attorney and us. We will handle all such information confidentially.

Attorney’s Fees and Ethical Responsibilities: We acknowledge that the attorney’s duties are first and foremost to the client and the case. Nothing in these Terms should be read to require an attorney to violate any ethical obligation or law. We do not ask attorneys to compromise their duty of loyalty or confidentiality to the client. We simply require acknowledgment of our contractual rights. The attorney’s fee lien (for their contingency fee) will typically take priority over our lien – we recognize that attorneys must be paid their agreed fee first for representation. Our contract is structured so that repayment comes from the client’s net share after attorney fees. We do not seek to reduce the attorney’s fee; in fact, a well-funded client can often pursue the case to a better outcome, which can benefit both client and attorney. If any court finds that any aspect of our arrangement violates law or ethics (for example, if a particular state law treats legal funding as impermissible or requires certain terms), we will work with the attorney and client to cure any issue, which may include reforming the agreement to comply with law. Both client and attorney should promptly inform us if they believe any requested action by us would conflict with law or ethical rules so we can address it.

Attorney Users (Direct): If you are an attorney browsing our site or using any “For Attorneys” resources, you agree not to misuse any content (for example, any downloadable forms or marketing materials). Any attorney-specific portal access we provide is for the convenience of tracking client funding or submitting applications on behalf of clients. You must keep any login credentials secure and use them only for legitimate purposes. As an attorney, you also agree not to circumvent our process or refer clients to us and then seek unauthorized referral fees or anything that could violate attorney ethics. We do not pay referral fees to attorneys for client referrals, as that is generally prohibited. By using our services as an attorney, you confirm that any compensation arrangement with the client regarding our funding (if any) is disclosed to the client and compliant with your state’s ethics rules.

8. Fees, Pricing, and Payment Terms

Transparent Pricing: We are committed to transparency in our pricing. The funding agreement you sign will clearly state the amount being advanced and the amount that will be owed from the settlement, which may be represented as a fixed payment amount or calculated based on a growth factor over time. We do not charge any application fees or upfront fees to the consumer. Any fees we do charge (for example, an origination fee, processing fee, or account management fee) will either be deducted from the funding disbursement or included in the payoff amount, and these will be explicitly disclosed. There are no monthly payments and no compounding interest like a traditional loan; instead, the payoff may increase over time per the agreed schedule (often semi-annually) until the case resolves.

Maximum Amount and Receipts: The client will never owe more than the proceeds of their case. If the net proceeds (after attorney fees and higher-priority liens) are less than the amount owed to us, we will accept whatever amount is available according to our contract terms (for example, some contracts stipulate that we receive the entire net proceeds if insufficient to cover full payoff, and the client keeps nothing further but owes no deficiency). The client will not be personally responsible for any shortfall beyond the case proceeds. If the case yields an amount and, after paying us and others, there are excess funds, those belong to the client. We will provide a payoff statement upon request at the time of settlement so that the attorney can disburse the correct amount to us. Once our portion is paid, we will provide any necessary confirmation (such as a release of lien or UCC termination) to show the obligation is satisfied.

No Hidden Charges: We do not charge hidden or junk fees. Because these transactions are high risk for us, the cost to the consumer is typically higher than conventional financing – the effective “rate” can be high due to the risk and non-recourse nature. We ensure that clients are aware of the cost before accepting. By entering the funding agreement, you acknowledge that the pricing has been explained to you and you find it acceptable for the benefits provided. If you have any confusion about the cost, do not sign until it’s clear. We want you to make an informed decision. Depending on your state’s laws, there may be specific disclosure forms or cooling-off periods required for legal funding; if so, we will provide those and abide by them (see State-Specific Disclosures section below for more).

Tax Treatment: In many cases, proceeds from personal injury lawsuits are non-taxable, and thus our advance (being an advance on such proceeds) may also not have immediate tax implications. However, we do not guarantee any tax outcome. If any portion of the funding or the settlement is taxable, paying us from it does not change that. Consult a tax professional for advice. We do not provide IRS Form 1099 for the advance since it’s not income, but if required by law, we or your attorney might issue tax documents for any debt forgiveness if your obligation is waived due to no recovery (generally, forgiven debt might be considered income, but in non-recourse context that might not apply; this is why tax advice is important if the amounts are large).

Example (Hypothetical): For illustrative purposes only (your actual terms will vary): If we advance $10,000 to you, and the agreement says you owe us $15,000 from the settlement if it resolves within 18 months, then if your case settles for $50,000, your attorney (after taking their fee) would pay us $15,000 and you receive the remainder. If the case only settles for $12,000 net to you (after attorney fees), and by contract our calculated share is $15,000, we would take the full $12,000 (leaving you with nothing from the settlement, but also not pursuing the remaining $3,000 difference – that difference is forgiven under non-recourse). If the case is lost and you get $0, we get $0 and you keep the $10,000 we gave you without any obligation to repay it. This example is simplified and actual terms depend on your contract.

9. Consent to Communication and Use of Automated Technology

By providing your contact information to us (including telephone number, mobile number, email address, and mailing address), you consent to receiving communications from us or our service providers relating to your application, your funding, marketing of our services, and account servicing. You agree that we may contact you by phone call, text/SMS message, email, postal mail, or other means. This contact may include: providing updates on your application, requesting additional information, marketing messages about our services, and routine servicing communications (e.g., payment reminders or case status checks). We (or our agents) may contact you at any telephone number or email address you have provided, even if that number is a mobile phone or is registered on a federal or state “Do Not Call” list, for the purposes stated above.

Auto-Dialers and Recorded Messages: You expressly consent to our use of automated telephone dialing systems and artificial or pre-recorded voice messages when contacting you by phone or text, to the extent allowed by law. For example, we may use an auto-dialer or automated texting platform to send you informational or verification texts regarding your application status. Message and data rates may apply for any SMS or MMS messages. The frequency of messages may vary. You are not required to agree to receive automated marketing calls or texts as a condition of obtaining our services; if you prefer to not receive marketing messages, you can opt out as described below. However, we may still use automated calls/texts for non-marketing, service-related purposes (such as fraud alerts or status updates) with your consent, as these facilitate the provision of our service.

Opt-Out: You may opt out of receiving text messages from us at any time. To stop receiving SMS texts, you can reply “STOP” to any message we send, or contact us at [customer service contact info] with your request. For email communications, you may unsubscribe using the link provided in marketing emails or by contacting us. Please note that even if you opt out of marketing communications, we may still send you essential transactional or account communications (for example, an email with your funding agreement, or a phone call to coordinate the funding transaction with your attorney), as these are not considered marketing. If you have multiple contact methods on file, you may need to opt out of each one separately (e.g., opting out of texts doesn’t automatically opt you out of emails). We will process opt-out requests as soon as reasonably practicable.

Consent for Others to Contact: If you provide us with an attorney’s contact information or any third-party’s contact as part of your application, you confirm that you have the authority to permit us to contact them and that they consent to such contact. For example, you may provide your attorney’s number; we will assume they expect communication regarding your case funding.

Carrier Charges: You understand that your mobile or internet service providers may charge you fees for calls, texts, or data usage incurred through our communications (depending on your plan), and you agree that you are responsible for any such charges. We are not liable for any charges from your carriers.

Recorded Lines: You agree that phone calls with our company may be monitored or recorded for quality assurance, training, or compliance purposes. If you do not wish to be recorded, please notify the representative at the start of the call, or refrain from continuing the call. (Note: Some states require dual consent for recording; by agreeing to these Terms and continuing to engage with our phone system, you are deemed to consent, but we will also make best efforts to announce recording as required.)

10. Use of Artificial Intelligence and Automated Content

We are committed to transparency in how we use technology. You acknowledge and accept that we may use artificial intelligence (“AI”) tools or automated systems in providing content or communications to you. Specifically:

• AI-Generated Content: Some informational content on our website, blog, or in brochures may be generated or assisted by AI systems. Similarly, if we offer a chat feature or virtual assistant on our site, that assistant’s responses might be powered by AI. We strive to ensure accuracy and usefulness of all content, but AI-generated content may contain errors or inaccuracies, and it should not be relied upon as definitive or tailored advice. For example, an AI chatbot might give general answers about how our service works or estimate funding amounts, but those answers could be incomplete or not fully up-to-date. We are not liable for any incorrect information or misunderstanding arising from AI-produced content. It is provided for convenience and preliminary information only. You should verify any critical information with a human representative or refer to the actual contract terms which will control. If you spot something that looks like an error in our content, please bring it to our attention so we can correct it.

• No Legal Decisions by AI: We do not make final underwriting or legal decisions solely by AI. While we might use algorithms to assist in evaluating cases (for instance, an automated system might flag certain case factors for review), any funding decision involves human review. We do not deny or approve funding purely on a computer’s say-so without human oversight. If you feel an automated aspect of our service has resulted in an unfair decision, let us know and we will have a human re-evaluate.

• Auto-Dialers and AI Outreach: As noted in the communications section, we may use automated dialing systems to reach you by phone or text. In some cases, these systems might employ pre-recorded voices or even AI-generated speech for efficiency. For example, an AI voice may remind you to sign your documents or an automated text might check in on case status. You consent to receiving such automated and AI-driven outreach. We ensure that any such communications are content-appropriate and in compliance with telemarketing laws (we will include any required disclosures in the messages). If you respond to an automated message and it cannot understand or help with your query, we will route you to a human representative as needed.

• AI in Document Handling: We may use AI tools to help process documents you or your attorney provide (e.g., using software to read medical reports or court filings to extract key data about your case). This is to speed up our evaluation process. These tools are internally used and the data is kept confidential. By submitting documents, you consent to our use of such tools. We maintain that any personal data processed in this way is protected per our Privacy Policy. The AI does not make decisions; it only assists our team.

• Limitations: You agree that you will not solely rely on any AI-generated response or content from us for making a decision about whether to take funding or any legal matter. Always refer to official communications and documents. We disclaim any liability for harm or loss that may result from inaccuracies in AI-generated content or communications. This disclaimer is in addition to other warranty disclaimers in these Terms. We are actively working to supervise and improve our AI outputs, but the technology has inherent limitations.

In summary, we may use AI to enhance our services, but we remain responsible for the core decisions and content oversight. If you have concerns about any content you suspect was AI-generated, or if something seems off, please contact us and we will address it. Your understanding and caution in this evolving area of technology are appreciated.

11. Privacy and Data Security

Privacy Policy: We take your privacy seriously. Our collection, use, and sharing of your personal information is governed by our Privacy Policy, which is hereby incorporated into these Terms by reference. You can find our full Privacy Policy on our website (typically linked in the footer). By using our site or services and providing personal information, you consent to the practices described in our Privacy Policy. This includes, for example, how we may share your information with third-party service providers to perform services on our behalf (like credit bureaus for identity verification, or with investors if your funding is securitized, etc.), and your rights regarding your data. We encourage you to read the Privacy Policy in full, as it contains important information about cookies, marketing communications, and more. If there is any conflict between the Privacy Policy and these Terms regarding data practices, the Privacy Policy will control for privacy and data protection matters.

Security Measures: We employ commercially reasonable security measures to protect your personal information and communications. This includes encryption of data in transit on our website, secure storage of sensitive data, and compliance with any applicable data security regulations. However, no method of transmission over the internet or electronic storage is completely secure. We cannot and do not guarantee absolute security of your information. You acknowledge that any information you send to us (or that we send to you) via the website, email, or other electronic means may not be perfectly secure, and you accept this risk. We recommend that you use caution and common sense when sending sensitive information (for example, if we provide a secure portal, use that instead of email for sensitive docs). If a security breach does occur, we will comply with applicable notification laws and take steps to remedy the situation, but we shall not be liable for any unauthorized access or security breaches beyond our reasonable control.

No Warranty of Error-Free Operation: Due to the nature of technology, we do not warrant that our website or electronic communications will be uninterrupted, timely, or free from viruses, malware, or other harmful components. While we take precautions (like virus scanning and firewalling our systems), you understand that using any website, including ours, involves inherent risks. You are responsible for maintaining up-to-date antivirus and security software on your own devices. If you download any materials from our site (such as a PDF of an agreement or any resources), you do so at your own risk. We are not liable for any damage to your computer system or loss of data that results from the download or use of our website or any content.

Cookies and Tracking Technologies: Our website uses cookies (small text files placed on your device) and similar tracking technologies (such as web beacons or pixel tags) to enhance user experience, analyze site usage, and assist in our marketing efforts. For example, we may use cookies to remember your preferences or login session, and analytics tools to see how users navigate our site. We may also employ third-party analytics and advertising services (like Google Analytics or advertising networks) that use cookies or tracking to collect usage information and show you relevant ads. These third parties may collect information about your online activities over time and across different websites. By using our site, you consent to our use of cookies and tracking technologies as described in our Privacy Policy. You can control cookies through your browser settings and other tools; however, disabling cookies may affect your ability to use certain features of our site.

Interest-Based Advertising: We (or third-party partners) may engage in interest-based advertising, also known as online behavioral advertising. This means we might display ads to you on other websites or platforms based on your interests inferred from your activities on our site. For instance, we might use services like Facebook Custom Audiences or Google remarketing: we could share a hashed version of your email with the platform to help identify you as a user and then show you our ads on that platform. We do not share personally identifying information with these ad platforms (any sharing is usually hashed or anonymized) and we do not obtain additional personal data from them. If you prefer not to receive interest-based ads, you can often adjust your settings on those platforms or opt-out via industry sites like the Digital Advertising Alliance’s opt-out page. Please refer to our Privacy Policy for more details on how to opt out of certain tracking.

Do Not Track: Our website currently does not respond to “Do Not Track” (DNT) signals from browsers. If you have DNT enabled, we will still use cookies as described (because there is no consensus on how to interpret DNT signals). See Privacy Policy for any updates on this.

Data Retention: We will retain your information only as long as necessary for the purposes for which it was collected, or as required by law or our internal policies. For example, if you get funding from us, certain transaction records might be kept for a number of years for legal/regulatory reasons. We dispose of data securely when no longer needed.

For more detailed information on our privacy practices, including your rights to access or delete personal information (where applicable by law), please review the Privacy Policy. By agreeing to these Terms, you also agree that we can use and share your information in accordance with our Privacy Policy.

12. Use of Website and Intellectual Property

Website Use License: We grant you a limited, revocable, non-exclusive, non-transferable license to access and use our website (www.sumfunding.com or any successor URL) for the purpose of learning about our services, applying for funding, or interacting with us as a customer or prospective customer. You agree to use the website only for lawful, personal, and non-commercial purposes. You may not use our site in a way that could harm us or others, or that violates any law. Specifically, you agree not to do any of the following prohibited activities:

• Attempt to gain unauthorized access to any portion of the site or any systems or networks connected to the site (no hacking, password “mining” etc.).

• Engage in any activity that interferes with or disrupts the site (or the servers and networks which are connected to the site), including by introducing viruses or other harmful code.

• Reproduce, duplicate, copy, sell, trade, or resell any portion of the site or content for any commercial purpose without our prior written consent.

• Use any automated means (such as bots, scrapers, or spiders) to access the site or collect information from the site without permission (except that standard search engine crawling is allowed).

• Misrepresent your identity or affiliation when interacting with us via the site.

• Submit or transmit any content that is unlawful, defamatory, harassing, infringing, or otherwise objectionable, or that contains personal information of others without consent.

We reserve the right to suspend or terminate your access to the website for any violation of these Terms or any behavior that we determine, in our discretion, to be harmful. (See Section 17: Termination below.)

Intellectual Property Rights: All content on the website, including text, graphics, logos, button icons, images, audio clips, digital downloads, data compilations, software, and the compilation and arrangement thereof (collectively, the “Content”), is the property of the Company or its content suppliers and is protected by United States and international intellectual property laws. Our trademarks, trade names, and service marks include “Sum Funding,” our logos, and any brand slogans we use. You must not use our name or logos in any manner likely to cause confusion about who the source of any product or service is, without our express written permission. Other product and company names mentioned on the site may be the trademarks of their respective owners.

Limited Permission to Print or Download: You may print or download reasonable copies of pages from the site for your personal use—for example, printing a copy of these Terms or your application summary for reference—provided that you (i) do not remove or obscure any copyright, trademark, or other notices, (ii) do not modify the copies, and (iii) do not use the materials in a way that suggests any official connection with us or for commercial gain. This permission is a limited license, not a transfer of ownership of any Content. If you breach any of the Terms, this license will automatically terminate and you must immediately destroy any downloaded or printed materials.

User Content: If our site allows you to post or submit any content (such as reviews, comments, or queries), you agree not to post anything unlawful, obscene, defamatory, threatening, or otherwise injurious to third parties. You further agree not to post any content that contains viruses, commercial solicitations, or any form of “spam.” Any content you do submit must be your own or you must have rights to submit it. By submitting any user content on our site, you grant us a non-exclusive, royalty-free, perpetual, transferable, sub-licensable license to use, reproduce, modify, publish, translate, distribute, and display such content throughout the world in any media. This is so we can, for example, display your reviews on our site or use feedback in improving our services. We are not obligated to use or respond to any user content. We reserve the right (but have no obligation) to monitor, edit, or remove user content at our discretion.

Third-Party Links and Resources: Our website or communications may contain links to third-party websites (for example, a link to an article about lawsuit funding, or a social media page). These links are provided for convenience or informational purposes. We do not endorse or assume any responsibility for these third-party sites, which are governed by their own terms and privacy policies. If you access a third-party site via our links, you do so at your own risk. Similarly, if we integrate any third-party tools (like a chat widget from a provider, or Google Maps for our office location), using those may involve cookies or data exchange with those providers, as explained in our Privacy Policy. We are not responsible for any loss or damage that may arise from your use of third-party websites or resources.

Geographic Restrictions: Our website is hosted in the United States and intended for U.S. users. We make no representation that content on the site is appropriate or available for use in other locations. If you access the site from outside the U.S., you are responsible for compliance with local laws. Some features or services might not be available outside the U.S.

13. Disclaimers of Warranties

As-Is Availability: Our services and website are provided “AS IS” and “AS AVAILABLE,” without any warranty of any kind, express or implied. While we strive for accuracy and reliability, we do not guarantee that the website or services will meet your requirements or that operation will be uninterrupted or error-free. Any estimates or opinions we give (about case value, timelines, etc.) are just that – estimates or opinions, not guarantees.

To the maximum extent allowed by law, we disclaim all warranties, express or implied, including but not limited to implied warranties of merchantability, fitness for a particular purpose, and non-infringement. We make no warranty that the results obtained from use of the services will be accurate or reliable, or that any errors in the technology will be corrected. For example, we cannot promise that our online application form will always be available, or that the site will be free of viruses (though we certainly try to avoid issues). You assume the entire risk as to the quality and performance of our services.

No Guarantee of Funding: Additionally, and as noted, we do not warrant or guarantee that you will receive funding by using our site or services. Submission of an application does not ensure approval. Any expectations you have must be confirmed by an actual contract. Until you have a signed agreement, there is no binding commitment by us to fund you and no liability if we choose not to fund.

No Liability for Informational Content: Any articles, FAQs, testimonials, or informational content on our site are for general knowledge and come with no warranty as to their accuracy or applicability to you. For instance, if our site says “cases of type X typically take Y months,” that’s general info and not a promise about your case. Use your own judgment and double-check any critical information. We also disclaim any responsibility for decisions you make based on informational content on our site or communications (especially AI-generated content as noted). Always refer to actual agreements and consult professionals when in doubt.

Possible State Law Limitations: Note that some jurisdictions do not allow the exclusion of certain warranties, so some of the above exclusions may not fully apply to you. In such jurisdictions, our warranties are excluded to the fullest extent permitted by law.

14. Limitation of Liability

No Indirect Damages: To the fullest extent permitted by law, in no event shall the Company (Capital Funding TX, LLC d/b/a Sum Funding), its affiliates, or their respective officers, directors, employees, or agents be liable for any indirect, incidental, consequential, special, punitive, or exemplary damages whatsoever arising out of or in connection with your use of (or inability to use) our website or services. This includes, without limitation, damages for lost profits or revenue, lost business opportunities, loss of goodwill, loss of data, or business interruption, even if we have been advised of the possibility of such damages. For example, we are not liable if our website being down delays your application and causes you stress or financial loss; similarly, we aren’t liable for emotional distress or other downstream effects of you not obtaining funding or of any delay in the legal process.

Cap on Direct Damages: Our total liability to you for any and all claims arising from or related to this Agreement or your use of our services shall not exceed the amount of fees you have actually paid to us (if any) in connection with the service in question, or $1,000, whichever is greater. Since in most cases you pay us nothing upfront (we pay you), this usually means our liability is capped at $1,000. This limitation applies to all causes of action in the aggregate, including, without limitation, breach of contract, breach of warranty, negligence, strict liability, misrepresentations, or other torts.

Exceptions: We do not seek to limit liability for our own willful misconduct, gross negligence, or fraud, as those might not be enforceable limitations. Additionally, the above limitations do not affect any liability which cannot be excluded or limited under applicable law. Some states do not allow limitations on certain damages (for example, they may not allow limiting liability for personal injury caused by negligence, or for a party’s own intentional wrongdoing). In those states, the above caps and exclusions apply to the fullest extent allowed by law, but if a specific exclusion/cap is prohibited, it will not apply to the extent of the prohibition.

Use at Your Own Risk: You acknowledge that your use of the service is at your own risk. We are not responsible for any unauthorized access to or alteration of your transmissions or data, any material or data sent or received (or not sent or received), or any transactions entered into through our site, except as explicitly set forth in a funding agreement once executed. We are not liable for any threatening, defamatory, obscene, offensive or illegal content or conduct of any other party (including, if our site had a forum, the statements of other users). If you are dissatisfied with any portion of the service or with these Terms, your sole and exclusive remedy is to discontinue use of the service (and if you are mid-transaction, possibly to cancel within any allowed period or not proceed to sign the funding agreement).

Release: To the maximum extent permitted by law, you release and covenant not to sue the Company and its affiliates for any and all claims, demands, and damages of every kind arising out of or in any way connected with the use of the services or website, other than for the net proceeds of your settlement that are due to you after paying the agreed amount to us (meaning, we obviously aren’t trying to limit your rights to receive the rest of your settlement beyond what we purchased, as per our contract). This release covers, for example, any claim that our funding was too expensive or that you regret taking it (except if some law specifically gives you a right to sue on such basis that cannot be waived), or any claim related to site downtime, data breaches (beyond what is covered by our obligations by law), etc., subject to the specific exceptions noted in this section.

Third-Party Liability: We are not liable for the actions of third parties, such as banks (if, for instance, a wire transfer to you is delayed due to the bank) or any third-party service providers. Any issue with a third party will be governed by your agreements with that third party (for example, if a phone carrier charges you for texts, that’s between you and the carrier).

In summary, our liability is highly limited, in line with standard practices for service providers. This allocation of risk is a part of the bargain between you and us — our pricing and willingness to offer services take into account that we cannot assume unlimited liability.

15. Indemnification

You agree to defend, indemnify, and hold harmless the Company (Capital Funding TX, LLC d/b/a Sum Funding), its parent, affiliates, and their respective officers, directors, employees, agents, partners, contractors, successors and assigns (the “Indemnified Parties”) from and against any and all claims, liabilities, damages, losses, expenses, and fees (including reasonable attorneys’ fees) that arise out of or relate to: (a) your violation of these Terms or any agreement you enter with us (including the funding agreement); (b) your use of the website or services in violation of any law or regulation; (c) any negligence, misconduct, or fraud by you in connection with your application or use of funds (for example, if you knowingly provided false information or if you attempt to misdirect settlement funds away from paying us); or (d) any dispute or legal proceeding between you and any third party (including your attorney or another funding provider) arising from your actions that implicates us (for instance, if another funding company sues us claiming tortious interference because you improperly took funds from both them and us, you’d indemnify us if we got dragged in due to your actions).

In plain terms, if your actions or omissions cause us to be sued or to incur costs, you agree to cover those costs. We will have the right to select our counsel and control the defense of any claim indemnified hereunder, but we will reasonably cooperate with you (and you with us) in the defense. You agree not to settle any claim in a manner that imposes any fault or liability on the Indemnified Parties without our prior written consent. The Indemnified Parties will attempt to notify you promptly of any such claim and keep you informed.

This indemnification obligation will survive termination of this Agreement. It is not intended to require you to indemnify any Indemnified Party for that party’s own gross negligence or willful misconduct. But it is intended to cover scenarios such as you breaching the contract and that causing us damage, or a third-party claim arising from your breach or unlawful actions as related to our service.

Example: If you misrepresent your case and get funding, and later it turns out you had already settled the case and hid that fact (a fraudulent act), and a dispute arises or we incur costs to address it, you would indemnify us for those costs. Or if you misuse the website and cause a security incident, you’d cover losses. Another example: if you post defamatory content about us online that’s false, and we face damage, you indemnify us for that too. Essentially, just use our service honestly and appropriately, and you shouldn’t trigger this clause.

16. Dispute Resolution – Arbitration and Waivers

Please read this section carefully. It requires binding arbitration of most disputes and affects your and our rights. By entering this agreement, both you and we are waiving the right to a trial by jury and waiving the ability to participate in a class or representative action for covered claims.

16.1. Binding Arbitration Agreement

Any dispute, claim, or controversy arising out of or relating to these Terms, the funding services we provide, or any aspect of our relationship (whether based in contract, tort, statute, fraud, misrepresentation, or any other legal theory), that cannot be resolved informally shall be resolved by binding arbitration on an individual basis. This means a neutral arbitrator, rather than a judge or jury, will decide the dispute. Judgment on the arbitrator’s award may be entered in any court with jurisdiction.

This arbitration agreement is governed by the Federal Arbitration Act (9 U.S.C. § 1 et seq.) and evidences a transaction in interstate commerce. You and we agree that the arbitrator has the exclusive authority to resolve any dispute relating to the interpretation, applicability, enforceability, or formation of this arbitration agreement, including any claim that all or part of this arbitration agreement is void or voidable.

Exceptions: Notwithstanding the above, either party may choose to bring an individual action in small claims court (if the claim is within that court’s jurisdiction and proceeds on an individual basis) in lieu of arbitration, and either party may seek injunctive or equitable relief in a court of proper jurisdiction for claims related to intellectual property infringement or misuse, or unauthorized access to or use of our services (for example, a hacking or misuse of data claim). Seeking injunctive relief as allowed here will not be deemed a waiver of the right to arbitrate for monetary claims. Also, any issues relating to the validity of our intellectual property rights may be decided only by a court, not an arbitrator, to the extent required by law. Other than these specific exceptions, this arbitration agreement covers all disputes between us (“Covered Claims”). If a dispute includes both covered claims and exempted claims, the exempted claims shall be severed and resolved by a court if appropriate, while the covered claims are arbitrated.

16.2. Class Action Waiver

You and the Company agree that all claims and disputes must be arbitrated or litigated on an individual basis only, and not on a class, collective, consolidated, or representative basis. YOU WAIVE ANY RIGHT TO PARTICIPATE IN A CLASS-ACTION LAWSUIT OR CLASS-WIDE ARBITRATION against us. This means:

• No Class Arbitration or Actions: The arbitrator shall have no authority to join or consolidate claims by different individuals or to adjudicate any form of class, collective, or representative proceeding. You and we agree that the arbitrator can award relief only on an individual basis (to you or us alone) and cannot award relief on behalf of others or the general public.

• No Jury Trial: To the extent any claim is not arbitrated, you and we knowingly and voluntarily waive any right to a jury trial for such claims. A judge will decide the case if it goes to court (again, this scenario is limited to the exceptions above or if the arbitration clause is deemed unenforceable).

If this class action waiver is found to be illegal or unenforceable as to all or some parts of a dispute (for instance, a particular claim can’t be waived), then it may mean the entirety of this Dispute Resolution section is unenforceable for that dispute, and in that case, the parties agree that such claims will be decided by a court of appropriate jurisdiction, not by an arbitrator (and will be subject to the venue and governing law provisions of this Agreement). However, the class waiver shall be enforced to the fullest extent allowed (i.e., if one part of a claim can proceed on a class basis but another can’t, the part that can’t will still go to arbitration).

16.3. Arbitration Procedures

Arbitration Rules: The arbitration will be administered by the American Arbitration Association (AAA) (or, if AAA is unavailable and the parties agree, another reputable arbitration provider) under its Consumer Arbitration Rules (or if inapplicable, the Commercial Rules) in effect at the time the arbitration is initiated, except as modified by this Agreement. You can find AAA’s Rules on AAA’s website or request a copy from us. If AAA cannot or will not administer the arbitration, and we cannot agree on a substitute, a court may appoint an arbitrator pursuant to 9 U.S.C. § 5.

Arbitration Process: To start an arbitration, the claimant must send a written demand for arbitration to the other party and file it with AAA (or agreed alternative provider). The demand must describe the claim and relief sought. We agree to pay any filing fee or administrative costs required by the arbitrator or AAA to initiate the arbitration, beyond a nominal amount equivalent to a court filing fee that you would have paid to file a lawsuit (for example, if AAA requires $200 to file and your local court fee would be $50, you pay $50, we pay the rest). The arbitrator will be an attorney licensed to practice law or a retired judge. The arbitration shall be conducted by a single arbitrator, unless the parties agree otherwise.

Location and Hearing: You may choose to have the arbitration conducted by telephone, video conference, or based on written submissions, and you may choose an in-person hearing in your hometown area (within 50 miles of your residence) or another mutually agreed location. If you do not specify, the default location shall be Houston, Harris County, Texas. The arbitrator shall honor valid claims of privilege and privacy and take reasonable steps to protect confidential information (including sensitive case details, etc.). If your claim is for a relatively small amount (e.g., under $25,000), you may choose to have the arbitration conducted solely on the basis of documents submitted to the arbitrator, without a hearing, unless the arbitrator determines that an oral hearing is necessary.

Governing Law in Arbitration: The arbitrator will apply the substantive law of the State of Texas (excluding its conflicts of law rules), including any relevant statutes of limitations, and will honor claims of privilege recognized by law. The arbitrator is bound by the terms of this Agreement, including all limitations of liability and the waivers in it. The arbitrator shall not have the power to alter any provisions of these Terms.

Arbitration Award: The arbitrator may award any individual relief or individual remedies that a court of law could provide to an individual claimant (consistent with the limitations and waivers in these Terms). The arbitrator’s decision will include the essential findings and conclusions on which the award is based. The arbitrator’s award shall be final and binding, subject only to very limited court review under the FAA (e.g., for arbitrator misconduct or exceeding authority). Judgment on the award may be entered in any court with jurisdiction.

Fees and Costs: Each party will bear their own attorneys’ fees and costs in arbitration, unless a law provides that the prevailing party is entitled to recover attorneys’ fees or the arbitrator allocates fees under applicable law. However, the arbitrator may award fees and costs to one party if the arbitrator determines that the other party’s claims or defenses were frivolous or brought in bad faith, in accordance with applicable laws. We will not seek to recover our attorney fees or AAA fees from you in arbitration unless the arbitrator finds that your claim was frivolous or asserted in bad faith (or unless law permits fee-shifting for a prevailing defendant on a statutory claim, in which case the arbitrator may award that).

16.4. Mass Arbitration Protocol

Arbitration is meant to be bilateral. If an attorney or representative seeks to file numerous similar arbitration demands against us on behalf of multiple individuals, the following Mass Arbitration provisions shall apply for efficiency (consistent with any applicable administrator rules):

Definition of Mass Arbitration: If 25 or more claimants (including you and others) commence or threaten to commence arbitrations with similar claims against us, and those claimants are represented by the same or coordinated counsel, or are otherwise coordinated, this shall constitute a “Mass Arbitration.” This threshold is based on AAA’s definition for multiple case filings. In such an event, we (and you if applicable) shall have the option to implement a coordinated bellwether arbitration process.

Bellwether Process: In a Mass Arbitration, either party may notify the other and the arbitration administrator that the matter is subject to Mass Arbitration protocols. The parties (each side) shall then jointly select a modest number of individual cases (for example, 5 cases from each side, for a total of 10) to proceed first as test cases. These cases will be arbitrated individually to conclusion (including any appeals within the arbitration system). During this bellwether process, no other cases shall be filed or progressed, and any applicable statutes of limitations shall be tolled for the stayed cases. The parties may also mutually agree to consolidate certain discovery or have a single arbitrator hear multiple cases in sequence if it aids efficiency (only by agreement or administrator’s rules).

Once the bellwether cases are resolved, the parties (and, if applicable, the arbitration provider) shall confer about the potential for resolution of remaining cases or an adjusted process in light of the outcomes. If the remaining cases do not settle, then another set of cases can proceed in arbitration (again, a manageable number at a time). This staged process will continue until all cases are resolved either by settlement or arbitration. The goal is to avoid the cost and inefficiency of simultaneously administering hundreds of identical arbitrations. The specific numbers and procedures may be adapted by agreement or by order of the arbitrator(s) or arbitration administrator to achieve a fair and efficient resolution.

Administrator Rules: We note that AAA (and potentially other administrators) have supplementary rules for managing mass filings, which may include batching filing fees and certain procedural adjustments. These Terms are intended to align with such rules. For instance, AAA’s Supplementary Rules for Multiple Case Filings (effective 2024) provide that AAA may group cases for billing and other purposes. We agree to abide by any administrator’s published mass arbitration protocols, and to the extent there is a conflict between those and our Terms, the administrator’s rules will govern procedural aspects and our Terms will govern substantive rights.

Right to Opt-Out of Mass Protocol: You (as an individual claimant) will not be disadvantaged by these procedures. They are meant to streamline processes and encourage global resolution. If you prefer not to participate in the bellwether process, you can opt out of the mass arbitration coordination by providing written notice to us and the administrator and instead proceed with your arbitration individually. However, if you opt out, then the class action waiver still applies and you cannot join forces in litigation or consolidated arbitration; you would just be taken out of the coordinated queue and could proceed on your own. Note that if numerous individuals opt out and effectively recreate a mass filing situation outside the protocol, we reserve the right to seek a court order to coordinate the arbitrations to prevent undue burden.

Severability of Mass Arbitration Terms: Courts in some jurisdictions have scrutinized mass arbitration provisions. We believe this approach is fair and beneficial to all parties. However, if a court of competent jurisdiction finds the Mass Arbitration Protocol unenforceable or inconsistent with applicable law or public policy, it shall sever these mass arbitration-specific provisions (16.4) from the arbitration agreement, and such severance shall not affect the requirement to arbitrate or the enforceability of the Class Action Waiver (unless a court also invalidates the class waiver, as discussed above). In any event, it is the intent of the parties that arbitration remain in effect, even if this particular mass procedure is nullified.

16.5. 30-Day Right to Opt Out of Arbitration

If you do not wish to be bound by this arbitration agreement (and class action waiver), you must notify us in writing within 30 days of first accepting these Terms.** To opt out, mail a written opt-out notice to: [3000 Weslayan St #305, Houston, TX 77027].** The opt-out notice must include your name, address, phone number, and a clear statement that you do not agree to arbitrate disputes with us. We will not retaliate against you for opting out. Opting out of this arbitration provision will not affect any other aspect of these Terms (such as the use of service or other agreements). If you opt out, any disputes will be resolved in court, with the forum and law provisions of these Terms applying. If you do not opt out within 30 days, you are deemed to have knowingly and intentionally waived your right to litigate disputes in court (subject to the terms above).

16.6. Governing Law for Disputes

This Arbitration Agreement and any dispute between us will be governed by Texas law (without regard to conflict of law principles) and applicable federal law (like the FAA). The arbitrator shall apply Texas substantive law to all covered claims, or federal law for any federal claims, consistent with the FAA’s preference for arbitration enforcement. If for any reason a dispute proceeds in court: (i) it shall be governed by Texas law; and (ii) you and we agree to submit to the exclusive jurisdiction of the state or federal courts located in Harris County, Texas for resolution of that dispute, and waive any objection to venue or inconvenient forum in those courts. (This does not negate the arbitration requirement; it only applies in the rare event a court proceeding happens under these Terms.)

Survival: This Dispute Resolution section survives the termination of your relationship with us. If you obtained funding, it also survives full repayment. Basically, any dispute arising from or relating to this Agreement, even after termination, is subject to arbitration (or the noted exceptions).

By agreeing to these Terms, you acknowledge that you have read and understand this arbitration provision, and that you understand you are giving up the right to a court or jury trial and to participate in a class action for covered disputes. You have the right to seek independent counsel about this, but by proceeding, you are indicating your informed consent to this clause.

17. Termination of Service

We reserve the right to terminate or suspend your access to our website or services at any time, for any reason or no reason, with or without notice, in our sole discretion. For example, we may suspend your online account if we suspect fraudulent activity, or decline to provide further services if you violate these Terms or if your behavior is abusive or inappropriate. We may also modify or discontinue any part of our services or website functionality without notice.

If you have not yet entered into a funding agreement with us, termination may simply mean we will not continue with your application or allow you to use the site. If you have an active funding agreement, termination of service does not terminate that funding agreement; the terms of your funding contract (and your obligation to repay from case proceeds) remain in effect until satisfied. However, we may terminate any additional services or access (for example, terminating an attorney’s portal access if misused). The funding agreement itself could only be terminated in accordance with its terms (for instance, if you repay early or if we mutually agree to rescind).

You may also withdraw from our services or stop using the site at any time. If you wish to terminate any ongoing relationship (outside of a funding contract), you can notify us. Keep in mind, though, that any provisions of these Terms that by their nature should survive termination (such as arbitration, indemnification, limitation of liability, etc.) will survive.

Upon any termination of your access to the services, these Terms shall cease to apply, except for those sections that are specified to survive (see Section 19: Survival). If termination is due to a breach by you, we reserve the right to pursue any and all legal remedies against you as appropriate given the circumstances (for example, if termination resulted from your misuse of our site or breach of contract).

We shall not be liable to you or any third party for any suspension or termination of your access to the website or services, except to the limited extent that we might have to refund any prepaid fees for services not provided (which is unlikely in our model, since you typically don’t prepay anything).

18. Modifications and Updates to Terms

Right to Modify: We may revise or update these Terms of Service from time to time to reflect changes in our practices, update legal requirements, or for other operational reasons. We reserve the right to modify these Terms at any time in our sole discretion. If we make a material change, we will provide notice to you in a manner reasonably designed to inform you of the change (for example, by posting the updated Terms on our website with a new effective date and/or by sending an email notification if you have provided an email address). All changes are effective immediately when we post them, unless otherwise stated.

However, if we update the Terms and you have already entered a funding agreement, the terms in effect at the time of your funding (or any subsequently agreed updates) will govern that transaction, unless the changes are required by law or by a regulatory authority (in which case they might automatically apply), or unless you agree to the changes. For ongoing website users who have not entered a separate contract, the updated Terms will apply to all usage after the effective date.

Your Responsibility to Check Updates: It is your responsibility to review these Terms periodically for any changes. We will note the “Effective Date” at the top when changes are made. By continuing to use our site or services after those changes become effective, you agree to be bound by the revised Terms. If you do not agree with the changes, you should stop using the site and services, and if applicable, contact us to terminate any account (though note that any funding agreement already executed remains binding).

No Oral Modifications: Our customer service representatives or agents do not have authority to modify these Terms or waive provisions (other than as described regarding arbitration opt-out). Any suggestion or statement by an employee that differs from these written Terms is not binding. Always rely on the written Terms and ask for written clarification if needed.

Contracts vs. Terms of Service: These Terms primarily govern general use of our website and overarching service relationship. For specific funding transactions, you will enter a separate Funding Agreement with additional terms. If there is a direct conflict between these Terms of Service and the terms of a signed Funding Agreement for a specific transaction, the Funding Agreement will govern for that specific transaction to the extent of the conflict (because it is a negotiated contract specific to you). These Terms are intended to work in harmony with such agreements by covering general topics (like website use, general policies, arbitration, etc.) that may not be fully detailed in each Funding Agreement.

19. Miscellaneous Provisions

Governing Law: As noted, and aside from the arbitration context, these Terms and any disputes arising under them (to the extent not pre-empted by federal law) are governed by the laws of the State of Texas (specifically, the laws of Texas without regard to its conflict of law principles). Texas law will apply to the interpretation of the Terms and to any issues that might arise between us, except to the extent federal law (such as federal arbitration law or certain consumer credit laws, if deemed applicable) governs. If a dispute is heard in court (permissibly or due to an unenforceable arbitration clause), we agree that Harris County, Texas is the proper venue, as discussed above, and we each consent to personal jurisdiction in Texas courts for that purpose.

Entire Agreement: These Terms of Service (together with any documents incorporated by reference, such as the Privacy Policy and any state-specific disclosures below) constitute the entire agreement between you and the Company with respect to the subject matter herein, superseding all prior or contemporaneous communications and proposals, whether electronic, oral or written, between you and us regarding the site or services. However, this does not supersede or replace any specific Funding Agreement you enter into; as noted, that agreement (and any related documents like attorney acknowledgments) will govern the terms of that transaction. In the event of a conflict, the Funding Agreement controls for that transaction, and these Terms control for general issues not addressed in the Funding Agreement.

Severability: If any provision of these Terms is held by a court or arbitrator of competent jurisdiction to be invalid, illegal, or unenforceable, that provision shall be severed or limited to the minimum extent necessary so that the remaining provisions of the Terms will continue in full force and effect. For example, if a court says our limitation of liability is too broad, the court will enforce it to the maximum extent permissible or, if needed, strike just that part, leaving the rest of the Terms intact. The parties expressly desire that these Terms be enforced to the fullest extent permitted by law, and that any unenforceable portion be reformed rather than voided, if possible.

No Waiver: Our failure to enforce any right or provision of these Terms shall not constitute a waiver of that right or provision. Similarly, a waiver by us of any breach of these Terms on one occasion will not constitute a waiver of any subsequent breach, nor will any single or partial exercise of any remedy preclude further exercise of any other remedy. All waivers must be in writing (email is sufficient) to be effective. The rights and remedies provided to us in these Terms are cumulative and in addition to any other rights or remedies we may have at law or in equity, except as explicitly limited by these Terms.

Assignment: You may not assign or transfer these Terms or any of your rights or obligations hereunder without our prior written consent. Any attempted assignment by you without consent is null and void. We may assign or transfer our rights and obligations under these Terms freely, including to a successor entity in the event of a merger, acquisition, corporate reorganization, or sale of assets, or by operation of law. These Terms shall inure to the benefit of and be binding upon each party’s permitted assigns. In plain language, if we sell or securitize our funding contracts or our business, the new owner will assume our position under these Terms (and your funding agreement) without needing your consent, to the extent permitted by law. You agree that we have the right to sell, assign, securitize, or transfer the funding agreements or any rights to payment therein to third parties for business purposes (for example, bundling your and others’ receivables into an asset-backed securitization). Any such assignment will not materially affect your rights or obligations – it would just mean you owe the payment to a new owner, who will honor the original terms. We will notify you if such an assignment occurs and provide any required information (like new contact info for servicing). You agree to cooperate in executing any acknowledgments or documents reasonably necessary to effectuate a permitted assignment of your funding agreement.

Relationship of Parties: Nothing in these Terms creates a partnership, joint venture, agency, or employment relationship between you and us. We are independent contracting parties. You have no authority to bind us, and vice versa, in any respect. You are using our services voluntarily as a client, not as our employee or agent.

Notices: Except as explicitly stated otherwise, any notices to us must be sent to our corporate address at: [Company Address, e.g., 123 Main St, Houston, TX 77001, Attn: Legal Department]. We may send notices to you via the contact information you provided (email, physical address, or SMS). Notice will be deemed given: (a) if by email, when our system confirms transmission (provided no bounce-back or error is received); (b) if by physical mail, 3 business days after mailing via first class mail or courier service; (c) if by SMS or phone call, when the message is sent or call is completed (excluding voicemails). You are responsible for keeping your contact information up-to-date with us.

Force Majeure: We are not liable for any delay or failure in our performance of any part of the service (including funding disbursement delays) to the extent such delay or failure is caused by events beyond our reasonable control, including but not limited to acts of God, natural disasters, war, terrorism, civil disturbances, labor disputes, power or internet outages, or government actions. We will make reasonable efforts to mitigate the effects and resume performance as soon as feasible.

Headings: Section headings and titles in these Terms are for convenience only and do not affect the interpretation of any provision.

State Law and Regulatory Disclosures: We have included a section below for state-specific notices. We are committed to complying with state laws that regulate lawsuit funding. If you reside in a state that has specific legal funding regulations, those will be either automatically incorporated or separately provided to you.

Consumer Protection: If any provision of applicable law grants you greater rights than provided here, or if there’s a conflict between these Terms and a mandated legal disclosure or requirement, the provision of law will supersede to the extent of the inconsistency, and we will be deemed to have included such required terms herein. Our intent is for these Terms to be interpreted to comply with all applicable laws.

Feedback: If you provide us with any feedback or suggestions regarding our services, you agree that we may use and modify such feedback without any restriction or compensation to you, and you waive any rights to it.

By using our services, you acknowledge that you have read these Terms of Service, understand them, and agree to be bound by them. If you have any questions or concerns about these Terms, please contact us before proceeding.

20. State-Specific Disclosures and Notices

Certain states require specific disclosures or impose particular limitations on pre-settlement funding transactions. The following provisions apply only to residents of these states or where required by state law, and they supplement or, where inconsistent, supersede the above Terms solely to the extent required by the applicable state law. If you are not a resident of the listed state, these specific terms do not apply to you.

• [State Name]: [Insert any required disclosure or term unique to this state. For example, maximum funding fee caps, cooling-off period rights, attorney acknowledgment requirements mandated by state law, or specific language that must be included.]

• [State Name]: [Insert specific provision.]

• [State Name]: [If your state requires the contract to have large bold print of certain notices (e.g., “This is not a loan” in 14-point font) or specific cancellation windows, list them here or indicate that the client will receive a state-specific addendum with those terms.]

• [State Name]: [E.g., Illinois: “Consumer Legal Funding Act Disclosure: You may cancel this contract without penalty within 5 business days of receiving funding by returning the full amount to the company.” (This is an illustrative example; actual state requirements should be used).]

• [State Name]: [Any licensing info, if required: e.g., if a state requires us to be licensed and to include our license number or registration, include that here: “Registered in Alabama as a Litigation Accounts Receivable Purchaser, Registration #XYZ” – example only.]

(Note: The above placeholders will be filled with actual state-specific language as required. The absence of a state from this list does not mean no state laws apply; it means generally the terms above are intended to comply with that state’s law. We continuously monitor legal requirements and will update or provide addenda as necessary.)

21. Contact Information and Customer Service

If you have any questions about these Terms or need assistance, please contact us:

• Company Name: Capital Funding TX, LLC d/b/a Sum Funding

• Customer Service Phone: [XXX-XXX-XXXX]

• Customer Service Email: [support@sumfunding.com]

• Mailing Address: [3000 Weslayan St #305, Houston, TX 77027] (Attn: Customer Care)

Our normal business hours are [e.g., 9:00 AM – 6:00 PM Central Time, Monday through Friday]. We will do our best to respond promptly to all inquiries.

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ACKNOWLEDGMENT: By using the Sum Funding website or services, or by signing a funding agreement, you acknowledge that you have read these Terms of Service, understand them, and agree to be legally bound by them. If you are signing on behalf of a legal entity or as an attorney for a client, you represent that you have full authority to do so and that the applicable party will be bound.

Thank you for choosing Sum Funding. We aim to provide you with transparent, consumer-friendly financial assistance as you pursue justice in your legal claim, and we appreciate the trust you have placed in us.