State of Arizona

Ethics Opinion 2001-07 (September, 2001)

1. It is ethical for an attorney to take a loan from a third party company to cover litigation expenses, or to fund his law practice.

It is ethical for an attorney to pass the costs and fees from the loan on to the client if:

A. The lawyer has no financial interest in the lending company

B. The interest charged to the client must does exceed the actual interest incurred by the attorney

C. The arrangement is explained clearly to the client

D. Client information may be disclosed to the lender only upon consent of the client after consent after consultation.

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