---
title: "Disclose a Victorian disbursement funding arrangement with the costs agreement"
url: "https://ailawframework.com/obligations/costs-billing-and-litigation-funding/disclose-a-disbursement-funding-arrangement-with-the-costs-agreement/victoria"
type: "task_jurisdiction_version"
site: "AI Law Framework"
id: "A42-CS20261023-9-VIC"
practice_area: "Costs, billing & litigation funding"
tier: "yellow"
lawyer_review: "required"
jurisdictions: ["VIC"]
last_reviewed: "2026-10-25"
---

# Disclose a Victorian disbursement funding arrangement with the costs agreement

> From the facility the lawyer marks, draft the disclosure of who advances the disbursements, the interest or premium, and that disbursements may be payable if the claim fails. Do not send it.

Canonical page: https://ailawframework.com/obligations/costs-billing-and-litigation-funding/disclose-a-disbursement-funding-arrangement-with-the-costs-agreement/victoria  
Last reviewed: 2026-10-25

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

| Fact | Value |
| --- | --- |
| Practice area | [Costs, billing & litigation funding](https://ailawframework.com/obligations/costs-billing-and-litigation-funding.md) |
| Human involvement | Yellow: Lawyer and AI draft together |
| How AI is used | From the facility the lawyer marks, draft the disclosure of who advances the disbursements, the interest or premium, and that disbursements may be payable if the claim fails. Do not send it. |
| What the lawyer must review | Settle the disclosure, and any funding contract the client signs. State the interest or premium in the terms the lawyer marks. On a litigious matter, do not put that interest inside the 25 per cent uplift. Say if disbursements remain payable when the claim fails. |
| Written for | Victoria |
| Applies to | [Disclose a disbursement funding arrangement with the costs agreement](https://ailawframework.com/obligations/costs-billing-and-litigation-funding/disclose-a-disbursement-funding-arrangement-with-the-costs-agreement.md) |

## Checking plan

**Victorian funding disclosure**

The tool drafts the disclosure from the facility. The lawyer settles it before the client signs.

- What the AI does: From the facility the lawyer marks, draft the disclosure of who advances the disbursements, the interest or premium, and that disbursements may be payable if the claim fails. Do not send it.
- What the lawyer does: Check the loan terms and approve the disclosure and any contract the client signs.
- Who reviews: Lawyer competent in this practice area
- Basis: Checked against the linked sources on 23 October 2026. Confirm the current instrument before reliance.

## Checks the lawyer makes

1. The regulator says the client repays a litigation lender with interest and/or a premium.
2. Section 181(6) allows the agreement to make disbursements payable irrespective of the outcome.
3. On a litigious matter, section 182 excludes disbursements from the 25 per cent uplift.
4. No rule putting the lender's interest inside a half-of-settlement cap was in the Victorian sections opened. The disclosure still states the interest or premium.

## Notes

- The lawyer explains the loan terms. The regulator tells the client to ask for that explanation.
- Keep medical details in the firm's system. Apply ASCR rule 9 and APP 11, and check whether a Privacy Act 1988 (Cth) breach is notifiable.

## Practical guide

Jurisdiction: Victoria. A disbursement funding disclosure given with a conditional costs agreement.

**Deliverable**: A funding disclosure for the lawyer to settle and, where needed, for the client to sign with the facility.

**Inputs**

- Lender and amount
- Interest or premium
- Whether disbursements are payable if the claim fails

**Example**: Illustrative example: The draft says the lender is repaid only if the claim succeeds. The facility says otherwise. The lawyer corrects the draft to the facility.

**Stop and escalate when**

- The interest or premium is omitted.
- The draft invents a statutory cap on the premium.

Checked 2026-10-23.

## Sources

- [Victorian Legal Services Board and Commissioner, 'no win – no fee' cost agreements](https://lsbc.vic.gov.au/consumers/legal-costs-and-billing/no-win-no-fee-cost-agreements) (checked 2026-10-23)
- [Legal Profession Uniform Law (NSW) s 181, conditional costs agreements](https://classic.austlii.edu.au/au/legis/nsw/consol_act/lpul333/s181.html) (checked 2026-10-23)
- [Legal Profession Uniform Law (NSW) s 182, uplift fees](https://classic.austlii.edu.au/au/legis/nsw/consol_act/lpul333/s182.html) (checked 2026-10-23)

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*