261ATerms relating to third party payers

261A Terms relating to third party payers (1) In this part: (a) a person is a third party payer, in relation to a client of a law practice if the person— (i) is not the client; and (ii) either— (A) is under a legal obligation to pay all or any part of the legal costs for legal services provided to the client; or (B) being under that obligation, has paid all or a part of the legal costs; and (b) a third party payer is an associated third party payer if the legal obligation mentioned in paragraph (a) is owed to the law practice, whether or not it is also owed to the client of someone else; and Application—pt 3.2 Division 3.2.2 (c) a third party payer is a non-associated third party payer if the legal obligation mentioned in paragraph (a) is owed to the client or someone else but not to the law practice. (2) The legal obligation mentioned in subsection (1) can arise by or under contract or legislation. (3) A law practice that retains another law practice to act on behalf of a client is not for that reason a third party payer in relation to the client.