Final answer:
ABA Model Rule 1.8(e) prohibits lawyers from providing financial assistance to clients in connection with litigation, with limited exceptions for covering court costs and litigation expenses.
Step-by-step explanation:
The American Bar Association (ABA) imposes certain restrictions on lawyers making loans in connection with litigation to ensure ethical practices and to prevent potential conflicts of interest. Specifically, under ABA Model Rule 1.8(e), lawyers are prohibited from providing financial assistance to a client in connection with pending or contemplated litigation, with only limited exceptions for advancing court costs and expenses of litigation, which must be repaid.
The intent behind this is to maintain the integrity of the legal profession and uphold the right to an attorney without compromising the lawyer-client relationship.