(a) An authorized delegate of a licensee shall not make any fraudulent or false statement
or misrepresentation to a licensee or to the commissioner.
(b) All money transmissions, sales, or issuances of payment instruments conducted
by authorized delegates shall be in accordance with the licensee's written procedures
provided to the authorized delegate and shall comply with all applicable federal and
state laws, rules, and regulations.
(c) An authorized delegate shall remit all money owing to the licensee in accordance
with the terms of the contract between the licensee and the authorized delegate. The commissioner shall have the discretion to set, by rule, adopted pursuant to chapter
91, the maximum remittance time.
(d) An authorized delegate is deemed to consent to the commissioner's inspection,
with or without prior notice to the licensee or authorized delegate, of the books
and records of the authorized delegate when the commissioner has a reasonable basis
to believe that the licensee or delegate is not in compliance with this chapter.
(e) An authorized delegate is under a duty to act only as authorized under the contract
with the licensee. An authorized delegate that exceeds its authority is subject to cancellation of the
delegate's contract and further disciplinary action by the commissioner.
(f) All funds, except fees, received by an authorized delegate from the sale or delivery
of a payment instrument issued by a licensee or received by the delegate for transmission,
from the time the funds are received by the delegate until the time when the funds
or an equivalent amount are remitted by the delegate to the licensee, shall constitute
trust funds owned by and belonging to the licensee. If an authorized delegate commingles any trust funds with any other funds or property
owned or controlled by the delegate, all commingled funds and other property of the
delegate shall be impressed with a trust in favor of the licensee in an amount equal
to the amount of the proceeds due to the licensee.
(g) An authorized delegate shall report to the licensee the theft or loss of payment
instruments within twenty-four hours from the time the delegate knew or should have
known of the theft or loss.
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
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