State Codes and Statutes

Statutes > California > Fin > 1825-1828

FINANCIAL CODE
SECTION 1825-1828



1825.  (a) In this section, "remit" means to make direct payments of
money to a licensee or its representative authorized to receive
money or to deposit money in a bank in an account specified by the
licensee.
   (b) No licensee shall appoint or continue any person as agent,
unless the licensee and the person have made a written contract. A
written contract between a licensee and an agent shall require the
agent to operate in full compliance with this chapter.
   (c) The written contract shall contain each of the following
provisions:
   (1) That the licensee appoints the person as its agent with
authority to conduct money transmission on behalf of the licensee.
   (2) That the agent shall make and keep accounts, correspondence,
memoranda, papers, books, and other records as the commissioner by
regulation or order requires and preserve the records for the time
specified by the regulation or order.
   (3) That all money or monetary value, less fees due agents
provided for and expressly set forth in the written agreement,
received by the agent for money transmission on behalf of the
licensee shall be trust funds owned by and belonging to the licensee
until the time when the money or an equivalent amount are remitted by
the agent to the licensee in accordance with this section.
   (4) That the money must be remitted in accordance with the
provisions of this chapter.
   (5) Any other provisions that the commissioner may by regulation
or order find to be necessary to carry out the provisions and
purposes of this chapter.
   (d) An agent shall remit all money owing to the licensee in
accordance with the terms of the contract between the licensee and
the agent.
   (e) An agent of a licensee shall remit any money, less fees,
received on behalf of the licensee for money transmission as follows:
   (1) Within three business days of receipt.
   (2) In case the aggregate face amount of the money, less fees,
does not in any calendar week exceed ten thousand dollars ($10,000),
within 10 business days of receipt.
   (3) Within a period longer than three business days of receipt, if
the agent has previously deposited with, and during such period
maintains on deposit with, an office of an insured bank or of an
insured savings and loan association located in the United States in
an account that is in the sole and exclusive name of the licensee an
amount that, for each day by which such period exceeds three business
days, is not less than the aggregate face amount of money received
on behalf of the licensee for money transmission that the agent
usually sells per day.
   (4) Within such shorter period as the licensee may provide.
   (f) An agent may not provide money transmission outside the scope
of activity permissible under the contract between the agent and the
licensee. All money or monetary value, less fees, received by an
agent of a licensee shall, from the time when the money is received
by the agent until the time when the money or an equivalent amount is
remitted by the agent to the licensee, constitute trust funds owned
by and belonging to the licensee.
   (g) An agent may not use a subagent to conduct money transmissions
on behalf of a licensee.
   (h) Each licensee shall exercise reasonable supervision over its
agents to ensure compliance with applicable laws, rules, and
regulations with respect to money transmission.
   (i) No agent of a licensee shall, nor shall any licensee cause or
knowingly permit any of its agents to, conduct money transmission on
behalf of the licensee without concurrently receiving money, monetary
value or its equivalent, credit card, or payment instrument, or a
combination of same believed to be valid in an amount not less than
the amount of the money transmission being provided. In the case of a
sale of payment instruments or stored value to an insured bank, an
insured savings and loan association, or an insured credit union, the
licensee or agents of the licensee may receive such amounts the next
business day after the sale.
   (j) If any agent of a licensee shall commingle any money or
monetary value, less fees, received on behalf of the licensee for
money transmission with any other property owned or controlled by the
agent, all such property shall be impressed with a trust in favor of
the licensee in an amount equal to the aggregate amount of such
money so commingled. No money or monetary value, less fees, received
by any agent on behalf of the licensee for money transmission, while
held by such agent, nor any property impressed with a trust pursuant
to this subdivision, shall be subject to attachment, levy of
execution, or sequestration by order of any court, except for the
benefit of the licensee.
   (k) Each licensee shall be liable as a principal for the money or
monetary value from the time when the money or monetary value is
received by the agent. Each licensee shall be liable as the maker or
drawer on each payment instrument issued or sold by such licensee.




1826.  (a) No licensee shall appoint any person as an agent unless
it has conducted a review of the proposed agent's fitness to act as
an agent and has determined that the proposed agent and any persons
who control the proposed agent are of good character and sound
financial standing.
   (b) A licensee shall maintain records of this review for each
agent while the agent is providing money transmission on behalf of
the licensee, and for three years after the relationship with the
agent has terminated.



1827.  A person may not provide money transmissions on behalf of a
person not licensed or not exempt from licensure under this chapter.
A person that engages in that activity provides money transmissions
services to the same extent as if the person was a licensee, and
shall be jointly and severally liable with the unlicensed or
nonexempt person.



1828.  (a) No agent of a licensee who has actual notice that the
commissioner has suspended or revoked the license of the licensee or
that the commissioner has issued an order taking possession of the
property and business of the licensee shall conduct money
transmission on behalf of the licensee.
   (b) If any agent of a licensee, after first having actual notice
that the commissioner has suspended or revoked the license of the
licensee or that the commissioner has issued an order taking
possession of the property and business of the licensee, conducts
money transmission on behalf of the licensee, the agent shall be
jointly and severally liable with the licensee for payment of the
money transmission.

State Codes and Statutes

Statutes > California > Fin > 1825-1828

FINANCIAL CODE
SECTION 1825-1828



1825.  (a) In this section, "remit" means to make direct payments of
money to a licensee or its representative authorized to receive
money or to deposit money in a bank in an account specified by the
licensee.
   (b) No licensee shall appoint or continue any person as agent,
unless the licensee and the person have made a written contract. A
written contract between a licensee and an agent shall require the
agent to operate in full compliance with this chapter.
   (c) The written contract shall contain each of the following
provisions:
   (1) That the licensee appoints the person as its agent with
authority to conduct money transmission on behalf of the licensee.
   (2) That the agent shall make and keep accounts, correspondence,
memoranda, papers, books, and other records as the commissioner by
regulation or order requires and preserve the records for the time
specified by the regulation or order.
   (3) That all money or monetary value, less fees due agents
provided for and expressly set forth in the written agreement,
received by the agent for money transmission on behalf of the
licensee shall be trust funds owned by and belonging to the licensee
until the time when the money or an equivalent amount are remitted by
the agent to the licensee in accordance with this section.
   (4) That the money must be remitted in accordance with the
provisions of this chapter.
   (5) Any other provisions that the commissioner may by regulation
or order find to be necessary to carry out the provisions and
purposes of this chapter.
   (d) An agent shall remit all money owing to the licensee in
accordance with the terms of the contract between the licensee and
the agent.
   (e) An agent of a licensee shall remit any money, less fees,
received on behalf of the licensee for money transmission as follows:
   (1) Within three business days of receipt.
   (2) In case the aggregate face amount of the money, less fees,
does not in any calendar week exceed ten thousand dollars ($10,000),
within 10 business days of receipt.
   (3) Within a period longer than three business days of receipt, if
the agent has previously deposited with, and during such period
maintains on deposit with, an office of an insured bank or of an
insured savings and loan association located in the United States in
an account that is in the sole and exclusive name of the licensee an
amount that, for each day by which such period exceeds three business
days, is not less than the aggregate face amount of money received
on behalf of the licensee for money transmission that the agent
usually sells per day.
   (4) Within such shorter period as the licensee may provide.
   (f) An agent may not provide money transmission outside the scope
of activity permissible under the contract between the agent and the
licensee. All money or monetary value, less fees, received by an
agent of a licensee shall, from the time when the money is received
by the agent until the time when the money or an equivalent amount is
remitted by the agent to the licensee, constitute trust funds owned
by and belonging to the licensee.
   (g) An agent may not use a subagent to conduct money transmissions
on behalf of a licensee.
   (h) Each licensee shall exercise reasonable supervision over its
agents to ensure compliance with applicable laws, rules, and
regulations with respect to money transmission.
   (i) No agent of a licensee shall, nor shall any licensee cause or
knowingly permit any of its agents to, conduct money transmission on
behalf of the licensee without concurrently receiving money, monetary
value or its equivalent, credit card, or payment instrument, or a
combination of same believed to be valid in an amount not less than
the amount of the money transmission being provided. In the case of a
sale of payment instruments or stored value to an insured bank, an
insured savings and loan association, or an insured credit union, the
licensee or agents of the licensee may receive such amounts the next
business day after the sale.
   (j) If any agent of a licensee shall commingle any money or
monetary value, less fees, received on behalf of the licensee for
money transmission with any other property owned or controlled by the
agent, all such property shall be impressed with a trust in favor of
the licensee in an amount equal to the aggregate amount of such
money so commingled. No money or monetary value, less fees, received
by any agent on behalf of the licensee for money transmission, while
held by such agent, nor any property impressed with a trust pursuant
to this subdivision, shall be subject to attachment, levy of
execution, or sequestration by order of any court, except for the
benefit of the licensee.
   (k) Each licensee shall be liable as a principal for the money or
monetary value from the time when the money or monetary value is
received by the agent. Each licensee shall be liable as the maker or
drawer on each payment instrument issued or sold by such licensee.




1826.  (a) No licensee shall appoint any person as an agent unless
it has conducted a review of the proposed agent's fitness to act as
an agent and has determined that the proposed agent and any persons
who control the proposed agent are of good character and sound
financial standing.
   (b) A licensee shall maintain records of this review for each
agent while the agent is providing money transmission on behalf of
the licensee, and for three years after the relationship with the
agent has terminated.



1827.  A person may not provide money transmissions on behalf of a
person not licensed or not exempt from licensure under this chapter.
A person that engages in that activity provides money transmissions
services to the same extent as if the person was a licensee, and
shall be jointly and severally liable with the unlicensed or
nonexempt person.



1828.  (a) No agent of a licensee who has actual notice that the
commissioner has suspended or revoked the license of the licensee or
that the commissioner has issued an order taking possession of the
property and business of the licensee shall conduct money
transmission on behalf of the licensee.
   (b) If any agent of a licensee, after first having actual notice
that the commissioner has suspended or revoked the license of the
licensee or that the commissioner has issued an order taking
possession of the property and business of the licensee, conducts
money transmission on behalf of the licensee, the agent shall be
jointly and severally liable with the licensee for payment of the
money transmission.


State Codes and Statutes

State Codes and Statutes

Statutes > California > Fin > 1825-1828

FINANCIAL CODE
SECTION 1825-1828



1825.  (a) In this section, "remit" means to make direct payments of
money to a licensee or its representative authorized to receive
money or to deposit money in a bank in an account specified by the
licensee.
   (b) No licensee shall appoint or continue any person as agent,
unless the licensee and the person have made a written contract. A
written contract between a licensee and an agent shall require the
agent to operate in full compliance with this chapter.
   (c) The written contract shall contain each of the following
provisions:
   (1) That the licensee appoints the person as its agent with
authority to conduct money transmission on behalf of the licensee.
   (2) That the agent shall make and keep accounts, correspondence,
memoranda, papers, books, and other records as the commissioner by
regulation or order requires and preserve the records for the time
specified by the regulation or order.
   (3) That all money or monetary value, less fees due agents
provided for and expressly set forth in the written agreement,
received by the agent for money transmission on behalf of the
licensee shall be trust funds owned by and belonging to the licensee
until the time when the money or an equivalent amount are remitted by
the agent to the licensee in accordance with this section.
   (4) That the money must be remitted in accordance with the
provisions of this chapter.
   (5) Any other provisions that the commissioner may by regulation
or order find to be necessary to carry out the provisions and
purposes of this chapter.
   (d) An agent shall remit all money owing to the licensee in
accordance with the terms of the contract between the licensee and
the agent.
   (e) An agent of a licensee shall remit any money, less fees,
received on behalf of the licensee for money transmission as follows:
   (1) Within three business days of receipt.
   (2) In case the aggregate face amount of the money, less fees,
does not in any calendar week exceed ten thousand dollars ($10,000),
within 10 business days of receipt.
   (3) Within a period longer than three business days of receipt, if
the agent has previously deposited with, and during such period
maintains on deposit with, an office of an insured bank or of an
insured savings and loan association located in the United States in
an account that is in the sole and exclusive name of the licensee an
amount that, for each day by which such period exceeds three business
days, is not less than the aggregate face amount of money received
on behalf of the licensee for money transmission that the agent
usually sells per day.
   (4) Within such shorter period as the licensee may provide.
   (f) An agent may not provide money transmission outside the scope
of activity permissible under the contract between the agent and the
licensee. All money or monetary value, less fees, received by an
agent of a licensee shall, from the time when the money is received
by the agent until the time when the money or an equivalent amount is
remitted by the agent to the licensee, constitute trust funds owned
by and belonging to the licensee.
   (g) An agent may not use a subagent to conduct money transmissions
on behalf of a licensee.
   (h) Each licensee shall exercise reasonable supervision over its
agents to ensure compliance with applicable laws, rules, and
regulations with respect to money transmission.
   (i) No agent of a licensee shall, nor shall any licensee cause or
knowingly permit any of its agents to, conduct money transmission on
behalf of the licensee without concurrently receiving money, monetary
value or its equivalent, credit card, or payment instrument, or a
combination of same believed to be valid in an amount not less than
the amount of the money transmission being provided. In the case of a
sale of payment instruments or stored value to an insured bank, an
insured savings and loan association, or an insured credit union, the
licensee or agents of the licensee may receive such amounts the next
business day after the sale.
   (j) If any agent of a licensee shall commingle any money or
monetary value, less fees, received on behalf of the licensee for
money transmission with any other property owned or controlled by the
agent, all such property shall be impressed with a trust in favor of
the licensee in an amount equal to the aggregate amount of such
money so commingled. No money or monetary value, less fees, received
by any agent on behalf of the licensee for money transmission, while
held by such agent, nor any property impressed with a trust pursuant
to this subdivision, shall be subject to attachment, levy of
execution, or sequestration by order of any court, except for the
benefit of the licensee.
   (k) Each licensee shall be liable as a principal for the money or
monetary value from the time when the money or monetary value is
received by the agent. Each licensee shall be liable as the maker or
drawer on each payment instrument issued or sold by such licensee.




1826.  (a) No licensee shall appoint any person as an agent unless
it has conducted a review of the proposed agent's fitness to act as
an agent and has determined that the proposed agent and any persons
who control the proposed agent are of good character and sound
financial standing.
   (b) A licensee shall maintain records of this review for each
agent while the agent is providing money transmission on behalf of
the licensee, and for three years after the relationship with the
agent has terminated.



1827.  A person may not provide money transmissions on behalf of a
person not licensed or not exempt from licensure under this chapter.
A person that engages in that activity provides money transmissions
services to the same extent as if the person was a licensee, and
shall be jointly and severally liable with the unlicensed or
nonexempt person.



1828.  (a) No agent of a licensee who has actual notice that the
commissioner has suspended or revoked the license of the licensee or
that the commissioner has issued an order taking possession of the
property and business of the licensee shall conduct money
transmission on behalf of the licensee.
   (b) If any agent of a licensee, after first having actual notice
that the commissioner has suspended or revoked the license of the
licensee or that the commissioner has issued an order taking
possession of the property and business of the licensee, conducts
money transmission on behalf of the licensee, the agent shall be
jointly and severally liable with the licensee for payment of the
money transmission.

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