Kentucky Statutes 286.9-035 – Deferred deposit transaction agreement with unlicensed person void
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(1) Any deferred deposit transaction agreement made with a person who is not licensed under this subtitle shall be void, and the person shall not collect any principal, fee, interest, charges, or recompense whatsoever.
(2) The commissioner may void a deferred deposit transaction agreement when it is determined by the commissioner that the licensee has violated any provision of this subtitle. The licensee shall be allowed to recover from the customer any principal paid by the licensee to the customer, but the licensee shall not recover any service fee or other charge related to the deferred deposit transaction.
(3) For purposes of this section, “payment instrument” also includes debit authorization, electronic funds transfer, and any other form of electronic transmission of money.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 799, effective July 15, 2010. — Created
2009 Ky. Acts ch. 98, sec. 7, effective January 1, 2010.
(2) The commissioner may void a deferred deposit transaction agreement when it is determined by the commissioner that the licensee has violated any provision of this subtitle. The licensee shall be allowed to recover from the customer any principal paid by the licensee to the customer, but the licensee shall not recover any service fee or other charge related to the deferred deposit transaction.
Terms Used In Kentucky Statutes 286.9-035
- Commissioner: means the commissioner of the Department of Financial
Institutions. See Kentucky Statutes 286.1-010 - Customer: means a person who inquires into the availability of or applies for a
deferred presentment service transaction or a person who enters into a deferred presentment service transaction. See Kentucky Statutes 286.9-010 - Electronic funds transfer: The transfer of money between accounts by consumer electronic systems-such as automated teller machines (ATMs) and electronic payment of bills-rather than by check or cash. (Wire transfers, checks, drafts, and paper instruments do not fall into this category.) Source: OCC
- Licensee: means a person who has been issued either a check cashing license or a deferred deposit service business license by the commissioner in accordance with this subtitle to conduct check cashing or deferred deposit service business in the Commonwealth. See Kentucky Statutes 286.9-010
- Person: means a natural person, or any type or form of corporation, company, partnership, proprietorship, association, or other legal entity. See Kentucky Statutes 286.1-010
(3) For purposes of this section, “payment instrument” also includes debit authorization, electronic funds transfer, and any other form of electronic transmission of money.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 799, effective July 15, 2010. — Created
2009 Ky. Acts ch. 98, sec. 7, effective January 1, 2010.