Licensees desiring to conduct licensed activities through authorized agents shall authorize each agent to operate pursuant to an express written contract, which shall, at a minimum, provide the following:

(1) That the licensee appoints the person as its agent with authority to sell payment instruments or transmit money on behalf of the licensee in compliance with state and federal law;

Terms Used In Tennessee Code 45-7-118

  • Authorized agent: means an entity designated by the licensee under this chapter to sell or issue payment instruments or engage in the business of transmitting money on behalf of a licensee. See Tennessee Code 45-7-103
  • Commissioner: means the commissioner of financial institutions. See Tennessee Code 45-7-103
  • Contract: A legal written agreement that becomes binding when signed.
  • Licensee: means a person licensed under this chapter. See Tennessee Code 45-7-103
  • Person: means any individual, partnership, association, joint-stock association, trust or corporation. See Tennessee Code 45-7-103
  • State: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
  • written: includes printing, typewriting, engraving, lithography, and any other mode of representing words and letters. See Tennessee Code 1-3-105
(2) That neither a licensee nor an authorized agent may authorize sub-agents without the written consent of the commissioner;
(3) That licensees are subject to supervision and regulation by the commissioner;
(4) An acknowledgment that the authorized agent consents to the commissioner’s inspection, with or without prior notice to the licensee or authorized agent or agents, of the books and records of authorized agent or agents of the licensee; and
(5) That an authorized agent is under a duty to act only as authorized under the contract with the licensee and that an authorized agent who exceeds its authority is subject to cancellation of its contract by the licensee and disciplinary action by the commissioner.