(a) An authorized delegate shall not make any fraudulent or false statement or misrepresentation to a licensee or to the commissioner.

Terms Used In Tennessee Code 45-7-128

  • Commissioner: means the commissioner of financial institutions. See Tennessee Code 45-7-103
  • Contract: A legal written agreement that becomes binding when signed.
  • Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
  • Licensee: means a person licensed under this chapter. See Tennessee Code 45-7-103
  • Money transmission: means the sale or issuance of payment instruments or engaging in the business of receiving money for transmission or transmitting money within the United States or to locations abroad by any and all means, including, but not limited to, payment instrument, wire, facsimile or electronic transfer. See Tennessee Code 45-7-103
  • Payment instrument: means any check, draft, money order, travelers check or other instrument or written order for the transmission or payment of money, sold or issued to one (1) or more persons, whether or not the instrument is negotiable. See Tennessee Code 45-7-103
  • Property: includes both personal and real property. See Tennessee Code 1-3-105
  • Remit: means either to make direct payment of the funds to the licensee or its representatives authorized to receive those funds, or to deposit the funds in a bank, credit union or savings and loan association or other similar financial institution in an account in the name of the licensee. See Tennessee Code 45-7-103
  • written: includes printing, typewriting, engraving, lithography, and any other mode of representing words and letters. See Tennessee Code 1-3-105
(b) All money transmission or sale or issuance of payment instrument activities conducted by authorized delegates must be performed strictly in accordance with the licensee’s written procedures provided to the authorized delegate.
(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 failure of an authorized delegate to remit all money owing to a licensee within the contractual time period results in liability of the authorized delegate to the licensee for three (3) times the licensee’s actual damages. The commissioner is authorized to set, by rule, the maximum remittance time.
(d) An authorized delegate of a licensee holds in trust for the benefit of the licensee all money net of fees received from money transmission. If any authorized delegate commingles any funds received from money transmission with any other funds or property owned or controlled by the authorized delegate, all commingled funds and other property are considered held in trust in favor of the licensee in an amount equal to the amount of money net of fees received from money transmission.
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