Section 12-414 - Fraud, false statements, or misrepresentation prohibited; management of funds; reporting loss or theft of funds. - Maryland Statutes

§ 12-414. Fraud, false statements, or misrepresentation prohibited; management of funds; reporting loss or theft of funds.
 

(a)  Fraud, false statements, or misrepresentation prohibited.- An authorized delegate may not make any fraudulent or false statement or misrepresentation to a licensee or to the Commissioner. 

(b)  Strict compliance with policies and procedures required.- All money transmission services conducted by an authorized delegate shall be conducted strictly in accordance with the licensee's operating policies and procedures provided to the authorized delegate. 

(c)  Remitting funds.- An authorized delegate shall remit all funds owed to the licensee in accordance with the terms of the contract between the licensee and the authorized delegate. 

(d)  Funds received deemed trust funds.-  

(1) All funds received by an authorized delegate from the sale of a payment instrument, less fees, shall constitute trust funds belonging to the licensee from the time the funds are received by the authorized delegate until the time when the funds are remitted to the licensee. 

(2) If an authorized delegate commingles any of the funds received with any other funds or property owned or controlled by the authorized delegate, all commingled funds and other property shall be impressed with a trust in favor of the licensee in an amount equal to the amount of the funds due the licensee. 

(e)  Same - Commingled funds.- An authorized delegate shall report to the licensee the theft or loss of a payment instrument within 24 hours after the theft or loss. 
 

[2002, ch. 539.]