§ 53-208.20. Authorized delegate conduct. - North Carolina Statutes

§ 53‑208.20.  Authorizeddelegate conduct.

(a)        An authorizeddelegate shall not make any fraudulent or false statement or misrepresentationto a licensee or to the Commissioner.

(b)        All moneytransmission or sale or issuance of payment instrument activities conducted byauthorized delegates shall be strictly in accordance with the licensee'swritten procedures provided to the authorized delegates.

(c)        An authorizeddelegate shall remit all money owing to the licensee in accordance with theterms of the contract between the licensee and the authorized delegate. Thefailure of an authorized delegate to remit all money owing to a licensee withinthe time presented shall result in liability of the authorized delegates to thelicensee for three times the licensee's actual damages. The Commissioner mayset, by regulation, the maximum remittance time.

(d)        An authorizeddelegate is deemed to consent to the Commissioner's inspection, with or withoutprior notice to the licensee or authorized delegate, of the books and recordsof the authorized delegate of the licensee when the Commissioner has areasonable basis to believe that the licensee or authorized delegate is not incompliance with this Article.

(e)        An authorizeddelegate is under a duty to act only as authorized under the contract with thelicensee. An authorized delegate who exceeds its authority is subject tocancellation of its contract and further disciplinary action by theCommissioner.

(f)         All funds, lessfees, received by an authorized delegate of a licensee from the sale ordelivery of a payment instrument or stored value issued by a licensee orreceived by an authorized delegate for transmission shall constitute trustfunds owned by and belonging to the licensee from the time the funds arereceived by the authorized delegate until the time when the funds or anequivalent amount are remitted by the authorized delegate to the licensee. Ifan authorized delegate commingles any funds with any other funds or propertyowned or controlled by the authorized delegate, all commingled proceeds andother property shall be impressed with a trust in favor of the licensee in anamount equal to the amount of the proceeds due the licensee.

(g)        An authorizeddelegate shall report to the licensee the theft or loss of payment instrumentswithin 24 hours from the time it knew or should have known of the theft orloss.

(h)        An authorizeddelegate shall prominently post the certificate of authority specified in G.S.53‑208.19 at each location at which it conducts licensed activities inthis State. (2001‑443,s. 2.)