2006 Minnesota Statutes

53B.21 AUTHORIZED DELEGATE CONDUCT.
(a) An authorized delegate shall not make any fraudulent or false statement or
misrepresentation to a licensee or to the commissioner.
(b) An authorized delegate shall conduct its money transmission activities in a safe and
sound manner.
(c) An authorized delegate shall cooperate with an investigation conducted by the
commissioner under this chapter by providing any relevant information in its possession that the
commissioner cannot reasonably obtain from another source.
(d) An authorized delegate is under a duty to act only as authorized under the contract with
the licensee and any authorized delegate who exceeds its authority is subject to cancellation
of its contract.
(e) All funds, less fees, received by an authorized delegate of a licensee from the sale or
delivery of a payment instrument issued by a licensee or received by an authorized delegate for
transmission, constitute trust funds owned by and belonging to the licensee from the time the
funds are received by the authorized delegate until the time when the funds or an equivalent
amount are remitted by the authorized delegate to the licensee. If an authorized delegate
commingles any funds with other funds or property owned or controlled by the authorized
delegate, all commingled proceeds and other property must be impressed with a trust in favor of
the licensee in an amount equal to the amount of the proceeds due the licensee.
(f) For purposes of this section, "licensee" includes exempt entities.
History: 2001 c 148 s 22