(a) No licensee shall:
(1) fail to comply with chapter 345 as it relates to unclaimed property requirements;
(2) refuse to indemnify an instrument holder for any misappropriation of money caused by any of its authorized delegates in conducting activities on behalf of the licensee for whom it acts as an authorized delegate; or
(3) fail to comply with section 53B.27.
(b) A licensee must transmit all money received for transmission in accordance with the sender's instructions within five business days of the date the licensee receives the money from the sender unless:
(1) otherwise ordered by the sender;
(2) the licensee or its authorized delegate has a reasonable belief or a reasonable basis to believe that a crime or violation of law, rule, or regulation has occurred, is occurring, or may occur as a result of transmission; or
(3) the transmission is payment for goods or services.
(c) A licensee must conspicuously state in an agreement with a merchant to transmit money from a sender for goods or services:
(1) that the licensee has the authority to place a hold on or delay the transmission of a sender's money for more than five business days; and
(2) the general circumstances under which a transmittal may be subject to a hold or delay.
(d) A licensee that receives money from a sender for transmission to a merchant to pay for goods or services must transmit the money to the merchant within the time frame agreed upon in the merchant's agreement with the licensee.
(e) If a licensee fails to transmit money received for transmission in accordance with this section, the licensee must respond to inquiries by the sender or recipient with the reason for the failure unless the response violates state or federal law.
(f) A licensee or its authorized delegate must refund to the customer all money received for transmittal within ten days of receipt of a request for a refund unless any of the following has occurred:
(1) the money has been transmitted and delivered to the person designated by the customer prior to receipt of the written request for a refund;
(2) instructions have been given committing an equivalent amount of money to the person designated by the customer prior to the receipt of a request for a refund; or
(3) the licensee is otherwise barred by law from making a refund.
Official Publication of the State of Minnesota
Revisor of Statutes