Tennessee § 45-7-119 - Authorized agent conduct.

§ 45-7-119. Authorized agent conduct.

An authorized agent shall not make any fraudulent or false statement or misrepresentation to a licensee or to the commissioner. All money transmission or sale or issuance of payment instrument activities conducted by authorized agents shall be strictly in accordance with the licensee's written procedures provided to the authorized agent. An authorized agent shall remit all money owing to the licensee in accordance with the terms of the contract between the licensee and the authorized agent. The failure of an authorized agent to remit all money owing to a licensee within the contractual time period shall result in liability of the authorized agent to the licensee for three (3) times the licensee's actual damages. The commissioner shall have the discretion to set, by regulation, the maximum remittance time. All funds, less fees, received by an authorized agent of a licensee from the sale or delivery of a payment instrument issued by a licensee or received by an authorized agent for transmission shall, from the time the funds are received by the authorized agent until the time when the funds or an equivalent amount are remitted by the authorized agent to the licensee, constitute trust funds owned by and belonging to the licensee. If an authorized agent commingles the funds with any other funds or property owned or controlled by the authorized agent, all commingled proceeds and other property shall be impressed with a trust in favor of the licensee in an amount equal to the amount of the proceeds due the licensee. Acts 1994, ch. 715, § 1; T.C.A., § 45-7-219 . Code Commission Notes. Former part 2 of chapter 7, §§ 45-7-201 to 45-7-229 , was renumbered as chapter 7, §§ 45-7-101 to 45-7-129 , by the authority of the Code Commission in 2020.