Michigan Laws 487.1034 – Authorized delegate; prohibited conduct; duties
Current as of: 2024 | Check for updates
|
Other versions
Terms Used In Michigan Laws 487.1034
- Authorized delegate: means a person that a licensee designates to provide money transmission services in this state on behalf of the licensee. See Michigan Laws 487.1002
- Licensee: means a person that is licensed or required to be licensed under this act. See Michigan Laws 487.1002
- Money: means a medium of exchange authorized or adopted by the United States or a foreign government as a part of its currency that is customarily used and accepted as a medium of exchange in the country of issuance. See Michigan Laws 487.1003
- Payment instrument: means any electronic or written check, draft, money order, travelers check, or other wire, electronic, or written instrument or order for the transmission or payment of money, sold or issued to 1 or more persons, whether or not the instrument is negotiable. See Michigan Laws 487.1003
(1) An authorized delegate shall not make any fraudulent or false statement or misrepresentation to a customer or licensee or to the commissioner.
(2) An authorized delegate shall perform money transmission services lawfully and in accordance with the licensee’s operating policies and procedures provided to the authorized delegate.
(3) All funds received by an authorized delegate from the sale of a payment instrument, less fees, shall be held in trust for the licensee from the time the funds are received by the authorized delegate until the time the funds are remitted to the licensee.
(4) 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 are impressed with a trust for the licensee in an amount equal to the amount of the funds due the licensee.
(5) An authorized delegate shall report to the licensee the theft or loss of a payment instrument within 24 hours after the theft or loss.