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Texas Finance Code - Section 151.403. Authorized Delegate Conduct

Legal Research Home > Texas Laws > Finance Code > Texas Finance Code - Section 151.403. Authorized Delegate Conduct

§ 151.403. AUTHORIZED DELEGATE CONDUCT.  (a) An 
authorized delegate of a license holder:
		(1)  is under a duty to and must act only as authorized 
under the contract with the license holder and in strict compliance 
with the license holder's written policies and procedures;
		(2)  must not commit fraud or misrepresentation or make 
any fraudulent or false statement or misrepresentation to a license 
holder or the commissioner;
		(3)  must cooperate with an investigation or 
examination conducted by the commissioner and is considered to have 
consented to the commissioner's examination of the delegate's books 
and records;
		(4)  must not commit an unsafe or unsound act or 
practice or conduct business in an unsafe and unsound manner;
		(5)  must, on discovery, immediately report to the 
license holder the theft or loss of payment instruments or stored 
value;
		(6)  must prominently display on the form prescribed by 
the commissioner a notice that indicates that the person is an 
authorized delegate of the license holder under this subchapter;  
and
		(7)  must cease to provide money services as an 
authorized delegate of a license holder or take other required 
action immediately on receipt of notice from the commissioner or 
the license holder as provided by Section 151.402(e).
	(b)  An authorized delegate shall remit all money owed to the 
license holder:
		(1)  not later than the 10th business day after the date 
the authorized delegate receives the money;
		(2)  in accordance with the contract between the 
license holder and the authorized delegate;  or
		(3)  as directed by the commissioner.                                         
	(c)  Notwithstanding Subsection (b)(1), an authorized 
delegate may remit the money at a later date if the authorized 
delegate maintains on deposit with an office of a federally insured 
financial institution located in the United States an amount that:
		(1)  is in an account solely in the name of the license 
holder;  and        
		(2)  for each day by which the period before the 
remittance exceeds 10 business days, is not less than the 
outstanding obligations of the license holder routinely incurred by 
the authorized delegate on a daily basis.
	(d)  Any business for which a license is required under this 
subchapter that is conducted by an authorized delegate outside the 
scope of authority conferred in the contract between the authorized 
delegate and the license holder is unlicensed activity.

Added by Acts 2005, 79th Leg., ch. 1099, § 1, eff. Sept. 1, 2005.          

Last modified: August 11, 2007