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Can you summarize UTCO Title 7, Chapter 25?
Financial Institutions Act > Money Transmitter Act (Effective 5/12/2015)
Short Summary
The provided legal document content consists of two separate documents. The first document governs the conduct of authorized agents of licensees who engage in money transmission, sale, or issuance of payment instrument activities. It prohibits authorized agents from making fraudulent or false statements or misrepresentations to a licensee or the commissioner. The document also requires authorized agents to strictly follow the licensee’s written procedures and remit money owing to the licensee in accordance with the contract. Failure to remit money within the contractual time period may result in liability of the authorized agent to the licensee for three times the licensee’s actual damages. Additionally, the document establishes that money received by an authorized agent constitutes trust funds owned by the licensee until it is remitted. If an authorized agent commingles the money with other funds, the commingled proceeds and property are impressed with a trust in favor of the licensee. The second document governs the requirements for authorized agent contracts in the context of conducting licensed activities. It specifies that licensees must appoint authorized agents through an express written contract and prohibits the authorization of subagents without the written consent of the commissioner. The document highlights that licensees are subject to supervision and regulation by the commissioner. It also states that authorized agents must consent to the commissioner’s inspection of their records and act within the scope of their authority. Violation of the contract may result in cancellation of the agent’s contract by the licensee and disciplinary action by the commissioner. Both documents were enacted by Chapter 284 of the 2015 General Session.
Whom does it apply to?
Persons engaging in the business of money transmission in Utah
What does it govern?
Enforcement of the Money Transmitter Act under the Financial Institutions Act in Utah
What are exemptions?
No specific exemptions mentioned in this document
What are the Penalties?
Violation of this chapter or filing materially false information with a license application or renewal is considered a class B misdemeanor and may result in license revocation. The commissioner has the authority to suspend, revoke, or not renew a license, issue a cease and desist order, prohibit the person from continuing to engage in money transmission, impose an administrative fine up to $1,000 per violation, or take any combination of these actions. The commissioner may also revoke a license without refunding any portion of the licensee's filing or renewal fee.
Jurisdiction
Utah