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§ 12-414. Fraudulent or false statements or misrepresentations prohibited

West's Annotated Code of MarylandFinancial InstitutionsEffective: October 1, 2021

West's Annotated Code of Maryland
Financial Institutions
Title 12. Miscellaneous Institutions and Activities
Subtitle 4. Maryland Money Transmission Act
Effective: October 1, 2021
MD Code, Financial Institutions, § 12-414
§ 12-414. Fraudulent or false statements or misrepresentations prohibited
In general
(a) An authorized delegate may not make any fraudulent or false statement or misrepresentation to a licensee or to the Commissioner.
Money transmission services in accordance with operating policies and procedures
(b) All money transmission services conducted by an authorized delegate shall be conducted strictly in accordance with the licensee's operating policies and procedures provided to the authorized delegate.
Remittance of funds owed to licensee
(c) An authorized delegate shall remit all funds owed to the licensee in accordance with the terms of the contract between the licensee and the authorized delegate.
Funds constituting trust funds belonging to licensee
(d)(1) All funds received by an authorized delegate from money transmission services, less fees, shall constitute trust funds belonging to the licensee from the time the funds are received by the authorized delegate until the time when the funds are remitted to the licensee.
(2) 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 shall be impressed with a trust in favor of the licensee in an amount equal to the amount of the funds due the licensee.
Report of theft or loss of payment instrument
(e) An authorized delegate shall report to the licensee the theft or loss of a payment instrument within 24 hours after the theft or loss.


Added by Acts 2002, c. 539, § 1, eff. Oct. 1, 2002. Amended by Acts 2021, c. 100, § 3, eff. Oct. 1, 2021.
MD Code, Financial Institutions, § 12-414, MD FIN INST § 12-414
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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