{"data":{"id":"us-ky/krs-286.11-037","jurisdiction":"us-ky","citation":"KRS 286.11-037","heading":"Authorized agent conduct -- Commingled proceeds deemed trust funds","body":"-- Agent's duty to report to licensee.\n(1) An agent shall not make any fraudulent statements or misrepresentations to a\nlicensee or to the commissioner.\n(2) All money transmissions,  or sale, or issuance of payment instrument activities\nconducted by agents shall be strictly in accordance with the licensee's written\nprocedures provided to the agent.\n(3) An agent shall timely remit all money legally due to the licensee in accordance with\nthe terms of the contract between the licensee and the agent. The commissioner\nshall have the discretion to set, by regulation or order, the maximum remittance\ntime.\n(4) An agent shall act only as authorized under the contract with the licensee.\n(5) All funds, less fees, received by an agent of a licensee from the sale or delivery of a\npayment instrument issued by a licensee or received by an agent for transmission\nshall, from the time the funds are received by the agent until such time when the\nfunds or an equivalent amount are remitted by the agent to the licensee, constitute\ntrust funds owned by and belonging to the licensee. If an agent commingles any of\nthese funds with any other funds or property owned or controlled by the agent, then\nall commingled proceeds and other property shall be impressed with a trust in favor\nof the licensee in an amount equal to the amount of the proceeds due the licensee.\n(6) An agent shall report to the licensee the theft, forgery, or loss of payment\ninstruments within twen ty-four (24) hours from the time it knew of the theft,\nforgery, or loss.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=14962","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:15Z","sha256":"c48497086526f57dbe1949925d0489a3bc3f5e809dc652f29827ac62c9297ef8","source_id":"us-ky","stale":false,"prev":"us-ky/krs-286.11-035","next":"us-ky/krs-286.11-039"},"notice":"GroundRules: Original legal text. Not legal advice."}