{"data":{"id":"us-ky/krs-286.13-075","jurisdiction":"us-ky","citation":"KRS 286.13-075","heading":"Agents -- Written contract -- Duties of agents -- Funds constitute trust","body":"funds of operator -- Report of loss of funds.  (Effective April 30, 2027)\n(1) Virtual currency kiosk operators desiring to engage in virtual currency kiosk\nbusiness through agents shall authorize each agent to operate pursuant to an express\nwritten contract, which shall include the following provisions:\n(a) That the operator designates the person as its agent with authority to engage in\nvirtual currency kiosk business on b ehalf of the operator as authorized under\nthis subtitle;\n(b) That the agent shall operate in full compliance with this subtitle,\nadministrative regulations promulgated under this subtitle, and any order\nissued by the commissioner pursuant to this subtitle;\n(c) That both the operator and the agent shall not authorize subagents;\n(d) That the agent shall timely remit all legal tender and virtual currency legally\ndue to the operator in accordance with the terms of the written contract\nbetween the operator and the agent;\n(e) That the operator and agent are subject to regulation by the commissioner; and\n(f) That the operator and agent shall comply with all applicable federal and state\nlaws.\n(2) An agent shall not make any fraudulent statements or misrepresentations to:\n(a) The virtual currency kiosk operator; or\n(b) The commissioner, including any person acting under the commissioner's\nauthority.\n(3) All virtual currency kiosk business conducted by agents shall be strictly conducted\nin accordance with the virtual currency kiosk operator's written procedures\nprovided to the agent.\n(4) (a) An agent shall timely remit all legal tender and virtual currency  legally due to\nthe virtual currency kiosk operator in accordance with the terms of the written\ncontract between the licensee and the agent.\n(b) The commissioner shall have the discretion to set, by administrative\nregulation or order, the maximum remittance time.\n(5) An agent shall act only as authorized under the written contract with the virtual\ncurrency kiosk operator.\n(6) (a) All funds, less fees, received by an agent of a virtual currency kiosk operator\nfrom virtual currency kiosk business shall, from the time the funds are\nreceived by the agent until such time when the funds or an equivalent amount\nare remitted by the agent to the operator, constitute trust funds owned by and\nbelonging to the operator.\n(b) If an agent commingles any of these funds with  any other funds or property\nowned or controlled by the agent, then all commingled proceeds and other\nproperty shall be impressed with a trust in favor of the virtual currency kiosk\noperator in an amount equal to the amount of the proceeds due the operator.\n(7) An agent shall report to the virtual currency kiosk operator the theft, forgery, or loss\nof the operator's or a virtual currency kiosk user's funds within twenty -four (24)\nhours from the time the agent learned of the theft, forgery, or loss.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=58290","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:16Z","sha256":"f8aefa895661994c2842c8e39270c08baaa31491be584b3f5fbb371f68f569d0","source_id":"us-ky","stale":false,"prev":"us-ky/krs-286.13-070","next":"us-ky/krs-286.13-080"},"notice":"GroundRules: Original legal text. Not legal advice."}