2006 Ohio Revised Code - 1315.08. Licensee may conduct business through agents and subagents; duties of agents; liability of licensee; unsatisfactory investments.

§ 1315.08. Licensee may conduct business through agents and subagents; duties of agents; liability of licensee; unsatisfactory investments.
 

A licensee may conduct its business at one or more locations within this state, as follows: 

(A) The business may be conducted through or by means of such agents and subagents as the licensee periodically may designate or appoint. 

(B) No license issued under section 1315.03 of the Revised Code shall be required of any agent or subagent of a licensee except as provided in division (C) of this section. 

(C) An agent or subagent, other than a person expressly excepted from the application of sections 1315.01 to 1315.11 of the Revised Code, who sells or delivers the licensee's Ohio instruments over-the-counter to the public shall not be exempt from licensing under sections 1315.01 to 1315.11 of the Revised Code, if that agent or subagent in the ordinary conduct of that business receives or at any time has access to the licensee's Ohio instruments which, having been paid, are returned through banking channels or otherwise for verification or for reconciliation or accounting with respect thereto, or bank statements relating to Ohio instruments so returned. No license issued under section 1315.03 of the Revised Code shall be required of an agent, including a general or managing agent, of a licensee who does not directly sell or deliver the licensee's Ohio instruments over-the-counter to the public. 

(D) An agent or subagent shall hold in trust from the moment of receipt the proceeds of a sale or delivery of the licensee's Ohio instruments. No agent or subagent shall commingle those proceeds with his own property or funds, except to use the funds in the ordinary course of its business for the purpose of making change and cashing Ohio instruments, and except to remit the proceeds to the licensee in an amount equal to that due the licensee as a result of the sale of Ohio instruments by the agent or subagent. If any agent or subagent of a licensee commingles any proceeds received from the sale of Ohio instruments issued by the licensee with any other funds or property owned or controlled by the agent or subagent, all of the commingled proceeds and other property shall be impressed with a trust in favor of the licensee in an amount equal to the amount of the proceeds due the licensee from the sale of Ohio instruments, less the amount due the agent or subagent from the sale. 

(E) Any agent of a licensee that sells any Ohio instrument designated as a check and issued by the licensee shall report the sale to the licensee within fourteen calendar days after the sale and remit the face amount of the Ohio instrument to the licensee within fourteen calendar days after the sale. For purposes of this section, remittance includes either direct payment of the funds to the licensee or the deposit of the funds in a bank, savings bank, or savings and loan association, in an account in the name of the licensee specifically established for the purpose of receiving the funds. Remittance by the agent to the licensee or deposit by the agent in an account in a bank, savings bank, or savings and loan association of funds in advance of the sale of these Ohio instruments, but in an amount not less than the amount that the agent would normally receive from these sales of Ohio instruments, constitutes compliance with this section. 

(F) A licensee is liable for the loss caused to any purchaser or holder of the licensee's Ohio instruments by the failure of an agent or subagent of the licensee to forward to the licensee the amount due from the proceeds of a sale or delivery of the licensee's Ohio instruments. 

(G) If the superintendent at any time finds that an investment, other than cash, of a licensee is unsatisfactory for investment purposes, the investment shall not qualify as a permissible investment. 
 

HISTORY: RC § 1310.08, 137 v H 1134 (Eff 7-1-79); 138 v H 386 (Eff 7-1-79); 144 v H 332 (Eff 10-6-92); RC § 1315.08, 144 v H 693 (Eff 11-6-92); 145 v H 266. Eff 7-30-93.
 

Not analogous to former RC § 1315.08 (GC § 8387; 99 v 414, § 7; Bureau of Code Revision, 10-1-53), repealed 129 v S 5, § 2, eff 7-1-62.