2012 Connecticut General Statutes
Title 36a - The Banking Law of Connecticut
Chapter 668 - Nondepository Financial Institutions
Section 36a-607 - (Formerly Sec. 36-543). Conduct of business by agent.

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

(1) The business may be conducted by the licensee or through or by means of such agents as the licensee may periodically designate or appoint. An agent may not engage in the business of issuing Connecticut payment instruments or the business of money transmission on behalf of a licensee through or by means of a subagent.

(2) No license under sections 36a-595 to 36a-610, inclusive, shall be required of any agent of a licensee.

(3) Each agent of a licensee shall, from the moment of receipt, hold the proceeds of a sale or delivery of a licensee’s Connecticut payment instruments in trust for the benefit of such licensee.

(4) A licensee shall be liable for the loss caused to any purchaser or holder of the licensee’s Connecticut payment instruments by the failure of an agent of the licensee to forward to the licensee the amount due from the proceeds of a sale or delivery of the licensee’s Connecticut payment instruments, or money or monetary value received for transmission.

(5) The licensee shall enter into a contract with each of its agents that requires the agent to operate in full compliance with sections 36a-595 to 36a-610, inclusive, and provides that appointment of the agent is not effective during any period when the license of the licensee has been suspended. The licensee shall provide each such agent with policies and procedures sufficient to ensure compliance with sections 36a-595 to 36a-610, inclusive.

(6) An agent of a licensee shall remit all money owing to the licensee in accordance with the terms of the contract between the licensee and the agent.

(7) An agent of a licensee shall not provide money transmission services outside the scope of activity permissible under the contract between the agent and the licensee.

(b) For purposes of subsection (a) of this section, a licensee means any person that has obtained a license from the commissioner as provided in section 36a-600 and any entity or person exempt under section 36a-609.

(P.A. 81-264, S. 14; P.A. 92-12, S. 98; P.A. 01-56, S. 14; P.A. 03-61, S. 5; P.A. 07-91, S. 11; P.A. 09-208, S. 19.)

History: P.A. 92-12 redesignated Subdivs.; Sec. 36-543 transferred to Sec. 36a-607 in 1995; P.A. 01-56 amended Subdivs. (3) and (4) by changing “Connecticut instruments” to “Connecticut payment instruments” and amended Subdiv. (4) by adding language re money transmission; P.A. 03-61 designated existing provisions as Subsec. (a) and added Subsec. (b) providing that licensee includes entity or person exempt under Sec. 36a-609; P.A. 07-91 amended Subsec. (a)(4) to insert reference to “monetary value”; P.A. 09-208 amended Subsec. (a) by prohibiting agent of a licensee from engaging in the business of issuing Connecticut payment instruments or of money transmission on behalf of a licensee through or by means of a subagent in Subdiv. (1), by deleting references to subagents in Subdivs. (1) to (4) and making a conforming change in Subdiv. (3), and by adding Subdivs. (5) to (7) re contracts between licensees and their agents and amended Subsec. (b) by redefining “licensee”.