51A-17-33. Funds received by authorized delegate constitute trust funds.
Any funds, less fees, received by an authorized delegate of a licensee from the sale or delivery of a payment instrument issued by a licensee or received by an authorized delegate for transmission shall, from the time such funds are received by such authorized delegate until such time when the funds or an equivalent amount are remitted by the authorized delegate to the licensee, constitute trust funds owned by and belonging to the licensee. If an authorized delegate commingles any such funds with any other funds or property owned or controlled by the authorized delegate, any 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.
Source: SL 2008, ch 253, ยง33.
Structure South Dakota Codified Laws
Chapter 17 - Money Transmission
Section 51A-17-1 - Definition of terms.
Section 51A-17-2 - Permissible investments defined.
Section 51A-17-2.1 - Control defined.
Section 51A-17-2.2 - Passive investor defined.
Section 51A-17-3 - Entities exempt from chapter.
Section 51A-17-4 - License to engage in business of money transmission required.
Section 51A-17-5 - Single license to conduct business at multiple locations--Authorized delegates.
Section 51A-17-6 - Minimum net worth required.
Section 51A-17-8 - Security device or deposit required.
Section 51A-17-9 - Security after licensee ceases operations.
Section 51A-17-10 - Investments required--Waiver by director.
Section 51A-17-11 - Criminal history background check required .
Section 51A-17-12 - Application for license--Form--Contents.
Section 51A-17-13 - Corporate applicants--Additional requirements.
Section 51A-17-14 - Noncorporate applicants--Additional requirements.
Section 51A-17-15 - Waiver of license application requirements.
Section 51A-17-16 - Application fee.
Section 51A-17-17 - Applicant--Investigation by director.
Section 51A-17-18 - Denial of application--Request for hearing.
Section 51A-17-19 - Annual report and renewal fee.
Section 51A-17-20 - Time for filing renewal application, report, and fee.
Section 51A-17-21 - Limit of licensee's liability.
Section 51A-17-22 - Amendment or notice of certain events required.
Section 51A-17-23 - Notice of proposed change of control--Investigation--Approval of change.
Section 51A-17-24 - Persons exempt from change of control requirements--Notice.
Section 51A-17-25 - Public offering of securities exempt from change of control requirements.
Section 51A-17-26 - Request for determination on change of control from director.
Section 51A-17-29 - Records required and open to inspection.
Section 51A-17-30 - Confidentiality of information--Exception.
Section 51A-17-31 - Authorized delegate--Written contract required--Contents.
Section 51A-17-32 - Standards of conduct of authorized delegate.
Section 51A-17-33 - Funds received by authorized delegate constitute trust funds.
Section 51A-17-34 - Report of theft or loss.
Section 51A-17-35 - Suspension or revocation of license.
Section 51A-17-36 - Suspension or revocation of authorized delegate designation.
Section 51A-17-37 - Cease and desist order.
Section 51A-17-38 - Administrative proceeding following cease and desist order.
Section 51A-17-39 - Consent order.
Section 51A-17-40 - Fine for violation of chapter or rule.
Section 51A-17-43 - Jurisdiction of the courts.
Section 51A-17-45 - Licenses not assignable.
Section 51A-17-47 - Promulgation of rules.
Section 51A-17-49 - Collection and maintenance of records and processing of fees.
Section 51A-17-51 - Multistate supervisory processes participation.