Section 12300.4 Of Chapter 4. Licensee Regulations From California Financial Code >> Division 3. >> Chapter 4.
12300.4
. Prior to such separation and transmittal to the licensee
or deposit by its agent such funds received by said agent may be used
by said agent for the sole purpose only of the making of change or
cashing of checks in the normal course of its business. All such
funds received by said agent to the date of deposit or transmittal as
required below or an amount equal to such funds must be separated
from those of the agent and transmitted to, or deposited in the trust
account of, the licensee not less than every third business day. If
an agent owns or operates, either directly or indirectly, more than
two locations for the sale of checks, drafts, money orders, or other
commercial paper serving the same purpose and/or for the receipt of
money for the purpose of paying bills, invoices or accounts of an
obligor, and handles trust funds in any three-day period equal to or
in excess of securities to be deposited as provided in Section 12223,
said agent shall transmit to, or deposit in the trust account of,
the licensee directly from each such location of such agent such
funds not later than the end of the next business day following
receipt; such funds to be in form of cash or checks cashed in the
normal course of business only.
Where the total amount of such funds held by an agent does not
exceed one thousand dollars ($1,000) in a calendar week, the
commissioner may, in his discretion, by written order permit the
agent to transmit or deposit such funds in periods in excess of 3
days but not more than 10 days.
If, after reasonable notice from licensee, an agent shall fail to
transmit or deposit the funds, or an amount equal thereto, or to
report to the licensee, as herein provided without just cause, or if
an agent shall use any of such funds, directly or indirectly, for any
purpose other than is permitted herein, licensee shall immediately
terminate such agency and within five (5) days thereafter notify the
commissioner in writing of the reason for such termination, setting
forth the name and address of the agency location. No agent so
terminated shall be permitted to become an agent of the licensee or
any other licensee except as provided in Section 12301.4 of the
Financial Code.