(a)All money paid to a provider by or on behalf of
an individual pursuant to a plan for distribution to creditors is held in trust. Within
two business days after receipt, the provider shall deposit the money in a trust
account established for the benefit of individuals to whom the provider is furnishing
debt-management services.
(b)Money held in trust by a provider is not property of the provider or its
designee. The money is not available to creditors of the provider or designee,
except an individual from whom or on whose behalf the provider received money, to
the extent that the money has not been disbursed to creditors of the individual.
(c)A provider shall:
(1)Maintain separate records of account for each individual to whom the
provider is furnishing debt-management ser
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(a) All money paid to a provider by or on behalf of
an individual pursuant to a plan for distribution to creditors is held in trust. Within
two business days after receipt, the provider shall deposit the money in a trust
account established for the benefit of individuals to whom the provider is furnishing
debt-management services.
(b) Money held in trust by a provider is not property of the provider or its
designee. The money is not available to creditors of the provider or designee,
except an individual from whom or on whose behalf the provider received money, to
the extent that the money has not been disbursed to creditors of the individual.
(c) A provider shall:
(1) Maintain separate records of account for each individual to whom the
provider is furnishing debt-management services;
(2) Disburse money paid by or on behalf of the individual to creditors of the
individual as disclosed in the agreement; except that:
(A) The provider may delay payment to the extent that a payment by the
individual is not final; and
(B) If a plan provides for regular periodic payments to creditors, the
disbursement shall comply with the due dates established by each creditor; and
(3) Promptly correct any payments that are not made or that are misdirected
as a result of an error by the provider or other person in control of the trust account
and reimburse the individual for any costs or fees imposed by a creditor as a result
of the failure to pay or misdirection.
(d) A provider may not commingle money in a trust account established for
the benefit of individuals to whom the provider is furnishing debt-management
services with money of other persons.
(e) A trust account shall at all times have a cash balance equal to the sum of
the balances of each individual's account.
(f) If a provider has established a trust account pursuant to subsection (a) of
this section, the provider shall reconcile the trust account at least once a month.
The reconciliation shall compare the cash balance in the trust account with the sum
of the balances in each individual's account. If the provider or its designee has more
than one trust account, each trust account shall be individually reconciled.
(g) If a provider discovers, or has a reasonable suspicion of, embezzlement or
other unlawful appropriation of money held in trust, the provider immediately shall
notify the administrator by a method approved by the administrator. Unless the
administrator by rule provides otherwise, within five days thereafter, the provider
shall give notice to the administrator describing the remedial action taken or to be
taken.
(h) If an individual terminates an agreement or it becomes reasonably
apparent to a provider that a plan has failed, the provider shall promptly refund to
the individual all money paid by or on behalf of the individual that has not been paid
to creditors, less fees that are payable to the provider under section 5-19-223.
(i) Before relocating a trust account from one bank to another, a provider
shall inform the administrator of the name, business address, and telephone
number of the new bank. As soon as practicable, the provider shall inform the
administrator of the account number of the trust account at the new bank.