§ 19-14.8-22 - Trust account.
SECTION 19-14.8-22
§ 19-14.8-22 Trust account. – (a) All money paid to a provider by or on behalf of an individual pursuant to aplan for distribution to creditors is held in trust. Within two (2) businessdays after receipt, the provider shall deposit the money in a trust accountestablished for the benefit of individuals to whom the provider is furnishingdebt-management services.
(b) Money held in trust by a provider is not property of theprovider or its designee. The money is not available to creditors of theprovider or designee, except an individual from whom or on whose behalf theprovider received money, to the extent that the money has not been disbursed tocreditors of the individual.
(c) A provider shall:
(1) Maintain separate records of account for each individualto whom the provider is furnishing debt-management services;
(2) Disburse money paid by or on behalf of the individual tocreditors of the individual as disclosed in the agreement, except that:
(A) The provider may delay payment to the extent that apayment by the individual is not final; and
(B) If a plan provides for regular periodic payments tocreditors, the disbursement must comply with the due dates established by eachcreditor; and
(3) Promptly correct any payments that are not made or thatare misdirected as a result of an error by the provider or other person incontrol of the trust account and reimburse the individual for any costs or feesimposed by a creditor as a result of the failure to pay or misdirection.
(d) A provider may not commingle money in a trust accountestablished for the benefit of individuals to whom the provider is furnishingdebt-management services with money of other persons.
(e) A trust account must at all times have a cash balanceequal to the sum of the balances of each individual's account.
(f) If a provider has established a trust account pursuant tosubsection (a), the provider shall reconcile the trust account at least once amonth. The reconciliation must compare the cash balance in the trust accountwith the sum of the balances in each individual's account. If the provider orits designee has more than one trust account, each trust account must beindividually reconciled.
(g) If a provider discovers, or has a reasonable suspicionof, embezzlement or other unlawful appropriation of money held in trust, theprovider immediately shall notify the director by a method approved by thedirector. Unless the director by rule provides otherwise, within five (5) daysthereafter, the provider shall give notice to the director describing theremedial action taken or to be taken.
(h) If an individual terminates an agreement or it becomesreasonably apparent to a provider that a plan has failed, the provider shallpromptly refund to the individual all money paid by or on behalf of theindividual which has not been paid to creditors, less fees that are payable tothe provider under § 19-14.8-23.
(i) Before relocating a trust account from one bank toanother, a provider shall inform the director of the name, business address,and telephone number of the new bank. As soon as practicable, the providershall inform the director of the account number of the trust account at the newbank.