California Financial Code Section 1803

No licensee shall appoint or continue any person as an agent, unless the licensee and the person have made a written contract which contains each of the following provisions: (a) That the licensee appoints the person as its agent with authority to receive transmission money on behalf of the licensee. (b) That the person make and keep accounts, correspondence, memorandums, papers, books, and other records as the commissioner by regulation or order requires and preserve the records for the time specified by the regulation or order. (c) That all funds, less fees due agents provided for and expressly set forth, received by the person from the receipt of transmission money on behalf of the licensee shall be trust funds owned by and belonging to the person from whom they were received until the time that directions have been given by the licensee or its agents for payment abroad of the remittance and funds provided for the payment. (d) Any other provisions that the commissioner may find to be necessary to carry out the provisions and purposes of this chapter. (e) This section shall not apply to any written contract between a licensee and an agent appointed by the licensee prior to February 1, 1989, unless the commissioner, in his or her sole discretion, determines that compliance with this section is necessary and appropriate. For purpose of this subdivision only, licensee means an incorporated telegraph company which existed on February 1, 1989, or any wholly owned incorporated subsidiary of that telegraph company.