Contents 489D-1 Short title 489D-2 Purpose 489D-3 License required 489D-4 Definitions 489D-5 Exclusions 489D-6 License qualifications 489D-6.2 Registration with NMLS 489D-7 Bond or other security device 489D-8 Permissible investments and statutory trust 489D-9 License and registration; application 489D-9.5 Limited exemption for financial institutions; financial institutions as authorized delegates 489D-10 Application and license fees 489D-11 Issuance of license; grounds for denial 489D-12 Renewal of license and annual report 489D-12.5 Penalties and other charges 489D-13 Licensee liability 489D-14 Extraordinary reporting requirements 489D-14.5 Name change 489D-15 Changes in control of a licensee 489D-16 Money laundering reports 489D-17 Examinations 489D-18 Maintenance of records 489D-19 Confidentiality of records 489D-20 Money transmitter receipts and refunds 489D-21 Authorized delegate contracts 489D-22 Authorized delegate; conduct 489D-22.5 Voluntary surrender of license 489D-23 Prohibited practices 489D-24 Suspension or revocation of licenses 489D-25 Suspension or revocation of authorized delegates 489D-26 Orders to cease and desist 489D-27 Consent orders 489D-28 Civil penalties 489D-29 Criminal penalties 489D-30 Unlicensed persons 489D-31 Administrative procedures 489D-32 Hearings 489D-33 Division functions 489D-34 Rules

     §489D-4  Definitions.  For purposes of this chapter:

     "Applicant" means a person filing an application for a license under this chapter.

     "Authorized delegate" means an entity designated by the licensee under this chapter to sell or issue payment instruments or engage in the business of transmitting money on behalf of a licensee.

     "Commissioner" means the commissioner of financial institutions.

     "Control" means ownership of, or the power to vote, twenty-five per cent or more of the outstanding voting securities of a licensee or controlling person.  For purposes of determining the percentage of a licensee controlled by any person, there shall be aggregated with the controlling person's interest the interest of any other person controlled by the person, or by any spouse, parent, or child of the person.

     "Controlling person" means any person in control of a licensee.

     "Division" means the division of financial institutions within the department of commerce and consumer affairs.

     "Electronic instrument" means a card or other tangible object for the transmission or payment of money, including a stored value card or device, which contains a microprocessor chip, magnetic stripe, or other means for the storage of information, that is prefunded and for which the value is decremented upon each use, but does not include a card or other tangible object that is redeemable by the issuer in goods or services.

     "Executive officer" means a president, chairperson of an executive committee, senior officer responsible for the licensee's business, chief financial officer, or any other person who performs similar functions related to the licensee.

     "Key shareholder" means any person, or group of persons acting in concert, who is the owner of twenty-five per cent or more of any voting class of an applicant's stock.

     "License" means a license under this chapter.

     "Licensee" means a person licensed under this chapter.

     "Material litigation" means any litigation that, according to generally accepted accounting principles, is deemed significant to an applicant's or licensee's financial health and would be required to be referenced in the applicant's or licensee's annual audited financial statements, report to shareholders, or similar documents.

     "Monetary value" means a medium of exchange, whether or not redeemable in money.

     "Money transmission" means to engage in the business of:

     (1)  Selling or issuing payment instruments; or

     (2)  Receiving money or monetary value for transmission to a location within or outside the United States by any and all means, including wire, facsimile, or electronic transfer.

Money transmission does not apply to courier services.

     "NMLS" means a mortgage licensing system developed and maintained by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators for the state licensing and registration of state-licensed loan originators and other financial services providers, or any system provided by the Consumer Financial Protection Bureau.

     "Outstanding payment instrument" means any payment instrument issued by the licensee that has been sold in the United States:

     (1)  Directly by the licensee; or

     (2)  By an authorized delegate of the licensee in the United States, which has been reported to the licensee as having been sold, and that has not yet been paid by or for the licensee.

     "Payment instrument" means any electronic or written check, draft, money order, traveler's check, or other electronic or written instrument or order for the transmission or payment of money, sold or issued to one or more persons, whether or not the instrument is negotiable.  The term "payment instrument" does not include any credit card voucher, any letter of credit, or any instrument that is redeemable by the issuer in goods or services.

     "Permissible investments" means:

     (1)  Cash;

     (2)  Certificates of deposit or other debt obligations of a financial institution, either domestic or foreign;

     (3)  Bills of exchange or time drafts drawn on and accepted by a commercial bank, known as bankers' acceptances, that are eligible for purchase by member banks of the Federal Reserve System;

     (4)  Any investment bearing a rating of one of the three highest grades as defined by a nationally recognized organization that rates securities;

     (5)  Investment securities that are obligations of the United States, its agencies, or its instrumentalities, obligations that are guaranteed fully as to principal and interest by the United States, or any obligations of any state, municipality, or any political subdivision thereof;

     (6)  Shares in a money market mutual fund, interest-bearing bills, notes, or bonds, debentures or stock traded on any national securities exchange or on a national over-the-counter market, mutual funds primarily composed of these securities, or a fund composed of one or more permissible investments as set forth in paragraphs (1) to (5);

     (7)  Any demand borrowing agreement or agreements made with a corporation or a subsidiary of a corporation whose capital stock is listed on a national exchange;

     (8)  Receivables that are due to a licensee from its authorized delegates pursuant to a contract under section 489D-21, that are not past due or doubtful of collection; or

     (9)  Any other investments or security device approved by the commissioner.

     "Person" means any individual, partnership, limited liability company, association, joint-stock association, trust, or corporation.

     "Principal" means any person, or group of persons acting in concert, who exercises control over or has a twenty-five per cent ownership interest in an applicant or licensee under this chapter.  Principal also includes a manager and anyone else who supervises or is in charge of the applicant or licensee.

     "Remit" means:

     (1)  To make direct payment of the funds to the licensee or its representatives authorized to receive those funds; or

     (2)  To deposit the funds in a bank, credit union, savings and loan association, savings bank, financial services loan company, or other similar financial institution in an account specified by the licensee.

     "Stored value" means monetary value that is evidenced by an electronic record. [L 2006, c 153, pt of §1; am L 2008, c 19, §77 and c 195, §§2, 3; am L 2013, c 167, §2]