Title 26, Trade Regulation And Practice

§489D-12.5 Penalties and other charges. Administrative penalties and other charges assessed under this chapter shall be deposited into the compliance resolution fund established pursuant to section 26-9(o). [L 2008, c 195, pt of §1; am L 2013, c 167, §8]

[§489D-13] Licensee liability. A licensee's responsibility to any person for a money transmission conducted on that person's behalf by the licensee or the licensee's authorized delegate shall be limited to the amount of money transmitted, the face amount, or the purchase amount o…

§489D-14 Extraordinary reporting requirements. Within fifteen business days of the occurrence of any one of the events listed below, a licensee shall file a written report with the commissioner describing the event and its expected impact on the licensee's activities in this Stat…

§489D-14.5 Name change. To change its name, its fictitious name, or its trade name, a licensee shall file an application with the commissioner and pay a nonrefundable fee of $1,000 or a greater amount as the commissioner shall establish by rule pursuant to chapter 91. The applica…

§489D-15 Changes in control of a licensee. (a) A person or group of persons requesting approval of a proposed change of control of a licensee shall submit to the commissioner an application requesting approval of a proposed change of control of the licensee, accompanied by a nonr…

§489D-16 Money laundering reports. (a) Every licensee and its authorized delegates shall file with the commissioner all reports relating to transactions in the State, as required by federal recordkeeping and reporting requirements in title 31 United States Code section 5311 et se…

§489D-17 Examinations and investigations. (a) The commissioner may examine or investigate a licensee or authorized delegate of a licensee as reasonably necessary or appropriate to administer and enforce this chapter, rules adopted or orders issued under this chapter, and other ap…

§489D-18 Maintenance of records. (a) Each licensee shall make, keep, preserve, and make available for inspection by the commissioner the following books, accounts, and other records for a period of three years: (1) A record or records of each payment instrument; (2) A general led…

§489D-19 Confidentiality of records. (a) The commissioner and all employees, contractors, attorneys contracted or employed by the State, and appointees of the division of financial institutions shall not divulge or furnish any information in their possession or obtained by them i…

[§489D-2] Purpose. It is the intent of the legislature to establish within the State a licensure system to ensure the safe and sound operation of money transmission businesses, to ensure that these businesses are not used for criminal purposes, to promote confidence in the State'…

[§489D-20] Money transmitter receipts and refunds. (a) Each licensee who receives money or monetary value for transmission and the licensee's authorized delegates shall transmit the monetary equivalent of all money or equivalent value received from a customer for transmission, ne…

§489D-21 Authorized delegate contracts. Licensees desiring to conduct licensed activities through authorized delegates shall authorize each delegate to operate pursuant to an express written contract. These contracts shall provide the following: (1) That the licensee appoints the…

§489D-22 Authorized delegate; conduct. (a) An authorized delegate of a licensee shall not make any fraudulent or false statement or misrepresentation to a licensee or to the commissioner. (b) All money transmissions, sales, or issuances of payment instruments conducted by authori…

§489D-22.5 Voluntary surrender of license. (a) A licensee may voluntarily cease business and surrender its license by giving written notice to the commissioner of its intent to surrender its license. Prior to the surrender date of a license, the licensee shall have either complet…

[§489D-23] Prohibited practices. It is a violation of this chapter for a licensee to: (1) Directly or indirectly employ any scheme, device, or artifice to defraud or mislead any person, including, but not limited to, bait and switch advertising or sales practices; (2) Directly or…

[§489D-24] Suspension or revocation of licenses. The commissioner may suspend or revoke a license if the commissioner finds that: (1) Any fact or condition exists that, if it had existed at the time when the licensee applied for its license, would have been grounds for denying th…

[§489D-25] Suspension or revocation of authorized delegates. (a) The commissioner may issue an order suspending or revoking the designation of an authorized delegate, if the commissioner finds that: (1) The authorized delegate violates this chapter or a rule adopted or an order i…

[§489D-26] Orders to cease and desist. (a) If the commissioner determines a violation of this chapter or a rule adopted or an order issued under this chapter by a licensee or authorized delegate is: (1) Likely to cause immediate and irreparable harm to the licensee, the licensee'…

[§489D-27] Consent orders. The commissioner may enter into a consent order at any time with a person to resolve a matter arising under this chapter. A consent order shall be signed by the person to whom the order is issued or by the person's authorized representative, and shall i…

§489D-28 Civil penalties. The commissioner may assess a fine against a person who violates this chapter or a rule adopted or an order issued under this chapter in an amount not to exceed $1,000 per day for each day the violation is outstanding, plus the State's costs and expenses…

[§489D-29] Criminal penalties. (a) A person who intentionally makes a false statement, misrepresentation, or false certification in a record filed or required to be maintained under this chapter, who intentionally makes a false entry, or who omits a material entry in a record sha…

[§489D-3] License required. (a) On or after July 1, 2007, no person except those excluded pursuant to section 489D-5, shall engage in the business of money transmission without a license as provided in this chapter. (b) A person is engaged in providing money transmission if the p…

[§489D-30] Unlicensed persons. (a) If the commissioner has reason to believe that a person has violated or is violating section 489D-3, the commissioner may issue an order to show cause why an order to cease and desist should not issue requiring that the person cease and desist f…

[§489D-31] Administrative procedures. All administrative proceedings under this chapter shall be conducted in accordance with chapter 91. [L 2006, c 153, pt of §1]

[§489D-32] Hearings. Except as otherwise provided in sections 489D-12(c) and 489D-26, the commissioner may not suspend or revoke a license, issue an order to cease and desist, suspend or revoke the designation of an authorized delegate, or assess a civil penalty without notice an…

[§489D-33] Division functions. (a) The division shall exercise all administrative functions of the State in relation to the regulation, supervision, and licensing of money transmitters. (b) The division shall interpret and carry out the provisions of this chapter. [L 2006, c 153,…

§489D-34 Powers of the commissioner. In addition to any other powers provided by law, the commissioner may: (1) Adopt rules pursuant to chapter 91 to implement this chapter; (2) Administer and enforce the provisions and requirements of this chapter; (3) Issue declaratory rulings …

§489D-4 Definitions. For purposes of this chapter: "Acting in concert" means individuals knowingly acting together with a common goal of jointly acquiring control of a licensee whether or not pursuant to an express agreement. "Applicant" means a person filing an application for a…

§489D-5 Exclusions. (a) This chapter shall not apply to: (1) The United States or any department, agency, or instrumentality thereof; (2) The United States Postal Service; (3) The State or any political subdivisions thereof; (4) The electronic transfer of government benefits for …

§489D-6 License qualifications; tangible net worth; good standing. (a) A licensee shall maintain at all times a tangible net worth of the greater of: (1) $100,000 or three per cent of tangible assets for the first $100,000,000; (2) Two per cent of additional assets for $100,000,0…

[§489D-6.2] Registration with NMLS. The commissioner may require all licensees to register with NMLS. [L 2013, c 167, pt of §1]

§489D-7 Bond or other security device. (a) Each application for a license shall be accompanied by a surety bond, irrevocable letter of credit, or other similar security device acceptable to the commissioner in the amount of $100,000 for the initial twelve months of licensure. The…

§489D-8 Permissible investments and statutory trust. (a) A licensee, at all times, shall possess permissible investments having an aggregate market value, calculated in accordance with generally accepted accounting principles, of no less than the aggregate amount of all outstandi…

§489D-9 License and registration; application. (a) The commissioner may enter into agreements or contracts with the operators of NMLS or other entities designated by NMLS to collect and maintain records and process transaction fees or other fees related to licensees or other pers…

§489D-9.5 Limited exemption for financial institutions; financial institutions as authorized delegates. (a) Banks, bank holding companies, credit unions, savings banks, financial services loan companies, and mutual banks organized under the laws of the United States or any state …