Title 08, Title 08: Banking and Insurance

§ 2454. Name; office A personal information protection company shall file with the Department of Financial Regulation the name it proposes to use in connection with its business, which the Department shall not approve if it determines that the name may be misleading, likely to co…

§ 2455. Conduct of business (a) A personal information protection company may: (1) operate through remote interaction with the individuals entrusting personal information to the company, and there shall be no requirement of Vermont residency or other contact for any such individu…

§ 2457. Reports; rules (a) The Department of Financial Regulation may prescribe by rule the timing and manner of reports by a personal information protection company to the Department. (b) The Department may adopt rules to govern other aspects of the business of a personal inform…

§ 2500. Purpose It is the intent of the General Assembly that the provisions of this chapter accomplish the following: (1) ensure the State can coordinate with other states in all areas of regulation, licensing, and supervision to eliminate unnecessary regulatory burden and more …

§ 2501. Transition period (a) A person licensed under subchapter three of this chapter prior to July 1, 2024, and their authorized delegates, shall not be subject to the provisions of this chapter that establish new or different requirements from those that existed prior to July …

§ 2502. Relationship to federal law (a) In the event state money transmission jurisdiction is conditioned on a federal law, any inconsistencies between a provision of this chapter and the federal law governing money transmission shall be governed by the applicable federal law to …

§ 2503. Definitions As used in this chapter: (1) “Authorized delegate” means a person a licensee designates to engage in money transmission on behalf of the licensee. (2) “Average daily money transmission liability” means the amount of the licensee’s outstanding money transmissio…

§ 2504. Exemptions This chapter does not apply to: (1) An operator of a payment system to the extent that it provides processing, clearing, or settlement services, between or among persons exempted by this section or licensees, in connection with wire transfers, credit card trans…

§ 2504a. Authority to require demonstration of exemption The Commissioner may require that any person claiming to be exempt from licensing pursuant to section 2504 of this chapter provide information and documentation to the Commissioner demonstrating that it qualifies for any cl…

§ 2505. License required (a) A person shall not engage in the business of money transmission or advertise, solicit, or hold itself out as providing money transmission, unless the person is licensed under this subchapter. (b) Subsection (a) of this section does not apply to: (1) a…

§ 2506. Application for license; additional information (a) In addition to the information required by section 2102 of this title, an application for a license under this subchapter shall state or contain: (1) a description of any money services previously provided by the applica…

§ 2507. Money transmission kiosk registration (a) A licensee shall not locate, or allow a third party to locate, a money transmission kiosk in this State that allows users of the money transmission kiosk to engage in money transmission through the licensee unless the licensee reg…

§ 2515. Check cashing and currency exchange license required (a) A person shall not engage in check cashing and currency exchange, or hold itself out as providing these money services, unless the person is licensed under this chapter. (b) Subsection (a) of this section shall not …

§ 2516. Application for license; additional information In addition to the information required by section 2102 of this title, an application for a license under this subchapter shall state or contain: (1) the complete addresses of locations in this State where the applicant prop…

§ 2519. Activities of check cashers and currency exchanges (a) Check cashing. (1) A licensee, in every location conducting business under a license issued pursuant to this chapter, shall conspicuously post and at all times display a notice stating all fees charged. A licensee sha…

§ 2520. Applicability of subchapters The following subchapters of this chapter shall not apply to persons licensed under this subchapter: subchapter 4 (authorized delegates of money transmitters), subchapter 5 (reporting and records for money transmitters), subchapter 6 (prudenti…

§ 2525. Relationship between licensee and authorized delegate (a) As used in this subchapter, “remit” means to make direct payments of money to a licensee or its representative authorized to receive the money, or to deposit the money in an entity identified as exempt under subdiv…

§ 2526. Unauthorized activities A person shall not engage in the business of money transmission on behalf of a person not licensed under subchapter 2 of this chapter or not exempt pursuant to subchapter 1 of this chapter. A person that engages in such activity provides money tran…

§ 2527. Termination or suspension of authorized delegate activity (a) The authority granted to the Commissioner over licensees in section 2110 of this title applies equally to authorized delegates. (b) The Commissioner may issue an order suspending or barring any authorized deleg…

§ 2528. Private actions against authorized delegates (a) Distinct from the Commissioner’s authority over licensees and authorized delegates, any court in this State with jurisdiction over a private civil action brought by a licensee against an authorized delegate shall have the a…

§ 2530. Report of condition (a) Each licensee shall submit a report of condition within 45 days of the end of the calendar quarter, or within any extended time as the Commissioner may prescribe. (b) The report of condition shall include: (1) Financial information at the licensee …

§ 2531. Audited financials (a) Each licensee shall, within 90 days after the end of each fiscal year, or within any extended time as the Commissioner may prescribe, file with the Commissioner: (1) an audited financial statement of the licensee for the fiscal year prepared in acco…

§ 2532. Authorized delegate reporting (a) Each licensee shall submit a report of authorized delegates within 45 days after the end of the calendar quarter. The Commissioner is authorized and encouraged to use NMLS for the submission of the report required by this section provided…

§ 2533. Change of authorized delegate A licensee shall notify the Commissioner in writing within 30 days after any change in the list of authorized delegates, identifying the name and street address of each new authorized delegate and of each removed authorized delegate. (Added 2…

§ 2534. Money laundering reports A licensee and an authorized delegate shall file all reports required by federal currency reporting, record keeping, and suspicious activity reporting requirements as set forth in the Bank Secrecy Act and other federal and state laws pertaining to…

§ 2540. Net worth (a) A licensee under this chapter shall maintain at all times a tangible net worth of the greater of $100,000.00 or three percent of total assets for the first $100,000,000.00, two percent of additional assets for $100,000,000.00 to $1,000,000,000.00, and 0.5 pe…

§ 2541. Security (a) An applicant for a money transmission license shall provide, and a licensee at all times shall maintain, security consisting of a surety bond in a form satisfactory to the Commissioner or, with the Commissioner’s approval, a deposit that meets the requirement…

§ 2542. Maintenance of permissible investments (a) A licensee shall maintain at all times permissible investments that have a market value computed in accordance with U.S. generally accepted accounting principles of not less than the aggregate amount of all of its outstanding mon…

§ 2543. Types of permissible investments (a) The following investments are permissible under section 2542 of this subchapter: (1) Cash, including demand deposits, savings deposits, and funds in such accounts held for the benefit of the licensee’s customers in an entity identified…

§ 2545. Change of location (a) A licensee shall notify the Commissioner in writing within 30 days following any change in locations in this State where the licensee or an authorized delegate of the licensee provides money services, including limited stations and mobile locations.…

§ 2546. Records (a) In addition to the records required to be maintained by section 2119 of this title and any other records the Commissioner requires pursuant to this chapter or rule, a licensee shall maintain the following records for at least five years for determining the lic…

§ 2555. Conservation, liquidation, and insolvency To the extent applicable, the provisions of subchapters 2, 3, and 4 of chapter 209 of this title, excluding sections 19207, 19208, 19210, 19306, and 19307 of this title, shall apply to the conservation, liquidation, and insolvency…

§ 2560. Timely transmission (a) Every licensee shall forward all money received for transmission in accordance with the terms of the agreement between the licensee and the sender unless the licensee has a reasonable belief or a reasonable basis to believe that the sender may be a…

§ 2561. Refunds (a) This section does not apply to: (1) money received for transmission subject to the federal Remittance Rule, 12 C.F.R. Part 1005, subpart B, as may be amended; or (2) money received for transmission pursuant to a written agreement between the licensee and payee…

§ 2562. Receipts (a) This section does not apply to: (1) money received for transmission subject to the federal Remittance Rule, 12 C.F.R. Part 1005, subpart B, as may be amended; (2) money received for transmission that is not primarily for personal, family, or household purpose…

§ 2563. Notice Every licensee or authorized delegate shall disclose on their website and mobile application the name of the Department and a current link to the Vermont Banking Consumer Complaint Form accompanied by statements conveying that, should the licensee’s customers have …

§ 2564. Disclosure for payroll processing services (a) A licensee that provides payroll processing services shall: (1) issue reports to clients detailing client payroll obligations in advance of the payroll funds being deducted from an account; and (2) make available worker payst…

§ 2571. Definitions As used in this subchapter: (1) “Blockchain” has the same meaning as in 12 V.S.A. § 1913(a)(1). (2) “Blockchain analytics” means a software service that uses data from various virtual currencies and their applicable blockchains to provide a risk rating specifi…

§ 2572. Exemptions (a) This subchapter shall not apply to the exchange or transfer of virtual currency, or to virtual-currency storage or virtual-currency administration, by a person to the extent that the Securities Exchange Act of 1934, 15 U.S.C. §§ 78a–78oo, as may be amended,…

§ 2573. Conditions precedent to engaging in virtual-currency business activity (a) A person shall not engage in virtual-currency business activity, or hold itself out as being able to engage in virtual-currency business activity, with or on behalf of another person unless the per…

§ 2574. Required disclosures (a) Licensee disclosures, generally. A person licensed under subchapter 2 of this chapter to engage in virtual-currency business activity shall provide the disclosures required by this section and any additional disclosure the Commissioner determines …

§ 2575. Property interests and entitlements to virtual currency (a) A person licensed under subchapter 2 of this chapter to engage in virtual-currency business activity that has control of virtual currency or provides virtual-currency storage to, for, or on behalf of one or more …

§ 2576. Additional requirements and clarifications for virtual-currency business activities (a) To ensure adequate consumer protection, the Commissioner may adopt by rule provisions that specify limitations to and the method by which a person licensed under subchapter 2 of this c…

§ 2577. Virtual-currency kiosk operators (a) Daily transaction limit. (1) A virtual-currency kiosk operator shall not accept or dispense more than $2,000.00 of cash in a day in connection with virtual-currency transactions with a single, new customer in this State via one or more…

§ 2701. Definitions As used in this chapter: (1) “Account” means a demand deposit or share draft (checking) account, savings account, or other comparable consumer asset account (other than an occasional or incidental credit balance in a credit plan) regularly maintained by the co…

§ 2702. Expiration date The paid value of a gift certificate sold or offered to be sold shall be valid for not less than five years after its date of issuance or after the date funds were last loaded onto the gift certificate, whichever is later. The date of issuance and the expi…