D R A F T

Back | WordPerfect Version | ASCII Version | PDF Version

UNIFORM MONEY SERVICES ACT (2000)*

Drafted by the

NATIONAL CONFERENCE OF COMMISSIONERS

ON UNIFORM STATE LAWS

and by it

APPROVED AND RECOMMENDED FOR ENACTMENT

IN ALL THE STATES

at its

ANNUAL CONFERENCE

MEETING IN ITS ONE-HUNDRED-AND-NINTH YEAR

ST. AUGUSTINE, FLORIDA

JULY 28 - AUGUST 4, 2000

WITHOUT PREFATORY NOTE AND COMMENTS

NATIONAL CONFERENCE OF COMMISSIONERS

ON UNIFORM STATE LAWS

* The following text is subject to revision by the Committee on Style of the National Conference of Commissioners on Uniform State Laws.

August 9, 2000

UNIFORM MONEY SERVICES ACT

ARTICLE 1

GENERAL PROVISIONS

SECTION 101. SHORT TITLE. This [Act] may be cited as the Uniform Money Services Act.

SECTION 102. DEFINITIONS. In this [Act]:

(1) "Applicant" means a person that files an application for a license under this [Act].

(2) "Authorized delegate" means a person that a licensee designates to provide money services on behalf of the licensee.

(3) "Bank" means an institution organized under federal or state law which:

(A) accepts demand deposits or deposits that the depositor may use for payment to third parties and engages in the business of making commercial loans; or

(B) engages in credit card operations, does not accept demand deposits or deposits that the depositor may use for payments to third parties, does not accept a savings or time deposit less than $100,000, maintains only one office that accepts deposits, and does not engage in the business of making commercial loans.

(4) "Check cashing" means receiving at least $500 compensation within a 30-day period for taking payment instruments or stored value, other than traveler's checks, in exchange for money, payment instruments, or stored value delivered to the person delivering the payment instrument or stored value at the time and place of delivery without any agreement specifying when the person taking the payment instrument will present it for collection.

(5) "Control" means:

(A) ownership of, or the power to vote, directly or indirectly, at least 25 percent of a class of voting securities or voting interests of a licensee or person in control of a licensee;

(B) power to elect a majority of executive officers, managers, directors, trustees, or other persons exercising managerial authority of a licensee or person in control of a licensee; or

(C) the power to exercise directly or indirectly, a controlling influence over the management or policies of a licensee or person in control of a licensee, if the [superintendent], after notice and opportunity for hearing, so determines.

(6) "Currency exchange" means receipt of revenues equal to or greater than [five percent] of total revenues from the exchange of money of one government for money of another government.

(7) "Executive officer" means a president, chairperson of the executive committee, chief financial officer, responsible individual, or other individual who performs similar functions.

(8) "Licensee" means a person licensed under this [Act].

(9) "Limited station" means private premises where a check casher is authorized to engage in check cashing for no more than two days of each week solely for the employees of the particular employer or group of employers specified in the check casher's license application.

(10) "Mobile location" means a vehicle or a movable facility where check cashing occurs.

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

(12) "Money" means a medium of exchange that is authorized or adopted by the United States or a foreign government. The term includes a monetary unit of account established by an intergovernmental organization or by agreement between two or more governments.

(13) "Money services" means money transmission, check cashing, or currency exchange.

(14) "Money transmission" means to engage in the business of selling or issuing payment instruments, selling or issuing stored value, or receiving money or monetary value for transmission to a location within or outside the United States. The term does not include the provision of package delivery services, online services, network access, and telecommunications services, unless the provider receives compensation for the transmission of money, payment instruments, or stored value that is different from the compensation received for other transmissions.

(15) "Outstanding," with respect to a payment instrument, means issued or sold by or for the licensee and which has been reported as sold but not yet paid by or for the licensee.

(16) "Payment instrument" means a check, draft, money order, traveler's check, or other instrument for the transmission or payment of money or monetary value, whether or not negotiable. The term does not include a credit card voucher, letter of credit, or instrument that is redeemable by the issuer in goods or services.

(17) "Person" means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, government, governmental subdivision, agency or instrumentality, or any other legal or commercial entity.

(18) "Record" means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.

(19) "Responsible individual" means an individual who is employed by a licensee and has principal, active managerial authority over the provision of money services by the licensee in this State.

(20) "State" means a State of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States.

(21) "Stored value" means monetary value that is evidenced by an electronic record.

(22) "[Superintendent]" means the [state superintendent of banks or other senior state regulator].

(23) "Unsafe or unsound practice" means a practice or conduct by a person licensed to engage in money transmission or an authorized delegate of such a person which creates the likelihood of material loss, insolvency, or dissipation of the licensee's assets, or otherwise materially prejudices the interests of its customers.

SECTION 103. EXCLUSIONS. This [Act] does not apply to:

(1) the United States or a department, agency, or instrumentality thereof;

(2) the sale or issuance of payment instruments or stored value, or money transmission, by the United States Postal Service, or by a contractor on behalf of the United States Postal Service;

(3) a State, county, city, or any other governmental agency or governmental subdivision within a State;

(4) a bank, bank holding company, an office of an international banking corporation, a branch of a foreign bank, a corporation organized pursuant to the Bank Services Act, or a corporation organized under the Edge Act under the laws of a State or the United States if the person does not issue, sell, or provide payment instruments or stored value through an authorized delegate that is not such a person;

(5) electronic funds transfer of governmental benefits for a federal, state, [county,] or governmental agency by a contractor on behalf of the United States or a department, agency, or instrumentality thereof, or a State or governmental subdivision, agency, or instrumentality thereof;

(6) a board of trade designated as a contract market under the Commodity Exchange Act or a person that, in the ordinary course of business, provides clearance and settlement services for a board of trade to the extent of its operation as or for such a board of trade;

(7) a registered futures commission merchant under the federal commodities laws to the extent of its operation as such a merchant;

(8) a person that provides clearance or settlement services pursuant to a registration as a clearing agency or an exemption from such registration granted under the federal securities laws to the extent of its operation as such a provider;

(9) an operator of a payment system that provides processing, clearing, or settlement services, between or among persons excluded by this section or licensees, in connection with wire transfers, credit card transactions, debit card transactions, stored-value transactions, automated clearing house transfers, or similar funds transfers to the extent of its operation as such; or

(10) a person registered as a securities broker-dealer under federal or state securities laws to the extent of its operation as such a broker-dealer.

SECTION 104. LICENSE REQUIRED.

(a) A person may not engage in money transmission without:

(1) obtaining a license under [Article] 2; or

(2) being an authorized delegate of a person licensed under [Article] 2.

(b) A person may not engage in check cashing or currency exchange without:

(1) obtaining a license under [Article] 3 or 4;

(2) obtaining a license for money transmission under [Article] 2; or

(3) being an authorized delegate of a person licensed under [Article] 2.

(c) A person not licensed under this [Act] or not an authorized delegate of a licensee is engaged in providing money services if the person advertises those services, solicits to provide those services, or holds itself out as providing those services.

(d) A license is not transferable or assignable.

ARTICLE 2

MONEY TRANSMISSION LICENSES

SECTION 201. LICENSE REQUIRED. A person licensed under this [article] or that is an authorized delegate of a person licensed under this [article] may engage in money transmission and may also engage in:

(1) check cashing without obtaining a separate license under [Article] 3; and

(2) currency exchange without obtaining a separate license under [Article] 4.

SECTION 202. APPLICATION FOR LICENSE.

(a) In this section, "material litigation" means any litigation that according to generally accepted accounting principles is deemed significant to an applicant's or a licensee's financial health and would be required to be disclosed in the applicant's or licensee's annual audited financial statements, report to shareholders, or similar records.

(b) A person applying for a license under this [article] shall do so in a form and in a medium prescribed by the [superintendent]. The application must state or contain:

(1) the legal name and residential and business addresses of the applicant and any fictitious or trade name used by the applicant in conducting its business;

(2) a list of any criminal convictions of the applicant and any material litigation in which the applicant has been involved in the [10]-year period next preceding the submission of the application;

(3) a description of any money services previously provided by the applicant and the money services that the applicant seeks to provide in this State;

(4) a list of the applicant's proposed authorized delegates and the locations in this State where the applicant and its authorized delegates propose to engage in money transmission or provide other money services;

(5) a list of other States in which the applicant is licensed to engage in money transmission or provide other money services and information concerning [any bankruptcy or receivership proceedings affecting the licensee and] any license revocations, suspensions, or other disciplinary action taken against the applicant in other States;

(6) a sample form of contract for authorized delegates, if applicable, and a sample form of payment instrument or instrument upon which stored value is recorded if applicable;

(7) the name and address of any bank through which the applicant's payment instruments and stored value obligations will be paid;

(8) a description of the source of money and credit to be used by the applicant to provide money services; and

(9) any other information the [superintendent] reasonably requires with respect to the applicant.

(c) If an applicant is a corporation, limited liability company, partnership, or other entity, the applicant must also provide:

(1) the date of the applicant's incorporation or formation and State or country of incorporation or formation;

(2) if applicable, a certificate of good standing from the State or country in which the applicant is incorporated or formed;

(3) a brief description of the structure or organization of the applicant, including any parent or subsidiary of the applicant, and whether any parent or subsidiary is publicly traded;

(4) the legal name, any fictitious or trade name, all business and residential addresses, and the employment, in the [10]-year period next preceding the submission of the application of each executive officer, manager, and director of, or person that has control of the applicant;

(5) a list of any criminal convictions and material litigation in which any executive officer, manager, director of, or individual in control of, the applicant has been involved in the [10]-year period next preceding the submission of the application;

(6) a copy of the applicant's audited financial statements for the most recent fiscal year and, if available, for the two year period next preceding the submission of the application;

(7) a copy of the applicant's unconsolidated financial statements for the current year, whether audited or not, and, if available, for the two year period next preceding the submission of the application;

(8) if the applicant is publicly traded, a copy of the most recent 10-K report filed with the United States Securities and Exchange Commission;

(9) if the applicant is a wholly owned subsidiary of:

(A) a corporation publicly traded in the United States, a copy of audited financial statements for the parent corporation for the most recent fiscal year or a copy of the parent corporation's most recent 10-K report filed with the United States Securities and Exchange Commission; or

(B) a corporation publicly traded outside the United States, a copy of similar documentation filed with the regulator of the parent corporation's domicile outside the United States;

(10) if the applicant is a corporation, the name and address of the applicant's registered agent in this State; and

(11) any other information the [superintendent] reasonably requires with respect to the applicant.

(d) A nonrefundable application fee of [$2,000] and a license fee of [$2,000] must accompany an application for a license under this [article]. The license fee must be refunded if the application is denied.

(e) The [superintendent] may waive one or more requirements of subsections (b) and (c) or permit an applicant to submit substituted information in lieu of the required information.

SECTION 203. SECURITY.

(a) Except as otherwise provided in subsection (b), the following rules apply:

(1) A surety bond, letter of credit, or other similar security acceptable to the [superintendent] in the amount of [$50,000] must accompany an application for a license.

(2) If an applicant proposes to provide money services at more than one location through authorized delegates or otherwise, the amount of the security is increased by [$10,000] per location, not exceeding a total increase of [$250,000].

(b) The [superintendent] may increase the amount of security required to a maximum of [$1,000,000] upon the basis of the impaired financial condition of a licensee, as evidenced by reduction of net worth, financial losses, or other relevant criteria.

(c) Security must be in a form satisfactory to the [superintendent] and payable to the State for the benefit of any claimant against the licensee to secure the faithful performance of the obligations of the licensee with respect to money transmission.

(d) The aggregate liability on a surety bond may not exceed the principal sum of the bond. A claimant against a licensee may maintain an action directly on the bond, or the [superintendent] may maintain an action on behalf of the claimant.

(e) A surety bond must cover claims effective for as long as the [superintendent] specifies, but for at least five years after the licensee ceases to provide money services in this State. However, the [superintendent] may permit the amount of security to be reduced or eliminated before the expiration of that time to the extent the amount of the licensee's payment instruments or stored-value obligations outstanding in this State is reduced. The [superintendent] may permit a licensee to substitute another form of security acceptable to the [superintendent] for the security effective at the time the licensee ceases to provide money services in this State.

(f) In lieu of the security prescribed in this section, an applicant for a license or a licensee may provide security in a form prescribed by the [superintendent].

SECTION 204. ISSUANCE OF LICENSE.

(a) Upon the filing of an application under this [article], the [superintendent] shall investigate the applicant's financial condition and responsibility, financial and business experience, character, and general fitness. The [superintendent] may conduct an on-site investigation of the applicant, the reasonable cost of which the applicant must bear. The [superintendent] shall issue a license to an applicant under this [article] if the [superintendent] finds that all of the following conditions have been fulfilled:

(1) the applicant has complied with Sections 202[,][and] 203[, and 206];

(2) the financial condition and responsibility, financial and business experience, competence, character, and general fitness of the applicant; and competence, experience, character, and general fitness of the executive officers, managers, and directors of, and persons in control of, the applicant indicate that it is in the interest of the public to permit the applicant to engage in money transmission; and

(3) the applicant has paid the requisite application and license fees.

(b) The [superintendent] shall approve or deny an application for an original license within 120 days after a complete application is filed and notify the applicant of its decision in a record. The [superintendent] for good cause may extend the application period. The [superintendent] shall notify the applicant in a record of the date on which the application is determined to be complete. If the application is not approved or denied within the period allowed for approval, the application is deemed approved and the [superintendent] shall issue the license under this [article], to take effect as of the first business day after expiration of the period.

(c) An applicant whose application is denied by the [superintendent] under this [article] may appeal from the denial and request, within [30] days after receipt of the notice of the denial, a hearing.

SECTION 205. RENEWAL OF LICENSE.

(a) A licensee under this [article] shall pay an annual renewal fee of [$2,000] no later than [30] days before the anniversary of the issuance of the license or, if the last day in the period is not a business day, on the next business day.

[(b) A licensee under this [article] shall submit with the renewal fee a report, in a form and in a medium prescribed by the [superintendent]. The renewal report must state or contain:

(1) a copy of the licensee's most recent audited annual financial statement or, if the licensee is a wholly owned subsidiary of another corporation, the most recent audited consolidated annual financial statement of the parent corporation or the licensee's most recent audited consolidated annual financial statement;

(2) the number of payment instruments and stored-value obligations sold by the licensee in this State that have not been previously included in a renewal report, the monetary amount of those instruments, and the monetary amount of those instruments currently outstanding;

(3) a description of each material change in information submitted by the licensee in its original license application that has not been previously reported to the [superintendent] on any required report;

(4) a list of the licensee's permissible investments and a certification that the licensee continues to maintain permissible investments according to the requirements set forth in Sections 701 and 702;

(5) proof that the licensee continues to maintain adequate security as required by Section 203; and

(6) a list of the locations in this State where the licensee or an authorized delegate of the licensee engages in money transmission or provides other money services.]

(c) If a licensee does not [file a renewal report or] pay its renewal fee by the renewal date, and has not been granted an extension of time to do so by the [superintendent], the superintendent shall send the licensee a notice of suspension. The licensee's license shall be suspended 10 calendar days after the superintendent sends the notice of suspension. The licensee has [20] days after its license is suspended in which to [file a renewal report and] pay the renewal fee, plus [$100] for each day after suspension that the [superintendent] does not receive [the renewal report and] the renewal fee. The [superintendent] for good cause may grant an extension of the renewal date.

[SECTION 206. NET WORTH. A licensee under this [article] shall maintain a net worth of at least [$25,000] determined in accordance with generally accepted accounting principles.]

ARTICLE 3

CHECK CASHING LICENSES

SECTION 301. LICENSE REQUIRED.

(a) A person licensed under this [article] may engage in check cashing.

(b) A person licensed under [Article] 2, an authorized delegate of a person licensed under [Article] 2, or a person licensed under [Article] 4 may engage in check cashing without first obtaining a separate license under this [article].

(c) A person licensed under this [article] may also engage in currency exchange without obtaining a separate license under [Article] 4.

SECTION 302. APPLICATION FOR LICENSE.

(a) A person applying for a license under this [article] shall do so in a form and in a medium prescribed by the [superintendent]. The application must state or contain:

(1) the legal name and residential and business addresses of the applicant, if the applicant is an individual or, if the applicant is not an individual, the name of each partner, executive officer, manager, and director;

(2) the location of the principal office of the applicant;

(3) complete addresses of other locations in this State where the applicant proposes to engage in check cashing or currency exchange, including all limited stations and mobile locations;

(4) a description of the source of money and credit to be used by the applicant to engage in check cashing and currency exchange; and

(5) other information the [superintendent] reasonably requires with respect to the applicant, but not more than the [superintendent] may require under [Article] 2.

(b) A nonrefundable application fee of [$2,000] and a license fee of [$2,000] must accompany an application for a license under this [article]. The license fee must be refunded if the application is denied.

SECTION 303. ISSUANCE OF LICENSE.

(1) the applicant has complied with Section 302;

(2) the financial condition and responsibility, financial and business experience, competence, character, and general fitness of the applicant; and the competence, experience, character, and general fitness of the executive officers, managers, and directors of, and persons in control of, the applicant indicate that it is in the interest of the public to permit the applicant to engage in check cashing; and

(3) the applicant has paid the requisite application and license fees.

SECTION 304. RENEWAL OF LICENSE.

(a) A licensee under this [article] shall pay a biennial renewal fee of [$2,000] no later than [30] days before each biennial anniversary of the issuance of the license or, if the last day in the period is not a business day, on the next business day.

[(b) A licensee under this [article] shall submit with the renewal fee a report, in a form and in a medium prescribed by the [superintendent]. The renewal report must state or contain:

(1) a description of each material change in information submitted by the licensee in its original license application that has not been previously reported to the [superintendent] on any required report; and

(2) a list of the locations in this State where the licensee or an authorized delegate of the licensee engages in check cashing or currency exchange, including limited stations and mobile locations.]

(c) If a licensee does not [file a renewal report or] pay its renewal fee by the renewal date, and has not been granted an extension of time to do so by the [superintendent], the superintendent shall send the licensee a notice of suspension. The licensee's license shall be suspended 10 calendar days after the superintendent sends the notice of suspension. The licensee has [20] days after its license is suspended in which to [file a renewal report and] pay the renewal fee, plus [$100] for each day after suspension that the [superintendent] does not receive the [renewal report] and the renewal fee. The [superintendent] for good cause may grant an extension of the renewal date.

ARTICLE 4

CURRENCY EXCHANGE LICENSES

SECTION 401. LICENSE REQUIRED.

(a) A person licensed under this [article] may engage in currency exchange.

(b) A person licensed under [Article] 2, an authorized delegate of a person licensed under [Article] 2, or a person licensed under [Article] 3 may engage in currency exchange without first obtaining a separate license under this [article].

(c) A person licensed under this [article] may also engage in check cashing without obtaining a separate license under [Article] 3.

SECTION 402. APPLICATION FOR LICENSE.

(a) A person applying for a license under this [article] shall do so in a form and in a medium prescribed by the [superintendent]. The application must state or contain:

(2) the location of the principal office of the applicant;

(3) complete addresses of other locations in this State where the applicant proposes to engage in currency exchange or check cashing, including all limited stations and mobile locations;

(4) a description of the source of money and credit to be used by the applicant to engage in check cashing and currency exchange; and

(5) other information the [superintendent] reasonably requires with respect to the applicant, but not more than the [superintendent] may require under [Article] 2.

SECTION 403. ISSUANCE OF LICENSE.

(1) the applicant has complied with Section 402;

(3) the applicant has paid the requisite application and license fees.

(c) An applicant whose application is denied a license by the [superintendent] under this [article] may appeal from the denial and request, within [30] days after receipt of the notice of the denial, a hearing.

SECTION 404. RENEWAL OF LICENSE.

[(b) A licensee under this [article] shall submit with the renewal fee a report, in a form and in a medium prescribed by the [superintendent]. The renewal report must state or contain:

(2) a list of the locations in this State where the licensee or an authorized delegate of the licensee engages in currency exchange or check cashing, including limited stations and mobile locations.]

(c) If a licensee does not [file a renewal report or] pay its renewal fee by the renewal date, and has not been granted an extension of time to do so by the [superintendent], the superintendent shall send the licensee a notice of suspension. The licensee's license shall be suspended 10 calendar days after the superintendent sends the notice of suspension. The licensee has [20] days after its license is suspended in which to [file a renewal report and] pay the renewal fee, plus [$100] for each day after suspension the [superintendent] does not receive the [renewal report and the] renewal fee. The [superintendent] for good cause may grant an extension of the renewal date.

ARTICLE 5

AUTHORIZED DELEGATES

SECTION 501. RELATIONSHIP BETWEEN LICENSEE AND AUTHORIZED DELEGATE.

(a) In this section, "remit" means to make direct payments of money to a licensee or its representative authorized to receive the money or to deposit money in a bank in an account specified by the licensee.

(b) A contract between a licensee and an authorized delegate must require the authorized delegate to operate in full compliance with this [Act]. The licensee shall furnish in a record to each authorized delegate policies and procedures sufficient to permit compliance with this [Act].

(c) An authorized delegate shall remit all money owing to the licensee in accordance with the terms of the contract between the licensee and the authorized delegate.

(d) If a license is suspended or revoked or a licensee does not renew its license, the [superintendent] shall notify all authorized delegates of the licensee whose names are in a record filed with the [superintendent] of the suspension, revocation, or non-renewal. After notice is sent or publication is made, an authorized delegate shall immediately cease to provide money services as a delegate of the licensee.

(e) An authorized delegate may not provide money services outside the scope of activity permissible under the contract between the authorized delegate and the licensee, except activity for which the authorized delegate is authorized to engage under [Articles] 2, 3, or 4. [An authorized delegate of a licensee holds in trust for the benefit of the licensee all money net of fees received from money transmission.]

SECTION 502. UNAUTHORIZED ACTIVITIES. A person may not provide money services on behalf of a person not licensed under this [Act]. A person that engages in that activity provides money services to the same extent as if the person were a licensee.

ARTICLE 6

EXAMINATIONS; REPORTS; RECORDS

SECTION 601. AUTHORITY TO CONDUCT EXAMINATIONS.

(a) The [superintendent] may conduct an annual examination of a licensee or of any of its authorized delegates upon 45-days' notice in a record to the licensee.

(b) The [superintendent] may examine the licensee or its authorized delegate, at any time, without having given notice, if the [superintendent] has reason to believe that the licensee or authorized delegate is engaging in an unsafe or unsound practice or has violated or is violating this [Act] or a rule adopted or an order issued under this [Act].

(c) If the [superintendent] concludes that an on-site examination is necessary under subsection (a), the licensee shall pay the reasonable cost of the examination.

(d) Information obtained during an examination under this [Act] may be disclosed only as provided in Section 607.

SECTION 602. JOINT EXAMINATIONS.

(a) The [superintendent] may conduct an on-site examination of records listed in Section 605 in conjunction with representatives of other state agencies or agencies of another State or of the federal government. Instead of an examination, the [superintendent] may accept the examination report of an agency of this State or of another State or of the federal government or a report prepared by an independent licensed or certified public accountant.

(b) A joint examination or an acceptance of an examination report does not preclude the [superintendent] from conducting an examination as provided by law. A joint report or a report accepted under this subsection is an official report of the [superintendent] for all purposes.

SECTION 603. REPORTS.

(a) A licensee shall file with the [superintendent] within [15] business days any material changes in information provided in a licensee's application as prescribed by the [superintendent].

(b) A licensee shall file with the [superintendent] within 45 days after the end of each fiscal quarter a current list of all authorized delegates, responsible individuals, and locations in this State where the licensee or an authorized delegate of the licensee provides money services, including limited stations and mobile locations. The licensee shall state the name and street address of each location and authorized delegate.

(c) A licensee shall file a report with the [superintendent] within one business day after the licensee has reason to know of the occurrence any of the following events:

(1) the filing of a petition by or against the licensee under the United States Bankruptcy Code for bankruptcy or reorganization;

(2) the filing of a petition by or against the licensee for receivership, the commencement of any other judicial or administrative proceeding for its dissolution or reorganization, or the making of a general assignment for the benefit of its creditors;

(3) the commencement of a proceeding to revoke or suspend its license in a State or country in which the licensee engages in business or is licensed;

(4) the cancellation or other impairment of the licensee's bond or other security;

(5) a [charge] or conviction of the licensee or of an executive officer, manager, or director of, or person in control of, the licensee for a felony; or

(6) a [charge] or conviction of an authorized delegate for a felony.

SECTION 604. CHANGE OF CONTROL.

(a) A licensee shall give the [superintendent] notice in a record of a proposed change of control within [15] days after learning of the proposed change of control and request approval of the acquisition. A licensee shall also submit with the notice a nonrefundable fee of [$2,000].

(b) After review of a request for approval under subsection (a), the [superintendent] may require the licensee to provide additional information concerning the proposed persons in control of the licensee. The additional information must be limited to the same types required of the licensee or persons in control of the licensee as part of its original license or renewal application.

(c) The [superintendent] shall approve a request for change of control under subsection (a) if, after investigation, the [superintendent] determines that the person or group of persons requesting approval has the competence, experience, character, and general fitness to operate the licensee or person in control of the licensee in a lawful and proper manner and that the interests of the public will not be jeopardized by the change of control.

(d) The [superintendent] shall approve or deny a request for change of control within 120 days after a complete request is filed and notify the licensee of its decision in a record. The [superintendent] for good cause may extend the approval period. The [superintendent] shall notify the licensee in a record of the date on which the request for approval is determined to be complete. If the request is not approved or denied within the period allowed for approval, the request is deemed approved and the [superintendent] shall permit the change of control under this section, to take effect as of the first business day after expiration of the period.

(e) The following persons are exempt from the requirements of subsection (a), but the licensee shall notify the [superintendent] of a change of control:

(1) a person that acts as a proxy for the sole purpose of voting at a designated meeting of the security holders or holders of voting interests of a licensee or person in control of a licensee;

(2) a person that acquires control of a licensee by devise or descent;

(3) a person that acquires control as a personal representative, custodian, guardian, conservator, or trustee, or as an officer appointed by a court of competent jurisdiction or by operation of law; and

(4) a person that the [superintendent] by rule or order exempts in the public interest.

(f) Subsection (a) does not apply to public offerings of securities.

(g) Before filing a request for approval to acquire control, a person may request in a record a determination from the [superintendent] as to whether the person would be considered a person in control of a licensee upon consummation of a proposed transaction. If the [superintendent] determines that the person would not be a person in control of a licensee, the [superintendent] shall enter an order to that effect and the proposed person and transaction is not subject to the requirements of subsections (a) through (c).

SECTION 605. RECORDS.

(a) A licensee shall maintain records for determining the licensee's compliance with this [Act]. A licensee shall maintain the following for at least [three] years:

(1) a record of each payment instrument or stored-value obligation sold;

(2) a general ledger posted at least monthly containing all asset, liability, capital, income, and expense accounts;

(3) bank statements and bank reconciliation records;

(4) records of outstanding payment instruments and stored-value obligations;

(5) records of each payment instrument and stored-value obligation paid within the [three]-year period;

(6) a list of the last known names and addresses of all of the licensee's authorized delegates; and

(7) any other records the [superintendent] reasonably requires by rule.

(b) The items specified in subsection (a) may be maintained in any form of a record.

(c) Records may be maintained outside this State if they are made accessible to the [superintendent] on [seven] business-days' notice that is sent in a record.

(d) All records maintained by the licensee as required in subsections (a) through (c) are open to inspection by the [superintendent] pursuant to Section 601.

[SECTION 606. MONEY LAUNDERING REPORTS.

(a) A licensee and an authorized delegate shall file with the [attorney general] all reports required by federal currency reporting, record keeping, and suspicious transaction reporting requirements as set forth in 31 U.S.C. Section 5311, 31 C.F.R. Part 103, and other federal and state laws pertaining to money laundering.

(b) The timely filing of a complete and accurate report required under subsection (a) with the appropriate federal agency is compliance with the requirements of subsection (a), unless the [superintendent] notifies the licensee that the [attorney general] has notified the [superintendent] that reports of this type are not being regularly and comprehensively transmitted by the federal agency to the [attorney general].]

SECTION 607. CONFIDENTIALITY.

(a) Except as otherwise provided in subsection (b), all information or reports obtained by the [superintendent] from an applicant, licensee, or authorized delegate, whether obtained through reports, applications, examination, audits, investigation, or otherwise, including all information contained in or related to examination, investigation, operating, or condition reports prepared by, on behalf of, or for the use of the [superintendent], or financial statements, balance sheets, or authorized delegate information, are confidential and are not subject to disclosure under [this State's open records law].

(b) The [superintendent] may disclose information not otherwise subject to disclosure under subsection (a) to representatives of state or federal agencies who undertake in a record that they will maintain the confidentiality of the information; or the [superintendent] finds that the release is reasonably necessary for the protection of the public and in the interests of justice, and the licensee has been given previous notice by the [superintendent] of its intent to release the information.

(c) This section does not prohibit the [superintendent] from disclosing to the public a list of persons licensed under this [Act] or the aggregated financial data on those licensees.

ARTICLE 7

PERMISSIBLE INVESTMENTS

SECTION 701. MAINTENANCE OF PERMISSIBLE INVESTMENTS.

(a) A licensee shall maintain at all times permissible investments that have a market value computed in accordance with generally accepted accounting principles of not less than the aggregate amount of all of its outstanding payment instruments and stored value obligations issued or sold and money transmitted by the licensee or its authorized delegates.

(b) The [superintendent], with respect to any licensees, may limit the extent to which a type of investment within a class of permissible investments may be considered a permissible investment, except for money and certificates of deposit issued by a bank. The [superintendent] by rule may prescribe or by order allow other types of investments that the [superintendent] determines to have a safety substantially equivalent to other permissible investments.

(c) Permissible investments, even if commingled with other assets of the licensee, are held in trust for the benefit of the purchasers and holders of the licensee's outstanding payment instruments and stored value obligations in the event of bankruptcy or receivership of the licensee.

SECTION 702. TYPES OF PERMISSIBLE INVESTMENTS.

(a) Except to the extent otherwise limited by the [superintendent] pursuant to Section 701, the following investments are permissible under Section 701:

(1) cash, a certificate of deposit, or senior debt obligation of an insured depositary institution, as defined in Section 3 of the Federal Deposit Insurance Act [12 U.S.C. Section 1813];

(2) a banker's acceptance or bill of exchange that is eligible for purchase upon endorsement by a member bank of the Federal Reserve System and is eligible for purchase by a Federal Reserve Bank;

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

(4) an investment security that is an obligation of the United States or a department, agency, or instrumentality thereof; an investment in an obligation that is guaranteed fully as to principal and interest by the United States; or an investment in an obligation of a State or a governmental subdivision, agency, or instrumentality thereof;

(5) receivables that are payable to a licensee from its authorized delegates, in the ordinary course of business, pursuant to contracts which are not past due or doubtful of collection if the aggregate amount of investments in receivables under this paragraph does not exceed 20 percent of the total permissible investments of a licensee and the licensee does not have at one time investments in receivables under this paragraph in any one person aggregating more than 10 percent of the licensee's total permissible investments; and

(6) a share or a certificate issued by an open-end management investment company that is registered with the United States Securities and Exchange Commission under the Investment Company Act of 1940 [15 U.S.C. Section 80a-1 et. seq.], and whose portfolio is restricted by the management company's investment policy to investments specified in paragraphs (1) through (4).

(b) The following investments are permissible under Section 701, but only to the extent specified:

(1) an interest-bearing bill, note, bond, or debenture of a person whose equity shares are traded on a national securities exchange or on a national over-the-counter market, if the aggregate of investments under this paragraph do not exceed 20 percent of the total permissible investments of a licensee and the licensee does not at one time have investments under this paragraph in any one person aggregating more than 10 percent of the licensee's total permissible investments;

(2) a share of a person traded on a national securities exchange or a national over-the-counter market or a share or a certificate issued by an open-end management investment company that is registered with the United States Securities and Exchange Commission under the Investment Company Act of 1940, and whose portfolio is restricted by the management company's investment policy to shares of a person traded on a national securities exchange or a national over-the-counter market, if the aggregate of investments under this paragraph does not exceed 20 percent of the total permissible investments of a licensee and the licensee does not at one time have investments under this paragraph in any one person aggregating more than 10 percent of the licensee's total permissible investments;

(3) a demand-borrowing agreement made to a corporation or a subsidiary of a corporation whose securities are traded on a national securities exchange if the aggregate of the amount of principal and interest outstanding under demand-borrowing agreements under this paragraph does not exceed 20 percent of the total permissible investments of a licensee and the licensee does not at one time have principal and interest outstanding under demand-borrowing agreements under this paragraph with any one person aggregating more than 10 percent of the licensee's total permissible investments; and

(4) any other investment the [superintendent] reasonably determines to be permissible, to the extent specified by the [superintendent].

(c) The aggregate of investments under subsection (b) may not exceed 50 percent of the total permissible investments of a licensee calculated in accordance with Section 701.

ARTICLE 8

ENFORCEMENT

SECTION 801. SUSPENSION AND REVOCATION [; RECEIVERSHIP].

(a) The [superintendent] may suspend or revoke a license [, place a licensee in receivership,] or order a licensee to revoke the designation of an authorized delegate if:

(1) the licensee violates this [Act] or a rule adopted or an order issued under this [Act];

(2) the licensee does not cooperate with an examination or investigation by the [superintendent];

(3) the licensee engages in fraud, intentional misrepresentation, or gross negligence;

(4) an authorized delegate is convicted of a violation of a state or federal anti-money laundering statute, or violates a rule adopted or an order issued under this [Act], as a result of the licensee's willful misconduct or willful blindness;

(5) the competence, experience, character, or general fitness of the licensee, authorized delegate, person in control of a licensee, or responsible person of the licensee or authorized delegate indicates that it is not in the public interest to permit the person to provide money services;

(6) the licensee engages in an unsafe or unsound practice;

(7) the licensee is insolvent, suspends payment of its obligations, or makes an assignment for the benefit of its creditors; or

(8) the licensee does not remove an authorized delegate after the [superintendent] issues and serves upon the licensee a final order including a finding that the authorized delegate has violated this [Act];

(b) In determining whether a licensee is engaging in an unsafe or unsound practice, the [superintendent] may consider the size and condition of the licensee's money transmission, the magnitude of the loss, the gravity of the violation of this [Act], and the previous conduct of the person involved.

SECTION 802. SUSPENSION OR REVOCATION OF AUTHORIZED DELEGATES.

(a) The [superintendent] may issue an order suspending or revoking the designation of an authorized delegate, if the [superintendent] finds that:

(1) the authorized delegate violates this [Act] or a rule adopted or an order issued under this [Act];

(2) the authorized delegate does not cooperate with an examination or investigation by the [superintendent];

(3) the authorized delegate engages in fraud, intentional misrepresentation, or gross negligence;

(4) the authorized delegate is convicted of a violation of a state or federal anti-money laundering statute;

(5) the competence, experience, character, or general fitness of the authorized delegate or a person in control of the authorized delegate indicates that it is not in the public interest to permit the authorized delegate to provide money services; or

(6 ) the authorized delegate is engaging in an unsafe or unsound practice.

(b) In determining whether an authorized delegate is engaging in an unsafe or unsound practice, the [superintendent] may consider the size and condition of the authorized delegate's provision of money services, the magnitude of the loss, the gravity of the violation of this [Act], and the previous conduct of the authorized delegate.

(c) An authorized delegate may apply for relief from a suspension or revocation of designation as an authorized delegate according to procedures prescribed by the [superintendent].

SECTION 803. ORDERS TO CEASE AND DESIST.

(a) If the [superintendent] determines that a violation of this [Act] or of a rule adopted or an order issued under this [Act] by a licensee or authorized delegate is likely to cause immediate and irreparable harm to the licensee, its customers, or the public as a result of the violation, or cause insolvency or significant dissipation of assets of the licensee, the [superintendent] may issue an order requiring the licensee or authorized delegate to cease and desist from the violation. The order becomes effective upon service of it upon the licensee or authorized delegate.

(b) The [superintendent] may issue an order against a licensee to cease and desist from providing money services through an authorized delegate that is the subject of a separate order by the [superintendent].

(c) An order to cease and desist remains effective and enforceable pending the completion of an administrative proceeding pursuant to Section 801 or 802.

(d) A licensee or an authorized delegate that is served with an order to cease and desist may petition the [appropriate court], for a judicial order setting aside, limiting, or suspending the enforcement, operation, or effectiveness of the order pending the completion of an administrative proceeding pursuant to Section 801 or 802.

(e) The [superintendent] must commence an administrative proceeding pursuant to Section 801 or 802 within [10] days after issuing an order to cease and desist.

SECTION 804. CONSENT ORDERS. The [superintendent] may enter into a consent order at any time with a person to resolve a matter arising under this [Act]. A consent order must be signed by the person to whom it is issued or by the person's authorized representative, and must indicate agreement with the terms contained in the order. A consent order may provide that it does not constitute an admission by a person that this [Act] or a rule adopted or an order issued under this [Act] has been violated.

SECTION 805. CIVIL PENALTIES. The [superintendent] may assess a civil penalty against a person that violates this [Act] or a rule adopted or an order issued under this [Act] in an amount not to exceed [$1,000] per day for each day the violation is outstanding, plus the State's costs and expenses for the investigation and prosecution of the matter, including reasonable attorney's fees.

SECTION 806. CRIMINAL PENALTIES.

(a) A person that intentionally makes a false statement, misrepresentation, or false certification in a record filed or required to be maintained under this [Act] or that intentionally makes a false entry or omits a material entry in such a record is guilty of a [reference to state classification] felony.

(b) A person that knowingly engages in any activity for which a license is required under this [Act] without being licensed under this [Act] and who receives more than [$500] in compensation from the activity is guilty of a [reference to state classification] felony.

(c) A person that knowingly engages in any activity for which a license is required under this [Act] without being licensed under this [Act] and who receives no more than [$500] in compensation within a 30-day period from the activity is guilty of a [reference to state classification] misdemeanor.

SECTION 807. UNLICENSED PERSONS.

(a) If the [superintendent] has reason to believe that a person has violated or is violating Section 104 of this [Act] the [superintendent] may issue an order to show cause why an order to cease and desist should not issue requiring that the person cease and desist from the violation of Section 104.

(b) In an emergency, the [superintendent] may petition the [appropriate court] for the issuance of an ex parte temporary restraining order pursuant to the rule of civil procedure.

(d) An order to cease and desist remains effective and enforceable pending the completion of an administrative proceeding pursuant to Section 901 and 902.

(e) A person that is served with an order to cease and desist for violating Section 104 may petition the [appropriate court] for a judicial order setting aside, limiting, or suspending the enforcement, operation, or effectiveness of the order pending the completion of an administrative proceeding pursuant to Section 901 and 902.

(f) The [superintendent] shall commence an administrative proceeding within [10] days after issuing an order to cease and desist.

ARTICLE 9

ADMINISTRATIVE PROCEDURES

SECTION 901. ADMINISTRATIVE PROCEDURES. All administrative proceedings under this [Act] must be conducted in accordance with [the state administrative procedure act].

SECTION 902. HEARINGS. Except as otherwise provided in Sections 205(c), 304(c), 404(c), 803, and 807, the [superintendent] may not suspend or revoke a license, [place a licensee in receivership,] issue an order to cease and desist, suspend or revoke the designation of an authorized delegate, or assess a civil penalty without notice and an opportunity to be heard. The [superintendent] shall also hold a hearing when requested to do so by an applicant whose application for a license is denied.

ARTICLE 10

MISCELLANEOUS PROVISIONS

SECTION 1001. UNIFORMITY OF APPLICATION AND CONSTRUCTION. In applying and construing this Uniform Act, consideration must be given to the need to promote uniformity of the law with respect to its subject matter among States that enact it.

SECTION 1002. SEVERABILITY CLAUSE. If any provision of this [Act] or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of this [Act] which can be given effect without the invalid provision or application, and to this end the provisions of this [Act] are several.

SECTION 1003. EFFECTIVE DATE. This [Act] takes effect ........................................ .

SECTION 1004. REPEALS. The following acts and parts of acts are repealed:

(1) ........................................

(2) ........................................

(3) ........................................

SECTION 1005. SAVINGS AND TRANSITIONAL PROVISIONS.

(a) Notwithstanding other provisions of this [Act], a license issued under [name of existing money services licensing statutes repealed under Section 1004] that is in effect immediately prior to [Effective Date of this Act] shall remain in force as a license under [name of existing money services statutes repealed under Section 1004] until the license's expiration date. Thereafter, the licensee shall be treated as if it had applied for and had received a license under this [Act] and shall be required to comply with the renewal requirements set forth in this [Act].

(b) This [Act] applies to the conduct of money services on or after the effective date of this [Act]. This [Act] does not apply to money services conducted by a licensee under that license who remains licensed under [name of existing money services statutes repealed under Section 1004] and whose license remains in force pursuant to this section.