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Current through October 23, 2012
For the purposes of this chapter, the term:
(1) "Applicant" means a person filing an application for a license under this chapter.
(2) "Authorized delegate" means an entity designated by the licensee under the provisions of this chapter to sell or issue payment instruments or engage in the business of transmitting money on behalf of a license.
(3) "Control" means ownership of, or the power to vote, 25% 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 person's interest the interest of any other person controlled by such person or by any spouse, parent, or child of such person.
(4) "Controlling person" means any person in control of a licensee.
(5) "Electronic Instrument" means a card or other tangible object for the transmission or payment of money (A) which contains a microprocessor chip, magnetic stripe, or other means for the storage of information; (B) that is prefunded; and (C) for which the value is decremented upon each use. It does not include a card or other tangible object that is redeemable by the issuer in the issuer's goods or services.
(6) "Executive Officer" means the licensee's president, chairman of the executive committee, senior officer responsible for the licensee's business, chief financial officer, or any other persons who perform similar functions.
(7) "Key shareholder" means any person, or group of persons acting in concert, who owns 25% or more of any voting class of an applicant's stock.
(8) "Licensee" means a person licensed under this chapter.
(9) "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 that entity's annual audited financial statements, report to shareholders, or similar document.
(10) "Money transmission" means the sale or issuance of payment instruments or engaging in the business of receiving money for transmission or transmitting money within the United States, or to locations abroad, by any and all means, including but not limited to payment instrument, wire, facsimile, or electronic transfer.
(11) "Outstanding payment instrument" means any payment instrument issued by the licensee which:
(A) Has been sold in the United States directly by the licensee, sold by an authorized delegate of the licensee in the United States, or which has been reported to the licensee as having been sold; and
(B) Has not yet been paid for by the licensee.
(12) "Payment instrument" means any written or electronic check, draft, money order, travelers check, or other electronic or written instrument or order for the transmission or payment of money which is sold or issued to one or more persons, whether or not such instrument is negotiable. The term "payment instrument" does not include any credit card voucher, any letter of credit, or any instrument which is redeemable by the issuer in goods or services.
(13) "Permissible investments" means:
(A) Cash;
(B) Certificates of deposit or other debt obligations of a financial institution, either domestic or foreign;
(C) Bills of exchange or time drafts drawn on and accepted by a commercial bank, otherwise known as bankers' acceptances, which are eligible for purchase by member banks of the Federal Reserve system;
(D) Any investment bearing a rating of one of the 3 highest grades, as defined by a nationally recognized organization that rates such securities;
(E) Investment securities that are obligations of the United States, its agencies, or instrumentalities; or obligations that are guaranteed fully as to principal and interest of the United States; or any obligations of any state, municipality, or any political subdivision thereof;
(F) 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 such securities; a mutual fund composed of one or more permissible investments as set forth herein;
(G) Any demand borrowing agreement or agreements made to a corporation or a subsidiary of a corporation whose capital stock is listed on a national exchange;
(H) Receivables which are due to a licensee from its authorized delegates pursuant to a contract described in § 26-1016 which are not past due or doubtful of collection; or
(I) any other investments or security device approved by the Superintendent.
(14) "Remit" means either to:
(A) Make direct payment of the funds to the licensee or its representatives authorized to receive these funds; or
(B) Deposit the funds in a bank, credit union, savings and loan association, or other similar financial institution in an account specified by the licensee.
(15) "Superintendent" means the Superintendent of the Office of Banking and Financial Institutions.
(July 18, 2000, D.C. Law 13-140, § 2, 47 DCR 3431.)
HISTORICAL AND STATUTORY NOTES
Legislative History of Laws
Law 13-140, the "Money Transmitters Act of 2000," was introduced in Council and assigned Bill No. 13-367, which was referred to the Committee on Economic Development. The Bill was adopted on first and second readings on March 7, 2000, and April 4, 2000, respectively. Signed by the Mayor on April 20, 2000, it was assigned Act No. 13-322 and transmitted to both Houses of Congress for its review. D.C. Law 13-140 became effective on July 18, 2000.
