GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1991

S	1 

SENATE BILL 69

Short Title:  Money Transmitters Act.	(Public)
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Sponsors: Senator Staton; Carpenter and Conder.
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Referred to:  Banks and Thrift Institutions.
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February 13, 1991

A BILL TO BE ENTITLED
AN ACT TO REGULATE THE TRANSMISSION OF MONEY AND THE SALE OF CHECKS.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 53-192 reads as rewritten:
"ARTICLE 16.
"
"Money Transmitters Act.
"§ 53-192. Citation of Article.
This Article shall be known and may be cited as the ”‘Money Transmitters Act.'"
Sec. 2.  G.S. 53-193 reads as rewritten:
"§ 53-193. Definitions. For the purpose of this Article:
(1)	‘Person' means any individual, partnership, association, joint stock association, trust or corporation;
(2)	‘Licensee' means any person duly licensed by the Commissioner pursuant to this Article;
(3)	‘Check' means any check, draft, money order or other instrument for the transmission or payment of money including any instrument transmitted by wire or any other means;
(4)	‘Commissioner' means the Commissioner of Banks of the State of North Carolina."
Sec. 3.  G.S. 53-197 reads as rewritten:
"§ 53-197. Investigation fee.
Each application for a license shall be accompanied by an investigation fee of five hundred dollars ($500.00). No investigation fee shall be refunded."
Sec. 4. Article 16 of Chapter 53 is amended by adding a new section to read:
"§ 53 -199.1.  Required investments; permissible investments.
(a)	Every licensee under this act shall at all times when such license is in effect have on hand permissible investments in an amount equal to the aggregate face value of all outstanding checks sold by the licensee in the United States, except travellers checks, for which the licensee is liable for payment.  Provided, however, this section shall not apply to any licensee who is found by the Commissioner, upon examination of audited financial statements and other appropriate analysis, to have sufficient liquid assets so as to conduct its business in a safe and sound manner.
(b)	For the purposes of this section, ‘permissible investments' means:
(1)	Cash;
(2)	Investment securities that are obligations of the United States, its agencies or instrumentalities, or obligations that are guaranteed fully as to principal and interest by the United States, or any obligations of any state, municipality, or of any political subdivision thereof; or
(3)	Any other investments approved by the Commissioner.
(c)	The Commissioner may adopt and enforce rules with respect to required permissible investments in order to prevent unsafe and unsound practices."
Sec. 5.  G.S. 53-202 reads as rewritten:
"§ 53-202. License fees.
Each licensee shall pay to the Commissioner within five days after the issuance of the license, and annually thereafter on or before December 31 of each year, a license fee of one thousand dollars ($1,000), plus twenty-five dollars ($25.00) for each location at which its checks are sold, up to a maximum amount of ten thousand dollars ($10,000). Provided, however, there shall be no per location fee payable for locations exempted under G.S. 53-205. Provided further, for the year ending December 31, 1991, each licensee shall pay a license fee of five hundred dollars ($500.00), plus twenty-five dollars ($25.00) for each location at which its checks are sold, up to a maximum amount of ten thousand dollars ($10,000)."
Sec. 6.  G.S. 53-203 reads as rewritten:
"§ 53-203. More than one location authorized; employees, agents and representatives.
Each licensee may conduct business at one or more locations within this State and through or by means of such employees, agents, subagents or representatives as such licensee may from time to time designate and appoint. No license under this Article shall be required of any such employee, agent, subagent or representative who is acting for or on behalf of a licensee hereunder in the sale of checks of which the licensee is the issuer.  Provided, however, each location, other than locations exempted under G.S. 53-195, selling checks and money orders must post in public view a certificate which discloses the name of the issuer and cites the authority under which such issuer is operating.  Provided further, each licensee must file with the Commissioner a quarterly report of agent activity, the scope of which report shall be set by regulation. Each such agent, subagent or representative shall upon demand transfer and deliver to the licensee the proceeds of the sale of licensee's checks less the fees, if any, due such agent, subagent or representative."
Sec. 7.  Article 16 of Chapter 53 of the General Statutes is amended by adding a new section to read:
"§ 53-203.1. Checks to bear name of issuer.
Each check, draft, money order or other payment issued or sold by a licensee, either directly or indirectly, or through an agent, shall bear the name, along with the address or telephone number of the issuer clearly imprinted thereon."
Sec. 8.  G.S. 53-204 reads as rewritten:
"§ 53-204. Annual lists of locations and agents; annual financial statements; audits.
Each licensee shall file with the Commissioner annually on or before December 31 of each year a statement listing the locations of the offices of the licensee and the names and locations of the agents or subagents authorized by the licensee to engage in the sale of checks of which the licensee is the issuer and shall also file a statement correctly reflecting its net worth as of the close of its most recent fiscal year, such statement to be certified to by a certified public accountant satisfactory to the Commissioner.  Such statement shall be filed no later than April 30 for the preceding year. The Commissioner may conduct or cause to be conducted an examination or audit of the books and records of any licensee at any time or times he shall deem proper, the cost of such examination or audit to be borne by the licensee.  In lieu of such examination or audit, the Commissioner may accept an audit or examination report  compiled by money transmitter regulators of another state. The refusal of access to such books and records shall be cause for the revocation of license."
Sec. 9.  G.S. 53-195 reads as rewritten:
"§ 53-195. Exemptions.
Nothing in this Article shall apply to the sale or issuance of checks by:
(1)	Corporations organized under the general banking laws of this State or of the United States.
(2)	The government of the United States or any department or agency thereof.
(3)	Savings and loan associations and credit unions organized under the laws of this State or of the United States.”
Sec. 10. This act becomes effective October 1, 1991.