GENERAL ASSEMBLY OF NORTH CAROLINA
1991 SESSION

CHAPTER 715
SENATE BILL 69

AN ACT TO REGULATE THE TRANSMISSION OF MONEY AND THE SALE OF CHECKS.

The General Assembly of North Carolina enacts:

Section 1.  The title of Article 16 of Chapter 53 of the General Statutes reads as rewritten:
" Money Transmitters Act."
Sec. 1.1.  G.S. 53-192 reads as rewritten:
"§ 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.
The following definitions apply in this Article:
				(1)	Check.  A check, draft, money order, or other instrument for the transmission or payment of money, including any instrument transmitted by wire or any other means.
(2)	Commissioner.  The Commissioner of Banks of the State of North Carolina.
(3)	Licensee.  A person duly licensed by the Commissioner under this Article.
(4)	Permissible Investment.  An investment in any of the following:
a.	Unencumbered cash.
b.	Unencumbered investment securities that are obligations of the United States, its agencies, or instrumentalities.
c.	Unencumbered obligations fully guaranteed as to principal and interest by the United States.
d.	Unencumbered obligations of any state, municipality, or any political subdivision thereof.
e.	Any other investments approved by the Commissioner.
(5)	Person.  An individual, a partnership, an association, a joint stock company, a trust, or a corporation."
Sec. 3.  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 any state where deposits are required to be insured by an agency of the federal government or under the general banking laws of the United States.
(2)	The government of the United States or any department or agency thereof.
(3)	Savings and loan associations, savings banks, industrial banks, and credit unions organized under the laws of any state where deposits are required to be insured by an agency of the federal government or under the laws of the United States.
(4)	Exempt entities which sell or issue checks through 'nonbank' agents or locations."
Sec. 4.  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. 5.  Article 16 of Chapter 53 of the General Statutes is amended by adding a new section to read:
"§ 53-199.1.  Required investments; permissible investments.
Every licensee under this Article shall have on hand permissible investments in an amount equal to the aggregate face value of all outstanding checks sold by the licensee for which the licensee is liable for payment.  The requirements of this section may be waived by the Commissioner if a finding is made, upon examination of audited financial statements and other appropriate analysis, that the surety bond required by G.S. 53-198 is sufficient to cover the aggregate face value of all outstanding checks sold by the licensee."
Sec. 6.  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 an agent location fee for each location at which its checks are sold.  The amount of the agent location fee shall be established by rule.  For the year ending December 31, 1991, each licensee shall pay a license fee of five hundred dollars ($500.00)."
Sec. 7.  G.S. 53-203 reads as rewritten:
"§ 53-203. More than one location authorized; employees, agents and representatives.
A licensee may conduct business at one or more locations within this State.  A certificate must be posted in public view in each location disclosing the name of the issuer and citing the authority under which the issuer is operating.  A licensee may conduct business through an employee or other person designated by the licensee.  No license under this Article shall be required of any person who is acting for or on behalf of a licensee.  A person representing a licensee shall upon demand transfer and deliver to the licensee the proceeds of the sale of licensee's checks less the fees, if any, due that person."
Sec. 8.  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 issued or sold by a licensee, either directly or indirectly through a person representing the licensee, shall bear the name and either the address or the telephone number of the issuer clearly imprinted on either the check or another document delivered to the purchaser at the time of sale."
Sec. 9.  G.S. 53-204 reads as rewritten:
"§ 53-204. Reporting requirements; audits.
(a)	A 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 persons authorized by the licensee to engage in the sale of checks of which the licensee is the issuer.  A licensee shall also file a statement correctly reflecting its net worth as of the close of its most recent fiscal year.  The statement of net worth must be certified by a certified public accountant satisfactory to the Commissioner and it must be filed no later than April 30 for the preceding year.  A licensee shall file quarterly reports of agent activity with the Commissioner.
(b)	The Commissioner may conduct or cause to be conducted an examination or audit of the books and records of any licensee at any time when considered proper.  The licensee must pay the cost of the examination or audit.  In lieu of an 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 the licensee's books and records shall be cause for revocation of the license."
Sec. 10.  Article 16 of Chapter 53 of the General Statutes is amended by adding a new section to read:
"§ 53-206.1.  Rules.
The Banking Commission may adopt rules necessary to implement this Article."

Sec. 11.  This act becomes effective October 1, 1991.
In the General Assembly read three times and ratified this the 16th day of July, 1991.

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James C. Gardner
President of the Senate

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Daniel Blue, Jr.
Speaker of the House of Representatives