6-1201

6-1201. Definitions

In this chapter, unless the context otherwise requires:

1. "Authorized delegate" means a person designated by the licensee under section
6-1208.

2. "Check cashing" means exchanging for compensation a check, debit card payment
order, draft, money order, traveler's check or payment instrument of a licensee for money
delivered to the presenter at the time and place of the presentation.

3. "Control" means ownership of fifteen per cent or more of a licensee or
controlling person, or the power to vote fifteen per cent or more of the outstanding
voting securities of a licensee or controlling person. For the purpose of determining
the percentage controlled by any one person, that person's interest shall be aggregated
with the interest of any other person controlled by that person or an officer, partner or
authorized delegate of that person, or by a spouse, parent or child of that person.

4. "Controlling person" means a person directly or indirectly in control of a
licensee.

5. "Engage in the business" means conducting activities regulated under this
chapter more than ten times in any calendar year for compensation or in the expectation
of compensation. For purposes of this paragraph, "compensation" means any fee,
commission or other benefit.

6. "Foreign money exchange" means exchanging for compensation money of the United
States government or a foreign government to or from money of another government at a
conspicuously posted exchange rate at the time and place of the presentation of the money
to be exchanged.

7. "Licensee" means a person licensed under this chapter.

8. "Location" means a place of business at which activity regulated by this chapter
occurs.

9. "Money" means a medium of exchange that is authorized or adopted by a domestic
or foreign government as a part of its currency and that is customarily used and accepted
as a medium of exchange in the country of issuance.

10. "Money accumulation business" means obtaining money from a money transmitter as
part of any activity that is carried on for financial gain if the money that is obtained
by all persons acting in concert in the activity, in amounts of one thousand dollars or
more, totals over fifty thousand dollars in the preceding twelve-month period. Money
accumulation business does not include a person who is subject to the reporting
requirements under 31 United States Code section 5313. The exception that is established
by 31 United States Code section 5331, subsection (c), paragraph 1 does not apply to
persons who are engaged in the money accumulation business.

11. "Money transmitter" means a person who is located or doing business in this
state, including a check casher and a foreign money exchanger, and who does any of the
following:

(a) Sells or issues payment instruments.

(b) Engages in the business of receiving money for the transmission of or
transmitting money.

(d) Engages in the business of receiving money for obligors for the purpose of
paying that obligor's bills, invoices or accounts.

(e) Meets the definition of a bank, financial agency or financial institution as
prescribed by 31 United States Code section 5312 or 31 Code of Federal Regulations
section 103.11.

12. "Outstanding payment instruments" means unpaid payment instruments whose sale
has been reported to a licensee.

13. "Payment instrument" means a check, draft, money order, traveler's check or
other instrument or order for the transmission or payment of money sold to one or more
persons whether or not that instrument or order is negotiable. Payment instrument does
not include an instrument that is redeemable by the issuer in merchandise or service, a
credit card voucher or a letter of credit.

14. "Permissible investment" means any of the following:

(a) Money on hand or on deposit in the name of the licensee.

(b) Certificates of deposit or other debt instruments of a bank, savings and loan
association or credit union.

(c) Bills of exchange or time drafts that are drawn on and accepted by a bank,
otherwise known as banker's acceptances, and that are eligible for purchase by member
banks of the federal reserve system.

(d) Commercial paper bearing a rating of one of the three highest grades as defined
by a nationally recognized organization that rates these securities.

(e) Securities, obligations or other instruments whose payment is guaranteed by the
general taxing authority of the issuer, of the United States or of any state or by any
other governmental entity or any political subdivision or instrumentality of a
governmental entity and that bear a rating of one of the three highest grades by a
nationally recognized investment service organization that has been engaged regularly in
rating state and municipal issues for at least five years.

(f) Stocks, bonds or other obligations of a corporation organized in any state of
the United States, the District of Columbia, the Commonwealth of Puerto Rico or the
several territories organized by Congress that bear a rating of one of the three highest
grades by a nationally recognized investment service organization that has been engaged
regularly in rating corporate securities for at least five years.

(g) Any receivable that is due to a licensee from its authorized delegate pursuant
to a contract between the licensee and authorized delegate as prescribed in section
6-1208 if the amount of investment in those receivables does not exceed ninety per cent
of the total amount of those receivables after subtracting the amount of those
receivables that are past due or doubtful of collection.

15. "Responsible individual" means a person who is employed by a licensee and who
has principal active management authority over the business of the licensee in this state
that is regulated under this chapter.

16. "Trade or business" has the same meaning prescribed in section 162 of the
internal revenue code of 1954 and includes the money accumulation business.

17. "Transmitting money" means the transmission of money by any means including
transmissions within this country or to or from locations abroad by payment instrument,
wire, facsimile internet or any other electronic transfer, courier or otherwise.

18. "Traveler's check" means an instrument identified as a traveler's check on its
face or commonly recognized as a traveler's check and issued in a money multiple of
United States or foreign currency with a provision for a specimen signature of the
purchaser to be completed at the time of purchase and a countersignature of the purchaser
to be completed at the time of negotiation.