9-508.   Money transmitter; definitions.As used in this act:

      (a)   "Commissioner" means the state bank commissioner;

      (b)   "electronic instrument" means a card or other tangible object for thetransmission or payment of money, including a stored value card or device whichcontains a microprocessor chip, magnetic stripe or other means for the storageof information, that is prefunded and for which the value is decremented uponeach use, but does not include a card or other tangible object that isredeemable by the issuer in goods or services;

      (c)   "monetary value" means a medium of exchange, whether or not redeemable inmoney;

      (d)   "money transmission" means to engage in the business of the sale orissuance of payment instruments or of receiving money or monetary value fortransmission to a location within or outside the United States by wire,facsimile, electronic means or any other means;

      (e)   "outstanding payment instrument" means any payment instrument issued bythe licensee which has been sold in the United States directly by the licenseeor any money order or instrument issued by the licensee which has been sold byan agent of the licensee in the United States, which has been reported to thelicensee as having been sold and which has not yet been paid by or for thelicensee;

      (f)   "payment instrument" means any electronic or written check, draft, moneyorder, travelers check or other electronic or written instrument or order forthe transmission or payment of money, 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 anyinstrument which is redeemable by the issuer in goods or services;

      (g)   "permissible investments" means:

      (1)   Cash;

      (2)   certificates of deposit or other debt obligations of a financialinstitution, either domestic or foreign;

      (3)   bills of exchange or time drafts drawn on and accepted by a commercialbank, otherwise known as bankers' acceptances, which are eligible for purchaseby member banks of the federal reserve system;

      (4)   any investment bearing a rating of one of the three highest grades asdefined by a nationally recognized organization that rates such securities;

      (5)   investment securities that are obligations of the United States, itsagencies or instrumentalities, or obligations that are guaranteed fully as toprincipal and interest of the United States, or any general obligations of anystate, municipality or any political subdivision thereof;

      (6)   shares in a money market mutual fund, interest-bearing bills or notes orbonds, debentures or stock traded on any national securities exchange or on anational over-the-counter market, or mutual funds primarily composed of suchsecurities or a fund composed of one or more permissible investments as setforth herein;

      (7)   any demand borrowing agreement or agreements made to a corporation or asubsidiary of a corporation whose capital stock is listed on a nationalexchange;

      (8)   receivables which are due to a licensee from its authorized agentspursuant to a contract, which are not past due or doubtful of collection; or

      (9)   any other investment or security device approved by the commissioner.

      (h)   "Person" means any individual, partnership, association, joint-stockassociation, trust, corporation or any other form of business enterpriseauthorized to do business in this state; and

      (i)   "stored value" means monetary value that is evidenced by an electronicrecord.

      History:   L. 1967, ch. 73, § 1;L. 1995, ch. 18, § 1;L. 2006, ch. 113, § 5; July 1.