9-509.Money transmitter; license; application; net
worth requirement; deposit of security or bond; conditions; powers and duties
of state bank commissioner.
(a) No person shall engage in the business of selling, issuing or
delivering its payment instrument, check, draft, money order, personal
money order, bill of
exchange, evidence of indebtedness or other instrument for the
transmission or payment of money or otherwise engage in the business of
money transmission with a resident of this state, or, except as provided in
K.S.A. 9-510,
and amendments thereto, act as agent for another in the transmission of
money as a service or for a fee or other consideration,
unless such person obtains a license from the commissioner.
(b) An application for a license shall be submitted on forms prescribed by
the commissioner. The application shall be accompanied by an application fee as
established by rules and regulations adopted by the commissioner. In addition,
each person submitting an application shall meet the following
requirements:
(1) The net worth of such person shall be
at all times not less than $250,000,
as shown by an audited financial statement and certified
to
by an owner, a partner or officer of the corporation or other entity in a
form prescribed by the commissioner and filed in the
commissioner's office. The commissioner may require any person to file a
statement at any other time upon request;
(2) such person shall deposit
and at all times keep on deposit with the state treasurer,
or a bank in this state approved by
the commissioner,
cash or securities satisfactory to the commissioner in an
amount not less than $200,000.
The commissioner may increase the amount of cash or securities required up to a
maximum of $500,000 upon the basis of the impaired financial condition of a
person, as evidenced by a reduction in net worth, financial losses or other
relevant criteria as determined by the commissioner;
(3) in lieu of the
deposit of cash or securities required by paragraph (2), such person may
give a surety bond in
an amount equal to that
required for the deposit of cash or securities, in a form satisfactory to
the commissioner and issued by a company authorized to do
business in this state, which bond shall
be payable to the office of the state bank commissioner and be filed
with the commissioner. The deposit of cash or securities
or surety bond shall be for the protection and benefit of purchasers of
money transmission services, purchasers or holders of payment
instruments furnished by such person or for the protection of
those for whom such person has agreed to act as agent in the transmission of
monetary value and to secure the faithful performance of
the obligations of such
person in respect to the receipt, handling, transmission and payment of
monetary value. The aggregate liability of the surety for
all breaches of the
conditions of the bond shall, in no event, exceed the amount of such bond.
The surety on the bond shall have the right to cancel such bond upon giving
30 days' notice to the commissioner and thereafter shall be
relieved of liability for any breach of condition occurring after the
effective date of the cancellation. The commissioner or any
aggrieved party may enforce claims against such deposit of cash or
securities or surety bond. So long as the depositing person is not in
violation of this act, such person shall be permitted to receive all
interest and dividends on the deposit and shall have the right to
substitute other securities satisfactory to the commissioner.
If
the deposit is made with a bank, any custodial fees shall be paid
by such person; and
(4) such person shall submit a list to the commissioner of the names and
addresses of other persons who are authorized to act as selling agents for
transactions with Kansas residents.
(c) The commissioner shall have the
authority to examine the books and
records of any person operating in accordance with the provisions of this
act at such person's expense to verify compliance with state and
federal law.
History: L. 1967, ch. 73, § 2;
L. 1986, ch. 55, § 1;
L. 1992, ch. 62, § 1;
L. 2006, ch. 113, § 6; July 1.
9-509.Money transmitter; license; application; net
worth requirement; deposit of security or bond; conditions; powers and duties
of state bank commissioner.
(a) No person shall engage in the business of selling, issuing or
delivering its payment instrument, check, draft, money order, personal
money order, bill of
exchange, evidence of indebtedness or other instrument for the
transmission or payment of money or otherwise engage in the business of
money transmission with a resident of this state, or, except as provided in
K.S.A. 9-510,
and amendments thereto, act as agent for another in the transmission of
money as a service or for a fee or other consideration,
unless such person obtains a license from the commissioner.
(b) An application for a license shall be submitted on forms prescribed by
the commissioner. The application shall be accompanied by an application fee as
established by rules and regulations adopted by the commissioner. In addition,
each person submitting an application shall meet the following
requirements:
(1) The net worth of such person shall be
at all times not less than $250,000,
as shown by an audited financial statement and certified
to
by an owner, a partner or officer of the corporation or other entity in a
form prescribed by the commissioner and filed in the
commissioner's office. The commissioner may require any person to file a
statement at any other time upon request;
(2) such person shall deposit
and at all times keep on deposit with the state treasurer,
or a bank in this state approved by
the commissioner,
cash or securities satisfactory to the commissioner in an
amount not less than $200,000.
The commissioner may increase the amount of cash or securities required up to a
maximum of $500,000 upon the basis of the impaired financial condition of a
person, as evidenced by a reduction in net worth, financial losses or other
relevant criteria as determined by the commissioner;
(3) in lieu of the
deposit of cash or securities required by paragraph (2), such person may
give a surety bond in
an amount equal to that
required for the deposit of cash or securities, in a form satisfactory to
the commissioner and issued by a company authorized to do
business in this state, which bond shall
be payable to the office of the state bank commissioner and be filed
with the commissioner. The deposit of cash or securities
or surety bond shall be for the protection and benefit of purchasers of
money transmission services, purchasers or holders of payment
instruments furnished by such person or for the protection of
those for whom such person has agreed to act as agent in the transmission of
monetary value and to secure the faithful performance of
the obligations of such
person in respect to the receipt, handling, transmission and payment of
monetary value. The aggregate liability of the surety for
all breaches of the
conditions of the bond shall, in no event, exceed the amount of such bond.
The surety on the bond shall have the right to cancel such bond upon giving
30 days' notice to the commissioner and thereafter shall be
relieved of liability for any breach of condition occurring after the
effective date of the cancellation. The commissioner or any
aggrieved party may enforce claims against such deposit of cash or
securities or surety bond. So long as the depositing person is not in
violation of this act, such person shall be permitted to receive all
interest and dividends on the deposit and shall have the right to
substitute other securities satisfactory to the commissioner.
If
the deposit is made with a bank, any custodial fees shall be paid
by such person; and
(4) such person shall submit a list to the commissioner of the names and
addresses of other persons who are authorized to act as selling agents for
transactions with Kansas residents.
(c) The commissioner shall have the
authority to examine the books and
records of any person operating in accordance with the provisions of this
act at such person's expense to verify compliance with state and
federal law.
History: L. 1967, ch. 73, § 2;
L. 1986, ch. 55, § 1;
L. 1992, ch. 62, § 1;
L. 2006, ch. 113, § 6; July 1.
9-509.Money transmitter; license; application; net
worth requirement; deposit of security or bond; conditions; powers and duties
of state bank commissioner.
(a) No person shall engage in the business of selling, issuing or
delivering its payment instrument, check, draft, money order, personal
money order, bill of
exchange, evidence of indebtedness or other instrument for the
transmission or payment of money or otherwise engage in the business of
money transmission with a resident of this state, or, except as provided in
K.S.A. 9-510,
and amendments thereto, act as agent for another in the transmission of
money as a service or for a fee or other consideration,
unless such person obtains a license from the commissioner.
(b) An application for a license shall be submitted on forms prescribed by
the commissioner. The application shall be accompanied by an application fee as
established by rules and regulations adopted by the commissioner. In addition,
each person submitting an application shall meet the following
requirements:
(1) The net worth of such person shall be
at all times not less than $250,000,
as shown by an audited financial statement and certified
to
by an owner, a partner or officer of the corporation or other entity in a
form prescribed by the commissioner and filed in the
commissioner's office. The commissioner may require any person to file a
statement at any other time upon request;
(2) such person shall deposit
and at all times keep on deposit with the state treasurer,
or a bank in this state approved by
the commissioner,
cash or securities satisfactory to the commissioner in an
amount not less than $200,000.
The commissioner may increase the amount of cash or securities required up to a
maximum of $500,000 upon the basis of the impaired financial condition of a
person, as evidenced by a reduction in net worth, financial losses or other
relevant criteria as determined by the commissioner;
(3) in lieu of the
deposit of cash or securities required by paragraph (2), such person may
give a surety bond in
an amount equal to that
required for the deposit of cash or securities, in a form satisfactory to
the commissioner and issued by a company authorized to do
business in this state, which bond shall
be payable to the office of the state bank commissioner and be filed
with the commissioner. The deposit of cash or securities
or surety bond shall be for the protection and benefit of purchasers of
money transmission services, purchasers or holders of payment
instruments furnished by such person or for the protection of
those for whom such person has agreed to act as agent in the transmission of
monetary value and to secure the faithful performance of
the obligations of such
person in respect to the receipt, handling, transmission and payment of
monetary value. The aggregate liability of the surety for
all breaches of the
conditions of the bond shall, in no event, exceed the amount of such bond.
The surety on the bond shall have the right to cancel such bond upon giving
30 days' notice to the commissioner and thereafter shall be
relieved of liability for any breach of condition occurring after the
effective date of the cancellation. The commissioner or any
aggrieved party may enforce claims against such deposit of cash or
securities or surety bond. So long as the depositing person is not in
violation of this act, such person shall be permitted to receive all
interest and dividends on the deposit and shall have the right to
substitute other securities satisfactory to the commissioner.
If
the deposit is made with a bank, any custodial fees shall be paid
by such person; and
(4) such person shall submit a list to the commissioner of the names and
addresses of other persons who are authorized to act as selling agents for
transactions with Kansas residents.
(c) The commissioner shall have the
authority to examine the books and
records of any person operating in accordance with the provisions of this
act at such person's expense to verify compliance with state and
federal law.
History: L. 1967, ch. 73, § 2;
L. 1986, ch. 55, § 1;
L. 1992, ch. 62, § 1;
L. 2006, ch. 113, § 6; July 1.
