State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_53 > GS_53-208_2

§ 53‑208.2. Definitions.

(a)        Unless otherwiseprovided in this Article, or when the context clearly indicates that adifferent meaning is intended, the following definitions apply in this Article:

(1)        Applicant. – Aperson filing an application for a license under this Article.

(2)        Authorized delegate.– An entity designated by the licensee under the provisions of this Article tosell or issue payment instruments or stored value or engage in the business oftransmitting money on behalf of a licensee.

(3)        Commissioner. – TheCommissioner of Banks of the State of North Carolina.

(4)        Control. – Ownershipof, or the power to vote, ten percent (10%) or more of the outstanding votingsecurities of a licensee or controlling person. For purposes of determining thepercentage of a licensee controlled by any person, there shall be aggregatedwith the person's interest the interest of any other person controlled by theperson or by any spouse, parent, or child of the person.

(5)        Controlling person.– Any person in control of a licensee.

(6)        Electronicinstrument. – A card or other tangible object for the transmission or paymentof money or monetary value which contains a microprocessor chip, magneticstrip, or other means for the storage of information that is prefunded and forwhich the value is decremented upon each use. The term does not include a cardor other tangible object that is redeemable by the issuer in goods or services.

(7)        Executive officer. –The licensee's president, chair of the executive committee, senior officerresponsible for the licensee's business, chief financial officer, and any otherperson who performs similar functions.

(8)        Key shareholder. –Any person, or group of persons acting in concert, who is the owner of tenpercent (10%) or more of any voting class of an applicant's stock.

(9)        Licensee. – A personlicensed under this Article.

(10)      Material litigation.– Any litigation that, according to generally accepted accounting principles,is deemed significant to an applicant's or licensee's financial health andwould be required to be referenced in that entity's annual audited financialstatements, report to shareholders, or similar documents.

(11)      Monetarytransmission. – The term means either of the following:

a.         The sale or issuanceof payment instruments or stored value.

b.         The act of engagingin the business of receiving money or monetary value for transmission withinthe United States or to locations abroad by any and all means, includingpayment instrument, wire, facsimile, or electronic transfer.

(12)      Monetary value. – Amedium of exchange, whether or not redeemable in money.

(13)      Outstanding paymentinstrument. – Any payment instrument issued by the licensee which has been soldin the United States directly by the licensee or any payment instrument issuedby the licensee which has been sold by an authorized delegate of the licenseein the United States, which has been reported to the licensee as having beensold and which has not yet been paid by or for the licensee.

(14)      Payment instrument. –Any electronic or written check, draft, money order, traveler's check, or otherelectronic or written instrument or order for the transmission or payment ofmoney or monetary value, whether or not the instrument is negotiable. The termdoes not include a credit card voucher, letter of credit, or any otherinstrument that is redeemable by the issuer in goods or services.

(15)      Permissibleinvestments. – One or more of the following:

a.         Cash.

b.         Certificates ofdeposit or other debt obligations of a financial institution, either domesticor foreign.

c.         Bills of exchange ortime drafts drawn on and accepted by a commercial bank, otherwise known asbankers' acceptances, which are eligible for purchase by member banks of theFederal Reserve System.

d.         Any investmentbearing a rating of one of the three highest grades as defined by a nationallyrecognized organization that rates securities.

e.         Investmentsecurities that are obligations of the United States, its agencies, orinstrumentalities or obligations that are guaranteed fully as to principal andinterest of the United States or any obligations of any state, municipality, orany political subdivision thereof.

f.          Shares in a moneymarket mutual fund, interest‑bearing bills or notes or bonds, debentures,or preferred stock traded on any national securities exchange or on a nationalover‑the‑counter market, or mutual funds primarily composed of suchsecurities or a fund composed of one or more permissible investments as setforth herein.

g.         Any demand borrowingagreement or agreements made to a corporation or a subsidiary of a corporationwhose capital stock is listed on a national exchange.

h.         Receivables due to alicensee from its authorized delegates pursuant to a contract described in G.S.53‑208.19, which are not past due or doubtful of collection.

i.          Any otherinvestments or security device approved by the Commissioner.

(16)      Person. – Anyindividual, partnership, association, joint‑stock association, trust, orcorporation.

(17)      Remit. – To do one ormore of the following:

a.         Make direct paymentof the funds to the licensee or its representatives authorized to receive thosefunds.

b.         Deposit the funds ina bank, credit union, or savings and loan association or other similarfinancial institution in an account specified by the licensee.

(18)      Stored value. –Monetary value that is evidenced by an electronic record. (2001‑443, s. 2.)