SUBCHAPTER 3F ‑ LICENSEES UNDER MONEY TRANSMITTERS ACT

 

04 NCAC 03F .0101           APPLICATION FOR LICENSE

04 NCAC 03F .0102           ISSUANCE OF LICENSE

04 NCAC 03F .0103           REQUIRED REPORTS

 

History Note:        Authority G.S. 53‑92; 53‑194; 53‑196; 53‑197; 53‑198; 53‑200; 53‑204;

Eff. February 1, 1976;

Repealed Eff. February 1, 1993.

04 NCAC 03F .0104           REVOCATION OF LICENSE

04 NCAC 03F .0105           DENIAL OR REVOCATION OF LICENSE: HEARING: APPEAL

 

History Note:        Authority G.S. 53‑92; 53‑206; 53‑207; 150A‑11(1);

Eff. February 1, 1976;

Repealed Eff. January 1, 1985.

 

SECTION .0200 ‑ ADMINISTRATIVE

 

04 NCAC 03F .0201           DEFINITIONS

(a)  As used in this Subchapter, unless the context clearly requires otherwise:

(1)           "Agent" shall mean a person, partnership, corporation, or other entity authorized by a licensee to sell or issue checks of the licensee in this State as a service or for a fee or other consideration on the behalf of the licensee;

(2)           "Applicant" shall mean a person who applies for a license under the Money Transmitters Act;

(3)           "Controlling person" shall mean any person as defined in G.S. 53-208.2(16) who owns or holds with the power to vote 10% or more of the equity securities of the applicant or licensee, or who has the power to direct the management and policy of the applicant or licensee;

(4)           "Executive officer" shall have the same meaning as set forth in Regulation "O," promulgated by the Board of Governors of the Federal Reserve System and codified in the Code of Federal Regulations at Title 12, Chapter II, Subchapter A, Part 215.2;

(5)           "Location" shall mean any place of business within this State operated by the licensee or the licensee's agent at which checks of the licensee are issued or sold;

(6)           "Money Transmitters Act" shall mean the Money Transmitters Act codified at Chapter 53, Article 16A of the North Carolina General Statutes (G.S. 53-208.1,et seq.);

(7)           "State" shall mean the State of North Carolina;

(8)           Terms defined in G.S. 53-208.2 shall have the same meaning in this Subchapter.

(b)  An application for a license, amendment to the application, annual statement, notice, or any other document which is required by law or rule to be filed with the Commissioner shall be addressed as follows:

Mailing Address:

Office of the Commissioner of Banks

4309 Mail Service Center

Raleigh, North Carolina  27699-4309.

 

Street Address:

Office of the Commissioner of Banks

316 West Edenton Street

Raleigh, North Carolina  27603

 

History Note:        Authority G.S. 53-208.27;

Eff. February 1, 1993;

Amended Eff. November 1, 2013; September 1, 2006; June 1, 1995.

 

04 NCAC 03F .0202           PERMISSIBLE INVESTMENTS

 

History Note:        Authority G.S. 53-193; 53-206.1;

Eff. March 1, 1994;

Repealed Eff. October 1, 2011.

 

SECTION .0300 ‑ LICENSING

 

04 NCAC 03F .0301           APPLICATION FOR A LICENSE

(a)  Any person who wishes to sell or issue checks in this State pursuant to the Money Transmitters Act must first obtain a license issued by the Commissioner.  An application for a license can be obtained from and shall be filed pursuant to Rule .0201(b) of this Subchapter.

(b)  An application for a Money Transmitters' license shall include information required by G.S. 53-208.5 through G.S. 53-208.10 of Chapter 53, Article 16A.  The application must be submitted on a form provided by the Commissioner.

(c)  In addition to the documents and information listed in Paragraph (b) of this Rule, the Commissioner may require additional information necessary to complete an investigation pursuant to G.S. 53-208.10.

(d)  Incomplete application files shall be closed and deemed denied without prejudice when the applicant has not submitted information requested by the Commissioner within 30 days of such request.

 

History Note:        Authority G.S. 53-208.3; 53-208.27;

Eff. February 1, 1993;

Amended Eff. November 1, 2013.

 

04 NCAC 03F .0302           issuance of a license

04 NCAC 03F .0303           LICENSE FEES

04 NCAC 03F .0304           AGENT LOCATION FEE

 

History Note:        Authority G.S. 53-197; 53-200; 53-202; 53-206.1; 150B-21.2;

Eff. February 1, 1993;

Amended June 1, 1995;

Repealed Eff. October 1, 2011.

 

SECTION .0400 - OPERATIONS

 

04 NCAC 03F .0401           CERTIFICATE OF AUTHORITY

 

History Note:        Authority G.S. 53-203; 53-206.1; 150B-21.2;

Eff. February 1, 1993;

Repealed Eff. October 1, 2011.

 

04 NCAC 03F .0402           SURRENDER OF LICENSE

A licensee shall surrender its license to the Commissioner no later than 30 days after it has ceased operations in this State.

 

History Note:        Authority G.S. 53-208.27;

Eff. February 1, 1993.

 

SECTION .0500 - REPORTING AND NOTIFICATIONS

 

04 NCAC 03F .0501           GENERALLY ACCEPTED ACCOUNTING PRINCIPLES

For the purposes of the Money Transmitters Act and this Subchapter, all required financial statements shall be prepared according to generally accepted accounting principles.

 

History Note:        Authority G.S. 53-208.27;

Eff. February 1, 1993.

 

04 NCAC 03F .0502           STATEMENT OF NET WORTH

04 NCAC 03F .0503           ANNUAL STATEMENT

 

History Note:        Authority G.S. 53-198; 53-199(b); 53-204(a); 53-206.1; 150B-21.2;

Eff. February 1, 1993;

Amended Eff. June 1, 1995;

Repealed Eff. October 1, 2011.

 

04 NCAC 03F .0504           AGENT ACTIVITY REPORTS

A licensee shall file each quarter of the calendar year, a quarterly report of agent activity no later than 60 days after the quarter has ended.  The quarterly report shall contain the following information:

(1)           The total number of agents or subagents in this State;

(2)           The total number and dollar amount of the checks sold or issued by each agent or subagent in this State.

 

History Note:        Authority G.S. 53-208.27;

Eff. February 1, 1993;

Amended Eff. June 1, 1995.

 

04 NCAC 03F .0505           AMENDMENTS TO APPLICATION

A licensee must maintain a current application with the Commissioner.  If the information contained in the application is or becomes inaccurate in any material respect, the licensee shall file a correcting amendment as soon as practicable, but in no event later than 30 days after the effective date of such change.  An amendment to the application can be obtained from and shall be filed pursuant to Rule .0201(b) of this Subchapter.

 

History Note:        Authority G.S. 53-208.27;

Eff. February 1, 1993.

 

04 NCAC 03F .0506           REVOCATION OR CANCELLATION OF SURETY BOND

(a)  No later than 30 days after the renewal of its surety bond, a licensee shall file pursuant to Rule .0201(b) of this Subchapter:

(1)           a certificate of continuation of the surety bond required by G.S. 53-208.8; or

(2)           evidence of continued compliance with G.S. 53-208.8(b) which shall consist of a safekeeping receipt received directly from the trustee of securities with a par value equal to the amount of the surety bond in G.S. 53-208.8.

(b)  A licensee shall notify the Commissioner in writing of revocation or cancellation of its surety bond furnished pursuant to G.S. 53-208.8.

 

History Note:        Authority 53-208.8; 53-208.27;

Eff. February 1, 1993;

Amended Eff. November 1, 2013; June 1, 1995.

 

04 NCAC 03F .0507           CEASING OPERATIONS

A licensee shall immediately notify the Commissioner in writing of its decision to cease operations in this State under the Money Transmitters Act.

 

History Note:        Authority G.S. 53-208.27;

Eff. February 1, 1993.

 

04 NCAC 03F .0508           IMPAIRMENT OF MINIMUM NET WORTH

A licensee shall notify the Commissioner in writing if, at any time, it fails to meet the minimum net worth requirement of G.S. 53-208.5(a).  The notification shall be accompanied by a plan to restore the minimum net worth.

 

History Note:        Authority 53-208.5; 53-208.27;

Eff. February 1, 1993;

Amended Eff. November 1, 2013.

 

04 NCAC 03F .0509           DISHONOR OR DEFAULT IN PAYMENT INSTRUMENT

A licensee shall immediately notify the Commissioner in writing if it dishonors or defaults in the payment of any check sold or issued because it lacks the funds to honor the check.

 

History Note:        Authority G.S. 53-208.27;

Eff. February 1, 1993.

 

SECTION .0600 - EXAMINATION; BOOKS AND RECORDS

 

04 NCAC 03F .0601           RECORD AND BOOKKEEPING REQUIREMENTS

(a)  Licensee.  Each licensee shall maintain at an office information required by G.S. 53-208.16(a) of Chapter 53, Article 16A.

(b)  Authorized delegate.  Each authorized delegate shall maintain at its office a record of the disposition of all transactions or monetary instruments received from the licensee.  The record shall contain an accounting of all proceeds from those transactions or monetary instruments paid to the licensee and all proceeds due to the licensee.

 

History Note:        Authority 53-208.16; 53-208.20; 53-208.27;

Eff. February 1, 1993;

Amended Eff. November 1, 2013.

 

04 NCAC 03F .0602           EXAMINATION FEE

Each licensee shall pay the cost of an examination conducted by the Commissioner or his designee pursuant to G.S. 53-208.15.  The cost of such examination shall be the hourly rate established pursuant to 04 NCAC 03C .1601 plus travel expenses and the per diem subsistence allowance provided for State employees pursuant to G.S. 138-5 through G.S. 138-7, and any rules promulgated thereunder.

 

History Note:        Authority 53-208.15; 53-208.27; 53-282(c);

Eff. February 1, 1993;

Amended Eff. November 1, 2013.

 

SECTION .0700 - LICENSE REVOCATION

 

04 NCAC 03F .0701           HEARINGS

 

History Note:        Authority G.S. 53-206; 53-206.1; 53-207; 150B-21.2;

Eff. February 1, 1993;

Repealed Eff. October 1, 2011.