§ 23-55-102 — Definitions

In this chapter: (1) "Applicant" means a person that files an application for a license under this chapter. (2) "Authorized delegate" means a person a licensee designates to provide money services on behalf of the licensee. (3) "Bank" means an institution organized under federal or state law which: (A) accepts demand deposits or deposits that the depositor may use for payment to third parties and engages in the business of making commercial loans; or (B) engages in credit card operations and maintains only one office that accepts deposits, does not accept demand deposits or deposits that the depositor may use for payments to third parties, does not accept a savings or time deposit less than $100,000, and does not engage in the business of making commercial loans. (4) "Commissioner" means the Securities Commissioner. (5) (A) "Control" means: (i) the power to vote, directly or indirectly, at least 25 percent of a class of voting securities or voting interests of a licensee or person in control of a licensee; (ii) power to elect or appoint a majority of key individuals or executive officers, managers, directors, trustees, or other persons exercising managerial authority of a licensee or person in control of a licensee; or (iii) the power to exercise directly or indirectly, a controlling influence over the management or policies of a licensee or person in control of a licensee. (B) (i) A person: (a) is presumed to exercise a controlling influence if the person holds the power to vote, directly or indirectly, at least 10 percent of the outstanding voting shares or voting interests of a licensee or person in control of a licensee; and (b) that is presumed to exercise a controlling influence may rebut the presumption of control if the person is a passive investor. (ii) For purposes of determining the percentage of a person controlled by any other person, the person's interest shall be aggregated with the interest of any other immediate family member, including without limitation the person's spouse, parents, children, siblings, mothers-in law, fathers-in law, sons-in law, daughters-in law, brothers-in law, sisters-in law, and any other person who shares the person's home. (6) "Currency exchange" means receipt of revenues from the exchange of money of one government for money of another government. (7) "Executive officer" means a president, chairperson of the executive committee, chief financial officer, responsible individual, or other individual who performs similar functions. (8) "Key individual" means an individual who is ultimately responsible for establishing or directing policies and procedures of a licensee, including without limitation an executive officer, manager, director, or trustee. (9) "Licensee" means a person licensed under this chapter. (10) "Monetary value" means a medium of exchange, whether or not redeemable in money. (11) "Money" means a medium of exchange that is authorized or adopted by the United States or a foreign government. The term includes a monetary unit of account established by an intergovernmental organization or by agreement between two or more governments. (12) "Money services" means money transmission or currency exchange. (13) (A) "Money transmission" means any of the following: (i) selling or issuing payment instruments to a person located in this state; (ii) selling or issuing stored value to a person located in this state; (iii) facilitating, selling, trading, transferring, or converting virtual currency or monetary value in this state; or (iv) receiving money for transmission from a person located in this state. (B) "Money transmission" does not include: (i) providing: (a) online services; (b) telecommunication services; (c) network access; (d) delivery services such as courier or package delivery services; or (ii) acting as a mere conduit for the transmission of data. (14) "Outstanding," with respect to a payment instrument, means issued or sold by or for the licensee and reported as sold but not yet paid by or for the licensee. (15) "Passive investor" means a person that: (A) does not have the power to elect: (i) a majority of key individuals; (ii) a majority of executive officers, managers, directors, or trustees; or (iii) other persons exercising managerial authority of a person in control of a licensee; (B) is not employed by and does not have any managerial duties of the licensee or person in control of a licensee; (C) does not have the power to exercise, directly or indirectly, a controlling influence over the management or policies of a licensee or person in control of a licensee; and (D) either: (i) attests to subdivisions (15)(A)-(C), in a form and in a medium prescribed by the commissioner; or (ii) commits to the passivity characteristics of subdivisions (15)(A)-(C), in a written document. (16) "Payment instrument" means a written or electronic check, draft, money order, traveler's check, or other written or electronic instrument for the transmission or payment of money or monetary value, whether or not negotiable. The term does not include stored value or any instrument that: (A) is redeemable by the issuer only for goods or services provided by the issuer or its affiliate or franchisees of the issuer or its affiliate, except to the extent required by applicable law to be redeemable in cash for its cash value; or (B) is not sold to the public but issued and distributed as part of a loyalty, rewards, or promotional program. (17) "Person" means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, government; governmental subdivision, agency or instrumentality; public corporation; or any other legal or commercial entity. (18) "Record" means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form. (19) "State" means a State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States. (20) (A) "Stored value" means monetary value representing a claim against the issuer evidenced by an electronic or digital record, and that is intended and accepted for use as a means of redemption for money or monetary value, or payment for goods or services. (B) "Stored value" includes without limitation prepaid access as defined by 31 C.F.R. § 1010.100 , as it existed on January 1, 2023. (C) "Stored value" does not include a payment instrument or closed loop stored value or stored value not sold to the public but issued and distributed as part of a loyalty, rewards, or promotional program. (21) "Tangible net worth" means the aggregate assets of a licensee excluding all intangible assets, less liabilities, as determined according to generally accepted accounting principles. (22) "Unsafe or unsound practice" means a practice or conduct by a person licensed to engage in money transmission or an authorized delegate of such a person which creates the likelihood of material loss, insolvency, or dissipation of the licensee's assets, or otherwise materially prejudices the interests of its customers. (23) (A) "Virtual currency" means a digital representation of value that: (i) is used as a medium of exchange, a unit of account, or a store of value; and (ii) does not have legal tender status as recognized by the United States Department of the Treasury. (B) "Virtual currency" does not include the software or protocols governing the transfer of a digital representation of value or other uses of a virtual distributed ledger system to verify ownership or authenticity in a digital capacity when the virtual currency is not used as a medium of exchange.

Legislative History

Amended by Act 2023, No. 442,§ 1, eff. 8/1/2023. Amended by Act 2021, No. 532,§ 3, eff. 7/28/2021. Amended by Act 2021, No. 532,§ 2, eff. 7/28/2021. Amended by Act 2021, No. 532,§ 1, eff. 7/28/2021. Amended by Act 2013, No. 531,§ 1, eff. 8/16/2013. Acts 2007, No. 1595, § 1; 2009, No. 486, §§ 1 - 3; 2011, No. 733, § 1.