§ 36a-599 — (Formerly Sec. 36-534). License fees. Surrender of license. Plan and accounting. Termination of business.

Connecticut § 36a-599

• Jurisdiction: Connecticut
• Title 36a: The Banking Law of Connecticut
• Ch. 668: Nondepository Financial Institutions

Text

(a) Each applicant for a money transmission license shall pay to the system any required fees or charges and a license fee of one thousand eight hundred seventy-five dollars. Each such license shall expire at the close of business on December thirty-first of the year in which the license was approved, unless such license is renewed, except that any such license approved on or after November first shall expire at the close of business on December thirty-first of the year following the year in which it is approved. An application for renewal of a license shall be filed between November first and December thirty-first of the year in which the license expires. Each applicant for renewal of a money transmission license shall pay to the system any required fees or charges and a renewal fee of one thousand one hundred twenty-five dollars. (b) Not later than fifteen days after the date a licensee ceases to engage in the business of money transmission in this state for any reason, including a business decision to terminate operations in this state, license revocation, bankruptcy or voluntary dissolution, such licensee shall request surrender of the license in accordance with subsection (c) of section 36a-51 for each location where such licensee has ceased to engage in such business. The licensee shall also identify, in writing, to the commissioner the location where the records of the licensee will be stored and the name, address and telephone number of an individual authorized to provide access to the records. The surrender of a license does not reduce or eliminate the licensee's civil or criminal liability arising from acts or omissions occurring prior to the surrender of the license, including any administrative actions undertaken by the commissioner to revoke or suspend a license, assess a civil penalty, order restitution or exercise any other authority provided to the commissioner. (c) Each license shall remain in force and effect until the license has been surrendered, revoked or suspended or has expired in accordance with the provisions of sections 36a-595 to 36a-612 , inclusive. No abatement of the license fee shall be made if the applicant is denied or withdrawn prior to issuance of the license or if the license is surrendered, revoked or suspended prior to the expiration of the period for which it was issued. All fees required by this section shall be nonrefundable. (d) Each licensee shall maintain a detailed plan and accounting as to how the licensee shall engage in winding down operations, and shall provide such plan and accounting to the commissioner upon request. Such plan and accounting shall contain: (1) A record showing that the licensee's minimum net worth and reserves are sufficient to prevent losses to consumers and purchasers and to repay any outstanding obligations or accounts payable; (2) Procedures to ensure that, after winding down operations, the licensee shall not retain any consumer funds, purchaser funds or other client funds; (3) A plan demonstrating that consumers shall have access to consumer funds in the licensee's custody; (4) Detailed instructions informing consumers how they may withdraw consumer funds upon request; and (5) Any other records and information requested by the commissioner regarding winding down operations. (e) No licensee shall terminate such licensee's business unless the following conditions are met: (1) The licensee provides written notice to the commissioner of the proposed termination at least thirty days prior to the effective date of such proposed termination; (2) The licensee notifies, in writing, all consumers, purchasers and users of the licensee of the proposed termination, and the date of such proposed termination, at least thirty days prior to the date of such proposed termination; (3) The licensee provides all consumers, purchasers and users of the licensee with detailed final accountings of the accounts of such consumers, purchasers and users; (4) The licensee remits all money held in the custody of the licensee on behalf of consumers, purchasers and users to such consumers, purchasers and users; and (5) The licensee files a request to surrender such licensee's license and the commissioner accepts such request.

Legislative History

(P.A. 81-264, S. 5; P.A. 88-150, S. 8; P.A. 92-89, S. 15, 20; P.A. 98-192, S. 5; P.A. 01-56, S. 6; P.A. 05-46, S. 12; P.A. 06-35, S. 7; P.A. 08-119, S. 12; June Sp. Sess. P.A. 09-3, S. 381; P.A. 13-253, S. 5; P.A. 18-173, S. 52; P.A. 24-146, S. 3.) History: P.A. 88-150 amended Subsec. (a) by increasing the investigation fee to $500 and increasing the license fee to $500, and deleted obsolete Subsec. (c) concerning license fees and the term of a license; P.A. 92-89 deleted the $500 investigation fee and increased the license fee from $500 to $1,000 in Subsec. (a); Sec. 36-534 transferred to Sec. 36a-599 in 1995; P.A. 98-192 amended Subsec. (a) by imposing a nonrefundable investigation fee of $500; P.A. 01-56 amended Subsec. (a) by eliminating the investigation fee for a renewal license and by making conforming language changes re renewal license fee and refund of fees; P.A. 05-46 amended Subsec. (a) to add provision re nonrefundable name change fee of $100 for each application to change a name; P.A. 06-35 amended Subsec. (a) to increase fee for original license from $1,000 to $2,000, to add exception that if application is filed not earlier than one year before date the license expires, applicant shall pay nonrefundable investigation fee of $500 and license fee of $1,000, to increase license fee for renewal license from $1,000 to $2,000, to provide that if license expires on June 30, 2007, fee shall be $2,250, and to prohibit licensee from using any name other than that specified on license issued by commissioner, and amended Subsec. (b) to provide that license expires at close of business on September thirtieth of odd-numbered year following issuance, unless renewed, surrendered, suspended or revoked, except that license renewed effective July 1, 2007, expires on September 30, 2009, and to delete reference to license expiration on thirtieth day of June following date of issuance; P.A. 08-119 amended Subsec. (b) to add requirement for surrender of license when licensee ceases to engage in the business of issuing Connecticut payment instruments or of money transmission; June Sp. Sess. P.A. 09-3 amended Subsec. (a) to increase fees; P.A. 13-253 amended Subsec. (a) by changing “original” to “initial”, making the license fee nonrefundable and deleting provision re license that expires on June 30, 2007, and amended Subsec. (b) to add reference to Secs. 36a-611 and 36a-612, delete reference to renewals effective July 1, 2007, delete reference to issuing Connecticut payment instruments, add provisions re written notice of surrender, delete requirement that surrender be in person or by registered or certified mail, and add provision re surrender of a license does not reduce or eliminate the licensee's civil or criminal liability; P.A. 18-173 substantially amended Subsec. (a) by replacing provisions re application for initial license and renewal license with provisions re applicant for money transmission license and renewal, amended Subsec. (b) by deleting provision re expiration of license, replacing provision re licensee to provide written notice of surrender to commissioner with provision re licensee to request surrender of license in accordance with Sec. 36a-51(c), added Subsec. (c) re license to remain in force and effect, abatement of licensee fee and fees nonrefundable, and made technical and conforming changes; P.A. 24-146 added Subsec. (d) re each licensee shall maintain plan and accounting and requirements of such plan and accounting and added Subsec. (e) re conditions required for licensee to terminate such licensee's business.