§ 28-8-4.1-201 — Definitions; applicability

Indiana § 28-8-4.1-201

• Jurisdiction: Indiana
• Art. 8: FINANCIAL SERVICES
• Ch. 4.1: Money Transmission Modernization Act

Text

The following definitions apply
throughout this chapter:
(1) "Acting in concert" means persons knowingly acting together
with a common goal of jointly acquiring control of a licensee
whether or not pursuant to an express agreement.
(2) "Authorized delegate" means a person a licensee designates to
engage in money transmission on behalf of the licensee.
(3) "Average daily money transmission liability", with respect to
a calendar quarter, means:
(A) the sum of the amounts of a licensee's outstanding money
transmission obligations in Indiana at the end of each day in the
calendar quarter; divided by
(B) the total number of days in that calendar quarter.
For purposes of this subdivision, a "calendar quarter" is a quarter
ending on March 31, June 30, September 30, or December 31.
(4) "Bank Secrecy Act" means:
(A) the Bank Secrecy Act (31 U.S.C. 5311 et seq.); and
(B) regulations adopted under the Bank Secrecy Act (31 U.S.C.
5311 et seq.).
(5) "Closed loop stored value" means stored value that is
redeemable by the issuer only for goods or services provided by
the issuer or the issuer's affiliate or by franchisees of the issuer or
the issuer's affiliate, except to the extent required by applicable
law to be redeemable in cash for its cash value.
(6) "Control" means any of the following:
(A) The power to vote, directly or indirectly, at least
twenty-five percent (25%) of the outstanding voting shares or
voting interests of a licensee or of a person in control of a
licensee.
(B) The power to elect or appoint a majority of key individuals
or executive officers, managers, directors, trustees, or other
persons exercising managerial authority of a person in control
of a licensee.
(C) The power to exercise, directly or indirectly, a controlling
influence over the management or policies of a licensee or of a
person in control of a licensee. For purposes of this clause, a
person is presumed to exercise a controlling influence if the
person holds the power to vote, directly or indirectly, at least
ten percent (10%) of the outstanding voting shares or voting
interests of a licensee or of a person in control of a licensee.
However, a person presumed to exercise a controlling influence
under this clause may rebut the presumption of control if the
person is a passive investor.
For purposes of this subdivision, the percentage of a person
controlled by any other person is determined by aggregating the
other person's interest with the interest of any other immediate
family member of that person, including the person's spouse,
parents, children, siblings, mothers-in-law and fathers-in-law,
sons-in-law and daughters-in-law, and any other person who
shares the person's home.
(7) "Department" refers to the members of the department of
financial institutions.
(8) "Director" refers to the director of the department appointed
under IC 28-11-2-1.
(9) "Eligible rating" means a credit rating of any of the three (3)
highest rating categories provided by an eligible rating service,
including any rating category modifiers, such as "plus" or "minus"
for S&P Global, or an equivalent modifier for any other eligible
rating service. The term includes the following:
(A) A long term credit rating equal to at least A- by S&P
Global, or an equivalent long term credit rating for any other
eligible rating service.
(B) A short term credit rating equal to at least A-2 by S&P
Global, or an equivalent short term credit rating for any other
eligible rating service.
In any case in which the credit ratings differ among eligible rating
services, the highest rating applies in determining whether the
credit rating is an "eligible rating" as defined in this subdivision.
(10) "Eligible rating service" means:
(A) a nationally recognized statistical rating organization, as
defined by the United States Securities and Exchange
Commission; or
(B) any other organization designated as such by the director.
(11) "Federally insured depository financial institution" means:
(A) a bank;
(B) a credit union;
(C) a savings and loan association;
(D) a trust company;
(E) a corporate fiduciary;
(F) a savings association;
(G) a savings bank;
(H) an industrial bank; or
(I) an industrial loan company;
that is organized under the law of the United States or any state of
the United States and that has federally or privately insured
deposits as permitted by state or federal law.
(12) "In Indiana", with respect to the location of a transaction,
means the following:
(A) At a physical location in Indiana, for a transaction
requested in person.
(B) For a transaction requested electronically or by telephone,
a determination made by the provider of money transmission,
by relying on the following, that the person requesting the
transaction is in Indiana:
(i) Information, provided by the person, regarding the
location of the individual's residential address or the business
entity's principal place of business or other physical address
location, as applicable.
(ii) Any records associated with the person that the provider
of money transmission may have that indicate the person's
location, including an address associated with an account.
(13) "Individual" means a natural person.
(14) "Key individual" means an individual ultimately responsible
for establishing or directing policies and procedures of a licensee,
such as an executive officer, manager, director, or trustee.
(15) "Licensee" means a person licensed under this chapter.
(16) "Material litigation" means litigation that, according to
United States generally accepted accounting principles, is
significant to a person's financial health and would be required to
be disclosed in the person's annual audited financial statements,
report to shareholders, or similar records.
(17) "Money" means a medium of exchange that is issued by the
United States government or by a foreign government. The term
includes a monetary unit of account established by an
intergovernmental organization or by agreement between two (2)
or more governments.
(18) "Monetary value" means a medium of exchange, whether or
not redeemable in money.
(19) "Money transmission" means any of the following:
(A) Selling or issuing payment instruments to a person located
in Indiana.
(B) Selling or issuing stored value to a person located in
Indiana.
(C) Receiving money for transmission from a person located in
Indiana.
The term does not include the provision of solely online or
telecommunications services or network access.
(20) "MSB accredited state" means a state agency that is
accredited by the Conference of State Bank Supervisors and
Money Transmitter Regulators Association for money
transmission licensing and supervision.
(21) "Multistate licensing process" means an agreement entered
into by and among state regulators related to:
(A) coordinated processing of applications for money
transmission licenses;
(B) applications for the acquisition and control of a licensee;
(C) control determinations; or
(D) notice and information requirements for a change of key
individuals.
(22) "NMLS" means the Nationwide Multistate Licensing System
and Registry:
(A) developed by the Conference of State Bank Supervisors and
the American Association of Residential Mortgage Regulators;
and
(B) owned and operated by the State Regulatory Registry, LLC,
or by any successor or affiliated entity;
for the licensing and registry of persons in financial services
industries.
(23) "Outstanding money transmission obligation", as established
and extinguished in accordance with applicable state law, means:
(A) any payment instrument or stored value that:
(i) is issued or sold by a licensee to a person located in the
United States, or reported as sold by an authorized delegate
of the licensee to a person located in the United States; and
(ii) has not yet been paid or refunded by or for the licensee,
or escheated in accordance with applicable abandoned
property laws; or
(B) any money that:
(i) is received for transmission by a licensee, or by an
authorized delegate of the licensee, from a person located in
the United States; and
(ii) has not been received by the payee or refunded to the
seller, or escheated in accordance with applicable abandoned
property laws.
For purposes of this subdivision, a person is located "in the
United States" if the person is located in any state, territory, or
possession of the United States or in the District of Columbia, the
Commonwealth of Puerto Rico, or a United States military
installation located in a foreign country.
(24) "Passive investor" means a person that:
(A) does not have the power to elect a majority of key
individuals or executive officers, managers, directors, trustees,
or other persons exercising managerial authority over a person
in control of a licensee;
(B) is not employed by and does not have any managerial duties
with respect to the licensee or a person in control of the
licensee;
(C) does not have the power to exercise, directly or indirectly,
a controlling influence over the management or policies of the
licensee or a person in control of the licensee; and
(D) either:
(i) attests to as facts the characteristics of passivity set forth
in clauses (A) through (C), in a form and by a medium
prescribed by the director; or
(ii) commits to the characteristics of passivity set forth in
clauses (A) through (C) in a written document.
(25) "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:
(A) stored value; or
(B) any instrument that:
(i) 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
(ii) is not sold to the public but is issued and distributed as
part of a loyalty, rewards, or promotional program.
(26) "Person" means any individual, general partnership, limited
partnership, limited liability company, corporation, trust,
association, joint stock corporation, or other corporate entity, as
so identified by the director.
(27) "Receiving money for transmission" means receiving money
or monetary value in the United States for transmission within or
outside the United States by electronic or other means. The term
"money received for transmission" has a corresponding meaning.
(28) "Stored value" means monetary value representing a claim,
against the issuer, that is 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. The term includes "prepaid access" as defined in 31
CFR 1010.100. The term does not include:
(A) a payment instrument;
(B) closed loop stored value; or
(C) stored value not sold to the public but issued and
distributed as part of a loyalty, rewards, or promotional
program.
(29) "Tangible net worth" means the aggregate assets of a
licensee, excluding all intangible assets, less liabilities, as
determined in accordance with United States generally accepted
accounting principles.

Legislative History

As added by P.L.198-2023, SEC.4.