§ 1 — Definitions

[ Text of section added by 2024, 312, Sec. 3 effective January 1, 2026. See 2024, 312, Sec. 6.]Section 1. As used in this chapter, the following words shall have the following meanings unless the context clearly requires otherwise:"Acting in concert'', persons knowingly acting together with a common goal of jointly acquiring control of a licensee whether or not pursuant to an express agreement."Authorized delegate'', a person designated by a licensee to engage in money transmission on behalf of the licensee."Average daily money transmission liability'', the amount of the licensee's outstanding money transmission obligations in the commonwealth at the end of each day in a specified period of time, added together and divided by the total number of days in the specified period of time. For purposes of calculating average daily money transmission liability under this chapter, a specified period of time shall mean a calendar quarter ending on either March 31, June 30, September 30 or December 31."Bank Secrecy Act'', the Bank Secrecy Act, 31 U.S.C. %48 5311, et seq. and its implementing regulations, as amended and recodified from time to time."Closed loop stored value'', stored value that 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."Commissioner'', the commissioner of banks."Control'', the power to: (i) vote, directly or indirectly, not less than 25 per cent of the outstanding voting shares or voting interests of a licensee or person in control of a licensee; (ii) 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; or (iii) exercise, directly or indirectly, a controlling influence over the management or policies of a licensee or person in control of a licensee; provided, however, that for rebuttable presumptions of control a person shall be presumed to exercise a controlling influence when the person holds the power to vote, directly or indirectly, not less than 10 per cent of the outstanding voting shares or voting interests of a licensee or person in control of a licensee; provided further, that a person presumed to exercise a controlling influence may rebut the presumption of control if the person is a passive investor; provided further, that, for purposes of determining the percentage of a person or licensee is controlled by another person, the person or licensee's interest shall be aggregated with the interest of any other immediate family member, including the person or licensee's spouse, parents, children, siblings, mothers- and fathers-in law, sons- and daughters-in-law, brothers- and sisters-in-law and any other person who shares such person or licensee's home; and provided further, that, consistent with the authority described in subsection (b) of section 4, the commissioner may adopt regulations, policies and procedures as necessary, which may modify the definition of "control'' as used in this chapter."Division'', the division of banks."Eligible rating'', a credit rating within any of the 3 highest credit rating categories provided by an eligible credit rating agency; provided, however, that any such category may include credit rating category modifiers such as "plus'' or "minus'' for Standard & Poor's Corporation or an equivalent credit rating category modifier of another eligible credit rating service; provided further, that long-term credit ratings shall be deemed eligible if the credit rating is equal to or greater than A- by Standard & Poor's Corporation or an equivalent credit rating from another eligible credit rating service; provided further, that short-term credit ratings shall be deemed eligible if the credit rating is equal to or higher than A-2 or SP-2 by Standard & Poor's Corporation or an equivalent credit rating of another eligible credit rating service; and provided further, that, in the event that credit ratings differ among eligible credit rating agencies, the highest rating shall apply when determining whether a security bears an eligible rating."Eligible credit rating agency'', a nationally recognized statistical rating organization as defined by the United States Securities and Exchange Commission or any other organization designated by the commissioner by rule or order."Federally insured depository financial institution'', a bank, credit union, savings and loan association, trust company, savings association, savings bank, industrial bank or industrial loan company organized under federal or state law; provided, however, that such bank, credit union, savings and loan association, trust company, savings association, savings bank, industrial bank or industrial loan company has federally insured deposits."Individual'', a natural person."In the commonwealth'', at a physical location within the commonwealth for a transaction requested in person; provided, however, that for a transaction requested electronically or by phone, the provider of money transmission may determine if the person requesting the transaction is in the commonwealth by relying on information provided by the person regarding the location of the individual's residential address or a business entity's principal place of business or other physical address and any records associated with the person that the provider of money transmission may have that indicate such location, including, but not limited to, a physical address associated with an account."Key individual'', an individual ultimately responsible for establishing or directing policies and procedures to which a licensee is subject including, but not limited to, an executive officer, manager, director or trustee."Licensee'', a person licensed under this chapter."Material litigation'', litigation that, according to generally accepted accounting principles issued by the Financial Accounting Standards Board, 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."Monetary value'', a medium of exchange, whether or not redeemable in money."Money'', a medium of exchange that is authorized or adopted by the United States or a foreign government; provided, however, that money shall include a monetary unit of account established by an intergovernmental organization or by agreement between 2 or more governments."Money transmission'', either: (i) selling or issuing payment instruments to a person located in the commonwealth; (ii) selling or issuing stored value to a person located in the commonwealth; or (iii) receiving money for transmission from a person located in the commonwealth; provided, however, that money transmission shall only refer to transactions engaged in by a person for personal, family or household purposes and shall not include the provision solely of online or telecommunications services or network access."MSB accredited state'', a state agency that is accredited by the Conference of State Bank Supervisors and Money Transmitter Regulators Association for money transmission licensing and supervision."Multistate licensing process'', an agreement entered into by and among state regulators relating to coordinated processing of applications for money transmission licenses, applications for the acquisition of control of a licensee, control determinations or notice and information requirements for a change of key individuals."NMLS'', the Nationwide Multistate Licensing System and Registry developed by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators and owned and operated by the State Regulatory Registry LLC or any successor or affiliated entity for the licensing and registration of persons in the financial services industry."Outstanding money transmission obligations'', obligations that shall be established and extinguished in accordance with applicable state law and shall include: (i) any payment instrument or stored value issued or sold by the licensee to a person located in the United States or reported as sold by an authorized delegate of the licensee to a person that is located in the United States that has not yet been paid or refunded by or for the licensee, or escheated in accordance with applicable abandoned property laws; or (ii) money received for transmission by the licensee or an authorized delegate in the United States from a person located in the United States that has not been received by the payee or refunded to the sender or escheated in accordance with applicable abandoned property laws."Passive investor'', a person that: (i) does not have the power to elect 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; (ii) is not employed by and does not have any managerial duties of the licensee or person in control of a licensee; (iii) 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 (iv) either: (A) attests to conformity with the passivity characteristics in clauses (i), (ii) and (iii) in a form and in a medium prescribed by the commissioner; or (B) commits to conformity with the passivity characteristics of clauses (i), (ii) and (iii) in a written document."Payment instrument'', 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; provided, however, that payment instrument shall not include stored value or any instrument that is either: (i) 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) not sold to the public but issued and distributed as part of a loyalty, rewards or promotional program."Person'', an individual, general partnership, limited partnership, limited liability company, corporation, trust, association, joint stock corporation or other corporate entity identified by the commissioner."Prepaid access'', as defined under subsection (ww) of 31 C.F.R. 1010.100, as amended or recodified from time to time."Receiving money for transmission'' or "money received for transmission'', receiving money or monetary value in the United States for transmission within or outside the United States by electronic or other means."Remit'', to make direct payments of money to a licensee or its representative authorized to receive money or to deposit money in a bank in an account specified by the licensee."Stored value'', 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; provided, however, that stored value shall include, but shall not be limited to, prepaid access; and provided further, that stored value shall 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."Tangible net worth'', the aggregate assets of a licensee excluding intangible assets, less liabilities, as determined in accordance with generally accepted accounting principles issued by the Financial Accounting Standards Board."United States'', (i) a state, territory or possession of the United States; (ii) the District of Columbia; (iii) the commonwealth of Puerto Rico; or (iv) a United States military installation located in a foreign country.