§ 640 — Definitions

§ 640. Definitions. In this article, unless the context or subject\nmatter otherwise requires:\n 1. "Person" means an individual, partnership, corporation,\nassociation, joint stock association, trust or other group, however\norganized.\n 2. "Licensee" means any person duly licensed by the superintendent\npursuant to this article.\n 3. "Check" means any check, draft, travelers check, money order or\nother instrument for the transmission or payment of money.\n 4. "purchaser", "holder", "New York instrument" and "New York\ntraveler's check" shall have the respective meanings ascribed to such\nterms by section six hundred fifty-three of this chapter.\n 5. "Payment instrument" means any check, draft, money order, or other\ninstrument or order for the transmission or payment of money, whether or\nnot such instrument or order is negotiable, and sold to one or more\npersons. "Payment instrument" does not include a traveler's check, any\ninstrument which is redeemable by the issuer in merchandise or services,\na letter of credit or a permissible investment as defined in this\nsection.\n 6. "Outstanding payment instruments" means unpaid payment instruments\nsold anywhere in the United States and whose sale has been reported to a\nlicensee.\n 7. "Traveler's check" means an instrument, regardless of its form,\nspecifically identified on the instrument as a traveler's check and\nissued in either written form, with a provision for a specimen signature\nof the purchaser to be completed at the time of purchase and a\ncounter-signature of the purchaser to be completed at the time of its\nnegotiation, or in electronic form with a provision for the electronic\nequivalent of the specimen signature and counter signature. An\ninstrument shall not be identified as a traveler's check if it fails to\ncomply, as the case may be, with either the written or electronic\nsignature requirements of this subdivision.\n 8. "Outstanding traveler's checks" means unpaid traveler's checks sold\nanywhere in the United States and whose sale has been reported to a\nlicensee.\n 9. "Permissible investments" means:\n (i) cash;\n (ii) certificates of deposit or other debt instruments of a commercial\nbank;\n (iii) bills of exchange or time drafts drawn on and accepted by a\ncommercial bank, otherwise known as bankers acceptances, which are\neligible for purchase by member banks of the federal reserve system;\n (iv) commercial paper of prime quality as defined by a nationally\nrecognized organization which rates such securities;\n * (v) interest-bearing bills, notes, bonds, debentures or other\nobligations issued or guaranteed by the United States or any state or\nother local governmental entity or any agent or instrumentality thereof,\nbearing a rating of one of the three highest grades by a nationally\nrecognized investment service organization that has been engaged\nregularly in rating state and municipal issues for a period of not less\nthan five years;\n * NB Effective until notification of the superintendent of financial\nservices\n * (v) interest-bearing bills, notes, bonds, debentures or other\nobligations issued or guaranteed by the United States or any state or\nother local governmental entity or any agent or instrumentality thereof,\nwhich meet the standards of creditworthiness established by regulation\nby the superintendent;\n * NB Effective upon notification of the superintendent of financial\nservices\n * (vi) interest-bearing bills, notes, bonds, debentures or preferred\nstock traded on any national securities exchange or on a national\nover-the-counter market or bearing a rating of one of the three highest\ngrades by a nationally recognized investment service organization that\nhas been engaged regularly in rating corporate debt or equity issues for\na period of not less than five years; and\n * NB Effective until notification of the superintendent of financial\nservices\n * (vi) interest-bearing bills, notes, bonds, debentures or preferred\nstock traded on any national securities exchange or on a national\nover-the-counter market or which meet the standards of creditworthiness\nestablished by regulation by the superintendent; and\n * NB Effective upon notification of the superintendent of financial\nservices\n (vii) such other investments or assets if and as approved by the\nsuperintendent.\n Except for cash and certificates of deposit of a commercial bank, any\nparticular investment within the classes of investments authorized by\nthis section is subject to disqualification for one or more licensees\nfor the purpose of this article, if unsatisfactory for any reason in the\nopinion of the superintendent. Notwithstanding the foregoing provisions\nof this section, the superintendent shall have the power to limit, with\nrespect to any particular licensee or all licensees, the extent to which\nany class of investments authorized by this section, except for cash and\ncertificates of deposit of a commercial bank, may be considered a\npermissible investment.\n 10. "Agent" means any person designated or appointed by the licensee\npursuant to a written agency contract to engage in money transmission\nactivities at locations other than a duly authorized office of the\nlicensee as provided in section six hundred forty-eight of this article.\nExcept for a licensee, any person acting as agent engaging in money\ntransmission activities absent such a written agency contract shall be\ndeemed to be in violation of section six hundred forty-one of this\narticle and may be subject to criminal prosecution pursuant to section\nsix hundred fifty of this article. Such term shall not be deemed to\ninclude any banking corporation incorporated or licensed under this\nchapter or under the laws of the United States or any other state or any\ncasher of checks licensed under this chapter.\n