§ 19-14.3-2.1. Maintenance of permissible investments.
(a) A licensee shall maintain at all times permissible investments that have a market
value computed in accordance with United States generally accepted accounting principles
of not less than the aggregate amount of all of its outstanding money transmission
obligations.
(b) Except for permissible investments enumerated in § 19-14.3-2.2(a), the director, or designee, with respect to any licensee, may by rule or order limit
the extent to which a specific investment maintained by a licensee within a class
of permissible investments may be considered a permissible investment, if the specific
investment represents undue risk to customers, not reflected in the market value of
investments.
(c) Permissible investments, even if commingled with other assets of the licensee, are
held in trust for the benefit of the purchasers and holders of the licensee's outstanding
money transmission obligations in the event of insolvency, the filing of a petition
by or against the licensee under the United States Bankruptcy Code, 11 U.S.C. §§ 101 – 110, as amended or recodified from time to time, for bankruptcy or reorganization,
the filing of a petition by or against the licensee for receivership, the commencement
of any other judicial or administrative proceeding for its dissolution or reorganization,
or in the event of an action by a creditor against the licensee who is not a beneficiary
of this statutory trust. No permissible investments impressed with a trust pursuant
to this section shall be subject to attachment, levy of execution, or sequestration
by order of any court, except for a beneficiary of this statutory trust.
(d) Upon the establishment of a statutory trust in accordance with subsection (c) of this
section or when any funds are drawn on a letter of credit pursuant to § 19-14.3-2.2(a)(4), the director, or designee, shall notify the applicable regulator of each state in
which the licensee is licensed to engage in money transmission, if any, of the establishment
of the trust or the funds drawn on the letter of credit, as applicable. Notice shall
be deemed satisfied if performed pursuant to a multistate agreement or through the
National Multistate Licensing Service (NMLS). Funds drawn on a letter of credit, and
any other permissible investments held in trust for the benefit of the purchasers
and holders of the licensee's outstanding money transmission obligations, are deemed
held in trust for the benefit of such purchasers and holders on a pro rata and equitable
basis in accordance with statutes pursuant to which permissible investments are required
to be held in this state, and other states, as applicable. Any statutory trust established
hereunder shall be terminated upon extinguishment of all of the licensee's outstanding
money transmission obligations.
(e) The director, or designee, by rule or by order may allow other types of investments
that the director, or designee, determines are of sufficient liquidity and quality
to be a permissible investment. The director, or designee, is authorized to participate
in efforts with other state regulators to determine that other types of investments
are of sufficient liquidity and quality to be a permissible investment.