217.10
217.10(1) (1) Net worth. A licensee shall maintain at all times a tangible net worth in excess of the greater of $100,000 or the sum of the following: 3 percent of the licensee’s first $100,000,000 in total assets, plus 2 percent of any additional assets up to $1,000,000,000, plus 0.5 percent of any additional assets over $1,000,000,000. The division may exempt an applicant or licensee from this requirement, in whole or in part, if the division finds the exemption to be in the public interest.
217.10(2) (2) Surety bond. A licensee shall at all times maintain a surety bond or other form of security acceptable to the division. The minimum required amount of the security shall be the greater of $100,000 or an amount equal to 100 percent of the licensee’s average daily money transmissio
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217.10
217.10(1) (1) Net worth. A licensee shall maintain at all times a tangible net worth in excess of the greater of $100,000 or the sum of the following: 3 percent of the licensee’s first $100,000,000 in total assets, plus 2 percent of any additional assets up to $1,000,000,000, plus 0.5 percent of any additional assets over $1,000,000,000. The division may exempt an applicant or licensee from this requirement, in whole or in part, if the division finds the exemption to be in the public interest.
217.10(2) (2) Surety bond. A licensee shall at all times maintain a surety bond or other form of security acceptable to the division. The minimum required amount of the security shall be the greater of $100,000 or an amount equal to 100 percent of the licensee’s average daily money transmission liability in this state calculated for the most recently completed 3-month period, up to $500,000. A licensee that maintains security of at least $500,000 is not required to calculate its average daily money transmission liability in this state.
217.10(3) (3) Permissible investments.
217.10(3)(a) (a) A licensee shall maintain at all times permissible investments that have a market value computed in accordance with U.S. generally accepted accounting principles of not less than the aggregate amount of all of the licensee’s outstanding money transmission obligations.
217.10(3)(b) (b) The following are permissible investments for purposes of par. (a) :
217.10(3)(b)1. 1. Cash, including demand deposits, savings deposits, and funds in such accounts held for the benefit of the licensee’s customers, maintained in a federally insured depository financial institution.
217.10(3)(b)2. 2. Cash equivalents, including automated clearing house items in transit to the licensee, automated clearing house items or international wires in transit to a payee, cash in transit via armored car, cash in smart safes, cash in licensee-owned locations, debit card or credit card-funded transmission receivables owed by any bank, and money market mutual funds rated “AAA” by S&P, or the equivalent from any eligible rating service.
217.10(3)(b)3. 3. Certificates of deposit or senior debt obligations of a federally insured depository financial institution.
217.10(3)(b)4. 4. An obligation of the United States or a commission, agency, or instrumentality thereof.
217.10(3)(b)5. 5. An obligation of a state or a governmental subdivision, agency, or instrumentality thereof.
217.10(3)(b)6. 6. An obligation that is guaranteed fully as to principal and interest by the United States.
217.10(3)(b)7. 7. The amount of the security provided under sub. (2) that exceeds the average daily money transmission liability in this state.
217.10(3)(b)8. 8. The full drawable amount of a standby letter of credit that meets all the following requirements:
217.10(3)(b)9. 9. Receivables payable to a licensee from its authorized delegates in the ordinary course of business that are less than 7 days old, subject to the following limitations:
217.10(3)(b)10. 10.
217.10(3)(b)11. 11. Cash, including demand deposits, savings deposits, and funds in such accounts held for the benefit of the licensee’s customers, maintained at a foreign depository institution, subject to the following limitations:
217.10(3)(b)12. 12. Any other investment authorized as a permissible investment by rule or written determination of the division.
217.10(3)(c) (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 on an equitable basis in the event of insolvency, the filing of a petition by or against the licensee 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 the licensee’s dissolution or reorganization, or an action by a creditor against the licensee who is not a beneficiary of the trust. Permissible investments held in trust pursuant to this section are not subject to attachment, levy of execution, or sequestration, except for a beneficiary of the trust. Any statutory trust established hereunder shall be terminated upon extinguishment of all the licensee’s outstanding money transmission obligations.
217.10(3)(d) (d) Following the issuance of a notice of expiration or nonextension of a letter of credit under par. (b) 8. e. , and no later than 15 days prior to the expiration date of the letter of credit, the licensee shall demonstrate to the satisfaction of the division that the licensee will continue to comply with sub. (1) after the letter of credit expires. If the licensee fails to do so, the division may draw on the letter of credit up to an amount necessary to meet the licensee’s requirements under sub. (1) , which shall be offset against the licensee’s outstanding money transmission obligations. The drawn funds shall be held in trust by the division or its agent for the benefit of the purchasers and holders of the licensee’s outstanding money transmission obligations.