Section 361.906

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS

Chapter 361

Effective - 28 Aug 2024   

  361.906.  Definitions. — For purposes of sections 361.900 to 361.1035, the following terms shall mean:

  (1)  "Acting in concert", persons knowingly acting together with a common goal of jointly acquiring control of a licensee, regardless of whether under an express agreement;

  (2)  "Authorized delegate", a person that a licensee designates to engage in money transmission on behalf of the licensee;

  (3)  "Average daily money transmission liability", the amount of the licensee's outstanding money transmission obligations in this state at the end of each day in a given period of time, added together, and divided by the total number of days in the given period of time.  For purposes of calculating average daily money transmission liability under sections 361.900 to 361.1035 for any licensee required to do so, the given period of time shall be the quarters ending March thirty-first, June thirtieth, September thirtieth, and December thirty-first;

  (4)  "Bank Secrecy Act", the Bank Secrecy Act, 31 U.S.C. Section 5311 et seq., and its implementing regulations, as amended and recodified from time to time;

  (5)  "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;

  (6)  "Control":

  (a)  The power to vote, directly or indirectly, at least twenty-five percent of the outstanding voting shares or voting interests of a licensee or 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; or

  (c)  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.

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A person is presumed to exercise a controlling influence if the person holds the power to vote, directly or indirectly, at least ten percent of the outstanding voting shares or voting interests of a licensee or person in control of a licensee.  A person presumed to exercise a controlling influence as defined under this subdivision can rebut the presumption of control if the person is a passive investor.  For purposes of determining the percentage of a person controlled by any other person, the person's interest shall be aggregated with the interest of any other immediate family member, including the person'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's home;

  (7)  "Director", the director of the Missouri division of finance;

  (8)  "Eligible rating", a credit rating of any of the three highest rating categories provided by an eligible rating service.  Each category may include rating category modifiers such as "plus" or "minus" for Standard and Poor's or the equivalent for any other eligible rating service;

  (9)  "Eligible rating service", any nationally recognized statistical rating organization (NRSRO) as defined by the United States Securities and Exchange Commission and any other organization designated by rule or order;

  (10)  "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 the laws of the United States or any state of the United States if such bank, credit union, savings and loan association, trust company, savings association, savings bank, industrial bank, or industrial loan company has federally insured deposits;

  (11)  "In this state", at a physical location within this state for a transaction requested in person.  For a transaction requested electronically or by phone, the provider of money transmission may determine if the person requesting the transaction is in this state by relying on other 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 location, and any records associated with the person that the provider of money transmission may have that indicate such location including, but not limited to, an address associated with an account;

  (12)  "Individual", a natural person;

  (13)  "Key individual", any individual ultimately responsible for establishing or directing policies and procedures of the licensee, such as an executive officer, manager, director, or trustee;

  (14)  "Licensee", a person licensed under sections 361.900 to 361.1035;

  (15)  "Material litigation", 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;

  (16)  "Monetary value", a medium of exchange, regardless of whether redeemable in money;

  (17)  "Money", a medium of exchange that is authorized or adopted by the United States or a foreign government.  The term includes a monetary unit of account established by an intergovernmental organization or by agreement between two or more governments;

  (18)  "Money transmission", any of the following:

  (a)  Selling or issuing payment instruments to a person located in this state;

  (b)  Selling or issuing stored value to a person located in this state; or

  (c)  Receiving money for transmission from a person located in this state.

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The term includes payroll processing services.  The term does not include the provision solely of online or telecommunications services or network access;

  (19)  "Multistate licensing process", any 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;

  (20)  "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 financial services industries;

  (21)  "Outstanding money transmission obligations":

  (a)  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

  (b)  Any 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.

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For purposes of this subdivision, "in the United States" shall include, to the extent applicable, a person in any state, territory, or possession of the United States; the District of Columbia; the Commonwealth of Puerto Rico; or a U.S. military installation that is located in a foreign country;

  (22)  "Passive investor", 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 of a person in control of a licensee;

  (b)  Is not employed by and does not have any managerial duties of the licensee or person in control of a licensee;

  (c)  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

  (d)  Either:

  a.  Attests to paragraphs (a), (b), and (c) of this subdivision, in a form and in a medium prescribed by the director; or

  b.  Commits to the passivity characteristics of paragraphs (a), (b), and (c) of this subdivision in a written document;

  (23)  "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, regardless of whether negotiable.  The term does not include stored value or any instrument that:

  (a)  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

  (b)  Is not sold to the public but issued and distributed as part of a loyalty, rewards, or promotional program;

  (24)  "Payroll processing services", receiving money for transmission under a contract with a person to deliver wages or salaries, make payment of payroll taxes to state and federal agencies, make payments relating to employee benefit plans, or make distributions of other authorized deductions from wages or salaries.  The term does not include an employer performing payroll processing services on its own behalf or on behalf of its affiliate or a professional employer organization subject to regulation under sections 285.700 to 285.750;

  (25)  "Person", any individual, general partnership, limited partnership, limited liability company, corporation, trust, association, joint stock corporation, or other corporate entity identified by the director;

  (26)  "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;

  (27)  "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.  The term includes, but is not limited to, "prepaid access" as defined under 31 CFR Section 1010.100, as amended or recodified from time to time.  Notwithstanding the provisions of this subdivision, the term does 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;

  (28)  "Tangible net worth", the aggregate assets of a licensee excluding all intangible assets, less liabilities, as determined in accordance with United States generally accepted accounting principles.

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(L. 2024 S.B. 1359)