Source: https://legislature.vermont.gov/statutes/fullchapter/08/079
Timestamp: 2019-08-24 12:28:36
Document Index: 678876967

Matched Legal Cases: ['§ 1', '§ 1', '§ 14', '§ 11', '§ 1', '§ 59', '§ 1', '§ 12', '§ 1', '§ 1', '§ 1', '§ 20', '§ 15', '§ 1', '§ 1', '§ 12', '§ 7', '§ 2509', '§ 1', '§ 12', '§ 2', '§ 21', '§ 10', '§ 1', '§ 2511', '§ 13', '§ 1', '§ 1', '§ 16', '§ 1', '§ 13', '§ 8', '§ 1', '§ 13', '§ 3', '§ 2519', '§ 2311', '§ 1', '§ 1', '§ 22', '§ 1681', '§ 1', '§ 17', '§ 1', '§ 1', '§ 23', '§ 2532', '§ 24', '§ 1', '§ 1', '§ 5311', 'art 103', '§ 1', '§ 80', '§ 1', '§ 16', '§ 2545', '§ 1', '§ 17', '§ 2546', '§ 1', '§ 1', '§ 1', '§ 1', '§ 1', '§ 10', '§ 1', '§ 2555', '§ 1', '§ 2560', '§ 18', '§ 2561', '§ 18']

Chapter 079: MONEY SERVICES
(2) "Authorized delegate" means a person located in this State that a licensee designates to provide money services on behalf of the licensee.
(3) "Check cashing" means receiving at least $500.00 compensation within a 30-day period for taking payment instruments or stored value, other than traveler's checks, in exchange for money, payment instruments, or stored value delivered to the person delivering the payment instrument or stored value at the time and place of delivery without any agreement specifying when the person taking the payment instrument will present it for collection.
(6) "Limited station" means private premises where a check casher is authorized to engage in check cashing for no more than two days of each week solely for the employees of the particular employer or group of employers specified in the check casher's license application.
(12) "Nationwide Mortgage Licensing System and Registry" means a licensing system developed and maintained by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators for the licensing and registration of licensees under this chapter, or any successor to the Nationwide Mortgage Licensing System and Registry, or any alternative or replacement licensing system as designated by the Commissioner.
(13) "Outstanding," with respect to a payment instrument, means issued or sold by or for the licensee and which has been reported as sold but not yet paid by or for the licensee.
(15) "Person" means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, government, governmental subdivision, agency or instrumentality, or any other legal or commercial entity.
(16) "Principal equity owner" means any person (or group of persons acting in concert) who owns or controls 10 percent or more of any class of equity interest in the applicant.
(17) "Record" means information that is inscribed on a tangible medium or that is stored in an electronic or other medium, and is retrievable in perceivable form.
(18) "Responsible individual" means an individual who is employed by a licensee and has principal, active managerial authority over the provision of money services by the licensee in this State.
(19) "State" means a state of the United States, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States.
(20) "Stored value" means monetary value that is evidenced by an electronic record.
(21) "Unsafe or unsound practice" means a practice or conduct by a person licensed to engage in money transmission or an authorized delegate of such a person which creates the likelihood of material loss, insolvency, or dissipation of the licensee's assets, or otherwise materially prejudices the interests of its customers.
(22) "Virtual currency" means stored value that:
(A) can be a medium of exchange, a unit of account, or a store of value;
(B) has an equivalent value in money or acts as a substitute for money;
(D) can be exchanged for money or other convertible virtual currency. (Added 2001, No. 55, § 1, eff. Jan. 1, 2002; amended 2009, No. 137 (Adj. Sess.), § 1b; 2011, No. 78 (Adj. Sess.), § 14, eff. April 2, 2012; 2017, No. 22, § 11, eff. May 4, 2017.)
(2) the sale or issuance of payment instruments or stored value, or money transmission, by the U.S. Postal Service or by a contractor on behalf of the U.S. Postal Service;
(11) the sale or issuance of stored value by a school to its students and employees;
(b) The Commissioner may issue an order exempting any person from this chapter when such person is performing services for the benefit of the United States or a department, agency, or instrumentality thereof, or for the benefit of any state, county, city, or any other governmental agency or governmental subdivision within a state. (Added 2001, No. 55, § 1, eff. Jan. 1, 2002; amended 2001, No. 143 (Adj. Sess.), § 59, eff. June 21, 2002; 2005, No. 36, § 1, eff. June 1, 2005; 2017, No. 22, § 12, eff. May 4, 2017.)
(1) obtaining a license under subchapter 3 of this chapter;
(e) A licensee shall file with the Commissioner any name proposed to be used in connection with a money service business or location pursuant to this chapter. The Commissioner shall not approve a proposed name if the Commissioner determines that the name may be misleading or likely to confuse the public, or deceptively similar to any name in use in this State. (Added 2001, No. 55, § 1, eff. Jan. 1, 2002.)
Subchapter 002: MONEY TRANSMISSION LICENSES
A person licensed under this subchapter or that is an authorized delegate of a person licensed under this subchapter may engage in money transmission and may also engage in check cashing or currency exchange without obtaining a separate license under subchapter 3 of this chapter. (Added 2001, No. 55, § 1, eff. Jan. 1, 2002.)
(a) As used in this section, "material litigation" means any litigation that according to generally accepted accounting principles is deemed significant to an applicant's or a licensee's financial health, and would be required to be disclosed in the applicant's or licensee's annual audited financial statements, report to shareholders, or similar records.
(b) A person applying for a license under this subchapter shall do so under oath and in a form and in a medium prescribed by the Commissioner. The application shall state or contain:
(4) a list of the applicant's proposed authorized delegates, and the locations in this State where the applicant and its authorized delegates propose to engage in money transmission or provide other money services;
(7) the name and address of any financial institution through which the applicant's payment instruments and stored-value obligations will be paid;
(1) the date of the applicant's incorporation or formation, and state or country of incorporation or formation;
(4) the legal name, any fictitious or trade name, all business and residential addresses, and the employment, in the 10-year period next preceding the submission of the application of each executive officer, manager, director of, or person that has control of, the applicant;
(5) a list of any criminal convictions, material litigation, or disciplinary actions in which any executive officer, manager, director of, or individual in control of, the applicant has been involved in the 10-year period next preceding the submission of the application;
(7) a copy of the applicant's unconsolidated financial statements for the current year, whether audited or not, and, if available, for the two-year period next preceding the submission of the application;
(8) if the applicant is publicly traded, a copy of the most recent 10-K report filed with the U.S. Securities and Exchange Commission;
(9) if the applicant is a wholly owned subsidiary:
(B) of a corporation publicly traded in the United States, a copy of the parent corporation's most recent 10-K report filed with the U.S. Securities and Exchange Commission, or if the applicant is a wholly owned subsidiary of a corporation publicly traded outside the United States, a copy of similar documentation filed with the regulator of the parent corporation's domicile outside the United States;
(10) if the applicant is a corporation, the name and address of the applicant's registered agent in this State; and
(d) At the time of making application, the applicant shall pay to the Department a nonrefundable application fee of $1,000.00, a license fee of $500.00 for the applicant, and a license fee of $25.00 for each authorized delegate location. The license fee shall be refunded if the application is denied.
(e) In connection with an application for a license, the applicant and each executive officer, manager, director, and person that has control of the applicant shall furnish to the Nationwide Mortgage Licensing System and Registry information concerning the applicant's identity, including:
(1) fingerprints for submission to the Federal Bureau of Investigation and to any other governmental agency or entity authorized to receive such information for a state, national, and international criminal history background check and authorization for the Commissioner to obtain a criminal history background check;
(A) an independent credit report and credit score from a consumer reporting agency described in subsection 603(p) of the Fair Credit Reporting Act, 15 U.S.C. 1681a(p), for the purpose of evaluating the applicant's financial responsibility at the time of application and additional credit reports and credit scores to confirm the licensee's continued compliance with the financial responsibility requirements of this chapter; and
(B) information related to any administrative, civil, or criminal findings by any governmental jurisdiction; and
(3) any other information required by the Nationwide Mortgage Licensing System and Registry or the Commissioner.
(f) The Commissioner may waive one or more requirements of subsections (b) and (c) of this section, or permit an applicant to submit substituted information in lieu of the required information. (Added 2001, No. 55, § 1, eff. Jan. 1, 2002; amended 2009, No. 134 (Adj. Sess.), § 20; 2011, No. 78 (Adj. Sess.), § 15, eff. April 2, 2012.)
(e) A surety bond shall cover claims effective for as long as the Commissioner specifies, but for at least five years after the licensee ceases to provide money services in this State. However, the Commissioner may permit the amount of security to be reduced or eliminated before the expiration of that time to the extent the amount of the licensee's payment instruments or stored-value obligations outstanding in this State is reduced. The Commissioner may permit a licensee to substitute another form of security acceptable to the Commissioner for the security effective at the time the licensee ceases to provide money services in this State.
(f) In lieu of the security prescribed in this section, an applicant for a license or a licensee may provide security in a form otherwise permitted by the Commissioner. (Added 2001, No. 55, § 1, eff. Jan. 1, 2002.)
(a) Upon the filing of an application under this subchapter, the Commissioner shall investigate the financial condition and responsibility, financial and business experience, character, and general fitness of the applicant and any person named in the application. The Commissioner may conduct an on-site investigation of the applicant, the cost of which the applicant shall bear in accordance with section 18 of this title. The Commissioner shall issue a license to an applicant under this subchapter if the Commissioner finds that all of the following conditions have been fulfilled:
(1) The applicant has complied with sections 2506, 2507, and 2510 of this title.
(2)(A) The financial condition and responsibility, financial and business experience, competence, character, and general fitness of the applicant, and competence, experience, character, and general fitness of the executive officers, managers, and directors of, and persons in control of the applicant indicate that it is in the interest of the public to permit the applicant to engage in money transmission.
(B) For purposes of assessing whether a person is financially responsible under this subdivision, the Commissioner may consider how the person has managed his or her own financial condition. A determination that a person has not shown financial responsibility may include the following:
(iii) foreclosures within the past three years; or
(c) An applicant whose application is denied by the Commissioner may request that the Commissioner reconsider the application by making such request in writing, within 15 days of the denial, responding specifically to the Commissioner's stated reason or reasons for denial. The Commissioner shall then reconsider the application in light of the response stated in the request for reconsideration. Within 60 days of filing the request, upon findings as set forth in subsection (a) of this section, the Commissioner shall issue the license.
(e) The Commissioner may issue an electronic license. The license shall not be transferable or assignable. (Added 2001, No. 55, § 1, eff. Jan. 1, 2002; amended 2013, No. 29, § 12, eff. May 13, 2013; 2017, No. 22, § 7, eff. May 4, 2017.)
§ 2509. Renewal of license, annual report, and annual assessment
(a) No later than December 1 for the next succeeding calendar year, a licensee under this subchapter shall pay to the Department an annual license renewal fee of $500.00, plus an annual renewal fee of $25.00 for each authorized delegate location, provided that the total renewal fee for all authorized delegate locations shall not exceed $3,500.00.
(b) A licensee under this subchapter shall submit an annual report, on or before April 1 for the preceding calendar year, in a form and in a medium prescribed by the Commissioner. The annual report shall state or contain:
(4) a list of the licensee's permissible investments and a certification that the licensee continues to maintain permissible investments according to the requirements set forth in sections 2540 and 2541 of this title;
(c) On or before April 1 of each year, the licensee shall pay the Department an annual assessment equal to $0.0001 per dollar volume of money services activity performed for or sold or issued to Vermont customers for the most recent year ending December 31, which assessment shall not be less than $100.00 and shall not be greater than $15,000.00.
(d) If a licensee does not file an annual report on or before April 1, pay its annual assessment on or before April 1, or pay its renewal fee by December 1, or within any extension of time granted by the Commissioner, the Commissioner shall send the licensee a notice of suspension. The licensee's license shall be suspended 10 calendar days after the Commissioner sends the notice of suspension. The licensee has 20 days after its license is suspended in which to file an annual report, pay its annual assessment, or pay the renewal fee, plus $100.00 for each day after suspension that the Commissioner does not receive the annual report, the annual assessment, or the renewal fee. The Commissioner for good cause may grant an extension of the due date of the annual report or the renewal date.
(e) The Commissioner may require more frequent reports from any licensee for the purpose of determining the adequacy of the licensee's security. (Added 2001, No. 55, § 1, eff. Jan. 1, 2002; amended 2003, No. 105 (Adj. Sess.), § 12; 2007, No. 49, § 2; 2009, No. 134 (Adj. Sess.), § 21; 2011, No. 78 (Adj. Sess.), § 10, eff. April 2, 2012.)
A licensee under this subchapter shall maintain a net worth of at least $100,000.00, determined in accordance with generally accepted accounting principles. (Added 2001, No. 55, § 1, eff. Jan. 1, 2002.)
§ 2511. Activities of money transmitters; receipts and refunds
(a) Every money transmitter licensee and its authorized delegates shall provide a receipt to the customer that clearly states the name, address, and telephone number of the licensee; the amount of money presented for transmission; and the total of any fees charged by the licensee.
(1) If the rate of exchange for a money transmission to be paid in the currency of another country is fixed by the licensee for that transaction at the time the money transmission is initiated, then the receipt provided to the customer shall disclose the rate of exchange for that transaction, and the duration, if any, for the payment to be made at the fixed rate of exchange so specified.
(2) If the rate of exchange for a money transmission to be paid in the currency of another country is not fixed at the time the money transmission is sent, the receipt provided to the customer shall disclose that the rate of exchange for the transaction will be set at the time the recipient of the money transmission picks up the funds in the foreign country.
(3) As used in this section, "fees" does not include revenue that a licensee or its authorized delegate generates, in connection with a money transmission, in the conversion of the money of one government into the money of another government.
(b) Every money transmitter licensee and its authorized delegates shall refund to the customer within 10 days of receipt of a written request for a refund all monies received for transmittal unless any of the following occurs:
(1) Prior to receipt of the written request for a refund, the monies have been transmitted and delivered to the person designated by the customer.
(2) Prior to receipt of a written request for a refund, instructions have been given committing an equivalent amount of money to the person designated by the customer.
(3) The licensee or its authorized delegate has reason to believe that a crime has occurred, is occurring, or may potentially occur as a result of transmitting the money as requested by the customer or refunding the money as requested by the customer.
(4) The licensee is otherwise barred by law from making a refund. (Added 2017, No. 22, § 13.)
Subchapter 003: CHECK CASHING AND CURRENCY EXCHANGE
(c) An authorized delegate of a person licensed under subchapter 2 of this chapter may engage in check cashing and currency exchange without first obtaining a license under this subchapter if such money services are within the scope of activity permissible under the contract between the authorized delegate and the licensee. (Added 2001, No. 55, § 1, eff. Jan. 1, 2002.)
(a) A person applying for a license under this subchapter shall do so under oath and in a form and in a medium prescribed by the Commissioner. The application shall state or contain:
(1) the legal name and residential and business addresses of the applicant, if the applicant is an individual and, if the applicant is not an individual, the name of each partner, executive officer, manager, director, and principal equity owner and the business address of the applicant;
(c) In connection with an application for a license, the applicant and each executive officer, manager, director, and person that has control of the applicant shall furnish to the Nationwide Mortgage Licensing System and Registry information concerning the applicant's identity, including:
(3) any other information required by the Nationwide Mortgage Licensing System and Registry or the Commissioner. (Added 2001, No. 55, § 1, eff. Jan. 1, 2002; amended 2011, No. 78 (Adj. Sess.), § 16, eff. April 2, 2012.)
(a) Upon the filing of an application under this subchapter, the Commissioner shall investigate the applicant's financial condition and responsibility, financial and business experience, character, and general fitness. The Commissioner may conduct an on-site investigation of the applicant, the cost of which the applicant shall bear in accordance with section 18 of this title. The Commissioner shall issue a license to an applicant under this subchapter if the Commissioner finds that all of the following conditions have been fulfilled:
(1) The applicant has complied with section 2516 of this title.
(2)(A) The financial condition and responsibility, financial and business experience, competence, character, and general fitness of the applicant, and competence, experience, character, and general fitness of the executive officers, managers, directors of, and persons in control of the applicant indicate that it is in the interest of the public to permit the applicant to engage in check cashing and currency exchange.
(e) The Commissioner may issue an electronic license. The license shall not be transferable or assignable. (Added 2001, No. 55, § 1, eff. Jan. 1, 2002; amended 2013, No. 29, § 13, eff. May 13, 2013; 2017, No. 22, § 8, eff. May 4, 2017.)
(c) If a licensee does not file an annual report on or before April 1, or pay its renewal fee by December 1, or within any extension of time granted by the Commissioner, the Commissioner shall send the licensee a notice of suspension. The licensee's license shall be suspended 10 calendar days after the Commissioner sends the notice of suspension. The licensee has 20 days after its license is suspended in which to file an annual report or pay the renewal fee, plus $100.00 for each day after suspension that the Commissioner does not receive the annual report or the renewal fee. The Commissioner for good cause may grant an extension of the due date of the annual report or the renewal date. (Added 2001, No. 55, § 1, eff. Jan. 1, 2002; amended 2003, No. 105 (Adj. Sess.), § 13; 2009, No. 42, § 3.)
§ 2519. Activities of check cashers and currency exchanges
(6) A licensee shall not impose any fee or other charge for bad checks other than as expressly permitted under the provisions of 9 V.S.A. §§ 2311 and 2312.
(7) Within 10 business days after being advised by the payor financial institution that a payment instrument has been altered, forged, stolen, obtained through fraudulent or illegal means, negotiated without proper legal authority, or represents the proceeds of illegal activity, the licensee shall notify the police department in the city or town where the payment instrument was cashed. If a payment instrument is returned to the licensee by the payor financial institution for any of the aforementioned reasons, the licensee may not release or destroy the payment instrument without the consent of the city or town police department, or other investigative law enforcement authority.
(8) No licensee shall issue coupons, gift certificates, or tokens to be used in lieu of money when cashing a payment instrument.
(C) charge check cashing fees for personal checks or money orders in excess of 10 percent of the face amount of the personal check or money order or $5.00, whichever is less.
(1) The rate of exchange and fees charged by a licensee for rendering currency exchange services shall be prominently displayed to the public at each business location.
(2) Licensees shall provide each customer with a written receipt sufficient to identify the transaction, the licensee, the rate of exchange, the fees charged and the amount of currency exchanged. (Added 2001, No. 55, § 1, eff. Jan. 1, 2002.)
Subchapter 004: AUTHORIZED DELEGATES
(d) If a license is suspended, revoked, or nonrenewed, the Commissioner shall notify all authorized delegates of the licensee whose names are in a record filed with the Commissioner of the suspension, revocation, or nonrenewal. After notice is sent or publication is made, an authorized delegate shall immediately cease to provide money services as a delegate of the licensee.
(h) A person may not be an authorized delegate of another authorized delegate. An authorized delegate must enter into a contract directly with a licensee. (Added 2001, No. 55, § 1, eff. Jan. 1, 2002; amended 2009, No. 134 (Adj. Sess.), § 22.)
Subchapter 005: EXAMINATIONS; REPORTS; RECORDS
(a) In addition to any authority allowed under this chapter or elsewhere and for the purpose of examination or discovering or investigating violations or complaints of or arising under this chapter or under any other applicable law, rule, order, directive, or regulation or of securing any information required or useful thereunder and for purposes of initial licensing, license renewal, license suspension, license conditioning, license revocation or termination, or general or specific inquiry or investigation, the Commissioner or his or her duly designated representative shall have the authority to:
(1) conduct investigations and examinations at any time;
(2) access, receive, and use any books, accounts, records, files, documents, information, or evidence, including:
(A) criminal, civil, and administrative history information, including nonconviction data;
(B) personal history and experience information, including independent credit reports obtained from a consumer reporting agency described in subsection 603(p) of the Fair Credit Reporting Act, 15 U.S.C. § 1681a(p); and
(C) any other documents, information, or evidence the Commissioner deems relevant to the inquiry or investigation regardless of the location, possession, control, or custody of such documents, information, or evidence.
(b) The Commissioner may review, investigate, or examine any licensee, individual, or person, regardless of whether such individual or person has obtained a license under this chapter, as often as necessary in order to carry out the purposes of this chapter. The Commissioner may direct, subpoena, or order the attendance of and examine under oath all persons whose testimony may be required about the business or subject matter of any such examination or investigation and may direct, subpoena, or order such person to produce books, accounts, records, files, and any other documents the Commissioner deems relevant to the inquiry.
(c) Each licensee, individual, or person subject to this chapter shall make available to the Commissioner upon request the books and records relating to the operations of such licensee, individual, or person. The Commissioner shall have access to such books and records and may interview the officers, principals, control persons, employees, independent contractors, agents, and customers of the licensee, individual, or person concerning their business.
(d) Each licensee, individual, or person subject to this chapter shall make or compile reports or prepare other information as directed by the Commissioner in order to carry out the purposes of this section, including:
(2) information lists and data concerning transactions and business activities in a format prescribed by the Commissioner; and
(3) such other information as the Commissioner deems necessary to carry out the purposes of this chapter.
(e) In making any examination or investigation authorized by this chapter, the Commissioner may control access to any documents and records of the licensee or person under examination or investigation. The Commissioner may take possession of the documents and records or place a person in exclusive charge of the documents and records in the place where they are usually kept. During the period of control, no individual or person shall remove or attempt to remove any of the documents and records except pursuant to a court order or with the consent of the Commissioner. Unless the Commissioner has reasonable grounds to believe the documents or records of the licensee have been or are at risk of being altered or destroyed for purposes of concealing a violation of this chapter, the licensee or owner of the documents and records shall have access to the documents or records as necessary to conduct its ordinary business affairs.
(f) In order to carry out the purposes of this chapter, the Commissioner may:
(2) enter into agreements or relationships with other government officials or regulatory associations in order to improve efficiencies and reduce regulatory burden by sharing resources, standardized, or uniform methods or procedures, and documents, records, information, or evidence obtained under this section;
(4) accept and rely on examination or investigation reports made by other government officials within or without this State; or
(5) accept audit reports made by an independent certified public accountant for the licensee, individual, or person subject to this chapter in the course of that part of the examination covering the same general subject matter as the audit and may incorporate the audit report in the report of the examination, report of investigation, or other writing of the Commissioner.
(g) The authority of this section shall remain in effect whether such a licensee, individual, or person acts or claims to act under any licensing or registration law of this State, acts without such authority, or surrenders such licensee's license.
(i) Each licensee shall pay to the Department all fees, costs, and expenses of any examination, review, and investigation as prescribed by section 18 of this title, and those fees, costs, and expenses shall be billed when they are incurred. The Commissioner may maintain an action for the recovery of examination, review, and investigation fees, costs, and expenses as prescribed in section 18 of this title in any court of competent jurisdiction.
(j) Information obtained during an examination or investigation under this chapter shall be confidential and privileged, and shall be treated as provided in section 23 of this title. (Added 2001, No. 55, § 1, eff. Jan. 1, 2002; amended 2011, No. 78 (Adj. Sess.), § 17, eff. April 2, 2012.)
(b) A joint examination or an acceptance of an examination report does not preclude the Commissioner from conducting an examination as provided by law. A joint report or a report accepted under this subsection is an official report of the Commissioner for all purposes. (Added 2001, No. 55, § 1, eff. Jan. 1, 2002.)
(a) A licensee shall file with the Commissioner within 30 business days any material changes in information provided in a licensee's application as prescribed by the Commissioner.
(b) A licensee shall notify the Commissioner in writing within 30 days of any change in the list of executive officers, managers, directors, individuals in control, or responsible individuals.
(1) the filing of a petition by or against the licensee under the U.S. Bankruptcy Code for bankruptcy or reorganization;
(6) a charge against or conviction of an authorized delegate for a felony related to the provision of money services. (Added 2001, No. 55, § 1, eff. Jan. 1, 2002; amended 2009, No. 134 (Adj. Sess.), § 23.)
§ 2532a. Change of authorized delegates; change of location
A licensee shall notify the Commissioner in writing within 30 days of any change in the list of authorized delegates or locations in this State where the licensee or an authorized delegate of the licensee provides money services, including limited stations and mobile locations. Such notice shall state the name and street address of each authorized delegate or of each location removed or added to the licensee's list. Upon any such change, the licensee shall provide sufficient evidence that it is in compliance with section 2507 of this title. The licensee shall submit with the notice a nonrefundable fee of $25.00 for each new authorized delegate location and for each change in location. There is no fee to remove authorized delegates or to remove locations. (Added 2009, No. 134 (Adj. Sess.), § 24.)
(e) The following persons are exempt from the prefiling requirements of subsection (a) of this section, but the licensee shall notify the Commissioner of the change of control and request the Commissioner's approval using the standards in subsection (b) of this section for a change of control:
(g) Before filing a request for approval to acquire control, a person may request in a record a determination from the Commissioner as to whether the person would be considered a person in control of a licensee upon consummation of a proposed transaction. If the Commissioner determines that the person would not be a person in control of a licensee, the Commissioner shall enter an order to that effect, and the proposed person and transaction is not subject to the requirements of subsections (a) through (c) of this section. (Added 2001, No. 55, § 1, eff. Jan. 1, 2002.)
(a) A licensee shall maintain records for determining the licensee's compliance with this chapter. A licensee shall maintain the following for at least five years:
(c) The licensee shall keep, use in the licensee's business, and make available to the Commissioner upon request, such books, accounts, records, and data compilations as will enable the Commissioner to determine whether such licensee is complying with the provisions of this chapter and with the rules and regulations lawfully made by the Commissioner hereunder.
(d) All records maintained by the licensee as required in subsections (a) through (c) of this section are open to inspection by the Commissioner pursuant to section 2530 of this title. (Added 2001, No. 55, § 1, eff. Jan. 1, 2002.)
(a) A licensee and an authorized delegate shall file with the Commissioner copies of all reports required by federal currency reporting, record keeping, and suspicious transaction reporting requirements as set forth in 31 U.S.C. § 5311, 31 C.F.R. Part 103, and other federal and State laws pertaining to money laundering.
(b) The timely filing of a complete and accurate report required under subsection (a) of this section with the appropriate federal agency is compliance with the requirements of subsection (a) of this section, unless the Commissioner notifies the licensee that reports of this type are not being regularly and comprehensively transmitted by the federal agency to the Commissioner. (Added 2001, No. 55, § 1, eff. Jan. 1, 2002.)
Subchapter 006: PERMISSIBLE INVESTMENTS
(1) cash, a certificate of deposit, or a senior debt obligation of a depositary institution within the meaning of subdivision 11101(24) of this title;
(2) a banker's acceptance or bill of exchange that is eligible for purchase upon endorsement by a member bank of the Federal Reserve System and is eligible for purchase by a Federal Reserve Bank;
(3) an investment bearing a rating of one of the three highest grades, as defined by a nationally recognized organization that rates securities;
(5) receivables that are payable to a licensee from its authorized delegates, in the ordinary course of business, pursuant to contracts that are not past due or doubtful of collection, if the aggregate amount of investments in receivables under this subdivision does not exceed 20 percent of the total permissible investments of a licensee and the licensee does not have at one time investments in receivables under this subdivision in any one person aggregating more than 10 percent of the licensee's total permissible investments;
(6) a share or a certificate issued by an open-end management investment company that is registered with the U.S. Securities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. § 80a-1 et seq.), and whose portfolio is restricted by the management company's investment policy to investments specified in subdivisions (1) through (4) of this subsection; and
(7) virtual currency owned by the licensee, but only to the extent of outstanding transmission obligations received by the licensee in identical denomination of virtual currency.
(1) an interest-bearing bill, note, bond, or debenture of a person whose equity shares are traded on a national securities exchange or on a national over-the-counter market, if the aggregate of investments under this subdivision do not exceed 20 percent of the total permissible investments of a licensee and the licensee does not at one time have investments under this subdivision in any one person aggregating more than 10 percent of the licensee's total permissible investments;
(2) a share of a person traded on a national securities exchange or a national over-the-counter market or a share or a certificate issued by an open-end management investment company that is registered with the U.S. Securities and Exchange Commission under the Investment Company Act of 1940, and whose portfolio is restricted by the management company's investment policy to shares of a person traded on a national securities exchange or a national over-the-counter market, if the aggregate of investments under this subdivision does not exceed 20 percent of the total permissible investments of a licensee and the licensee does not at one time have investments under this subdivision in any one person aggregating more than 10 percent of the licensee's total permissible investments;
(3) a demand-borrowing agreement made to a corporation or a subsidiary of a corporation whose securities are traded on a national securities exchange, if the aggregate of the amount of principal and interest outstanding under demand-borrowing agreements under this subdivision does not exceed 20 percent of the total permissible investments of a licensee and the licensee does not at one time have principal and interest outstanding under demand-borrowing agreements under this subdivision with any one person aggregating more than 10 percent of the licensee's total permissible investments; and
(c) The aggregate of investments under subsection (b) of this section may not exceed 50 percent of the total permissible investments of a licensee calculated in accordance with section 2540 of this title. (Added 2001, No. 55, § 1, eff. Jan. 1, 2002; amended 2017, No. 22, § 16, eff. May 4, 2017.)
Subchapter 007: ENFORCEMENT
§ 2545. Suspension, revocation, and nonrenewal receivership
(a) The Commissioner may revoke, suspend, or not renew a licensee's license, or place a licensee in receivership, or order a licensee to revoke the designation of an authorized delegate, if the Commissioner finds that:
(4) an authorized delegate is convicted of a violation of a State or federal anti-money-laundering statute, or violates a rule adopted or an order issued under this chapter, as a result of the licensee's knowing misconduct or neglect;
(b) In determining whether a licensee is engaging in an unsafe or unsound practice, the Commissioner may consider the volume and condition of the licensee's money services business, the magnitude of the loss, the gravity of the violation of this chapter, and the previous conduct of the person involved.
(c) If the Commissioner believes, from evidence satisfactory to him or her, that any person has violated a provision of subsection (a) of this section, the Commissioner may, in addition to any other powers, issue orders or directives to any person:
(1) enjoining or prohibiting such person from engaging in the financial services industry in this State;
(2) to remove any officer, director, employee, or control person; or
(3) regarding any other action or remedy as the Commissioner deems necessary to carry out the purposes of this chapter.
(d) The licensee shall receive 15 days' notice and an opportunity to be heard before such order shall be issued. Mailing notice by certified mail to the licensee's current address as stated on the license shall be presumptive evidence of its receipt by the licensee. However, if the Commissioner finds that the public safety or welfare imperatively requires emergency action, action with no prior notice or prior opportunity to be heard may be taken, pending proceedings for revocation or other action. (Added 2001, No. 55, § 1, eff. Jan. 1, 2002; amended 2017, No. 22, § 17, eff. May 4, 2017.)
§ 2546. Termination or suspension of authorized delegate activity
(a) The Commissioner may issue an order suspending or barring any authorized delegate or any responsible individual, director, officer, member, manager, partner, or principal equity owner of such authorized delegate, from continuing to be or becoming an authorized delegate of any licensee during the period for which such order is in effect, or may order that an authorized delegate cease and desist in any specified conduct, if the Commissioner finds that:
(b) In determining whether an authorized delegate is engaging in an unsafe or unsound practice, the Commissioner may consider the volume and condition of the authorized delegate's provision of money services, the magnitude of the loss, the gravity of the violation of this chapter, and the previous conduct of the authorized delegate.
(d) The authorized delegate shall receive 15 days' notice and an opportunity to be heard before such order shall be issued. Mailing notice by certified mail to the authorized delegate's current address as stated on the license shall be presumptive evidence of its receipt by the authorized delegate. The licensee shall be sent, by certified mail, copies of all notices sent to any of its authorized delegates pursuant to this section. However, if the Commissioner finds that the public safety or welfare imperatively requires emergency action, action with no prior notice or prior opportunity to be heard may be taken, pending proceedings for suspension or other action. Upon issuance of a suspension or bar order, the licensee shall terminate its relationship with such authorized delegate according to the terms of the order. (Added 2001, No. 55, § 1, eff. Jan. 1, 2002.)
(e) The Commissioner shall commence an administrative proceeding pursuant to this subchapter within 10 days after issuing an order to cease and desist. (Added 2001, No. 55, § 1, eff. Jan. 1, 2002.)
(a) The Commissioner may assess an administrative penalty against any person that violates this chapter or a rule adopted or an order issued under this chapter in an amount not to exceed $1,000.00 per day for each day the violation continues, plus the State's costs and expenses for the investigation and prosecution of the matter, including reasonable attorney's fees.
(b) The powers vested in the Commissioner by this chapter shall be in addition to any other powers to enforce any penalties, fines, or forfeitures authorized by law. (Added 2001, No. 55, § 1, eff. Jan. 1, 2002.)
It shall be a criminal offense, punishable by a fine of not more than $10,000.00 or imprisonment of not more than three years, or both, for any person to intentionally make a false statement, misrepresentation, or false certification in a record filed or required to be maintained under this chapter, or to intentionally make a false entry or omit a material entry in such a record, or to knowingly engage in any activity for which a license is required under this chapter without being licensed under this chapter. (Added 2001, No. 55, § 1, eff. Jan. 1, 2002.)
All administrative proceedings under this chapter shall be conducted in accordance with 3 V.S.A. chapter 25 and any rules adopted by the Department on hearing procedure. (Added 2001, No. 55, § 1, eff. Jan. 1, 2002; amended 2015, No. 97 (Adj. Sess.), § 10.)
Except as otherwise provided in subsections 2509(c) and 2518(c) and sections 2546 and 2547 of this title, the Commissioner may not suspend or revoke a license, place a licensee in receivership, issue an order to cease and desist, suspend or revoke the designation of an authorized delegate, or assess a civil penalty without notice and an opportunity to be heard. (Added 2001, No. 55, § 1, eff. Jan. 1, 2002.)
Subchapter 008: CONSERVATION
§ 2555. Conservation, liquidation, and insolvency
To the extent applicable, the provisions of subchapters 2, 3, and 5 of chapter 209 of this title, excluding sections 19207, 19208, 19210, 19306, and 19307 of this title, shall apply to the conservation, liquidation, and insolvency of any licensee under this chapter. Such licensee shall be treated as a financial institution for the purposes of application of those subchapters. If an impaired or insolvent licensee is or becomes a debtor in bankruptcy or the subject of a bankruptcy proceeding under federal law, the Commissioner shall be relieved of any obligation otherwise imposed under this section and subchapters 2, 3, and 5 of chapter 209 of this title, and shall relinquish control of the assets and estate of such debtor to the duly appointed trustee in bankruptcy or the debtor in possession, as the case may be. (Added 2001, No. 55, § 1, eff. Jan. 1, 2002.)
Subchapter 009: NATIONWIDE LICENSING SYSTEM
§ 2560. Nationwide licensing system
(a) In furtherance of the Commissioner's duties under this chapter, the Commissioner may participate in the Nationwide Mortgage Licensing System and Registry and may take such action regarding participation in the licensing system as the Commissioner deems necessary to carry out the purposes of this section, including:
(1) issue rules or orders, and may establish procedures, to further participation in the Nationwide Mortgage Licensing System and Registry;
(2) facilitate and participate in the establishment and implementation of the Nationwide Mortgage Licensing System and Registry;
(3) establish relationships or contracts with the Nationwide Mortgage Licensing System and Registry or other entities designated by the Nationwide Mortgage Licensing System and Registry;
(4) authorize the Nationwide Mortgage Licensing System and Registry to collect and maintain records and to collect and process any fees associated with licensure on behalf of the Commissioner;
(5) require persons engaged in activities that require a license under this chapter to use the Nationwide Mortgage Licensing System and Registry for license applications, renewals, amendments, surrenders, and such other activities as the Commissioner may require and to pay through the national licensing system all fees provided for under this chapter;
(6) authorize the Nationwide Mortgage Licensing System and Registry to collect fingerprints on behalf of the Commissioner in order to receive or conduct criminal history background checks, and, in order to reduce the points of contact which the Federal Bureau of Investigation may have to maintain for purposes of this subsection, the Commissioner may use the Nationwide Mortgage Licensing System and Registry as a channeling agent for requesting information from and distributing information to the Department of Justice or any other governmental agency; and
(7) in order to reduce the points of contact which the Commissioner may have to maintain for purposes of this chapter, use the Nationwide Mortgage Licensing System and Registry as a channeling agent for requesting and distributing information to and from any source so directed by the Commissioner.
(b) The Commissioner may require persons engaged in activities that require a license under this chapter to submit fingerprints, and the Commissioner may use the services of the Nationwide Mortgage Licensing System and Registry to process the fingerprints and to submit the fingerprints to the Federal Bureau of Investigation, the Vermont State Police, or any equivalent state or federal law enforcement agency for the purpose of conducting a criminal history background check. The licensee or applicant shall pay the cost of such criminal history background check, including any charges imposed by the Nationwide Mortgage Licensing System and Registry.
(c) Persons engaged in activities that require licensure pursuant to this chapter shall pay all applicable charges to use the Nationwide Mortgage Licensing System and Registry, including such processing charges as the administrator of the Nationwide Mortgage Licensing System and Registry shall establish, in addition to the fees required under this chapter.
(d) The Nationwide Mortgage Licensing System and Registry is not intended to and does not replace or affect the Commissioner's authority to grant, deny, suspend, revoke, or refuse to renew licenses. (Added 2011, No. 78 (Adj. Sess.), § 18, eff. April 2, 2012.)
§ 2561. Confidentiality
(1) The privacy or confidentiality of any information or material provided to the Nationwide Mortgage Licensing System and Registry and any privilege arising under federal or state law (including the rules of any federal or state court) with respect to such information or material shall continue to apply to such information or material after the information or material has been disclosed to the Nationwide Mortgage Licensing System and Registry. Such information and material may be shared with all state and federal regulatory officials with oversight authority without the loss of privilege or the loss of confidentiality protections provided by federal law or state law.
(2) To carry out the purpose of this section, the Commissioner is authorized to enter agreements or sharing arrangements with other governmental agencies, the Conference of State Bank Supervisors, the American Association of Residential Mortgage Regulators, or other associations representing governmental agencies.
(3) Information or material that is subject to privilege or confidentiality under subdivision (1) of this section shall not be subject to:
(B) subpoena or discovery or admission into evidence in any private civil action or administrative process unless with respect to any privilege held by the Nationwide Mortgage Licensing System and Registry with respect to such information or material the person to whom such information or material pertains waives, in whole or in part, in the discretion of the person, that privilege.
(4) This section shall not apply with respect to information or material relating to employment history and publicly adjudicated disciplinary and enforcement actions that are included in the Nationwide Mortgage Licensing System and Registry for access by the public. (Added 2011, No. 78 (Adj. Sess.), § 18, eff. April 2, 2012.)