NY Banking L § 640 (2021)
2021 New York Laws BNK - Banking Article 13-B - Transmitters of Money 640 - Definitions.

§ 640.  Definitions.  In  this  article, unless the context or subject matter otherwise requires:   1.   "Person"   means   an   individual,   partnership,   corporation, association,  joint  stock  association,  trust  or other group, however organized.   2. "Licensee" means any person duly  licensed  by  the  superintendent pursuant to this article.   3.  "Check"  means  any  check, draft, travelers check, money order or other instrument for the transmission or payment of money.   4.  "purchaser",  "holder",  "New  York  instrument"  and  "New   York traveler's  check"  shall  have the respective meanings ascribed to such terms by section six hundred fifty-three of this chapter.   5. "Payment instrument" means any check, draft, money order, or  other instrument or order for the transmission or payment of money, whether or not  such  instrument  or  order  is negotiable, and sold to one or more persons. "Payment instrument" does not include a traveler's  check,  any instrument which is redeemable by the issuer in merchandise or services, a  letter  of  credit  or  a  permissible  investment as defined in this section.   6. "Outstanding payment instruments" means unpaid payment  instruments sold anywhere in the United States and whose sale has been reported to a licensee.   7.  "Traveler's  check"  means  an instrument, regardless of its form, specifically identified on the instrument  as  a  traveler's  check  and issued in either written form, with a provision for a specimen signature of  the  purchaser  to  be  completed  at  the  time  of  purchase and a counter-signature of the purchaser to be completed at the  time  of  its negotiation,  or  in electronic form with a provision for the electronic equivalent  of  the  specimen  signature  and  counter   signature.   An instrument  shall not be identified as a traveler's check if it fails to comply, as the case may  be,  with  either  the  written  or  electronic signature requirements of this subdivision.   8. "Outstanding traveler's checks" means unpaid traveler's checks sold anywhere  in  the  United  States  and whose sale has been reported to a licensee.   9. "Permissible investments" means:  (i) cash;  (ii) certificates of deposit or other debt instruments of a commercial bank;  (iii) bills of exchange or time drafts drawn  on  and  accepted  by  a commercial  bank,  otherwise  known  as  bankers  acceptances, which are eligible for purchase by member banks of the federal reserve system;  (iv) commercial paper of prime quality  as  defined  by  a  nationally recognized organization which rates such securities;   * (v)  interest-bearing  bills,  notes,  bonds,  debentures  or  other obligations issued or guaranteed by the United States or  any  state  or other local governmental entity or any agent or instrumentality thereof, bearing  a  rating  of  one  of the three highest grades by a nationally recognized  investment  service  organization  that  has  been   engaged regularly  in rating state and municipal issues for a period of not less than five years;   * NB Effective until notification of the superintendent  of  financial services   * (v)  interest-bearing  bills,  notes,  bonds,  debentures  or  other obligations issued or guaranteed by the United States or  any  state  or other local governmental entity or any agent or instrumentality thereof, which  meet  the standards of creditworthiness established by regulation by the superintendent;    * NB Effective upon notification of the  superintendent  of  financial services   * (vi)  interest-bearing  bills, notes, bonds, debentures or preferred stock traded on any  national  securities  exchange  or  on  a  national over-the-counter  market or bearing a rating of one of the three highest grades by a nationally recognized investment service  organization  that has been engaged regularly in rating corporate debt or equity issues for a period of not less than five years; and   * NB  Effective  until notification of the superintendent of financial services   * (vi) interest-bearing bills, notes, bonds, debentures  or  preferred stock  traded  on  any  national  securities  exchange  or on a national over-the-counter market or which meet the standards of  creditworthiness established by regulation by the superintendent; and   * NB  Effective  upon  notification of the superintendent of financial services  (vii) such other investments or assets  if  and  as  approved  by  the superintendent.   Except  for cash and certificates of deposit of a commercial bank, any particular investment within the classes of  investments  authorized  by this  section  is  subject to disqualification for one or more licensees for the purpose of this article, if unsatisfactory for any reason in the opinion of the superintendent. Notwithstanding the foregoing  provisions of  this section, the superintendent shall have the power to limit, with respect to any particular licensee or all licensees, the extent to which any class of investments authorized by this section, except for cash and certificates of deposit of  a  commercial  bank,  may  be  considered  a permissible investment.   10.  "Agent"  means any person designated or appointed by the licensee pursuant to a written agency contract to engage  in  money  transmission activities  at  locations  other  than  a  duly authorized office of the licensee as provided in section six hundred forty-eight of this article. Except for a licensee, any person acting  as  agent  engaging  in  money transmission  activities  absent such a written agency contract shall be deemed to be in violation of  section  six  hundred  forty-one  of  this article  and  may be subject to criminal prosecution pursuant to section six hundred fifty of this article. Such term  shall  not  be  deemed  to include  any  banking  corporation  incorporated  or licensed under this chapter or under the laws of the United States or any other state or any casher of checks licensed under this chapter.