2023 CODE OF GEORGIA › Title 7 - BANKING AND FINANCE (§§ 7-1-1 — 7-9-13) › Chapter 1 - FINANCIAL INSTITUTIONS (§§ 7-1-1 — 7-1-1138) › Article 4 - SALE OF PAYMENT INSTRUMENTS OR THE TRANSMISSION OF MONEY (§§ 7-1-680 — 7-1-698) › Section 7-1-683.2 - Minimum tangible net worth; bonding; permissible investments

(a)
(1)
Each applicant and licensee shall maintain, as a continuing requirement of licensure, a minimum tangible net worth, which shall be the greater of $100,000.00 or the amount calculated pursuant to the following formula:
(A)
Three percent of total assets for the first $100 million;
(B)
Two percent of additional assets over $100 million up to $1 billion; and
(C)
Half a percent of additional assets over $1 billion.
(2)
The department may, pursuant to rules and regulations, establish a process for an applicant or licensee to obtain a waiver in whole or in part of the minimum tangible net worth requirement for good cause shown.
(b)
(1)
An applicant shall provide with its application a corporate surety bond issued by a bonding company or insurance company authorized to do business in this state and approved by the department. The bond for money transmitters shall be in the principal sum of $250,000.00.
(2)
Notwithstanding paragraph (1) of this subsection, the department may require an applicant or a licensee to provide additional coverage for the adequate protection of payment instrument holders if the average daily money transmission liability of a licensee exceeds the current bond amount or the department determines that additional coverage is necessary in order to satisfy the department that the provisions of subsection (b) of Code Section
7-1-684
are fulfilled. A licensee's level of average daily money transmission liability shall be determined by the portion of the licensee's financial reports dealing with transactions originating in Georgia which shall be submitted to the department as set forth in its rules and regulations. However, under no circumstances shall the additional bond coverage required by the department exceed $2 million.
(3)
The bond shall be in a form satisfactory to the department and shall run to the State of Georgia for the benefit of the department or any payment instrument holders against the licensee or its agents. The condition of the bond shall require the licensee to pay any and all moneys for the benefit of any person damaged by noncompliance of a licensee or its agent with this article, with the rules and regulations enacted pursuant to this article, or with any condition of the bond or to pay any and all moneys that may become due and owing any creditor of or claimant against the licensee arising out of the licensee's money transmission in this state, whether through its own acts or the acts of an agent. Damage payments due under the bond include moneys owed to the department for fees, fines, or penalties. In no event shall the aggregate liability of the surety exceed the principal sum of the face amount of the bond. Claimants against the licensee may bring an action directly on the surety bond.
(c)
(1)
Each applicant and licensee shall maintain at all times permissible investments that have a market value computed in accordance with generally accepted accounting principles applicable in the United States of not less than the aggregate amount of all of its outstanding money transmission obligations.
(2)
The types of investments that are permissible shall be established by the rules and regulations of the department. The department may limit the extent to which a specific investment maintained by a licensee within a class of permissible investments may be considered a permissible investment.
(3)
Permissible investments, even if commingled with other assets of the licensee, shall be 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, 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 investment impressed with a trust pursuant to this paragraph shall be subject to attachment, levy of execution, or sequestration by order of any court, except for a beneficiary of this statutory trust.
(4)
Permissible investments held in trust pursuant to paragraph (3) of this subsection 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 persons 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 pursuant to this Code section shall be terminated upon extinguishment of all of the licensee's outstanding money transmission obligations.
Amended by 2023 Ga. Laws 348,§ 23, eff. 7/1/2023.
Added by 2014 Ga. Laws 532,§ 1, eff. 7/1/2014.