2023 Indiana Code › Title 28. Financial Institutions › Article 8. Financial Services › Chapter 4.1. Money Transmission Modernization Act › 28-8-4.1-201. Definitions; Applicability

Effective 1-1-2024.
Sec. 201. The following definitions apply throughout this chapter:
(1) "Acting in concert" means persons knowingly acting together with a common goal of jointly acquiring control of a licensee whether or not pursuant to an express agreement.
(2) "Authorized delegate" means a person a licensee designates to engage in money transmission on behalf of the licensee.
(3) "Average daily money transmission liability", with respect to a calendar quarter, means:
(A) the sum of the amounts of a licensee's outstanding money transmission obligations in Indiana at the end of each day in the calendar quarter; divided by
(B) the total number of days in that calendar quarter.
For purposes of this subdivision, a "calendar quarter" is a quarter ending on March 31, June 30, September 30, or December 31.
(4) "Bank Secrecy Act" means:
(A) the Bank Secrecy Act (31 U.S.C. 5311 et seq.); and
(B) regulations adopted under the Bank Secrecy Act (31 U.S.C. 5311 et seq.).
(5) "Closed loop stored value" means stored value that is redeemable by the issuer only for goods or services provided by the issuer or the issuer's affiliate or by franchisees of the issuer or the issuer's affiliate, except to the extent required by applicable law to be redeemable in cash for its cash value.
(6) "Control" means any of the following:
(A) The power to vote, directly or indirectly, at least twenty-five percent (25%) of the outstanding voting shares or voting interests of a licensee or of a 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.
(C) The power to exercise, directly or indirectly, a controlling influence over the management or policies of a licensee or of a person in control of a licensee. For purposes of this clause, a person is presumed to exercise a controlling influence if the person holds the power to vote, directly or indirectly, at least ten percent (10%) of the outstanding voting shares or voting interests of a licensee or of a person in control of a licensee. However, a person presumed to exercise a controlling influence under this clause may rebut the presumption of control if the person is a passive investor.
For purposes of this subdivision, the percentage of a person controlled by any other person is determined by aggregating the other person's interest with the interest of any other immediate family member of that person, including the person's spouse, parents, children, siblings, mothers-in-law and fathers-in-law, sons-in-law and daughters-in-law, and any other person who shares the person's home.
(7) "Department" refers to the members of the department of financial institutions.
(8) "Director" refers to the director of the department appointed under IC 28-11-2-1.
(9) "Eligible rating" means a credit rating of any of the three (3) highest rating categories provided by an eligible rating service, including any rating category modifiers, such as "plus" or "minus" for S&P Global, or an equivalent modifier for any other eligible rating service. The term includes the following:
(A) A long term credit rating equal to at least A- by S&P Global, or an equivalent long term credit rating for any other eligible rating service.
(B) A short term credit rating equal to at least A-2 by S&P Global, or an equivalent short term credit rating for any other eligible rating service.
In any case in which the credit ratings differ among eligible rating services, the highest rating applies in determining whether the credit rating is an "eligible rating" as defined in this subdivision.
(10) "Eligible rating service" means:
(A) a nationally recognized statistical rating organization, as defined by the United States Securities and Exchange Commission; or
(B) any other organization designated as such by the director.
(11) "Federally insured depository financial institution" means:
(A) a bank;
(B) a credit union;
(C) a savings and loan association;
(D) a trust company;
(E) a corporate fiduciary;
(F) a savings association;
(G) a savings bank;
(H) an industrial bank; or
(I) an industrial loan company;
that is organized under the law of the United States or any state of the United States and that has federally or privately insured deposits as permitted by state or federal law.
(12) "In Indiana", with respect to the location of a transaction, means the following:
(A) At a physical location in Indiana, for a transaction requested in person.
(B) For a transaction requested electronically or by telephone, a determination made by the provider of money transmission, by relying on the following, that the person requesting the transaction is in Indiana:
(i) Information, provided by the person, regarding the location of the individual's residential address or the business entity's principal place of business or other physical address location, as applicable.
(ii) Any records associated with the person that the provider of money transmission may have that indicate the person's location, including an address associated with an account.
(13) "Individual" means a natural person.
(14) "Key individual" means an individual ultimately responsible for establishing or directing policies and procedures of a licensee, such as an executive officer, manager, director, or trustee.
(15) "Licensee" means a person licensed under this chapter.
(16) "Material litigation" means 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.
(17) "Money" means a medium of exchange that is issued by the United States government or by a foreign government. The term includes a monetary unit of account established by an intergovernmental organization or by agreement between two (2) or more governments.
(18) "Monetary value" means a medium of exchange, whether or not redeemable in money.
(19) "Money transmission" means any of the following:
(A) Selling or issuing payment instruments to a person located in Indiana.
(B) Selling or issuing stored value to a person located in Indiana.
(C) Receiving money for transmission from a person located in Indiana.
The term does not include the provision of solely online or telecommunications services or network access.
(20) "MSB accredited state" means a state agency that is accredited by the Conference of State Bank Supervisors and Money Transmitter Regulators Association for money transmission licensing and supervision.
(21) "Multistate licensing process" means an agreement entered into by and among state regulators related to:
(A) coordinated processing of applications for money transmission licenses;
(B) applications for the acquisition and control of a licensee;
(C) control determinations; or
(D) notice and information requirements for a change of key individuals.
(22) "NMLS" means the Nationwide Multistate Licensing System and Registry:
(A) developed by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators; and
(B) owned and operated by the State Regulatory Registry, LLC, or by any successor or affiliated entity;
for the licensing and registry of persons in financial services industries.
(23) "Outstanding money transmission obligation", as established and extinguished in accordance with applicable state law, means:
(A) any payment instrument or stored value that:
(i) is issued or sold by a licensee to a person located in the United States, or reported as sold by an authorized delegate of the licensee to a person located in the United States; and
(ii) 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 that:
(i) is received for transmission by a licensee, or by an authorized delegate of the licensee, from a person located in the United States; and
(ii) has not been received by the payee or refunded to the seller, or escheated in accordance with applicable abandoned property laws.
For purposes of this subdivision, a person is located "in the United States" if the person is located in any state, territory, or possession of the United States or in the District of Columbia, the Commonwealth of Puerto Rico, or a United States military installation located in a foreign country.
(24) "Passive investor" means 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 over a person in control of a licensee;
(B) is not employed by and does not have any managerial duties with respect to the licensee or a person in control of the licensee;
(C) does not have the power to exercise, directly or indirectly, a controlling influence over the management or policies of the licensee or a person in control of the licensee; and
(D) either:
(i) attests to as facts the characteristics of passivity set forth in clauses (A) through (C), in a form and by a medium prescribed by the director; or
(ii) commits to the characteristics of passivity set forth in clauses (A) through (C) in a written document.
(25) "Payment instrument" means 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, whether or not negotiable. The term does not include:
(A) stored value; or
(B) any instrument that:
(i) 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
(ii) is not sold to the public but is issued and distributed as part of a loyalty, rewards, or promotional program.
(26) "Person" means any individual, general partnership, limited partnership, limited liability company, corporation, trust, association, joint stock corporation, or other corporate entity, as so identified by the director.
(27) "Receiving money for transmission" means receiving money or monetary value in the United States for transmission within or outside the United States by electronic or other means. The term "money received for transmission" has a corresponding meaning.
(28) "Stored value" means monetary value representing a claim, against the issuer, that is 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 "prepaid access" as defined in 31 CFR 1010.100. The term does not include:
(A) a payment instrument;
(B) closed loop stored value; or
(C) stored value not sold to the public but issued and distributed as part of a loyalty, rewards, or promotional program.
(29) "Tangible net worth" means the aggregate assets of a licensee, excluding all intangible assets, less liabilities, as determined in accordance with United States generally accepted accounting principles.
As added by P.L.198-2023, SEC.4.