reglab/statecodes huggingface dataset:
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 15 - North Carolina Consumer Finance Act. › § 53-171 - Revocation, suspension, or surrender of license.

§ 53-171. Revocation, suspension, or surrender of license.
(a) If the Commissioner finds, after due notice and hearing, or opportunity for hearing, that a licensee, or an officer, agent, employee, or representative thereof, has violated any of the provisions of this Article, has failed to comply with the rules adopted or orders issued by the Commission, has failed or refused to make its reports to the Commissioner, has failed to pay the fees for its examination and supervision, or has furnished false information to the Commissioner or the Commission, the Commissioner may issue an order revoking or suspending the right of the licensee or the officer, agent, employee, or representative to do business in North Carolina as a licensee, and upon receipt of the order from the Commissioner, the licensee shall immediately surrender the licensee's license to the Commissioner. Within five days after the entry of the order the Commissioner shall place on file the Commissioner's findings of fact and mail or otherwise deliver a copy to the licensee.
(b) A licensee may surrender any license by delivering it to the Commissioner with written notice of its surrender, but the surrender does not affect the licensee's civil or criminal liability for acts committed prior to the surrender.
(c) No revocation, suspension, or surrender of any license impairs or affects the obligation of any preexisting lawful contract between the licensee and any obligor.
(d) The Commissioner, in the Commissioner's discretion, may reinstate suspended licenses or issue new licenses to a person whose license or licenses have been revoked or surrendered if and when the Commissioner determines no fact or condition exists that clearly would have justified the Commissioner in refusing originally to issue the license under this Article. (1955, c. 1279; 1961, c. 1053, s. 1; 2023-61, s. 1.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 15 - North Carolina Consumer Finance Act. › § 53-173 - Computation of interest; application of payments; limitation on interest after judgment; limitation on interest after maturity of the loan.

§ 53-173. Computation of interest; application of payments; limitation on interest after judgment; limitation on interest after maturity of the loan.
(a), (a1) Repealed by Session Laws 2013-162, s. 3, effective July 1, 2013.
(b) Computation of Interest. – Interest on loans made pursuant to this section shall not be paid, deducted, or received in advance. The interest shall not be compounded but interest on loans shall (i) be computed and paid only as a percentage of the unpaid portion of the amount financed and (ii) computed on the basis of the number of days actually elapsed; however, if part or all of the consideration for a loan contract is the unpaid principal balance of a prior loan, then the amount financed under the loan contract may include any unpaid interest on the prior loan that has accrued within 90 days before the making of the new loan contract. For the purpose of computing interest, a day equals 1/365th of a year.
(b1) Application of Payments. – Any payment made on a loan shall be applied first to late charges and other permissible charges under this Article, then to any accrued interest, and then to principal. Any portion or all of the principal balance may be prepaid at any time without penalty.
(c) Limitation on Interest after Judgment. – If a money judgment is obtained against any party on any loan made under this section, neither the judgment nor the loan carries, from the date of the judgment, any interest in excess of eight percent (8%) per annum.
(d) Limitation of Interest after Maturity of Loan. – After the maturity date of any loan contract made under this section and until the loan contract is paid in full by cash, new loan, refinancing or otherwise, no charges other than interest at eight percent (8%) per annum shall be computed or collected from any party to the loan upon the unpaid principal balance of the loan.
(e) Repealed by Session Laws 1989, c. 17, s. 3.
(f) Repealed by Session Laws 2001-519, s. 3, effective January 1, 2002. (1961, c. 1053, s. 1; 1969, c. 1303, ss. 13, 17-22; 1973, c. 1042, s. 3; 1975, c. 110, s. 1; 1979, c. 33, s. 2; 1981, c. 561, ss. 1-3; 1983, c. 68, s. 1; c. 126, s. 13; 1989, c. 17, s. 3; 2001-519, s. 3; 2013-162, s. 3; 2023-61, s. 1.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 15 - North Carolina Consumer Finance Act. › § 53-175 - Fee for returned checks.

§ 53-175. Fee for returned checks.
A licensee may collect the fee for returned checks to the extent permitted by G.S. 25-3-506. This section shall apply to any loan made by any licensee under this Article. (1961, c. 1053, s. 1; 1969, c. 1303, s. 23; 1981, c. 561, s. 4; 1983, c. 68, s. 1; c. 126, s. 12; 1989, c. 17, s. 5; 1995 (Reg. Sess., 1996), c. 742, s. 21.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 15 - North Carolina Consumer Finance Act. › § 53-176 - Rates, maturities, and amounts.

§ 53-176. Rates, maturities, and amounts.
(a) A licensee may make installment loans with loan amounts not exceeding twenty-five thousand dollars ($25,000), that are not repayable in fewer than 12 months or more than 96 months, that are not secured by deeds of trust or mortgages on real estate, and that are repayable in substantially equal consecutive monthly payments. A licensee may charge and collect interest on these loans, not to exceed the following rates:
(1) With respect to a loan with a loan amount at origination not exceeding twelve thousand dollars ($12,000), thirty-three percent (33%) per annum on that part of the unpaid principal balance not exceeding four thousand dollars ($4,000), twenty-four percent (24%) per annum on that part of the unpaid principal balance exceeding four thousand dollars ($4,000) but not exceeding eight thousand dollars ($8,000), and eighteen percent (18%) per annum on that part of the remainder of the unpaid principal balance.
(2) With respect to a loan with a loan amount at origination exceeding twelve thousand dollars ($12,000), eighteen percent (18%) per annum on the outstanding principal balance.
Interest shall be contracted for and collected at the applicable simple interest rate applied to the unpaid portion of the amount financed.
(b) In addition to the interest permitted in this section, a licensee may assess at closing a fee for processing the loan as agreed upon by the parties, not to exceed thirty dollars ($30.00) for loan amounts up to three thousand dollars ($3,000) and one percent (1%) of the amount financed, exclusive of the loan processing fee, for loan amounts more than three thousand dollars ($3,000), not to exceed a total fee of one hundred fifty dollars ($150.00). These charges shall not be assessed more than twice in any 12-month period.
(c) G.S. 53-173(b), (b1), (c), and (d) and G.S. 53-180(b), (c), (d), (e), (f), (g), (h), and (i) apply to loans made pursuant to this section.
(d) Repealed by Session Laws 2013-162, s. 4, effective July 1, 2013.
(e) The due date of the first monthly payment shall not be more than 45 days following the disbursement of funds under the installment loan. A borrower under this section may prepay all or any part of the loan without penalty. Except as otherwise provided in G.S. 75-20(a), no more than twice in a 12-month period, a borrower may cancel a loan with the same licensee within three business days after disbursement of the loan proceeds without incurring or paying interest so long as the amount financed, minus any fees or charges, is returned to and received by the licensee within that time.
(f) Repealed by Session Laws 2013-162, s. 4, effective July 1, 2013. (1961, c. 1053, s. 1; 1969, c. 1303, s. 12.1; 1981, c. 561, s. 7; 1983, c. 68, s. 1; c. 126, ss. 14, 15; 1989, c. 17, s. 6; 1995, c. 155, s. 1; 2001-519, s. 4; 2013-162, s. 4; 2023-61, s. 1.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 15 - North Carolina Consumer Finance Act. › § 53-177.1 - Electronic transaction fees.

§ 53-177.1. Electronic transaction fees.
(a) The following definitions apply in this section:
(1) Affiliate. – In relation to a licensee, an entity that directly or indirectly controls, is controlled by, or is under joint control with the licensee.
(2) Control. – Any of the following:
a. Own, directly or indirectly, at least fifty percent (50%) of the capital of an entity.
b. Have the power to direct or cause the direction of the management of and set the policies of an entity.
(b) In addition to the recovery of other costs allowed under this Article, a licensee may collect from a borrower an amount not to exceed the actual cost of any fees charged by a non-affiliate third party for the following transactions:
(1) Online debit card payments to the borrower's account.
(2) In-person debit card payments to the borrower's account.
(3) Automated clearinghouse transaction payments to the borrower's account.
(4) Disbursement of loan proceeds via automated clearinghouse transactions.
(5) Disbursement of loan proceeds via prepaid debit cards or stored value cards.
(6) Disbursement of loan proceeds via electronic payments to the borrower's account at a financial institution or financial services company.
(c) A licensee shall make available to borrowers at least one type of transaction for an account payment and at least one type of transaction for a disbursement of loan proceeds in which it will not seek to recover the cost of third-party fees associated with the transaction.
(d) A licensee shall publish on its website and publicly display at all its retail locations a disclosure on whether a borrower will be charged for any third-party fees with regard to each available type of transaction for account payments and disbursements of loan proceeds. A licensee shall also provide this information as a separate disclosure to a borrower when the borrower establishes a loan account with the licensee.
(e) Nothing in this section prohibits a borrower from directly paying transaction-based fees to a non-affiliate third party for account payments and disbursements of loan proceeds. (2021-159, s. 1(a).)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 15 - North Carolina Consumer Finance Act. › § 53-178 - No further charges; no splitting contracts; certain contracts void.

§ 53-178. No further charges; no splitting contracts; certain contracts void.
No further or other charges or insurance commissions shall be directly or indirectly contracted for or received by any licensee, affiliate, parent, subsidiary, or licensee under the same ownership, management, or control, whether partial or complete, except those specifically authorized by this Article, by the Commissioner under G.S. 53-172 or any other statute. No licensee shall divide into separate parts any contract made for the purpose of or with the effect of obtaining interest or charges in excess of those authorized by this Article. All balances due to a licensee from any person as a borrower or as an endorser, guarantor or surety for any borrower or otherwise jointly or severally, shall be considered a part of any loan being made by a licensee to such person for the purpose of computing interest or charges, or exceeding the maximum amount of fifteen thousand dollars ($15,000). (1961, c. 1053, s. 1; 1991 (Reg. Sess., 1992), c. 765, s. 2; 2015-179, s. 2.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 15 - North Carolina Consumer Finance Act. › § 53-181 - Statements and information to be furnished to borrowers; power of attorney or confession of judgment prohibited.

§ 53-181. Statements and information to be furnished to borrowers; power of attorney or confession of judgment prohibited.
(a) Contents of Statement Furnished to Borrower. – At the time a loan is made, the licensee shall deliver, or make available electronically, to the borrower, or if there are two or more borrowers, to one of them a copy of the loan contract or a written statement, showing all of the following in clear and distinct terms:
(1) The name and address of the licensee and one of the primary obligors on the loan.
(2) The date of the loan contract.
(3) A schedule or description of the installments.
(4) The loan amount.
(5) Repealed by Session Laws 2023-61, s. 1, effective October 1, 2023.
(6) The amount collected or paid for insurance, if any.
(7) The amount collected or paid for filing or other fees allowed by this Article.
(8) The collateral or security for the loan.
(9) If the loan refinances a previous loan, the following relating to the refinanced loan: (i) the principal balance due; (ii) interest charged that is included in the new loan; and (iii) rebates on any credit insurance, listed separately.
(10) In addition to any disclosures otherwise provided by law, a licensee soliciting loans using a facsimile or negotiable check shall provide the disclosures required by G.S. 75-20(a).
(11) The following statement: "This loan is regulated by the provisions of the North Carolina Consumer Finance Act, Article 15 of Chapter 53 of the North Carolina General Statutes."
(b) Repealed by Session Laws 2023-61, s. 1, effective October 1, 2023.
(c) Power of Attorney or Confession of Judgment Prohibited. – No licensee shall take any confession of judgment or permit any borrower to execute a power of attorney in favor of any licensee or in favor of any third person to confess judgment or to appear for the borrower in any judicial proceeding, and a confession of judgment or power of attorney to confess judgment is void. (1955, c. 1279; 1961, c. 1053, s. 1; 1989, c. 17, s. 9; 2001-519, s. 6; 2022-75, s. 11; 2023-61, s. 1.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 15 - North Carolina Consumer Finance Act. › § 53-182 - Payment of loans; receipts.

§ 53-182. Payment of loans; receipts.
(a) After each cash payment made on account of any loan, the licensee shall give to the person making the payment a signed, dated receipt showing the amount paid and the balance due on the loan. No receipt shall be required in the case of electronic payments or payments made by the borrower's check or money order, if the entire proceeds of the check or money order are applied to the loan. The use of a coupon book system is deemed in compliance with this section.
(b) Upon payment of any loan in full, a licensee shall cancel and either return or make available electronically to the borrower, within a reasonable length of time, originals or copies of any note, assignment, mortgage, deed of trust, or other instrument securing the loan that no longer secures any indebtedness of the borrower to the licensee. (1955, c. 1279; 1961, c. 1053, s. 1; 2001-519, s. 7; 2023-61, s. 1.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 15 - North Carolina Consumer Finance Act. › § 53-183 - Advertising, broadcasting, etc., false or misleading statements.

§ 53-183. Advertising, broadcasting, etc., false or misleading statements.
No licensee subject to this Article shall advertise, display, distribute, telecast, or broadcast or cause or permit to be advertised, displayed, distributed, telecasted, or broadcasted, in any manner whatsoever, any false, misleading, or deceptive statement or representation with regard to the rates, terms, or conditions of loans. The Commissioner may require that charges or rates of charge, if stated by a licensee, be stated fully and clearly in such manner as he may deem necessary to prevent misunderstanding thereof by prospective borrowers. The Commissioner may permit or require licensees to refer in their advertising to the fact that their business is under State supervision, subject to conditions imposed by him to prevent an erroneous impression as to the scope or degree of protection provided by this Article. (1957, c. 1429, s. 3; 1961, c. 1053, s. 1.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 15 - North Carolina Consumer Finance Act. › § 53-185 - Rules and regulations by Banking Commission and Commissioner.

§ 53-185. Rules and regulations by Banking Commission and Commissioner.
The State Banking Commission is hereby authorized, empowered and directed to make all rules and regulations deemed by the Commission to be necessary in implementing this Article and in providing for the protection of the borrowing public and the efficient management of such licensees and to give all necessary instructions to such licensees for the purpose of interpreting this Article; provided, the Commissioner is hereby authorized to make such rules and regulations and issue such orders as he deems necessary and desirable in implementing and carrying out the provisions of G.S. 53-184. And it shall be the duty of all such licensees, their officers, agents and employees, to comply fully with all such rules, regulations and instructions. When promulgated, any rule or regulation shall be forwarded by mail to each licensee at its licensed place of business at least 20 days prior to its effective date. (1955, c. 1279; 1961, c. 1053, s. 1.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 15 - North Carolina Consumer Finance Act. › § 53-186 - Commissioner to issue subpoenas, conduct hearings, give publicity to investigations, etc.

§ 53-186. Commissioner to issue subpoenas, conduct hearings, give publicity to investigations, etc.
The Commissioner of Banks shall have the power and duty to issue subpoenas including subpoenas duces tecum, and compel attendance of witnesses, administer oaths, conduct hearings and transcribe testimony in making the investigations and conducting the hearings provided for herein or in the other discharge of his duties, and to give such publicity to his investigations and findings as he may deem best for the public interest. (1957, c. 1429, s. 5; 1961, c. 1053, s. 1.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 15 - North Carolina Consumer Finance Act. › § 53-187 - Injunctive powers; receivers.

§ 53-187. Injunctive powers; receivers.
Whenever the Commissioner has reasonable cause to believe that any person is violating or is threatening to violate any provision of this Article, he may in addition to all actions provided for in this Article, and without prejudice thereto, enter an order requiring such person to desist or to refrain from such violation; and an action may be brought in the name of the Commissioner on the relation of the State of North Carolina to enjoin such person from engaging in or continuing such violation or from doing any act or acts in furtherance thereof. In any such action an order or judgment may be entered awarding such preliminary or final injunction as may be deemed proper. In addition to all other means provided by law for the enforcement of a restraining order or injunction, the court in which such action is brought shall have power and jurisdiction to impound, and to appoint a receiver for the property and business of the defendant, including books, papers, documents and records pertaining thereto or so much thereof as the court may deem reasonably necessary to prevent violations of this Article through or by means of the use of said property and business. Such receiver, when appointed and qualified, shall have such powers and duties as to custody, collection, administration, winding up, and liquidation of such property and business as shall from time to time be conferred upon him by the court. (1957, c. 1429, s. 6; 1961, c. 1053, s. 1.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 15 - North Carolina Consumer Finance Act. › § 53-188 - Review of regulations, order or act of Commission or Commissioner.

§ 53-188. Review of regulations, order or act of Commission or Commissioner.
The Commission may review any rule, regulation, order or act of the Commissioner done pursuant to or with respect to the provisions of this Article. Any person aggrieved by any such rule, regulation, order or act may appeal, pursuant to G.S. 53C-2-6(b), to the Commission for review upon giving notice in writing within 20 days after such rule, regulation, order or act complained of is adopted, issued or done. Notwithstanding any other provision of law to the contrary, any aggrieved party to a decision of the Commission shall be entitled to petition for judicial review pursuant to G.S. 53C-2-6(b). (1957, c. 1429, s. 6; 1961, c. 1053, s. 1; 1973, c. 1331, s. 3; 1987, c. 827, s. 13; 1995, c. 129, s. 29; 2009-57, s. 2; 2012-56, s. 13.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 15 - North Carolina Consumer Finance Act. › § 53-189 - Insurance.

§ 53-189. Insurance.
(a) Credit life, credit accident and health, credit unemployment, and credit property insurance may be written in accordance with the provisions of Article 57 of Chapter 58 of the General Statutes.
(b) The premium or cost of credit life, credit accident and health, credit unemployment, or credit property insurance, when written by or through any lender or other creditor, its affiliate, associate or subsidiary shall not be deemed as interest or charges or consideration or an amount in excess of permitted charges in connection with the loan or credit transaction and any gain or advantage to any lender or other creditor, its affiliate, associate or subsidiary, arising out of the premium or commission or dividend from the sale or provision of such insurance shall not be deemed a violation of any other law, general or special, civil or criminal, of this State, or of any rule, regulation or order issued by any regulatory authority of this State. (1961, c. 1053, s. 1; 1969, c. 1303, s. 25; 1975, c. 660, s. 2; 1981, c. 759, s. 10; c. 876; 1987, c. 826, s. 10; 1993, c. 226, s. 14.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 15 - North Carolina Consumer Finance Act. › § 53-190 - Loans made elsewhere.

§ 53-190. Loans made elsewhere.
(a) No loan contract made outside this State in the amount or of the value of twenty-five thousand dollars ($25,000) or less, for which greater consideration or charges than are authorized by G.S. 53-173 and G.S. 53-176 have been charged, contracted for, or received, shall be enforced in this State. This subsection, however, does not apply to loan contracts in which all contractual activities, including solicitation, discussion, negotiation, offer, acceptance, signing of documents, and delivery and receipt of funds, occur entirely outside this State.
(b) If any lender or agent of a lender that makes loan contracts outside this State in the amount or of the value of twenty-five thousand dollars ($25,000) or less comes into this State to solicit or otherwise conduct activities in regard to the loan contracts, then the lender is subject to the requirements of this Article.
(c) No lender licensed to do business under this Article shall collect, or cause to be collected, any loan made by a lender in another state to a borrower that was a resident of this State at the time the loan was made. The purchase of a loan account does not alter this prohibition. (1961, c. 1053, s. 1; 1967, c. 769, s. 2; 1969, c. 1303, s. 13; 1973, c. 1042, s. 8; 1979, c. 706, s. 2; 1989, c. 17, s. 11; 2015-179, s. 5; 2023-61, s. 1.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 15 - North Carolina Consumer Finance Act. › § 53-191 - Businesses exempted.

§ 53-191. Businesses exempted.
Nothing in this Article shall be construed to apply to any person, firm or corporation doing business under the authority of any law of this State or of the United States relating to banks, trust companies, savings and loan associations, cooperative credit unions, agricultural credit corporations or associations organized under the laws of North Carolina, production credit associations organized under the act of Congress known as the Farm Credit Act of 1933, pawnbrokers lending or advancing money on specific articles of personal property, industrial banks, the business of negotiating loans on real estate as defined in G.S. 105-41, nor to installment paper dealers as defined in G.S. 105-83 other than persons, firms and corporations engaged in the business of accepting fees for endorsing or otherwise securing loans or contracts for repayment of loans. (1955, c. 1279; 1957, c. 1429, s. 8; 1961, c. 1053, s. 1; 1969, c. 1303, s. 26.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 16B - Money Transmitters Act. › § 53-208.43 - License requirement.

§ 53-208.43. License requirement.
(a) No person except those exempt pursuant to G.S. 53-208.44 shall engage in the business of money transmission in this State without a license as provided in this Article.
(b) A licensee may conduct its business in this State at one or more locations, directly or indirectly owned, or through one or more authorized delegates, or both, pursuant to the single license granted under this Article.
(c) For the purposes of this Article, a person is considered to be engaged in the business of money transmission in this State if that person solicits or advertises money transmission services from a Web site that North Carolina citizens may access in order to enter into those transactions by electronic means. (2016-81, s. 1; 2017-102, s. 46.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 16B - Money Transmitters Act. › § 53-208.46 - Minimum net worth.

§ 53-208.46. Minimum net worth.
(a) An applicant shall possess and a licensee shall maintain at all times a net worth of not less than two hundred fifty thousand dollars ($250,000) calculated in accordance with generally accepted accounting principles.
(b) The Commissioner may by order increase the amount of net worth required of an applicant or licensee if the Commissioner determines additional net worth is necessary to ensure safe and sound operation based on consideration of the following factors:
(1) The nature and volume of the projected or established business.
(2) The number of locations at or through which money transmission is or will be conducted.
(3) The amount, nature, quality, and liquidity of assets.
(4) The amount and nature of liabilities.
(5) The history of operations and prospects for earning and retaining income.
(6) The quality of operations and management.
(7) The nature and quality of controlling persons.
(8) The history of compliance with applicable State and federal law.
(9) Any other factors the Commissioner deems relevant. (2016-81, s. 1; 2017-102, s. 46.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 16B - Money Transmitters Act. › § 53-208.48 - Permissible investments and statutory trust.

§ 53-208.48. Permissible investments and statutory trust.
(a) Except as otherwise provided in this section, each licensee under this Article shall possess at all times unencumbered permissible investments having an aggregate market value, calculated in accordance with generally accepted accounting principles, of not less than the aggregate face amount of all outstanding transmission obligations. This requirement may be waived by the Commissioner if the dollar volume of a licensee's outstanding transmission obligations does not exceed the bond or other security devices posted by the licensee pursuant to G.S. 53-208.47.
(b) Permissible investments, even if commingled with other assets of the licensee, shall be deemed by operation of law to be held in trust for the benefit of the purchasers and holders of the licensee's outstanding payment instruments and stored value obligations in the event of the bankruptcy of the licensee.
(c) If the licensee possesses virtual currency as permissible investments under this Article, the Commissioner may at any time request that the licensee verify, in a manner acceptable to the Commissioner, aggregate virtual currency transmission obligations outstanding and virtual currency held as permissible investments, including virtual currency stored offline. (2016-81, s. 1; 2017-102, s. 46; 2018-23, s. 2.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 16B - Money Transmitters Act. › § 53-208.49 - Application fees and annual assessment.

§ 53-208.49. Application fees and annual assessment.
(a) Application Fees. Each application for initial licensure shall be accompanied by a nonrefundable filing fee of one thousand five hundred dollars ($1,500).
(b) Annual Assessment. For the purpose of meeting the cost of regulation under this Article, each licensee shall pay to the Commissioner an annual assessment as provided in this subsection. The annual assessment shall consist of a base amount of five thousand dollars ($5,000) for volumes of no more than one million dollars ($1,000,000) plus an additional sum, calculated on the transmission dollar volume reported by the licensee pursuant to G.S. 53-208.53 for the previous calendar year. The cumulative assessment shall be calculated as follows:
Transmission in U.S. Dollar Volume Per U.S. Dollar
$1,000,001 to $5,000,000 $0.0008
$5,000,001 to $10,000,000 $0.0006
$10,000,001 to $50,000,000 $0.00004
More Than $50,000,000.00 $0.0000006
The Commissioner may collect the assessment provided for in this subsection annually or in periodic installments as approved by the State Banking Commission. (2016-81, s. 1; 2017-102, s. 46.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 16B - Money Transmitters Act. › § 53-208.50 - Issuance of license.

§ 53-208.50. Issuance of license.
(a) Upon receipt of a complete license application, as set forth under G.S. 53-208.45, the Commissioner shall investigate the financial condition and responsibility, financial and business experience, the character and general fitness of the applicant, and any other matters deemed relevant by the Commissioner. The Commissioner may require additional information and may require the amendment of the application in the course of the investigation. An applicant's failure to furnish all required information within 30 days after filing the application or within 30 days of a request by the Commissioner for additional information may be considered an abandonment of the application. In the course of the investigation, the Commissioner may conduct an on-site examination of the applicant, the reasonable cost of which shall be borne by the applicant.
(b) The Commissioner may only approve an application for licensure when the Commissioner has determined that all of the following requirements have been satisfied or are reasonably likely to be satisfied within a reasonable time period as specified by the Commissioner in the order of approval:
(1) The applicant has satisfied the requirements imposed by this Article;
(2) The applicant's business will be conducted honestly, fairly, and in a manner commanding the confidence and trust of the community;
(3) The applicant has demonstrated net worth necessary to satisfy the requirements in accordance with G.S. 53-208.46;
(4) The applicant has obtained a surety bond in conformance with G.S. 53-208.47;
(5) That neither the applicant nor any controlling person are identified on the Specially Designated Nationals and Blocked Persons List prepared by the United States Department of the Treasury or the United States Department of State subject to Presidential Executive Order No. 13224, Blocking Property and Prohibiting Transactions with Persons who Commit, Threaten to Commit, or Support Terrorism;
(6) The controlling persons and key management personnel, as a group, have degrees of character, competence, and experience which command the confidence and trust of the community and justify the belief that the applicant will operate safely, soundly, and in compliance with the law;
(7) The anticipated volume and nature of business projected in the application are reasonable and indicate a reasonable likelihood of safe and sound operation.
(c) Licenses issued under this Article are perpetual and not assignable. Control of a licensee shall not be acquired through a stock purchase, merger, or other device without prior written consent of the Commissioner. The Commissioner shall not give written consent if the Commissioner finds that any of the grounds for denial, revocation, or suspension as set forth under G.S. 53-208.56 are applicable to the acquiring person. (2016-81, s. 1; 2017-102, s. 46.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 16B - Money Transmitters Act. › § 53-208.51 - Prohibited practices.

§ 53-208.51. Prohibited practices.
No person required to be licensed under this Article shall do any of the following:
(1) Fail to remit all money or monetary value received for transmission pursuant to G.S. 53-208.42(13)b., or give instructions committing equivalent money or monetary value to the person designated by the sender within 10 days after receipt by the licensee unless otherwise directed by the sender.
(2) Fail to immediately notify the Commissioner in writing if the licensee dishonors or fails to satisfy any money transmission transaction within the 10 days following receipt for any reason other than direction by the sender.
(3) Engage in the business of money transmission in the State under any name other than that under which it is organized or otherwise authorized to do business in the State.
(4) Fail to comply with the Federal Bank Secrecy Act, 31 U.S.C. § 5311, et seq., and 31 C.F.R. Part 1022, including maintenance of active registration with the United States Department of Treasury Financial Crimes Enforcement Network.
(5) Fail to comply with the Federal Electronic Funds Transfer Act, 12 U.S.C. § 1693, et seq., and Regulation E, 12 C.F.R. § 1005, et seq.
(6) Fail to safeguard identifying information obtained in the course of money transmission and otherwise comply with the requirements set forth under G.S. 75-60, et seq.
(7) Fail to comply with applicable State and federal laws and regulations related to the business of money transmission.
(8) Use or cause to be published or disseminated any advertising communication which contains any false, misleading, or deceptive statement or representation.
(9) Engage in unfair, deceptive, or fraudulent practices. (2016-81, s. 1; 2017-102, ss. 14.1(d), 46.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 16B - Money Transmitters Act. › § 53-208.52 - Maintenance of records.

§ 53-208.52. Maintenance of records.
(a) Each licensee shall maintain such books, accounts, and other records as the Commissioner may require for a period of no less than three years unless the Commissioner, by rule, prescribes otherwise for particular types of records. Such records shall be segregated from any other business in which the licensee is engaged and, at a minimum, include:
(1) A record or records of each payment instrument sold.
(2) A general ledger containing all assets, liability, capital, income, and expense accounts, which general ledger shall be posted at least monthly.
(3) Settlement sheets received from authorized delegates.
(4) Bank statements and bank reconciliation records.
(5) Records of outstanding transmissions, payment instruments, and stored value.
(6) Records of each payment instrument paid within the three-year period.
(7) A list of the names and addresses of all of the licensee's proposed authorized delegates, if any, and a copy of each written agreement in conformance with G.S. 53-208.44(c)(1).
(b) Maintenance of the documents required by this section in the form of any digital or electronic medium shall constitute compliance with this section provided records remain readily convertible into legible, tangible documents and shall be treated as originals for the purposes of any examination or investigation conducted pursuant to this Article.
(c) All records required to be maintained shall be secured against unauthorized access and damage and may be maintained at a location outside this State so long as they are made accessible to the Commissioner on seven days' written notice.
(d) All records required to be maintained under this Article shall be prepared in accordance with generally accepted accounting principles, where applicable.
(e) A licensee shall notify the Commissioner of any change in the location of its records within 10 days following such change. (2016-81, s. 1; 2017-102, s. 46.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 16B - Money Transmitters Act. › § 53-208.53 - Reporting.

§ 53-208.53. Reporting.
(a) Annual Report. No later than 90 days after the end of the calendar year, licensees shall file an annual report in a form prescribed by the Commissioner through NMLS, which shall include:
(1) A copy of its most recent audited consolidated annual financial statement, including balance sheet, statement of income or loss, statement of changes in shareholder's equity, if applicable, and statement of changes in financial position, or, in the case of a licensee that is a wholly owned subsidiary of another corporation, the consolidated audited annual financial statement of the parent corporation may be filed in lieu of the licensee's audited financial statement;
(2) The total amount of outstanding transmission obligations;
(3) Any material changes to any of the information submitted by the licensee on its original application, which have not been previously reported to the Commissioner on any other report required to be filed under this Article;
(4) Copies of bank statements and other documentation necessary to document the existence and quality of the licensee's permissible investments; and
(5) A list of the branch offices at which business regulated by this Article is being conducted by either the licensee or its authorized delegates.
(b) Quarterly Reports. No later than 60 days after the calendar quarter has ended, licensees shall file a quarterly call report in a form prescribed by the Commissioner through NMLS, which shall at a minimum include:
(1) The number and dollar volume of money transmission transactions in the State by activity type; and
(2) The total amount of outstanding transmission obligations.
(c) Other Reports of Condition. A licensee shall submit to the Commissioner through the NMLS reports of condition and any other reports requested by the Commissioner in order to carry out the purposes of this Article.
(d) Timely Reporting. – Failure to timely submit any reports required under this section is grounds for summary suspension pursuant to G.S. 53-208.57(d)(2). (2016-81, s. 1; 2017-102, ss. 14.1(e), 46.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 16B - Money Transmitters Act. › § 53-208.54 - Notice of Material Event.

§ 53-208.54. Notice of Material Event.
(a) Within 15 days of a change or acquisition of control of a licensee, the licensee shall provide notice of the event to the Commissioner through NMLS in writing and in a form prescribed by the Commissioner. The notice shall be accompanied by any information, data, and records required by the Commissioner.
(b) Within 15 days of the occurrence of any one of the events listed below, a licensee shall file a written report with the Commissioner through NMLS describing the event and its expected impact on the licensee's activities in the State:
(1) The filing for bankruptcy or reorganization by the licensee.
(2) The institution of revocation or suspension proceedings against the licensee by any State or governmental authority with regard to the licensee's money transmission activities.
(3) Any felony indictment of the licensee or any controlling person or key management personnel related to money transmission activities.
(4) Any felony conviction of the licensee or any controlling person or key management personnel related to money transmission activities.
(c) If the information contained in any document filed with the Commissioner or the NMLS is or becomes inaccurate or incomplete in any material respect, the licensee or applicant shall within 30 days file a correcting amendment to the information contained in the document. (2016-81, s. 1; 2017-102, s. 46.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 16B - Money Transmitters Act. › § 53-208.56 - Licensure authority.

§ 53-208.56. Licensure authority.
The Commissioner may by order, deny, suspend, revoke, or refuse to issue a license under this Article, or may restrict or limit the manner in which a licensee or applicant engages in the business of money transmission, if the Commissioner finds both of the following:
(1) That the order is in the public interest.
(2) Any of the following circumstances apply:
a. Any fact or condition exists that, if it had existed at the time of application, would have been grounds for denial.
b. The licensee or applicant has filed any application, report, or other document with the Commissioner containing statements that, in light of the circumstances in which they were made, were false or misleading with respect to a material fact.
c. The licensee or applicant fails at any time to meet the requirements of G.S. 53-208.46, 53-208.47, or 53-208.48.
d. A controlling person or key management personnel of the licensee or applicant has been convicted of any of the following:
1. A misdemeanor in the last 10 years involving fraud, money laundering, theft or wrongful taking of property, bribery, perjury, forgery, counterfeiting, extortion, or conspiracy to commit any of these offenses or involving any financial service or financial service-related business.
2. Any felony in the last seven years.
e. The licensee or applicant has violated or failed to comply with any provision of this Article, rule issued pursuant to this Article, or order of the Commissioner.
f. The licensee has conducted its business in an unsafe or unsound manner.
g. The licensee or applicant is insolvent, has suspended payment of its obligations, has made an assignment for the benefit of its creditors, or has admitted in writing its inability to pay its debts as they become due.
h. The licensee fails to respond to and cooperate fully with notices from the Commissioner or the Commissioner's designee related to the scheduling and conducting of an examination or investigation pursuant to G.S. 53-208.55.
i. The licensee or applicant fails to respond to inquiries from the Commissioner or the Commissioner's designee regarding any complaints filed, which allege or involve violation of this Article.
j. The licensee fails to make any report required by this Article.
k. The licensee or applicant is permanently or temporarily enjoined by any court of competent jurisdiction from engaging in or continuing any conduct or practice involving any aspect of the money transmission business.
l. The licensee or applicant is the subject of an order entered within the past five years by the authority of any state or federal agency with jurisdiction over the business of money transmission. (2016-81, s. 1; 2017-102, s. 46; 2018-142, s. 10(b).)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 16B - Money Transmitters Act. › § 53-208.58 - Criminal penalties.

§ 53-208.58. Criminal penalties.
(a) Any person who knowingly and willfully violates any provision of this Article for which a penalty is not specifically provided is guilty of a Class 1 misdemeanor.
(b) Any person who knowingly and willfully makes a material, false statement in any document filed or required to be filed under this Article with the intent to deceive the recipient of the document is guilty of a Class 1 misdemeanor.
(c) Any person who knowingly and willfully engages in the business of money transmission without a license as provided herein shall be guilty of a Class 1 misdemeanor. (2016-81, s. 1; 2017-102, s. 46.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 16B - Money Transmitters Act. › § 53-208.59 - Confidentiality.

§ 53-208.59. Confidentiality.
(a) Notwithstanding any other provision of law, all information or reports obtained by the Commissioner from an applicant, licensee, or authorized delegate, whether obtained through reports, applications, examination, audits, investigation, or otherwise, including (i) all information contained in or related to examination, investigation, operating, or condition reports prepared by, on behalf of, or for the use of the Commissioner; and (ii) financial statements, balance sheets, or authorized delegate information are subject to confidential treatment as set forth under G.S. 53C-2-7.
(b) The Commissioner is authorized to enter agreements or sharing arrangements with other governmental agencies or associations representing governmental agencies and may share otherwise confidential information pursuant to these written agreements, but only to the extent permitted by G.S. 53C-2-7(d). Information shared pursuant to the agreements authorized under this section shall retain any and all applicable privilege and related confidentiality protections provided by State or federal law.
(c) Nothing in this section shall prohibit the Commissioner from releasing to the public a list of persons licensed under this Article or aggregated financial data on those licensees. (2016-81, s. 1; 2017-102, s. 46.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 16B - Money Transmitters Act. › § 53-208.60 - Rules.

§ 53-208.60. Rules.
(a) The State Banking Commission may adopt rules necessary to implement this Article.
(b) Pursuant to G.S. 53C-2-6(b), any person aggrieved by any rule or order of the Commissioner under this Act may appeal to the State Banking Commission for review upon providing notice in writing within 20 days after the act complained of is adopted, issued, or done. Notwithstanding any other provision of law, any aggrieved party to a decision of the State Banking Commission shall be entitled to petition for judicial review pursuant to G.S. 53C-2-6(b). (2016-81, s. 1; 2017-102, s. 46.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 16B - Money Transmitters Act. › § 53-208.61 - Service of process.

§ 53-208.61. Service of process.
(a) Any person subject to this Article is deemed to have:
(1) Consented to the jurisdiction of the courts of this State for all actions arising under this Article; and
(2) Appointed the Secretary of State as such person's agent for the purpose of accepting service of process in any action, suit, or proceeding that may arise under this Article.
(b) For the purposes of this Article, the Commissioner shall be deemed to have complied with the requirements of law concerning service of process upon mailing by certified mail any notice required or permitted to a person subject to this Article, postage prepaid and addressed to the last known address on file with the Commissioner. (2016-81, s. 1; 2017-102, s. 46.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 16B - Money Transmitters Act. › § 53-208.62 - Commissioner's participation in nationwide registry.

§ 53-208.62. Commissioner's participation in nationwide registry.
(a) The Commissioner may require all persons subject to this Article to be licensed through the NMLS, and upon issuing this requirement, the Commissioner shall establish a reasonable transition period. In order to carry out these requirements, the Commissioner may participate in the NMLS.
(b) The Commissioner may establish relationships or contracts with the NMLS or other entities designated by the NMLS to collect and maintain records and process transaction fees or other fees related to licensees or other persons subject to this Article.
(c) For the purpose of participating in the NMLS, the Commissioner may waive or modify, in whole or in part, any or all of the requirements as reasonably necessary to participate in the NMLS. (2016-81, s. 1; 2017-102, s. 46; 2018-142, s. 10(c).)