2023 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.