reglab/statecodes huggingface dataset:
2023 South Carolina Code of Laws › Title 35 - Securities › Chapter 2 - Control Share Acquisitions; Business Combinations › Section 35-2-218. Business combination with interested shareholder within two years of share acquisition date.

(a) Notwithstanding any other provision of law, except Sections 35-2-220 through 35-2-223, a resident domestic corporation may not engage in any business combination with any interested shareholder of the resident domestic corporation for a period of two years following the interested shareholder's share acquisition date unless the business combination or the purchase of shares made by the interested shareholder on the interested shareholder's share acquisition date is approved by a majority of the disinterested members of the board of directors of the resident domestic corporation before the interested shareholder's share acquisition date. As used in this section, a director or person is 'disinterested' if the director or person is not a present or former officer or employee of the resident domestic corporation, or related corporation. If the board has less than three disinterested directors, the board shall appoint three or more disinterested persons to serve as a committee to vote on the issue.
(b) If a good faith proposal regarding a business combination is made in writing to the board of directors of the resident domestic corporation, the board of directors shall respond in writing within thirty days or that shorter period, if any, as may be required by the Exchange Act, setting forth its reasons for its decision regarding the proposal.
(c) If a good faith proposal to purchase shares is made in writing to the board of directors of the resident domestic corporation, the board of directors, unless it responds affirmatively in writing within thirty days or that shorter period, if any, as may be required by the Exchange Act, is considered to have disapproved the share purchase.
HISTORY: 1988 Act No. 444, Section 5, eff April 22, 1988.
2023 South Carolina Code of Laws › Title 35 - Securities › Chapter 2 - Control Share Acquisitions; Business Combinations › Section 35-2-220. Amendment of articles of incorporation making corporation subject to this article; application of article.

This article does not apply to any business combination of a resident domestic corporation of which the articles of incorporation have been amended to provide that the resident domestic corporation is not subject to this article, and is a business combination with an interested shareholder whose share acquisition date is before the effective date of the amendment.
HISTORY: 1988 Act No. 444, Section 5, eff April 22, 1988.
Editor's Note
1988 Act No. 444 Section 6 provides as follows:
"For purposes of this act, when the terms 'effective date of this chapter' or 'effective date of this article' or similar derivations thereof are used in Chapter 2, Title 35 of the 1976 Code, as contained in Section 5 of this act, these terms must be construed to mean the effective date of the amendments to Chapter 2 of Title 35 as contained in this act."
2023 South Carolina Code of Laws › Title 35 - Securities › Chapter 2 - Control Share Acquisitions; Business Combinations › Section 35-2-221. Election not to be covered by this article; application of article.

This article does not apply to any business combination of a resident domestic corporation:
(1) the original articles of incorporation of which contain a provision expressly electing not to be governed by this article; or
(2) that adopts an amendment of the resident domestic corporation's articles of incorporation expressly electing not to be governed by this article; or
(3) with an interested shareholder whose share acquisition date is on or before the effective date of this article; or
(4) such business combination was the subject of a written agreement in existence and binding upon the resident domestic corporation on the effective date of this article and such agreement is not amended or modified in any material respect after the effective date of this article.
HISTORY: 1988 Act No. 444, Section 5, eff April 22, 1988.
Editor's Note
1988 Act No. 444 Section 6 provides as follows:
"For purposes of this act, when the terms 'effective date of this chapter' or 'effective date of this article' or similar derivations thereof are used in Chapter 2, Title 35 of the 1976 Code, as contained in Section 5 of this act, these terms must be construed to mean the effective date of the amendments to Chapter 2 of Title 35 as contained in this act."
2023 South Carolina Code of Laws › Title 35 - Securities › Chapter 2 - Control Share Acquisitions; Business Combinations › Section 35-2-222. Inadvertent interested shareholder; application of article.

This article does not apply to any business combination of a resident domestic corporation with an interested shareholder of the resident domestic corporation who became an interested shareholder inadvertently, if the interested shareholder:
(1) as soon as practicable, divests itself of a sufficient amount of the voting shares of the corporation so that it no longer is the beneficial owner (directly or indirectly) of ten percent or more of the outstanding voting shares of the resident domestic corporation; and
(2) at any time within the two-year period preceding the announcement date with respect to the business combination would not have been an interested shareholder but for the inadvertent acquisition.
HISTORY: 1988 Act No. 444, Section 5, eff April 22, 1988.
2023 South Carolina Code of Laws › Title 35 - Securities › Chapter 2 - Control Share Acquisitions; Business Combinations › Section 35-2-223. Interested shareholder on the effective date of this chapter; application of article.

This article does not apply to any business combination with an interested shareholder who was an interested shareholder on the effective date of this chapter.
HISTORY: 1988 Act No. 444, Section 5, eff April 22, 1988.
Editor's Note
1988 Act No. 444 Section 6 provides as follows:
"For purposes of this act, when the terms 'effective date of this chapter' or 'effective date of this article' or similar derivations thereof are used in Chapter 2, Title 35 of the 1976 Code, as contained in Section 5 of this act, these terms must be construed to mean the effective date of the amendments to Chapter 2 of Title 35 as contained in this act."
2023 South Carolina Code of Laws › Title 35 - Securities › Chapter 2 - Control Share Acquisitions; Business Combinations › Section 35-2-224. Applicability to foreign corporations.

(a) The provisions of this article also apply to a foreign corporation incorporated in any state other than South Carolina that has:
(1) a class of voting shares registered with the Securities and Exchange Commission or another federal agency under Section 12 of the 1934 Exchange Act; and
(2) its principal place of business, its principal office, or more than forty percent of its assets within South Carolina; and either:
(A) more than ten percent of its shareholders resident in South Carolina;
(B) more than ten percent of its shares owned by South Carolina residents; or
(C) ten thousand shareholders resident in South Carolina.
(b) The residence of a shareholder is presumed to be the address appearing in the records of the corporation.
(c) Shares held by banks (except as trustee or guardian), brokers, or nominees must be disregarded for purposes of calculating the percentages or numbers described in this section.
HISTORY: 1988 Act No. 444, Section 5, eff April 22, 1988; 1990 Act No. 446, Section 11, eff May 7, 1990.
Effect of Amendment
The 1990 amendment, in subsection (a), item (1), inserted "or another federal agency" and substituted "and" for "or" at the end; the provisions of former items (2) and (3) were deleted, and former item (4) was renumbered item (2).
2023 South Carolina Code of Laws › Title 35 - Securities › Chapter 2 - Control Share Acquisitions; Business Combinations › Section 35-2-225. Severability.

If any section, subsection, item, paragraph, subparagraph, sentence, clause, or phrase of this article is declared invalid, unenforceable, unlawful, or unconstitutional by a court of competent jurisdiction by final judgment, that judgment shall not affect or does not affect any other section, subsection, item, paragraph, subparagraph, sentence, clause, or phrase of this article which will remain in full force and effect as if the portion declared invalid or unconstitutional was not a part thereof originally.
HISTORY: 1988 Act No. 444, Section 5, eff April 22, 1988.
2023 South Carolina Code of Laws › Title 35 - Securities › Chapter 2 - Control Share Acquisitions; Business Combinations › Section 35-2-226. Conflict of laws with respect to foreign corporations.

If the laws of the State under which a foreign corporation otherwise affected by this article was incorporated, chartered, or otherwise organized are expressly inconsistent with any section, subsection, item, paragraph, subparagraph, sentence, clause, or phrase of this article, that portion of this article has no force and effect with respect to that foreign corporation and the remainder of this article remains in full force and effect with respect to that foreign corporation as if that inconsistent section, subsection, item, paragraph, subparagraph, sentence, clause, or phrase of this article was not a part thereof originally.
HISTORY: 1988 Act No. 444, Section 5, eff April 22, 1988.
2023 South Carolina Code of Laws › Title 35 - Securities › Chapter 5 - Nominee Registration Of Securities Held By Corporate Fiduciaries › Section 35-5-10. Bank and trust company fiduciaries may register and hold securities for nominees.

Any bank or trust company incorporated under the laws of this State or any national bank located in this State may, when acting in any fiduciary capacity whether as sole fiduciary or as a co-fiduciary, register and hold, in the name of a nominee or nominees thereof, any stocks, bonds or other securities held in such fiduciary capacity, if when acting as co-fiduciary it secures the consent of its co-fiduciaries, who are hereby authorized to give such consent; provided that:
(1) The records of the fiduciary or fiduciaries and all accounts rendered by it or them shall at all times clearly show the ownership of the securities so registered.
(2) Such securities shall at all times be kept separate and apart from the assets of such bank, trust company or national bank.
(3) The bank, trust company or national bank shall be liable for any loss resulting from any acts or omissions to act of such nominee, in connection with the securities so held by such nominee, to the same extent as if such securities had been held in the fiduciary's own name as fiduciary.
HISTORY: 1962 Code Section 62-431; 1959 (51) 376.
2023 South Carolina Code of Laws › Title 35 - Securities › Chapter 5 - Nominee Registration Of Securities Held By Corporate Fiduciaries › Section 35-5-20. Registration on request of principal or unincorporated fiduciary.

Any bank or trust company incorporated under the laws of this State or any national bank located in this State may, when acting as agent, custodian or attorney in fact, upon the request of the principal, including unincorporated fiduciaries, register stocks, bonds or other securities held in such capacity in the name of a nominee or nominees of such corporate fiduciary; provided, that such bank, trust company or national bank shall not deliver or redeliver any such stocks, bonds or other securities to such unincorporated fiduciary or principal who has caused any stocks, bonds or other securities to be so registered in the name of the nominee of such bank, trust company or national bank without first causing such stocks, bonds or other securities to be registered in the name of such unincorporated fiduciary or principal as such. Any sale or transfer of such stocks, bonds or other securities made by such bank, trust company or national bank at the direction of such principal, or unincorporated fiduciary shall not be construed to be delivered or redelivered but any such bank, trust company or national bank or any nominee or nominees in whose name such securities shall be registered shall be deemed to have fully discharged its, his or their responsibilities if any such bonds, stocks or other securities are sold or transferred in accordance with the direction of the principal or unincorporated fiduciary making such deposit, and the proceeds of such sale or transfer accounted for and delivered to such unincorporated fiduciary or principal.
HISTORY: 1962 Code Section 62-432; 1959 (51) 376.
2023 South Carolina Code of Laws › Title 35 - Securities › Chapter 5 - Nominee Registration Of Securities Held By Corporate Fiduciaries › Section 35-5-30. Corporations, registrars, or transfer agents shall not be liable for registrations and transfers authorized by nominees.

No domestic or foreign corporation or the registrar or transfer agent of any corporation shall be liable for registering or causing to be registered on the books of such corporation any stock or stocks, bond or bonds or other securities in the name of any nominee of such bank, trust company or national bank or for transferring or causing to be transferred on the books of any such corporation any stock or stocks, bond or bonds or other securities theretofore registered by such corporation in the name of any nominee or nominees of such bank, trust company or national bank as provided in this chapter when the transfer is made upon the authorization of such nominee.
HISTORY: 1962 Code Section 62-433; 1959 (51) 376.
2023 South Carolina Code of Laws › Title 35 - Securities › Chapter 5 - Nominee Registration Of Securities Held By Corporate Fiduciaries › Section 35-5-40. Prohibition of registration by instrument creating fiduciary relationship.

The provisions of this chapter shall apply to any bank, trust company or national bank located in this State acting in a fiduciary capacity whether such fiduciary capacity arose before or is created after the effective date of this chapter, unless registration as provided in this chapter is prohibited by the will, judgment, decree or any other instrument creating the fiduciary relationship.
HISTORY: 1962 Code Section 62-434; 1959 (51) 376.
2023 South Carolina Code of Laws › Title 35 - Securities › Chapter 6 - Uniform Transfer On Death Security Registration Act › Section 35-6-10. Short title; definitions.

(A) This chapter may be cited as the Uniform Transfer on Death Security Registration Act.
(B) As used in this chapter:
(1) "Beneficiary form" means a registration of a security which indicates the present owner of the security and the intention of the owner regarding the person who will become the owner of the security upon the death of the owner.
(2) "Devisee" means a person designated in a will to receive a disposition of property.
(3) "Heirs" means those persons, including the surviving spouse, who are entitled under the laws of intestate succession to the property of a decedent.
(4) "Person" means an individual, a corporation, an organization, or other legal entity.
(5) "Personal representative" includes a personal representative, administrator, or other person who performs substantially the same functions by law.
(6) "Register", including its derivatives, means to issue a certificate showing the ownership of a certificated security or, in the case of an uncertificated security, to initiate or transfer an account showing ownership of securities.
(7) "Registration entity" means a person who originates or transfers a security title by registration, and includes a broker maintaining security accounts for customers and a transfer agent or other person acting for or as an issuer of securities.
(8) "Security" means and is defined as provided in Section 35-1-102(29) and as a security account.
(9) "Security account" means:
(a) a reinvestment account associated with a security; a securities account with a broker; a cash balance in a brokerage account, cash, interest earnings, or dividends earned or declared on a security in an account; a reinvestment account, or a brokerage account, whether or not credited to the account before the owner's death; or
(b) a cash balance or other property held for or due to the owner of a security as a replacement for or product of an account security, whether or not credited to the account before the owner's death.
(10) "State" includes any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, and any territory or possession subject to the legislative authority of the United States.
HISTORY: 1997 Act No. 102, Section 1, eff June 13, 1997; 2005 Act No. 110, Section 3, eff January 1, 2006.
Code Commissioner's Note
At the direction of the Code Commissioner, in (B)(8), the incorrect reference to "Section 35-1-102(28)" was corrected to read "Section 35-1-102(29)".
Effect of Amendment
The 2005 amendment, in paragraph (B)(8), substituted "35-1-102(28)" for "35-1-320(5) and (8)".
2023 South Carolina Code of Laws › Title 35 - Securities › Chapter 6 - Uniform Transfer On Death Security Registration Act › Section 35-6-20. Individuals eligible to obtain registration in beneficiary form; multiple owners of security.

Only individuals whose registration of a security shows sole ownership by one individual or multiple ownership by two or more with right of survivorship, rather than as tenants in common, may obtain registration in beneficiary form. Multiple owners of a security registered in beneficiary form hold as joint tenants with right of survivorship, and not as tenants in common.
HISTORY: 1997 Act No. 102, Section 1, eff June 13, 1997.
2023 South Carolina Code of Laws › Title 35 - Securities › Chapter 6 - Uniform Transfer On Death Security Registration Act › Section 35-6-30. Security allowed to be registered in beneficiary form when form authorized by certain laws; presumption of validity.

A security may be registered in beneficiary form, if the form is authorized by this chapter, by the laws of the state of organization of the issuer or registering entity; by the laws of the state of the location of the registering entity's principal office, the office of its transfer agent, or its office making the registration; or by the laws of the state listed as the owner's address at the time of registration. A registration governed by the law of a jurisdiction in which these provisions are not in force or was not in force when a registration in beneficiary form was made is nevertheless presumed to be valid and authorized as a matter of contract law.
HISTORY: 1997 Act No. 102, Section 1, eff June 13, 1997.
2023 South Carolina Code of Laws › Title 35 - Securities › Chapter 6 - Uniform Transfer On Death Security Registration Act › Section 35-6-40. Designation of beneficiary to take ownership upon death of owner or owners to be included for security to be registered in beneficiary form.

A security, whether evidenced by a certificate or account, is registered in beneficiary form when the registration includes a designation of a beneficiary to take ownership at the death of the owner or the death of all multiple owners.
HISTORY: 1997 Act No. 102, Section 1, eff June 13, 1997.
2023 South Carolina Code of Laws › Title 35 - Securities › Chapter 6 - Uniform Transfer On Death Security Registration Act › Section 35-6-50. Certain words signify registration in beneficiary form.

Registration in beneficiary form may be shown by the words, "transfer on death" or the abbreviation "TOD", or by the words "pay on death" or the abbreviation "POD", after the name of the registered owner and before the name of a beneficiary.
HISTORY: 1997 Act No. 102, Section 1, eff June 13, 1997.
2023 South Carolina Code of Laws › Title 35 - Securities › Chapter 6 - Uniform Transfer On Death Security Registration Act › Section 35-6-60. Ownership not affected until owner's death; cancellation or change.

The designation of a transfer on death beneficiary on a registration in beneficiary form has no effect on ownership until the owner's death. A registration of a security in beneficiary form may be canceled or changed at any time by the sole owner or all then surviving owners, without the consent of the beneficiary.
HISTORY: 1997 Act No. 102, Section 1, eff June 13, 1997.
2023 South Carolina Code of Laws › Title 35 - Securities › Chapter 6 - Uniform Transfer On Death Security Registration Act › Section 35-6-70. Death of sole owner or last of multiple owners; passing of ownership; reregistration; lack of surviving beneficiary.

On death of a sole owner or the last to die of all multiple owners, ownership of securities registered in beneficiary form passes to the beneficiary or beneficiaries who survive all owners. On proof of death of all owners and compliance with any applicable requirements of the registering entity, a security registered in beneficiary form may be reregistered in the name of the beneficiary or beneficiaries who survived the death of all owners. Until division of the security after the death of all owners, multiple beneficiaries surviving the death of all owners hold their interests as tenants in common. If no beneficiary survives the death of all owners, the security belongs to the estate of the deceased sole owner or the estate of the last to die of all multiple owners.
HISTORY: 1997 Act No. 102, Section 1, eff June 13, 1997.
2023 South Carolina Code of Laws › Title 35 - Securities › Chapter 6 - Uniform Transfer On Death Security Registration Act › Section 35-6-80. Registering entities; duties and protections.

(A) A registering entity is not required to offer or to accept a request for security registration in beneficiary form. If a registration in beneficiary form is offered by a registering entity, the owner requesting registration in beneficiary form assents to the protections given to the registering entity by this chapter.
(B) By accepting a request for registration of a security in beneficiary form, the registering entity agrees that the registration will be implemented on death of the deceased owner as provided in this chapter.
(C) A registering entity is discharged from all claims to a security by the estate, creditors, heirs, or devises of a deceased owner if it registers a transfer of a security in accordance with Section 35-6-70 and does so in good faith reliance (1) on the registration, (2) on this chapter, and (3) on information provided to it by affidavit of the personal representative of the deceased owner, or by the surviving beneficiary or by the surviving beneficiary's representatives, or other information available to the registering entity. The protections of this chapter do not extend to a reregistration or payment made after a registering entity has received written notice from any claimant to any interest in the security objecting to implementation of a registration in beneficiary form. No other notice or other information available to the registering entity affects its right to protection under this chapter.
(D) The protection provided by this chapter to the registering entity of a security does not affect the rights of beneficiaries in disputes between themselves and other claimants to ownership of the security transferred or its value of proceeds.
HISTORY: 1997 Act No. 102, Section 1, eff June 13, 1997.
2023 South Carolina Code of Laws › Title 35 - Securities › Chapter 6 - Uniform Transfer On Death Security Registration Act › Section 35-6-90. Effectiveness of transfer on death by reason of contract; effect of chapter on rights of creditors of security owners against beneficiaries and transferees.

(A) A transfer on death resulting from a registration in beneficiary form is effective by reason of the contract regarding the registration between the owner and the registering entity and this chapter and is not testamentary.
(B) This chapter does not limit the rights of creditors of security owners against beneficiaries and other transferees under other laws of this State.
HISTORY: 1997 Act No. 102, Section 1, eff June 13, 1997.
2023 South Carolina Code of Laws › Title 35 - Securities › Chapter 6 - Uniform Transfer On Death Security Registration Act › Section 35-6-100. Registering entities; establishment of terms and conditions under which they will receive requests.

A registering entity offering to accept registrations in beneficiary form may establish the terms and conditions under which it will receive requests (1) for registrations in beneficiary form, and (2) for implementation of registrations in beneficiary form, including requests for cancellation of previously registered transfer on death beneficiary designations and requests for reregistration to effect a change of beneficiary. The terms and conditions established may provide for proving death, avoiding or resolving any problems concerning fractional shares, designating primary and contingent beneficiaries, and substituting a named beneficiary's descendants to take in the place of the named beneficiary in the event of the beneficiary's death. Substitution may be indicated by appending to the name of the primary beneficiary the letters "LDPS", standing for "lineal descendants per stirpes". This designation substitutes a deceased beneficiary's descendants who survive the owner for a beneficiary who fails to so survive, the descendants to be identified and to share in accordance with the law of the beneficiary's domicile at the owner's death governing inheritance by descendant of an intestate. Other forms of identifying beneficiaries who are to take on one or more contingencies, and rules for providing proofs and assurances needed to satisfy reasonable concerns by registering entities regarding conditions and identities relevant to accurate implementation of registrations in beneficiary form, may be contained in a registering entity's terms and conditions.
HISTORY: 1997 Act No. 102, Section 1, eff June 13, 1997.
2023 South Carolina Code of Laws › Title 35 - Securities › Chapter 11 - South Carolina Anti-money Laundering Act › Section 35-11-110. Applicability of chapter.

This chapter does not apply to:
(1) the United States or a department, agency, or instrumentality of the United States;
(2) money transmission by the United States Postal Service or by a contractor on behalf of the United States Postal Service;
(3) a state, county, city, or another governmental agency or governmental subdivision of a state;
(4) a bank, bank holding company, office of an international banking corporation, branch of a foreign bank, corporation organized pursuant to the Bank Service Corporation Act, 12 U.S.C. Section 1861-1867 (Supp. V 1999), or corporation organized under the Edge Act, 12 U.S.C. Section 611-633 (1994 & Supp. V 1999), under the laws of a state or the United States if it does not issue, sell, or provide payment instruments or stored value through an authorized delegate who is not such a person;
(5) electronic funds transfer of governmental benefits for a federal, state, county, or governmental agency by a contractor on behalf of the United States or a department, agency, or instrumentality of the United States, or a state or governmental subdivision, agency, or instrumentality of a state;
(6) a board of trade designated as a contract market under the federal Commodity Exchange Act, 7 U.S.C. Section 1-25 (1994), or a person that, in the ordinary course of business, provides clearance and settlement services for a board of trade to the extent of its operation as or for a board of trade;
(7) a registered futures commission merchant under the federal commodities laws to the extent of its operation as a futures commission merchant;
(8) a person who provides clearance or settlement services pursuant to a registration as a clearing agency or an exemption from that registration granted under the federal securities laws to the extent of its operation as a provider of clearance or settlement services;
(9) an operator of a payment system to the extent that it provides processing, clearing, or settlement services, between or among persons excluded by this section, in connection with wire transfers, credit card transactions, debit card transactions, stored-value transactions, automated clearing house transfers, similar funds transfers;
(10) a person registered as a securities broker-dealer under federal or state securities laws to the extent of his operation as a securities broker-dealer; or
(11) a credit union regulated and insured by the National Credit Union Association.
HISTORY: 2016 Act No. 266 (H.4554), Section 1, eff May 25, 2018.
2023 South Carolina Code of Laws › Title 35 - Securities › Chapter 11 - South Carolina Anti-money Laundering Act › Section 35-11-200. License required.

(A) A person may not engage in the business of money transmission or advertise, solicit, or hold himself out as providing money transmission unless the person is:
(1) licensed under this chapter or approved to engage in money transmission pursuant to Section 35-11-210;
(2) an authorized delegate of a person licensed pursuant to this article; or
(3) an authorized delegate of a person approved to engage in money transmission pursuant to Section 35-11-210.
(B) A license issued pursuant to this chapter is not transferable or assignable.
HISTORY: 2016 Act No. 266 (H.4554), Section 1, eff May 25, 2018.
2023 South Carolina Code of Laws › Title 35 - Securities › Chapter 11 - South Carolina Anti-money Laundering Act › Section 35-11-210. Approval to engage in money transmission when licensed in another state.

(A) A person who is licensed to engage in money transmission in at least one other state, with the approval of the commissioner and in accordance with this section, may engage in money transmission and currency exchange in this State without being licensed pursuant to Section 35-11-205 if the:
(1) state in which the person is licensed has enacted the Uniform Money Services Act or the commissioner determines that the money transmission laws of that state are substantially similar to those imposed by the law of this State;
(2) person submits to, and in the form required by, the commissioner:
(a) in a record, an application for approval to engage in money transmission and currency exchange in this State without being licensed pursuant to Section 35-11-205;
(b) a nonrefundable fee of one thousand dollars; and
(c) a certification of license history in the other state.
(B) When an application for approval pursuant this section is complete, the commissioner shall promptly notify the applicant in a record, of the date on which the request was determined to be complete and:
(1) the commissioner shall approve or deny the request within one hundred twenty days after that date; or
(2) if the request is not approved or denied within one hundred twenty days after that date the:
(a) request is approved; and
(b) approval takes effect as of the first business day after expiration of the one hundred twenty-day period.
(C) A person who engages in money transmission and currency exchange in this State pursuant to this section shall comply with the requirements of, and is subject to the sanctions provided in this chapter, as if the person were licensed pursuant to Section 35-11-220.
HISTORY: 2016 Act No. 266 (H.4554), Section 1, eff May 25, 2018.
2023 South Carolina Code of Laws › Title 35 - Securities › Chapter 11 - South Carolina Anti-money Laundering Act › Section 35-11-215. Security.

(A) Except as otherwise provided in subsection (B), a surety bond, letter of credit, or other similar security acceptable to the commissioner in the amount of fifty thousand dollars plus ten thousand dollars for each location, not exceeding a total addition of two hundred fifty thousand dollars, must accompany an application for a license.
(B) Security must be in a form satisfactory to the commissioner and payable to the State for the benefit of a claimant against the licensee to secure the faithful performance of the obligations of the licensee with respect to money transmission.
(C) The aggregate liability on a surety bond may not exceed the principal sum of the bond. A claimant against a licensee may maintain an action on the bond, or the commissioner may maintain an action on behalf of the claimant.
(D) A surety bond must cover claims for so long as the commissioner specifies, but for at least five years after the licensee ceases to provide money services in this State. However, the commissioner may permit the amount of security to be reduced or eliminated before the expiration of that time to the extent the amount of the licensee's payment instruments or stored-value obligations outstanding in this State is reduced. The commissioner may permit a licensee to substitute another form of security acceptable to the commissioner for the security effective at the time the licensee ceases to provide money services in this State.
(E) In lieu of the security prescribed in this section, an applicant for a license or a licensee may provide security in a form prescribed by the commissioner.
(F) The commissioner may increase the amount of security required to a maximum of one million dollars if the financial condition of a licensee so requires, as evidenced by reduction of net worth, financial losses, or other relevant criteria.
HISTORY: 2016 Act No. 266 (H.4554), Section 1, eff May 25, 2018.
2023 South Carolina Code of Laws › Title 35 - Securities › Chapter 11 - South Carolina Anti-money Laundering Act › Section 35-11-220. Issuance of license.

(A) When an application is filed pursuant to this article, the commissioner shall investigate the applicant's financial condition and responsibility, financial and business experience, character, and general fitness. The commissioner may conduct an on-site investigation of the applicant, the reasonable cost of which the applicant must pay. The commissioner shall issue a license to an applicant pursuant to this article if the commissioner finds that all of the following conditions have been fulfilled:
(1) the applicant has complied with Sections 35-11-205, 35-11-215, and 35-11-230; and
(2) the financial condition and responsibility, financial and business experience, competence, character, and general fitness of the applicant; and the competence, experience, character, and general fitness of the executive officers, managers, directors, and persons in control of the applicant indicate that it is in the interest of the public to permit the applicant to engage in money transmission.
(B) When an application for an original license pursuant to this article is complete, the commissioner promptly shall notify the applicant in a record of the date on which the application was determined to be complete and:
(1) the commissioner shall approve or deny the application within one hundred twenty days after that date; or
(2) if the application is not approved or denied within one hundred twenty days after that date the:
(a) application is considered approved; and
(b) commissioner shall issue the license pursuant to this article, to take effect as of the first business day after expiration of the one hundred twenty-day period.
(C) The commissioner may for good cause extend the application period.
(D) An applicant whose application is denied by the commissioner pursuant to this article may appeal, within thirty days after receipt of the notice of the denial, from the denial and request a hearing.
HISTORY: 2016 Act No. 266 (H.4554), Section 1, eff May 25, 2018.
2023 South Carolina Code of Laws › Title 35 - Securities › Chapter 11 - South Carolina Anti-money Laundering Act › Section 35-11-225. Renewal of license.

(A) A person licensed pursuant to this article shall pay an annual renewal fee of seven hundred fifty dollars no later than thirty days before the anniversary of the issuance of the license or, if the last day is not a business day, on the next business day.
(B) A licensee under this article shall submit a renewal report with the renewal fee, in a form and in a medium prescribed by the commissioner. The renewal report must state or contain:
(1) a copy of the licensee's most recent audited annual financial statement or, if the licensee is a wholly owned subsidiary of another corporation, the most recent audited consolidated annual financial statement of the parent corporation or the licensee's most recent audited consolidated annual financial statement;
(2) the number and monetary amount of payment instruments and stored value sold by the licensee in this State which have not been included in a renewal report, and the monetary amount of payment instruments and stored value currently outstanding;
(3) a description of each material change in information submitted by the licensee in its original license application which has not been reported to the commissioner on a required report;
(4) a list of the licensee's permissible investments and a certification that the licensee continues to maintain permissible investments pursuant to the requirements set forth in Sections 35-11-600 and 35-11-605;
(5) proof that the licensee continues to maintain adequate security as required by Section 35-11-215; and
(6) a list of the locations in this State where the licensee or an authorized delegate of the licensee engages in money transmission or provides other money services.
(C) If a licensee does not file a renewal report or pay its renewal fee by the renewal date or an extension of time granted by the commissioner, the commissioner shall send the licensee a notice of suspension. Unless the licensee files the report and pays the renewal fee before expiration of ten days after the notice is sent, the licensee's license is suspended ten days after the commissioner sends the notice of suspension. The suspension must be lifted if, within twenty days after its license is suspended, the licensee:
(1) files the report and pays the renewal fee; and
(2) pays one hundred dollars for each day after suspension that the commissioner did not receive the renewal report and the renewal fee.
(D) The commissioner for good cause may grant an extension of the renewal date.
HISTORY: 2016 Act No. 266 (H.4554), Section 1, eff May 25, 2018.
2023 South Carolina Code of Laws › Title 35 - Securities › Chapter 11 - South Carolina Anti-money Laundering Act › Section 35-11-230. Net worth.

A person licensed pursuant to this article shall maintain a net worth of at least two hundred fifty thousand dollars determined in accordance with generally accepted accounting principles.
HISTORY: 2016 Act No. 266 (H.4554), Section 1, eff May 25, 2018.
2023 South Carolina Code of Laws › Title 35 - Securities › Chapter 11 - South Carolina Anti-money Laundering Act › Section 35-11-300. License required.

(A) A person may not engage in currency exchange or advertise, solicit, or hold himself out as providing currency exchange for which the person receives revenues equal or greater than five percent of total revenues unless the person is:
(1) licensed pursuant to this chapter;
(2) licensed for money transmission pursuant to Article 2, or approved to engage in money transmission pursuant to Section 35-11-210;
(3) an authorized delegate of a person licensed pursuant to Article 2; or
(4) an authorized delegate of a person approved to engage in money transmission pursuant to Section 35-11-210.
(B) A license issued pursuant to this chapter is not transferable or assignable.
HISTORY: 2016 Act No. 266 (H.4554), Section 1, eff May 25, 2018.
2023 South Carolina Code of Laws › Title 35 - Securities › Chapter 11 - South Carolina Anti-money Laundering Act › Section 35-11-305. Application for license.

(A) A person applying for a license pursuant to this article shall do so in a form and in a medium prescribed by the commissioner. The application shall state or contain:
(1) the legal name and residential and business addresses of the applicant, if the applicant is an individual or, if the applicant is not an individual, the name of each partner, executive officer, manager, and director;
(2) the location of the principal office of the applicant;
(3) complete addresses of other locations in this State where the applicant proposes to engage in currency exchange, including all limited stations and mobile locations;
(4) a description of the source of money and credit to be used by the applicant to engage in currency exchange; and
(5) other information the commissioner reasonably requires with respect to the applicant, but not more than the commissioner may require pursuant to Article 2.
(B) A nonrefundable application fee of one thousand five hundred dollars and a license fee of seven hundred fifty dollars must accompany an application for a license pursuant to this article. The license fee must be refunded if the application is denied.
HISTORY: 2016 Act No. 266 (H.4554), Section 1, eff May 25, 2018.
2023 South Carolina Code of Laws › Title 35 - Securities › Chapter 11 - South Carolina Anti-money Laundering Act › Section 35-11-310. Issuance of license.

(A) When a person applies for a license pursuant to this article, the commissioner shall investigate the applicant's financial condition and responsibility, financial and business experience, character, and general fitness. The commissioner may conduct an on-site investigation of the applicant, the reasonable cost of which the applicant must pay. The commissioner shall issue a license to an applicant pursuant to this article if the commissioner finds that all of the following conditions have been fulfilled:
(1) the applicant has complied with Section 35-11-305; and
(2) the financial condition and responsibility, financial and business experience, competence, character, and general fitness of the applicant; and the competence, experience, character, and general fitness of the executive officers, managers, directors, and persons in control of the applicant indicate that it is in the interest of the public to permit the applicant to engage in currency exchange.
(B) When an application for an original license pursuant to this article is complete, the commissioner promptly shall notify the applicant in a record of the date on which the application was determined to be complete and:
(1) the commissioner shall approve or deny the application within one hundred twenty days after that date; or
(2) if the application is not approved or denied within one hundred twenty days after that date the:
(a) application is considered approved; and
(b) commissioner shall issue the license pursuant to this article, to take effect as of the first business day after expiration of the period.
(C) The commissioner may for good cause extend the application period.
(D) An applicant whose application is denied a license by the commissioner pursuant to this article may appeal, within thirty days after receipt of the notice of the denial, from the denial and request a hearing.
HISTORY: 2016 Act No. 266 (H.4554), Section 1, eff May 25, 2018.
2023 South Carolina Code of Laws › Title 35 - Securities › Chapter 11 - South Carolina Anti-money Laundering Act › Section 35-11-315. Renewal of license.

(A) A person licensed pursuant to this article shall pay a biennial renewal fee of seven hundred fifty dollars no later than thirty days before each biennial anniversary of the issuance of the license or, if the last day is not a business day, on the next business day.
(B) A person licensed pursuant to this article shall submit a renewal report with the renewal fee, in a form and in a medium prescribed by the commissioner. The renewal report must state or contain a:
(1) description of each material change in information submitted by the licensee in its original license application which has not been reported to the commissioner on a required report; and
(2) list of the locations in this State where the licensee or an authorized delegate of the licensee engages in currency exchange, including limited stations and mobile locations.
(C) If a licensee does not file a renewal report and pay its renewal fee by the renewal date or an extension of time granted by the commissioner, the commissioner shall send the licensee a notice of suspension. Unless the licensee files the report and pays the renewal fee before expiration of ten days after the notice is sent, the licensee's license is suspended ten days after the commissioner sends the notice of suspension.
(D) The commissioner for good cause may grant an extension of the renewal date.
HISTORY: 2016 Act No. 266 (H.4554), Section 1, eff May 25, 2018.
2023 South Carolina Code of Laws › Title 35 - Securities › Chapter 11 - South Carolina Anti-money Laundering Act › Section 35-11-400. Relationship between licensee and authorized delegate.

(A) In this section, "remit" means to make direct payments of money to a licensee or its representative authorized to receive money or to deposit money in a bank in an account specified by the licensee.
(B) A contract between a licensee and an authorized delegate must require the authorized delegate to operate in full compliance with this chapter. For such contracts initiated on or after the effective date of this act, the licensee shall provide to each authorized delegate information sufficient for compliance with this chapter.
(C) An authorized delegate shall remit all money owing to the licensee in accordance with the terms of the contract between the licensee and the authorized delegate.
(D) If a license is suspended or revoked or a licensee does not renew its license, the commissioner shall notify all authorized delegates of the licensee whose names are in a record filed with the commissioner of the suspension, revocation, or nonrenewal. After notice is sent or publication is made, an authorized delegate shall immediately cease to provide money services as a delegate of the licensee.
(E) An authorized delegate may not provide money services outside the scope of activity permissible under the contract between the authorized delegate and the licensee, except activity in which the authorized delegate is authorized to engage in pursuant to Article 2 of this chapter. An authorized delegate of a licensee holds in trust for the benefit of the licensee all money net of fees received from money transmission.
(F) An authorized delegate may not use a subdelegate to conduct money services on behalf of a licensee.
HISTORY: 2016 Act No. 266 (H.4554), Section 1, eff May 25, 2018.
2023 South Carolina Code of Laws › Title 35 - Securities › Chapter 11 - South Carolina Anti-money Laundering Act › Section 35-11-405. Unauthorized activities.

A person may not provide money services on behalf of a person not licensed pursuant to this chapter. A person that engages in that activity provides money services to the same extent as if the person were a licensee.
HISTORY: 2016 Act No. 266 (H.4554), Section 1, eff May 25, 2018.
2023 South Carolina Code of Laws › Title 35 - Securities › Chapter 11 - South Carolina Anti-money Laundering Act › Section 35-11-500. Authority to conduct examinations.

(A) The commissioner may conduct an annual examination of a licensee or of any of the licensee's authorized delegates on a forty-five day notice in a record to the licensee.
(B) The commissioner may examine a licensee or its authorized delegate, at any time, without notice, if the commissioner has reason to believe that the licensee or authorized delegate is engaging in an unsafe or unsound practice or has violated or is violating this chapter or a rule adopted or an order issued pursuant to this chapter.
(C) If the commissioner concludes that an on-site examination is necessary pursuant to subsection (A), the licensee shall pay the reasonable cost of the examination.
(D) Information obtained during an examination pursuant to this chapter may be disclosed only as provided in Section 35-11-530.
HISTORY: 2016 Act No. 266 (H.4554), Section 1, eff May 25, 2018.
2023 South Carolina Code of Laws › Title 35 - Securities › Chapter 11 - South Carolina Anti-money Laundering Act › Section 35-11-505. Cooperation.

The commissioner may consult and cooperate with other state money services regulators in enforcing and administering this act. They jointly may pursue examinations and take other official action that they are otherwise empowered to take.
HISTORY: 2016 Act No. 266 (H.4554), Section 1, eff May 25, 2018.