reglab/statecodes huggingface dataset:
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 8 - Joint Accounts; Adverse Claimants; Trust Accounts › § 26–803. Notice of adverse claim to deposit

§ 26–803. Notice of adverse claim to deposit.
Notice to any bank or trust company doing business in the District of Columbia of an adverse claim to a deposit standing on its books to the credit of any person shall not be effectual to cause said bank or trust company to recognize said adverse claimant unless said adverse claimant shall also either: (1) procure a restraining order, injunction, or other appropriate process against said bank or trust company from a court of competent jurisdiction in a cause therein instituted by him wherein the person to whose credit the deposit stands is made a party and served with summons; or (2) execute to such bank or trust company, in form and with sureties acceptable to it, a bond indemnifying said bank or trust company from any and all liability, loss, damage, costs, and expenses, for and on account of the payment of such adverse claim or the dishonor of the check or other order of the person to whose credit the deposit stands on the books of said bank or trust company; provided, that this section shall not apply to any instance where the person to whose credit the deposit stands is a fiduciary for such adverse claimant, and the facts constituting such relationship, together with the facts showing reasonable cause of belief on the part of the said claimant that the said fiduciary is about to misappropriate said deposit, are made to appear by the affidavit of such claimant.
(Apr. 5, 1939, 53 Stat. 566, ch. 37, § 2.)
Prior Codifications
1981 Ed., § 26-203.
1973 Ed., § 26-203.
Section References
This section is referenced in § 26-710.
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 8 - Joint Accounts; Adverse Claimants; Trust Accounts › § 26–804. Payment of trust accounts on death of trustee

§ 26–804. Payment of trust accounts on death of trustee.
Whenever a deposit, savings account, or share account, which is in form in trust for another, shall be made or held by any person in any bank, trust company, savings and loan association, building association, building and loan association, or federal savings and loan association, doing business in the District of Columbia, and no other or further notice of the existence and terms of a legal and valid trust shall have been given in writing to such bank, trust company, or other association, such deposit, savings account, or share account, or any part thereof, together with the dividends, or interest thereon, may, in the event of the death of the trustee, be paid to the person for whom such deposit, savings account, or share account was made or held, or to his legal representative.
(Apr. 5, 1939, 53 Stat. 567, ch. 37, § 4; July 19, 1954, 68 Stat. 494, ch. 545, § 1.)
Prior Codifications
1981 Ed., § 26-204.
1973 Ed., § 26-204.
Section References
This section is referenced in § 26-710.
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 8A - Merchant Banks › Subchapter I - General Provisions › § 26–831.01. Short title

§ 26–831.01. Short title.
This chapter may be cited as the “Merchant Bank Act of 2000”.
(June 9, 2001, D.C. Law 13-308, § 301, 48 DCR 3244.)
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 8A - Merchant Banks › Subchapter I - General Provisions › § 26–831.02. Definitions

§ 26–831.02. Definitions.
For the purposes of this chapter, the term:
(1) “Affiliate” shall have the same meaning as set forth in § 26-551.02(1).
(2) “Appropriate financial institutions agency” means the federal or state agency with statutory authority over the financial institution activities of a financial institution.
(3) “Capital” shall have the same meaning as set forth in § 26-551.02(6).
(4) “Commissioner” shall have the same meaning as set forth in § 26-551.02(7).
(5) “Department” shall have the same meaning as set forth in § 26-551.02(9).
(6) “Deposit” means a demand, time, or savings deposit, savings share account, withdrawable or repurchasable share, investment certificate, or other savings account or savings deposit account made by an individual, corporation, partnership, state or federal government unit, or any other government organization, without regard to the location of the depositor.
(7) “District” means the District of Columbia.
(8) “District of Columbia Banking Code” shall have the same meaning as set forth in § 26-551.02(14).
(9) “Financial institution” shall have the same meaning as set forth in § 26-551.02(18).
(10) “Merchant bank” means a financial institution that is chartered or organized under the District of Columbia Banking Code as a merchant bank and is under the authority and supervision of the Commissioner.
(11) “Subsidiary” shall have the same meaning as set forth in § 26-551.02(24).
(12) “Superior Court” means Superior Court of the District of Columbia.
(13) “Universal bank” shall have the same meaning as set forth in § 26-1401.02(28).
(June 9, 2001, D.C. Law 13-308, § 302, 48 DCR 3244; June 11, 2004, D.C. Law 15-166, § 2(i), 51 DCR 2817.)
Effect of Amendments
D.C. Law 15-166 rewrote pars. (4) and (5) which had read as follows: (4) “Commissioner” means the Commissioner of the Department of Banking and Financial Institutions. “(5) ‘Department’ means the Department of Banking and Financial Institutions.”
Emergency Legislation
For temporary (90 day) amendment of section, see § 2(i) of Consolidation of Financial Services Emergency Amendment Act of 2004 (D.C. Act 15-381, February 27, 2004, 51 DCR 2653).
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 8A - Merchant Banks › Subchapter II - Application and Certification as a Merchant Bank › § 26–831.04. Issuance of certificate of authority

§ 26–831.04. Issuance of certificate of authority.
If the Commissioner approves the application of an applicant to be a merchant bank, the Commissioner shall issue to the applicant a charter stating that the applicant is authorized to conduct business as a merchant bank under this chapter.
(June 9, 2001, D.C. Law 13-308, § 304, 48 DCR 3244.)
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 8A - Merchant Banks › Subchapter II - Application and Certification as a Merchant Bank › § 26–831.05. Revocation or subsequent limitation of certificate of authority

§ 26–831.05. Revocation or subsequent limitation of certificate of authority.
If a merchant bank fails to maintain the standards and requirements of this chapter, the Commissioner shall, by order, revoke or limit the exercise of the powers of the merchant bank’s authority.
(June 9, 2001, D.C. Law 13-308, § 305, 48 DCR 3244.)
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 8A - Merchant Banks › Subchapter II - Application and Certification as a Merchant Bank › § 26–831.06. Voluntary termination of certification of authority

§ 26–831.06. Voluntary termination of certification of authority.
An applicant that is chartered as a merchant bank under this chapter may elect to terminate its charter by giving 60 days prior written notice of the termination to the Commissioner. A termination under this section shall be effective only with the written approval of the Commissioner. An applicant shall, as a condition to a termination under this section, terminate its exercise of all powers granted under this chapter before the termination of the certification. The Commissioner’s written approval of a applicant’s termination under this section shall be void if the applicant fails to satisfy the condition to termination under this section.
(June 9, 2001, D.C. Law 13-308, § 306, 48 DCR 3244.)
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 8A - Merchant Banks › Subchapter III - Powers and Authority of a Merchant Bank › § 26–831.07. Powers of merchant banks; limits on powers

§ 26–831.07. Powers of merchant banks; limits on powers.
(a) Except as provided in this chapter, a merchant bank shall have all the powers and authority of a District-chartered bank or District-chartered savings and loan, including powers and authority with respect to investments, loans, fiduciary and trust functions, and transactions; provided, that a merchant bank shall obtain certification as a universal bank before exercising those powers of a universal bank.
(b) A merchant bank shall not solicit, receive, or accept money, or its equivalent, on deposit, or engage in deposit-like activity, as a regular business activity.
(c) A merchant bank may issue a draft drawn on the merchant bank in the form of a treasurer’s check or cashier’s check.
(d) A merchant bank may deposit cash, whether constituting principal or income, in any financial institution inside or outside the District of Columbia.
(e) A merchant bank shall notify the Commissioner at least 30 days before the merchant bank establishes an office or branch office where the merchant bank intends to transact the business of the merchant bank.
(f) A merchant bank may apply to the Commissioner for certification, chartering, or organization as any other type of financial institution authorized under the District of Columbia Banking Code.
(June 9, 2001, D.C. Law 13-308, § 307, 48 DCR 3244; Oct. 19, 2002, D.C. Law 14-213, § 18(d), 49 DCR 8140.)
Effect of Amendments
D.C. Law 14-213, in subsec. (a), substituted “provided, that a merchant bank shall obtain certification as a universal bank before exercising those powers of a universal bank” for “provided, that a universal bank shall obtain certification as a universal bank before exercising those powers of a universal bank that a District-chartered bank or District-chartered savings and loan is not authorized to exercise”.
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 8A - Merchant Banks › Subchapter IV - Structure and Organization of a Merchant Bank; Capital Requirements › § 26–831.08. Capital requirements of a merchant bank

§ 26–831.08. Capital requirements of a merchant bank.
(a) The minimum amount of initial capital for a merchant bank shall be $20 million, of which at least $10 million shall be common stock or an equity interest. The balance may be composed of qualifying subordinated or similar debt as determined under regulations promulgated by the Commissioner. The Commissioner may modify the required minimum amount of initial capital if an applicant files with the Commissioner a written request and application, which application shall include a capital plan and any other documentation required by the Commissioner by regulation or order.
(b) A merchant bank shall maintain minimum capital in at least the same amount as the minimum initial capital required under subsection (a) of this section or in such other amount as the Commissioner may establish by rule or by order, after the filing of a request and application by a merchant bank; provided, the Commissioner shall not establish a minimum capital requirement for a merchant bank that is less than 150% of the tier 1 risk-based capital or 150% of the total risk-based capital established by the Board of Governors of the Federal Reserve System for a well-capitalized bank.
(June 9, 2001, D.C. Law 13-308, § 308, 48 DCR 3244.)
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 8A - Merchant Banks › Subchapter IV - Structure and Organization of a Merchant Bank; Capital Requirements › § 26–831.09. Structure and organization of merchant banks

§ 26–831.09. Structure and organization of merchant banks.
(a) A merchant bank may be organized as a corporation, limited liability company, limited partnership, or limited liability partnership.
(b) The articles of incorporation or other organizational documents of a merchant bank shall contain the following statement: “This [corporation/limited liability company/limited partnership/limited liability partnership] is subject to the requirements of the District of Columbia Banking Code and does not have the power to solicit, receive or accept money or its equivalent on deposit.” The appropriate business form listed in the bracketed text in the statement shall be included in the statement. The statement shall not otherwise be amended.
(c) A merchant bank may use as a part of its name the word “bank,” “banker”, “banking”, or any abbreviations of those words.
(June 9, 2001, D.C. Law 13-308, § 309, 48 DCR 3244.)
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 8A - Merchant Banks › Subchapter IV - Structure and Organization of a Merchant Bank; Capital Requirements › § 26–831.10. Policies of merchant bank’s business activities

§ 26–831.10. Policies of merchant bank’s business activities.
(a) The board of directors of a merchant bank, if the merchant bank is a corporation, or its equivalent governing body, if the merchant bank is another type of business entity, shall establish a written policy under which the merchant bank’s business activities shall be conducted. The written policy shall include the merchant bank’s business plan, operating procedures, investment policies, and lending policies. The written policy shall also address conflicts of interest and shall preclude a merchant bank from making an investment in a small business if the effect is to create the potential of a conflict of interest with a person having an ownership interest in the merchant bank.
(b) The written policy under subsection (a) of this section for business activities shall be reviewed and approved or disapproved by the Commissioner. If the Commissioner finds that the policy does not adequately regulate the business activities of the merchant bank, the Commissioner may require the board of directors, or equivalent governing body, to take corrective action.
(June 9, 2001, D.C. Law 13-308, § 310, 48 DCR 3244.)
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 8A - Merchant Banks › Subchapter V - Commissioner Possession, Receivership, Conservatorship, and Liquidation of Merchant Banks › § 26–831.11. Liquidation of merchant banks in general

§ 26–831.11. Liquidation of merchant banks in general.
A merchant bank shall not be liquidated except as provided by this chapter or in accordance with the order of a court of competent jurisdiction.
(June 9, 2001, D.C. Law 13-308, § 311, 48 DCR 3244.)
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 8A - Merchant Banks › Subchapter V - Commissioner Possession, Receivership, Conservatorship, and Liquidation of Merchant Banks › § 26–831.13. Resumption of business by a merchant bank

§ 26–831.13. Resumption of business by a merchant bank.
A merchant bank of which the Commissioner takes possession or which is operating under restrictions imposed by the Commissioner may be permitted by the Commissioner to resume business in accordance with the provisions of this chapter and subject to such conditions as may be imposed by the Commissioner.
(June 9, 2001, D.C. Law 13-308, § 313, 48 DCR 3244.)
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 8A - Merchant Banks › Subchapter V - Commissioner Possession, Receivership, Conservatorship, and Liquidation of Merchant Banks › § 26–831.14. Appointment of a receiver for a merchant bank

§ 26–831.14. Appointment of a receiver for a merchant bank.
(a) The Commissioner may petition the Superior Court to appoint a receiver for a merchant bank if there is a reasonable basis to believe that the merchant bank:
(1) Has violated a law, rule, regulation, a condition imposed by the Commissioner in connection with the approval of an application, an order or authorized request by the Commissioner, or a term or condition of a written agreement entered into with the Commissioner, and such violation affects the safe and sound condition and operation of the bank or the severity of the violation calls into question the competency of management or the quality of the operation of the bank;
(2) Has violated a condition imposed by the Commissioner in connection with the approval of an application, an order or authorized request of the Commissioner, or a written agreement entered into with the Commissioner;
(3) Is conducting its business in an unauthorized, unsafe, or unsound manner;
(4) Is in an unsafe and unsound condition;
(5) Has an impairment of its capital;
(6) Has suspended payment of its obligations;
(7) Has refused, upon proper demand, to submit its records and affairs for inspection to an examiner of the Department;
(8) Has refused to be examined upon oath regarding its affairs; or
(9) Has neglected, refused, or failed to take or continue proceedings for voluntary liquidation in accordance with any of the provisions of this chapter.
(b) The Superior Court may act upon a petition by the Commissioner for the appointment of a receiver immediately and without notice to any person. The Superior Court may appoint a receiver if the Superior Court determines that a condition set forth in subsection (a) of this section exists and that the bank is operating, or may operate, in an unsafe or unsound manner. The Superior Court may also issue an injunction to require a universal bank to correct any condition set forth in subsection (a) of this section, whether or not the bank is operating, or may operate, in an unsafe or unsound manner. If the Superior Court appoints a receiver and, after the appointment of the receiver, it appears to the court that reasons for receivership do not, or no longer, exist, the Superior Court shall dissolve the receivership and terminate any pending proceedings.
(c) Unless otherwise provided by law, a receiver, other than a receiver who is an employee of the Department and acting in his or her official capacity, shall post a bond in an amount to be determined by the Superior Court.
(d) The receiver shall, on a regular basis, report to the Commissioner regarding all matters involving the receivership.
(June 9, 2001, D.C. Law 13-308, § 314, 48 DCR 3244.)
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 8A - Merchant Banks › Subchapter V - Commissioner Possession, Receivership, Conservatorship, and Liquidation of Merchant Banks › § 26–831.15. Receiver duties and powers

§ 26–831.15. Receiver duties and powers.
(a) Subject to Superior Court approval, a receiver shall:
(1) Take possession of the books, records, and assets of the merchant bank and collect all debts, dues, and claims belonging to the merchant bank;
(2) Sue, defend, compromise, arbitrate, or otherwise settle all claims involving the merchant bank;
(3) Sell all real and personal property;
(4) Exercise all fiduciary functions of the merchant bank;
(5) Pay all administrative expenses of the receivership, which expenses shall be a first charge upon the assets of the merchant bank and shall be fully paid before a final distribution or payment of dividends to creditors or shareholders;
(6) Pay, ratably, all debts of the merchant bank; provided, that debts not exceeding $500 may be paid in full but the holders of such debt shall not be entitled to interest on the debt;
(7) Repay, ratably, any amount paid in by a shareholder by reason of an assessment made upon the stock of the merchant bank by the Department in accordance with this chapter;
(8) Pay, ratably, to the shareholders of the merchant bank, in proportion to the number of shares held and owned by each, the balance of the net assets of the merchant bank after payment or provision for payments as provided in this section;
(9) Have all the powers of the directors, officers, and shareholders of the merchant bank as necessary to support an action taken on behalf of the merchant bank; and
(10) Hold title to all the bank’s property, contracts, and rights of action
(b) Subject to Superior Court approval, a receiver may:
(1) Borrow money as necessary or expedient in aiding the liquidation of the merchant bank and secure the borrowed money by the pledge, hypothecation, or mortgage of the assets of the bank;
(2) Employ agents, legal counsel, accountants, appraisers, consultants, and other personnel, including, with the prior written approval of the Commissioner, personnel of the Department, that the receiver considers necessary or expedient to assist in the performance of the receiver’s duties; provided, that the expense of employing Department personnel shall be an administrative expense of the liquidation that shall be payable to the Department; or
(3) Exercise any other power and duty authorized by the Superior Court.
(June 9, 2001, D.C. Law 13-308, § 315, 48 DCR 3244; Oct. 19, 2002, D.C. Law 14-213, § 18(e), 49 DCR 8140.)
Effect of Amendments
D.C. Law 14-213, in subsec. (a)(7), validated a previously made technical correction.
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 8A - Merchant Banks › Subchapter V - Commissioner Possession, Receivership, Conservatorship, and Liquidation of Merchant Banks › § 26–831.17. Maintenance and disposal of records by receiver

§ 26–831.17. Maintenance and disposal of records by receiver.
(a) With the approval of the Superior Court, a receiver may dispose of records of the merchant bank in receivership that are obsolete and unnecessary to the continued administration of the receivership.
(b) The receiver may retain the records of the merchant bank and the receivership for a period of time that the receiver considers appropriate or for a period of time as ordered by the Superior Court.
(c) The receiver may devise a method for the effective, efficient, and economical maintenance of the records of the merchant bank and of the receiver’s office, including maintaining the records on any medium approved by the Superior Court.
(d) The receiver may use assets of a merchant bank to:
(1) Procure services to maintain the records of a liquidated merchant bank; or
(2) Pay fees, as established by the Commissioner, to the Commissioner necessary for the Commissioner to procure services to maintain the records of a liquidated merchant bank.
(June 9, 2001, D.C. Law 13-308, § 317, 48 DCR 3244.)
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 8A - Merchant Banks › Subchapter V - Commissioner Possession, Receivership, Conservatorship, and Liquidation of Merchant Banks › § 26–831.18. Conservator; appointment; bond and security; qualifications; expenses

§ 26–831.18. Conservator; appointment; bond and security; qualifications; expenses.
(a) If any of the grounds under § 26-833.12 authorizing the request for the appointment of a receiver exist or if the Commissioner determines that it is necessary to conserve the assets of a merchant bank for the benefit of the depositors, investors, or other creditors of the bank or for the benefit of the general public, the Commissioner may petition the Superior Court to appoint a conservator for a merchant bank.
(b) The Department shall be reimbursed out of the assets of the conservatorship, for all sums expended by the Department in connection with the conservatorship.
(c) All expenses of a conservatorship shall be paid out of the assets of the merchant bank upon the approval of the Commissioner, shall be a first charge upon the assets of the merchant bank, and shall be paid in full before a final distribution or payment of dividends to creditors or shareholders of the merchant bank.
(June 9, 2001, D.C. Law 13-308, § 318, 48 DCR 3244.)
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 8A - Merchant Banks › Subchapter V - Commissioner Possession, Receivership, Conservatorship, and Liquidation of Merchant Banks › § 26–831.19. Conservator; rights, powers, and privileges

§ 26–831.19. Conservator; rights, powers, and privileges.
(a) Under the supervision of the Commissioner, the conservator shall take possession of the books, records, and assets of the bank and shall take any action necessary to conserve the assets of the merchant bank pending further disposition of the business of the merchant bank as provided by law.
(b) Subject to Superior Court approval and under the supervision of the Commissioner, a conservator shall:
(1) Take possession of the books, records, and assets of the merchant bank and collect all debts, dues, and claims belonging to the merchant bank;
(2) Sue, defend, compromise, arbitrate, or otherwise settle all claims involving the merchant bank;
(3) Sell real and personal property if necessary to conserve the assets of the merchant bank;
(4) Exercise all fiduciary functions of the merchant bank;
(5) Pay all administrative expenses of the conservatorship, which expenses shall be a first charge upon the assets of the merchant bank and shall be fully paid before a final distribution or payment of dividends to creditors or shareholders;
(6) Pay the debts of the merchant bank if the conservator determines that payment of the debts is in the best interests of the merchant bank;
(7) Have all the powers of the directors, officers, and shareholders of the merchant bank as necessary to support an action taken on behalf of the merchant bank; and
(8) Hold title to all the bank’s property, contracts, and rights of action.
(c) Subject to Superior Court approval and under the supervision of the Commissioner, a conservator may:
(1) Employ agents, legal counsel, accountants, appraisers, consultants, and other personnel, including, with the prior written approval of the Commissioner, personnel of the Department, that the conservator considers necessary or expedient to assist in the performance of the conservator’s duties; provided, that the expense of employing Department personnel shall be an administrative expense of the liquidation that shall be payable to the Department; or
(2) Exercise any other power and duty authorized by the Superior Court.
(d) Unless otherwise provided by law, a conservator, other than a conservator who is an employee of the Department and acting in his or her official capacity, may be required to post a bond in an amount to be determined by the Superior Court.
(e) The conservator shall, on a regular basis, report to the Commissioner regarding all matters involving the conservatorship.
(June 9, 2001, D.C. Law 13-308, § 319, 48 DCR 3244.)
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 8A - Merchant Banks › Subchapter V - Commissioner Possession, Receivership, Conservatorship, and Liquidation of Merchant Banks › § 26–831.20. Authority of conservator to borrow money; purpose

§ 26–831.20. Authority of conservator to borrow money; purpose.
(a) With the prior approval of the Commissioner, the conservator of a merchant bank may borrow money to aid in the operation, reorganization, or liquidation of the bank, including the payment of liquidating dividends.
(b) With the prior approval of the Commissioner, the conservator may secure money borrowed under subsection (a) of this section by the pledge, hypothecation, or mortgage of the assets of the merchant bank.
(June 9, 2001, D.C. Law 13-308, § 320, 48 DCR 3244.)
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 8A - Merchant Banks › Subchapter V - Commissioner Possession, Receivership, Conservatorship, and Liquidation of Merchant Banks › § 26–831.21. Termination of conservatorship

§ 26–831.21. Termination of conservatorship.
(a) If the Commissioner determines that termination of the conservatorship and resumption of the transaction of the merchant bank’s business by the merchant bank can be achieved and maintained in a safe and sound manner and is otherwise in the public interest, the Commissioner may petition the Superior Court to terminate a conservatorship and permit the merchant bank to resume the transaction of its business, subject to terms, conditions, restrictions, and limitations as the Commissioner determines are appropriate.
(b) If the Superior Court determines that reasons for the conservatorship no longer exist, the Superior Court may dissolve the conservatorship and terminate any pending proceedings.
(c) If the Commissioner determines that it would be in the public interest, the Commissioner may petition the Superior Court for termination of a conservatorship and appointment of a receiver for the merchant bank under § 26-833.12.
(June 9, 2001, D.C. Law 13-308, § 321, 48 DCR 3244.)
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 8A - Merchant Banks › Subchapter VI - Miscellaneous Provisions › § 26–831.22. Rules

§ 26–831.22. Rules.
The Commissioner may prescribe rules governing the activities of merchant banks and implementing this chapter pursuant to subchapter I of Chapter 5 of Title 2. The rules shall take into account the objective of merchant banks to provide needed capital to businesses and the nondepository nature of merchant banks.
(June 9, 2001, D.C. Law 13-308, § 322, 48 DCR 3244.)
Cross References
Financial institutions organized under federal law, application of District law, see § 26-710.
Secured transactions, sales of accounts and chattel paper, security interest, attachment and enforceability, transactions remain subject to this chapter, see § 28:9-203.
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 9 - Money Lenders; Licenses › § 26–904. Register to be kept; contents; inspection; annual statements

§ 26–904. Register to be kept; contents; inspection; annual statements.
Every person, firm, voluntary association, joint-stock company, incorporated society, or corporation conducting such business shall keep a register, approved by said Mayor, showing in English, the amount of money loaned, the date when loaned and when due, the person to whom loaned, the property or thing named as security for the loan, where the same is located and in whose possession, the amount of interest, all fees, commissions, charges, and renewals charged, under whatever name. Such register shall be open for inspection to the said Mayor, his officers and agents, on every day, except Sundays and legal holidays, between the hours of 9:00 in the forenoon and 5:00 in the afternoon. Every such person, firm, voluntary association, joint-stock company, incorporated society, or corporation conducting such business shall, on or before the 20th day of January of each year, make to the said Mayor an annual statement in the form of a trial balance of its books on the 31st day of December in each year, specifying the different kinds of its liabilities and the different kinds of its assets, stating the amount of each, together with such other information as may be called for.
(Feb. 4, 1913, 37 Stat. 658, ch. 26, § 4.)
Prior Codifications
1981 Ed., § 26-704.
1973 Ed., § 26-604.
Change in Government
This section originated at a time when local government powers were delegated to a Board of Commissioners of the District of Columbia (see Acts Relating to the Establishment of the District of Columbia and its Various Forms of Governmental Organization in Volume 1). Section 401 of Reorganization Plan No. 3 of 1967 (see Reorganization Plans in Volume 1) transferred all of the functions of the Board of Commissioners under this section to a single Commissioner. The District of Columbia Self-Government and Governmental Reorganization Act, 87 Stat. 818, § 711 ( D.C. Code, § 1-207.11), abolished the District of Columbia Council and the Office of Commissioner of the District of Columbia. These branches of government were replaced by the Council of the District of Columbia and the Office of Mayor of the District of Columbia, respectively. Accordingly, and also pursuant to § 714(a) of such Act ( D.C. Code, § 1-207.14(a)), appropriate changes in terminology were made in this section.
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 9 - Money Lenders; Licenses › § 26–905. Maximum rate of interest; fees and charges covered; deduction from principal prohibited; statement and receipts furnished borrower; amount of loans; violations

§ 26–905. Maximum rate of interest; fees and charges covered; deduction from principal prohibited; statement and receipts furnished borrower; amount of loans; violations.
No such person, firm, voluntary association, joint-stock company, incorporated society, or corporation shall charge or receive a greater rate of interest upon any loan made by him or it that exceeds the lawful rate in the District of Columbia set by Chapter 33 of Title 28 on the actual amount of the loan, and this charge shall cover all fees, expenses, demands, and services of every character, including notarial and recording fees and charges, except upon the foreclosure of the security. The foregoing interest shall not be deducted from the principal of loan when same is made. Every such person, firm, voluntary association, joint-stock company, incorporated society, or corporation conducting such business shall furnish the borrower a written, typewritten, or printed statement at the time the loan is made, showing, in English, in clear and distinct terms, the amount of the loan, the date when loaned and when due, the person to whom the loan is made, the name of the lender, the amount of interest charged, and the lender shall give the borrower a plain and complete receipt for all payments made on account of the loan at the time such payments are made. No such loan greater than $200 shall be made to any 1 person; provided, that any person contracting, directly or indirectly, for, or receiving a greater rate of interest than that fixed in this chapter, shall forfeit all interest so contracted for or received; and in addition thereto shall forfeit to the borrower a sum of money, to be deducted from the amount due for principal, equal to one-fourth of the principal sum; and provided further, that any person in the employ of the government who shall loan money in violation of the provisions of this chapter shall forfeit his office or position, and be removed from the same.
(Feb. 4, 1913, 37 Stat. 659, ch. 26, § 5; Feb. 24, 1987, D.C. Law 6-188, § 2(a), 33 DCR 7687.)
Prior Codifications
1981 Ed., § 26-705.
1973 Ed., § 26-605.
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 9 - Money Lenders; Licenses › § 26–906. Complaints; investigation; suspension, revocation, or denial of license

§ 26–906. Complaints; investigation; suspension, revocation, or denial of license.
Any complaint against a licensee or applicant shall be made in writing to the Mayor and the Mayor, on the basis of a written complaint or his or her initiative, may conduct an investigation. Pursuant to the investigation, the Mayor may suspend, revoke, or deny a license to any applicant or licensee who violates the provisions of this chapter. Before suspending, revoking, or denying a license, the Mayor shall notify the applicant or licensee of his or her right to a hearing pursuant to § 2-509.
(Feb. 4, 1913, 37 Stat. 659, ch. 26, § 6; Feb. 24, 1987, D.C. Law 6-188, § 2(b), 33 DCR 7687.)
Prior Codifications
1981 Ed., § 26-706.
1973 Ed., § 26-606.
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 9 - Money Lenders; Licenses › § 26–907. Violations

§ 26–907. Violations.
(a) A person violating any provision of this chapter shall, upon conviction, be fined $300, imprisoned for not less than 30 days or more than 90 days, or both. In addition, the court may order any person violating this chapter to make restitution for the value of property illegally obtained as a result of the violation. Prosecutions for violations of this chapter or any rules issued pursuant to this chapter shall be conducted in the Superior Court of the District of Columbia by the Corporation Counsel or any of his or her assistants in the name of the District of Columbia.
(b) Civil fines, penalties, and fees may be imposed as alternative sanctions for any infraction of the provisions of this chapter, or any rules or regulations issued under the authority of this chapter, pursuant to Chapter 18 of Title 2. Adjudication of any infraction of this chapter shall be pursuant to Chapter 18 of Title 2.
(Feb. 4, 1913, 37 Stat. 659, ch. 26, § 7; Oct. 5, 1985, D.C. Law 6-42, § 466, 32 DCR 4450; Feb. 24, 1987, D.C. Law 6-188, § 2(c), 33 DCR 7687; Mar. 8, 1991, D.C. Law 8-237, § 5, 38 DCR 314.)
Prior Codifications
1981 Ed., § 26-707.
1973 Ed., § 26-607.
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 9 - Money Lenders; Licenses › § 26–908. Fees allowed on foreclosure

§ 26–908. Fees allowed on foreclosure.
In any foreclosure on any loan made under this chapter no charges for attorneys’ or agents’ fees shall be made or collected which will exceed 10% of the amount found due in such foreclosure proceedings.
(Feb. 4, 1913, 37 Stat. 660, ch. 26, § 8.)
Prior Codifications
1981 Ed., § 26-708.
1973 Ed., § 26-608.
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 9 - Money Lenders; Licenses › § 26–909. Penalty provisions in contracts prohibited

§ 26–909. Penalty provisions in contracts prohibited.
In any contract made in pursuance of the provisions of this chapter it shall be unlawful to incorporate any provision for liquidated or other damages as a penalty for any default or forfeiture thereunder.
(Feb. 4, 1913, 37 Stat. 660, ch. 26, § 9.)
Prior Codifications
1981 Ed., § 26-709.
1973 Ed., § 26-609.
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 9 - Money Lenders; Licenses › § 26–911. Enforcement; rules and regulations

§ 26–911. Enforcement; rules and regulations.
The enforcement of this chapter shall be intrusted to the Mayor of the District of Columbia, and the Council of the District of Columbia is hereby authorized and empowered to make all rules and regulations necessary in its judgment for the conduct of such business and the enforcement of this chapter in addition hereto and not inconsistent herewith.
(Feb. 4, 1913, 37 Stat. 660, ch. 26, § 11.)
Prior Codifications
1981 Ed., § 26-711.
1973 Ed., § 26-611.
Change in Government
This section originated at a time when local government powers were delegated to a Board of Commissioners of the District of Columbia (see Acts Relating to the Establishment of the District of Columbia and its Various Forms of Governmental Organization in Volume 1). Section 402(224) of Reorganization Plan No. 3 of 1967 (see Reorganization Plans in Volume 1) transferred all of the functions of the Board of Commissioners under this section to the District of Columbia Council, subject to the right of the Commissioner as provided in § 406 of the Plan. The District of Columbia Self-Government and Governmental Reorganization Act, 87 Stat. 818, § 711 ( D.C. Code, § 1-207.11), abolished the District of Columbia Council and the Office of Commissioner of the District of Columbia. These branches of government were replaced by the Council of the District of Columbia and the Office of Mayor of the District of Columbia, respectively. Accordingly, and also pursuant to § 714(a) of such Act ( D.C. Code, § 1-207.14(a)), appropriate changes in terminology were made in this section.
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 9 - Money Lenders; Licenses › § 26–912. Exemption of certain loans; severability

§ 26–912. Exemption of certain loans; severability.
(a) No provision of this chapter shall apply with respect to any loan, or to the making of any loan:
(1) To any corporation which is unable to plead any statutes against usury in any action;
(2) Repealed;
(3) Secured on real estate located outside of the District of Columbia;
(4) To a borrower residing, doing business, or incorporated outside of the District of Columbia; or
(5) Greater than $25,000.
(b) If any provision of this section or the application thereof to any person or circumstance, is held invalid, the remainder of the section, and the application of such provision to other persons or circumstances shall not be affected thereby.
(Feb. 4, 1913, ch. 26, § 14; Dec. 17, 1971, 85 Stat. 679, Pub. L. 92-200, § 9(a); Feb. 24, 1987, D.C. Law 6-188, § 2(e), (f), 33 DCR 7687.)
Prior Codifications
1981 Ed., § 26-712.
1973 Ed., § 26-612.
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 10 - Money Transmissions › § 26–1002. License required

§ 26–1002. License required.
(a) After the effective date of this chapter [July 18, 2000], no person shall engage in the business of money transmission without obtaining a license issued by the Superintendent [Commissioner] under § 26-1009, except as provided in subsection (d) of this section and in § 26-1003.
(b) A licensee may conduct its business in the District of Columbia at one or more locations, directly or indirectly owned by the licensee, or through one or more authorized delegates, or both, pursuant to the single license granted to the licensee.
(c) Except as provided in § 26-1012, a license issued pursuant to this chapter shall not be transferable or assignable.
(d) Any person engaged in selling payment instruments pursuant to a license issued under Chapter 31 [repealed] of Title 47 of the District of Columbia Official Code on the effective date of this chapter [July 18, 2000] may continue to engage in selling payment instruments without a license issued under this chapter until the Superintendent [Commissioner] has acted upon such person’s application for a license; provided, that the application is filed within 90 day of the effective date of this chapter [July 18, 2000].
(July 18, 2000, D.C. Law 13-140, § 3, 47 DCR 3431.)
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 10 - Money Transmissions › § 26–1003. Exemptions

§ 26–1003. Exemptions.
(a) This chapter shall not apply to:
(1) The United States or any department, agency, or instrumentality thereof;
(2) The United States Post Office;
(3) The District of Columbia government;
(4) Banks, bank holding companies, credit unions, building and loan associations, savings and loan associations, savings banks, or mutual banks organized under the laws of any state, the District of Columbia or the United States; provided, that they do not issue or sell payment instruments through authorized delegates who are not banks, bank holding companies, credit unions, building and loan associations, savings and loan associations, savings banks, or mutual banks; or
(5) The provision of electronic transfer of government benefits for any federal or District of Columbia governmental agency as defined in Federal Reserve Board Regulation E or by a contractor for and on behalf of the United States, or any department, agency or instrumentality thereof, or the District of Columbia government.
(b) Authorized delegates of a licensee, acting within the scope of authority conferred by a written contract as described in § 26-1016 shall not be required to obtain a license pursuant to this chapter.
(July 18, 2000, D.C. Law 13-140, § 4, 47 DCR 3431.)
Section References
This section is referenced in § 26-1002.
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 10 - Money Transmissions › § 26–1004. License qualifications

§ 26–1004. License qualifications.
(a) Each licensee under this chapter shall at all times have a net worth of not less than $100,000, calculated in accordance with generally accepted accounting principles. Licensees engaging in money transmission at more than one location or through authorized delegates shall have an additional net worth of $50,000 per location or authorized delegate located in the District of Columbia, as applicable. The maximum net worth required for all locations shall not exceed $500,000.
(b) Every corporate applicant, at the time of filing of an application for a license under this chapter and at all times after a license is issued, shall be in good standing in the state of its incorporation. All non-corporate applicants shall, at the time of the filing of an application for a license under this chapter and at all times after a license is issued, be registered or qualified to do business in the District of Columbia.
(July 18, 2000, D.C. Law 13-140, § 5, 47 DCR 3431.)
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 10 - Money Transmissions › § 26–1005. Permissible investments and statutory trust

§ 26–1005. Permissible investments and statutory trust.
(a) Each licensee under this chapter shall at all times possess 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 payment instruments issued or sold by the licensee in the United States. This requirement may be waived by the Superintendent [Commissioner] if the dollar volume of a licensee’s outstanding payment instruments does not exceed the bond or other security devices posted by the licensee pursuant to § 26-1007.
(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 in the event of the bankruptcy of the licensee.
(July 18, 2000, D.C. Law 13-140, § 6, 47 DCR 3431.)
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 10 - Money Transmissions › § 26–1008. Application fee

§ 26–1008. Application fee.
Each application must be accompanied by a non-refundable application fee in the amount of $500, plus $25 for each location in the District of Columbia. The maximum amount of application fees required for all locations shall not exceed $2,500. The application fee shall also constitute the license fee for the applicant’s first year of activities if the license is granted.
(July 18, 2000, D.C. Law 13-140, § 9, 47 DCR 3431.)
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 10 - Money Transmissions › § 26–1009. Issuance of license

§ 26–1009. Issuance of license.
(a) Upon the filing of a complete application, the Superintendent [Commissioner] shall investigate the financial condition and responsibility, financial and business experience, character, and general fitness of the applicant. The Superintendent [Commissioner] may conduct an on-site investigation of the applicant, the reasonable cost of which shall be borne by the applicant. If the Superintendent [Commissioner] finds that:
(1) The applicant’s business will be conducted honestly, fairly, and in a manner commanding the confidence and trust of the community;
(2) The applicant has fulfilled the requirements imposed by this chapter; and
(3) The applicant has paid the required license fee, the Superintendent [Commissioner] shall issue a license to the applicant authorizing the applicant to engage in the licensed activities in the District of Columbia for a term of one year. If these requirements have not been met, the Superintendent [Commissioner] shall deny the application in writing and set forth the reasons for the denial.
(b) The Superintendent [Commissioner] shall approve or deny every application for an original license within 120 days from the date a complete application is submitted, which period may be extended by the written consent of the applicant. The Superintendent [Commissioner] shall notify the applicant of the date when the application is deemed complete. In the absence of approval or denial of the application, or consent to the extension of the 120 day period, the application is deemed approved and the Superintendent [Commissioner] shall issue the license effective as of the first day after the 120 day or extended period has elapsed.
(c) Any applicant aggrieved by a denial issued by the Superintendent [Commissioner] under this section may at any time within 30 days after the date of receipt of written notice of the denial contest the denial by serving a response on the Superintendent [Commissioner]. The Superintendent [Commissioner] shall set a date for a hearing not later than 60 days after service of the response, unless a later date is set with the consent of the denied applicant.
(July 18, 2000, D.C. Law 13-140, § 10, 47 DCR 3431.)
Section References
This section is referenced in § 26-1002.