Arkansas Administrative Code › Agency 031 - Collection Agencies, Arkansas State Board of › Rule2 031.00.00-001 - RULES AND REGULATIONS PERTAINING TO THE CHECK - CASHERS ACT

Current through Register Vol. 49, No. 6, June, 2024
Section I. DEFINITIONS
A) "Act" means Act 1216 of 1999, An Act to License and Regulate Check Cashing and Deferred Presentment Option Services; To Provide for Definitions; To Provide for Administration by the State Board of Collection Agencies; To Provide for Exemptions, Fines, and Penalties; and for Other Purposes.
B) "Applicant" means a person who applies for a license permit or renewal.
C) "Cash" means United States currency and does not include a check, draft, traveler's check, money order or other instrument for the transmission of money.
D) "Cash or other liquid assets"[fn1] means cash, federally or state insured certificates of deposit made out in the name of the check-casher, an irrevocable letter of credit, federally or state insured savings accounts or checking accounts, insured money market accounts and any other types of assets approved by the SBCA from time to time. The term "cash or other liquid assets" does not include the following: fixtures, furniture, interests in real property, accounts receivables, general intangibles, stocks, bonds, checks from or deposited by customers, notes, loan commitments or other evidences of loan availability, or lines of credit.
E) "Check" means a check, warrant, draft, money order, or other instrument for the payment of money, whether or not negotiable, and signed by the maker.
F) "Check-casher" or "check casher" means a person that for compensation engages, in whole or in part, in the check-cashing and/or deferred presentment option services business.
G) "Check-cashing business" means the business of a check-casher selling currency to another person in exchange for a check, with or without a deferred presentment option.
H) "Customer" means the maker of the check.
I) "Deferred Presentment" is a phrase which includes such related terms such as "delayed deposit", "deferred deposit", "deferred presentment option" or similar terms evidencing comparable types of transactions.
J) "Deferred presentment option" services means a transaction made pursuant to a written agreement between the check-casher and the customer in which the check-casher in exchange for a fee:
(1) Accepts the customer's personal check which is dated on the same day that the check is written;[fn2]
(2) Pays that customer in cash the amount of money that is equal to the face amount of that check less any fees charged;
(3) Agrees to hold the check for a period of time prior to depositing or presenting it on the date set out in the written agreement;
(4) Gives the customer the option to repurchase his personal check for the full face amount of the check before the agreed deposit/presentment date set out in the written agreement.
K) "Department" means the Arkansas State Board of Collection Agencies.
L) "Licensee" or "Permittee" means a person who has received a license permit to provide check-cashing and/or deferred presentment option services.
M) "License" means a permit to engage in the check-cashing and/or deferred presentment option services business.
N) "Licensing" means any SBCA process respecting the grant, denial, renewal, revocation, suspension, annulment, withdrawal, limitation, or amendment of a license.[fn3]
O) "Permit" means a license to engage in the check-cashing and/or deferred presentment option services business.
P) "Person" means an individual, group of individuals, partnership, incorporated or unincorporated association, corporation, or any other business unit or legal entity and/or anyone who is a member, partner, director, officer, or five percent (5%) or more shareholder of the applicant or who otherwise controls the applicant;[fn4]
Q) "Personal check" means a check drawn on the checking account of a natural person and bearing the signature of the customer who signs the Deferred Presentment Agreement.
R) "Records" means books, accounts, papers, records and files, no matter in what format they are kept, which are used in conducting business.
S) "Renew" or "Extend" means to postpone the effective due date or to modify or alter or replace an instrument previously given so as to continue it beyond its originally stated due date, whether or not another fee is paid to the licensee.
T) "Regulations" or "Rules and Regulations" means any rule(s) or regulation(s) promulgated and duly enacted by the SBCA which are the SBCA's statement of general applicability and future effect that implements, interprets, or prescribes law or policy, or describes the organization, procedure or practice of the SBCA.[fn5]
U) "SBCA" means the Arkansas State Board of Collection Agencies, Board of Directors and/or Executive Director.
V) "Security" means any agreement or document given as a promise to secure the repurchase or repayment of the face amount of the check.
PERMITS & RENEWALS.
[fn1] Act 1216 of 1999, § 7(1) (hereafter only § numbers are indicated).
[fn2] § 6 j.
[fn3] §
									25-15-202(8).
[fn4] § 7(2)(B).
[fn5] §
									25-15-202(4).