New Jersey Administrative Code › Title 3 - BANKING › Chapter 27 - MONEY TRANSMITTERS › Subchapter 1 - GENERAL PROVISIONS › Section 3:27-1.2 - Definitions

Current through Register Vol. 56, No. 14, July 15, 2024
The following words and terms, when used in this chapter,
				  shall have the following meanings, unless the context clearly indicates
				  otherwise.
"Act" means the "New Jersey Money Transmitters Act,"
				  17:15C-1 et seq.
"Authorized delegate" means an entity authorized by the
				  licensee pursuant to the Act to sell or issue payment instruments or engage in
				  the business of transmitting money on behalf of a licensee.
"Commissioner" means the Commissioner of the Department of
				  Banking and Insurance.
"Control" means ownership of, or the power to vote, 25
				  percent or more of the outstanding voting securities of a licensee or
				  controlling person. For purposes of determining the percentage of a licensee
				  controlled by any person, there shall be aggregated with the person's interest
				  the interest of any other person controlled directly or indirectly by that
				  person or by any spouse, parent or child of that person.
"Controlling person" means any person in control of a
				  license.
"Department" means the Department of Banking and
				  Insurance.
"Foreign money transmitter" means a person who, from a
				  location in this State or through interacting via any means, including, but not
				  limited to, the Internet, with persons in this State, engages, in this State,
				  only in the business of the receipt of money for transmission or transmitting
				  money to locations outside of the United States by any and all means,
				  including, but not limited to, payment instrument, wire, facsimile, electronic
				  transfer, or otherwise for a fee, commission or other benefit.
"Key shareholder" means any person, or group of persons
				  acting in concert, who is the owner of 25 percent or more of any voting class
				  of an applicant's or licensee's stock.
"Licensee" means a person licensed under the Act.
"Location" means a place of business at which activities
				  regulated by the Act occur.
"Money transmitter" means a person who, from a location in
				  this State or through interacting via any means, including, but not limited to,
				  the Internet, with persons in this State, engages in this State in the business
				  of:
1. The sale or issuance of payment
				instruments for a fee, commission or other benefit;
2. The receipt of money for transmission or
				transmitting money within the United States or to locations abroad by any and
				all means, including but not limited to, payment instrument, wire, facsimile,
				electronic transfer, or otherwise for a fee, commission or other benefit;
				or
3. The receipt of money for
				obligors for the purpose of paying obligors' bills, invoices or accounts for a
				fee, commission or other benefit paid by the obligor (for example, mortgage
				payment acceleration programs and utilities payment programs).
"OFAC" means the Office of Foreign Assets Control of the
				  United States Department of the Treasury.
"Outstanding payment instrument" means any payment instrument
				  issued by the licensee which has been sold in the United States directly by the
				  licensee or any payment instrument issued by the licensee which has been sold
				  by an authorized delegate of the licensee in the United States, which has been
				  reported to the licensee as having been sold, and which has not yet been paid
				  by or for the licensee.
"Payment instrument" means any check, draft, money order,
				  travelers check or other instrument or written order for the transmission or
				  payment of money, sold or issued to one or more persons, whether or not the
				  instrument is negotiable. The term "payment instrument" does not include any
				  credit card voucher, any letter of credit or any instrument which is redeemable
				  by the issuer in goods or services.
"Permissible investments" means:
1. Cash;
2. Certificates of deposit or other debt
				obligations of a bank, savings bank, savings and loan association, or credit
				union, either domestic or foreign;
3. Bills of exchange or time drafts drawn on
				and accepted by a commercial bank, otherwise known as bankers' acceptances,
				which are eligible for purchase by member banks of the Federal Reserve
				System;
4. Any investment which is
				rated in one of the three highest rating categories by a nationally recognized
				statistical rating organization;
5.
				Investment securities that are obligations of the United States, its agencies
				or instrumentalities, or obligations that are guaranteed fully as to principal
				and interest by the United States, or any obligations of any state,
				municipality or any political subdivision thereof which is rated in one of the
				three highest rating categories by a nationally recognized statistical rating
				organization;
6. Shares in a money
				market mutual fund, interest-bearing bills, notes or bonds, debentures or stock
				traded on any national securities exchange or on a national over-the-counter
				market, or mutual funds primarily composed of those securities or a fund
				composed of one or more permissible investments;
7. Demand borrowing agreements made to a
				corporation or a subsidiary of a corporation whose capital stock is listed on a
				national exchange;
8. Receivables
				which are due to a licensee from its authorized delegates pursuant to a
				contract described in section 17 of the Act, which are not past due or doubtful
				of collection; or
9. Any other
				investment or security device which the Commissioner may authorize by rule.
"Security device" means a surety bond issued by a surety
				  company authorized to do business in this State or an irrevocable letter of
				  credit issued by a Federally-insured depository institution.