Chapter 15

MONEY SERVICE BUSINESSES

Proposed - December 15, 2006
Comment Period: December 15, 2006 to January 16, 2007


Subchapter 1. GENERAL PROVISIONS AND DEFINITIONS

85:15-1-1. Scope and Purpose.

This Chapter sets forth the supervisory and regulatory requirements, procedures, and standards for licensing of money transmitters under the Oklahoma Financial Transaction Reporting Act (Title 6 O.S. ßß 1511 - 1515). That Act generally requires the registration and licensing of money service businesses and gives the State Banking Board authority to clarify and define by rule the application of the Act. These rules are intended to apply the licensing requirements to money transmitter companies but not their authorized delegates, except as otherwise provided. Furthermore, these rules create standards for approval of such licenses, such as requiring a security bond for the protection of the public.

85:15-1-2. Definitions.

(a) The following words and terms, when used in this Chapter, shall have the following meanings, unless the context clearly indicates otherwise.


(1) ìActî means the Oklahoma Financial Transaction Reporting Act, Title 6 O.S. ß 1511 et seq., and all rules promulgated under that Act.

(2) ìApplicantî means a person that files an application for a license under the Act.

(3) ìAuthorized delegateî means a person a licensee designates to provide money services on behalf of the licensee.

(4) ìBankî means an institution identified as a ìbankî in 12 C.F.R. section 103.11.

(5) ìBoardî means the Oklahoma State Banking Board.

(6) ìCommissionerî means the Oklahoma State Banking Commissioner.

(7) ìControlî means:
(A) ownership of, or the power to vote, directly or indirectly, at least 25 percent of a class of voting securities or voting interests of a licensee or person in control of a licensee;
(B) power to elect a majority of executive officers, managers, directors, trustees, or other persons exercising managerial authority of a licensee or person in control of a licensee; or
(C) the power to exercise directly or indirectly, a controlling influence over the management or policies of a licensee or person in control of a licensee.

(8) ìDepartmentî means the Oklahoma State Banking Department.

(9) ìExecutive officerî means a president, chairperson of the executive committee, chief financial officer, responsible individual, or other individual who performs similar functions.

(10) ìLicenseeî means a person licensed under the Act. A licensee under this chapter might also fall within the definitions of ìsupplierî or ìmoney transmitterî in section 2 of the Oklahoma Financial Transaction Reporting Act.

(11) ìMaterial litigationî means litigation that according to generally accepted accounting principles is significant to an applicantís or a licenseeís financial health and would be required to be disclosed in the applicantís or licensee's annual audited financial statements, report to shareholders, or similar records.

(12) ìMoneyî means a medium of exchange that is authorized or adopted by the United States or a foreign government. The term includes a monetary unit of account established by an intergovernmental organization or by agreement between two or more governments.

(13) ìMoney servicesî includes money transmission, check cashing, currency exchange, sale of checks or other payment instruments, and sale of stored value (whether or not in the form of a card or other access device).

(14) ìMoney transmissionî means receiving money for transmission of the money or the value of the money, by any means through a financial agency or institution, a Federal Reserve Bank or other facility of one or more Federal Reserve Banks, the Board of Governors of the Federal Reserve System or both, or any other electronic network by which money or its value may be transmitted.

(15) ìPersonî means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, government; governmental subdivision, agency or instrumentality; public corporation; or any other legal or commercial entity.

(16) ìRecordî means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.

(17) ìResponsible individualî means an individual who is employed by a licensee and has principal managerial authority over the provision of money services by the licensee in this State.

(18) ìStateî means a State of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States.

(19) ìUnsafe or unsound practiceî means a practice or conduct by a person licensed to engage in money transmission or an authorized delegate of such a person which creates the likelihood of material loss, insolvency, or dissipation of the licenseeís assets, or otherwise materially prejudices the interests of its customers.


85:15-1-3. Exclusions.

(a) The Act does not apply to:


(1) the United States or a department, agency, or instrumentality thereof;

(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 any other governmental agency or governmental subdivision of a State;

(4) a bank;

(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 thereof, or a State or governmental subdivision, agency, or instrumentality thereof;

(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 such a board;

(7) a registered futures commission merchant under the federal commodities laws to the extent of its operation as such a merchant;

(8) a person that provides clearance or settlement services pursuant to a registration as a clearing agency or an exemption from such registration granted under the federal securities laws to the extent of its operation as such a provider;

(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, or similar funds transfers; or

(10) a person registered as a securities broker-dealer under federal or state securities laws to the extent of its operation as such a broker-dealer.


Subchapter 3. MONEY TRANSMISSION LICENSES.

85:15-3-1. License Required.

(a) A person may not engage in the business of money transmission or advertise, solicit, or hold itself out as providing money transmission unless the person:

(1) is licensed under the Act; or

(2) is an authorized delegate of a person licensed under the Act.

(b) A license under the Act is not transferable or assignable.


85:15-3-2. Application for License.

(a) A person applying for a license under the Act shall do so in a form and in a medium prescribed by the Commissioner. The application may require the following information:

(1) the legal name and residential and business addresses of the applicant and any fictitious or trade name used by the applicant in conducting its business;

(2) a list of any criminal convictions of the applicant and any material litigation in which the applicant has been involved in the 5-year period next preceding the submission of the application;

(3) a description of all money services (including money transmission, check cashing, currency exchange, sale of checks, stored value, etc.) currently provided anywhere by the applicant and the money services that the applicant seeks to provide in this State;

(4) a list of the applicantís proposed authorized delegates and the locations in this State where the applicant and its authorized delegates propose to engage in money transmission or provide other money services;

(5) a list of other States in which the applicant is licensed to engage in money transmission or provide other money services and any license revocations, suspensions, or other disciplinary action taken against the applicant in another State;
(6) information concerning any bankruptcy or receivership proceedings affecting the licensee;

(7) a sample form of contract for authorized delegates;

(8) a description of the source of money and credit to be used by the applicant to provide money services; and

(9) any other information the Commissioner reasonably requires with respect to the applicant.

(b) If an applicant is a corporation, limited liability company, partnership, or other entity, the applicant shall also provide:

(1) the date of the applicant's incorporation or formation and State or country of incorporation or formation;

(2) if applicable, a certificate of good standing from the State or country in which the applicant is incorporated or formed;

(3) a brief description of the structure or organization of the applicant, including any parent or subsidiary of the applicant, and whether any parent or subsidiary is publicly traded;

(4) the legal name, any fictitious or trade name, all business and residential addresses, and the employment, in the 5-year period next preceding the submission of the application of each executive officer, manager, director, or person that has control, of the applicant;

(5) a list of any criminal convictions and material litigation in which any executive officer, manager, director, or person in control of, the applicant has been involved in the 10-year period next preceding the submission of the application;

(6) a copy of the applicantís audited financial statements for the most recent fiscal year and, if available, for the two-year period next preceding the submission of the application;

(7) a copy of the applicantís unconsolidated financial statements for the current fiscal year, whether audited or not, and, if available, for the two-year period next preceding the submission of the application;

(8) if the applicant is publicly traded, a copy of the most recent report filed with the United States Securities and Exchange Commission under Section 13 of the federal Securities Exchange Act of 1934 [15 U.S.C. Section 78m (1994 & Supp. V 1999)];

(9) if the applicant is a wholly owned subsidiary of:

(A) a corporation publicly traded in the United States, a copy of audited financial statements for the parent corporation for the most recent fiscal year or a copy of the parent corporationís most recent report filed under Section 13 of the federal Securities Exchange Act of 1934 [15 U.S.C. Section 78m (1994 & Supp. V 1999)]; or
(B) a corporation publicly traded outside the United States, a copy of similar documentation filed with the regulator of the parent corporationís domicile outside the United States;

(10) if the applicant has a registered agent in this State, the name and address of the applicantís registered agent in this State; and

(11) any other information the Commissioner reasonably requires with respect to the applicant.

(c) A nonrefundable application fee of $3,000, a license fee of $2,000, and $50 per authorized delegate must accompany an application for a license under the Act. The license fee and authorized delegate fees will be refunded if the application is denied.

(d) The Commissioner may waive one or more requirements of subsections (a) and (b) or permit an applicant to submit other information in lieu of the required information.


85:15-3-3. Security.

(a) A surety bond, letter of credit, or other similar security acceptable to the Commissioner in the amount of $50,000 plus $10,000 per location of each authorized delegate, not exceeding a total of $500,000, must accompany an application for a license. The issuer of the security must be authorized to do business in this state and in good standing under Oklahoma law (if applicable) and the law of its state of organization.

(b) Security must be in a form satisfactory to the Commissioner and payable to the Department for the benefit of (1) any claimant against the licensee and/or its authorized delegates to secure the faithful performance of the obligations of the licensee with respect to money transmission; and (2) any costs, expenses, and fees (including attorneys fees) incurred by the Department in connection with enforcement of the Act with respect to the licensee and its authorized delegates.

(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 and/or the Department.

(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 transmission 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 licenseeís 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) The Commissioner may increase the amount of security required to a maximum of $1,000,000 if the financial condition of a licensee so requires, as evidenced by reduction of net worth, financial losses, or other relevant criteria.


85:15-3-4. Issuance of License.

(a) When an application is filed under the Act, the Commissioner shall investigate the applicantís financial condition and responsibility, financial and business experience, character, and general fitness. The Commissioner may conduct an on-site investigation of the applicant, the cost of which the applicant must pay. The amount charged the applicant shall be the same as charged under subsection B. of section 2113 of Title 6 of the Oklahoma Statutes. The Commissioner shall issue a license to an applicant under the Act if the Commissioner finds that all of the following conditions have been fulfilled:

(1) the applicant has complied with sections 85:15-3-2, 85:15-3-3, and 85:15-3-6 of this subchapter; 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 under the Act is complete, the Commissioner shall promptly 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 120 days after that date; or

(2) if the application is not approved or denied within 120 days after that date:

(A) the application is approved; and
(B) the license takes effect as of the first business day after expiration of the 120-day period.

(c) The Commissioner may for good cause extend the application period.

(d) An applicant whose application is denied by the Commissioner under the Act may appeal, within 30 days after receipt of the notice of the denial, from the denial and request a hearing before the Board. A hearing is not required in order for the Commissioner to initially deny a license application.

85:15-3-5. Renewal of License.

(a) A licensee shall pay an annual renewal fee of $2,000 plus $50 per authorized delegate existing as of December 31 of each year. The fees shall be due no later than January 31 of each year. If a license is first issued to the licensee on or after October 1, the license shall be effective for the year of issuance and the next calendar year without a requirement to pay renewal fees or file a renewal report on the first January after issuance.

(b) A licensee 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 licenseeís 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 licenseeís most recent audited consolidated annual financial statement;

(2) 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 any required report;

(3) a list of the licenseeís permissible investments and a certification that the licensee continues to maintain permissible investments according to the requirements set forth in the Act;

(4) proof that the licensee continues to maintain adequate security as required by this Chapter; and

(5) a list of the locations in this State where the licensee or authorized delegates of the licensee engages in money transmission.

(c) If a licensee does not file a renewal report and pay its renewal fees by the renewal date or any 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 fees before expiration of 10 days after the notice is sent, the licenseeís license is suspended 10 days after the Commissioner sends the notice of suspension. The suspension will be lifted if, within 20 days after its license is suspended, the licensee:

(1) files the report and pays all renewal fees; and
(2) pays $100 for each day after suspension that the Commissioner did not receive the renewal report and the renewal fees.

If the licensee fails to file its renewal report and pay all fees (including the fee imposed under (2) of this subsection), the licenseeís license will automatically expire and the person must reapply for a license under the Act and must then pay all applicable fees (including fees imposed under (2) of this subsection). No administrative hearing is required for suspension or expiration of licenses under the provisions of this section.

(d) The Commissioner for good cause may grant an extension of the renewal date.

85:15-3-6. Net Worth.

Each licensee under the Act shall at all times maintain a minimum net worth of at least Two Hundred Seventy-five Thousand Dollars ($275,000.00) in order to engage in money transmission at one (1) to fifty (50) locations, Five Hundred Thousand Dollars ($500,000.00) in order to engage in money transmission at fifty-one (51) to three hundred (300) locations, One Million Five Hundred Thousand Dollars ($1,500,000.00) in order to engage in money transmission at three hundred one (301) to eight hundred (800) locations, or Three Million Dollars ($3,000,000.00) in order to engage in money transmission at over eight hundred (800) locations. Net worth must be demonstrated annually by filing with the Commissioner, at the time of application for a license and at each time of license renewal, the most current annual audited financial statement of the licensee certified by a licensed public accountant holding a permit to practice in this state or by a certified public accountant. For purposes of this section, a financial statement shall be deemed to be current if it is no more than twelve (12) months old. Financial statements may be submitted to the Commissioner at any time in order to maintain a current status. The Commissioner may require, upon request, a more current statement than the last statement submitted by the licensee.



Subchapter 5. AUTHORIZED DELEGATES.

85:15-5-1. Relationship Between Licensee and Authorized Delegate.

(a) In this section, ìremitî 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 the Act. The licensee shall furnish in a record to each authorized delegate policies and procedures sufficient for compliance with the Act.

(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 licensee must notify all authorized delegates of the licensee whose names are in a record filed with the Commissioner of the suspension, revocation, or non-renewal. After notice is sent or publication is made, an authorized delegate shall immediately cease to provide money services as a delegate of the licensee. The former licensee must submit proof to the Commissioner that all authorized delegates have been notified of the suspension, revocation, or non-renewal. If the former licensee fails to provide the required notice, the Commissioner may provide the notice and recover his costs and expenses from the bond or other security posted by the former licensee or may require reimbursement of costs and expenses before the person may obtain a new or reinstated license.

(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, unless the authorized delegate holds its own license under the Act or other money services laws. 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.

85:15-5-2. Unauthorized activities.

A person may not provide money transmission on behalf of a person not licensed under the Act and this Chapter. A person that engages in that activity provides money services to the same extent as if the person were a licensee, including penalties for violations of the Act and this Chapter.


Subchapter 7. EXAMINATIONS; REPORTS; RECORDS.

85:15-7-1. Authority to conduct examinations.

(a) The Commissioner, or another state agency authorized by the Commissioner, may conduct an examination of a licensee or of any of its authorized delegates upon 10 daysí notice in a record to the licensee.

(b) The Commissioner, or another state agency authorized by the Commissioner, may examine a licensee or its authorized delegate, at any time, without notice, if the Commissioner or such other agency has reason to believe that the licensee or authorized delegate is engaging in an unsafe or unsound practice or has violated or is violating any state or federal money laundering or criminal law.

(c) If an on-site examination is necessary under subsections (a) or (b), the licensee shall pay the reasonable cost of the examination. The amount charged shall be the same as charged under subsection B. of section 2113 of Title 6 of the Oklahoma Statutes.

85:15-7-2. Cooperation.

The Commissioner may consult and cooperate with other state money services regulators in enforcing and administering the Act. They may jointly pursue examinations and take other official action that they are otherwise empowered to take.


85:15-7-3. Reports.

(a) A licensee shall file with the Commissioner within 15 business days any material changes in information provided in a licenseeís application as prescribed by the Commissioner.

(b) A licensee shall file with the Commissioner within 30 days after the end of each calendar quarter a current list of all authorized delegates, and locations in this State where the licensee or an authorized delegate of the licensee provides money transmission. The Commissioner may prescribe the type of information and format by which the information shall be submitted for each location and authorized delegate.

(c) A licensee shall file a report with the Commissioner within one business day after the licensee has reason to know of the occurrence any of the following events:

(1) the filing of a petition by or against the licensee under the United States Bankruptcy Code for bankruptcy or reorganization;

(2) the filing of a petition by or against the licensee for receivership, the commencement of any other judicial or administrative proceeding for its dissolution or reorganization, or the making of a general assignment for the benefit of its creditors;

(3) the commencement of a proceeding to revoke or suspend its license in a State or country in which the licensee engages in business or is licensed;

(4) the cancellation or other impairment of the licenseeís bond or other security;

(5) a charge or conviction of the licensee or of an executive officer, manager, director, or person in control, of the licensee for a felony; or

(6) a charge or conviction of an authorized delegate for a felony.



85:15-7-4. Change of control.

(a) A licensee shall:

(1) give the Commissioner notice in a record of a proposed change of control within 15 days after learning of the proposed change of control;

(2) request approval of the acquisition; and

(3) submit a nonrefundable fee of $3,000 with the notice.

(b) After review of a request for approval under subsection (a), the Commissioner may require the licensee to provide additional information concerning the proposed persons in control of the licensee. The additional information must be limited to the same types required of the licensee or persons in control of the licensee as part of its original license or renewal application.

(c) The Commissioner shall approve a request for change of control under subsection (a) if, after investigation, the Commissioner determines that the person or group of persons requesting approval has the competence, experience, character, and general fitness to operate the licensee or person in control of the licensee in a lawful and proper manner and that the public interest will not be jeopardized by the change of control.

(d) When an application for a change of control under this Chapter is complete, the Commissioner shall notify the licensee 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 120 days after that date; or

(2) if the request is not approved or denied within 120 days after that date:

(A) the request is deemed approved; and

(B) the Commissioner shall permit the change of control under this section, to take effect as of the first business day after expiration of the period.

(e) The Commissioner may exempt a person from any of the requirements of subsection (a) (2) and (3) if it is in the public interest to do so.

(f) Subsection (a) does not apply to a public offering of securities.

(g) Before filing a request for approval to acquire control of a licensee or person in control of a licensee, a person may request in a record a determination from the Commissioner as to whether the person would be considered a person in control of a licensee upon consummation of a proposed transaction. If the Commissioner determines that the person would not be a person in control of a licensee, the Commissioner shall enter an order to that effect and the proposed person and transaction are not subject to the requirements of subsections (a) through (c).

85:15-7-5. Records.

(a) A licensee shall maintain the following records for determining its compliance with the Act for at least three years:

(1) a general ledger posted at least monthly containing all asset, liability, capital, income, and expense accounts;

(2) bank statements and bank reconciliation records;

(3) a list of the last known names and addresses of all of the licenseeís authorized delegates; and

(4) any other records the Commissioner reasonably requires.

(b) Authorized delegates shall maintain the following records for at least three years:

(1) for each money transmission exceeding $100, whether alone or in the aggregate on the same day by the same person, a copy of the front and back of a valid government-issued picture identification of the person for whom the money is being transmitted;

(2) the copy of the identification described in paragraph (1) shall be attached to any documentation evidencing the money transmission;

(3) all documents required to be maintained or completed by the federal Bank Secrecy Act; and

(4) any other records the Commissioner reasonably requires.

(c) The items specified in subsections (a) and (b) may be maintained in any form of record.

(d) Records may be maintained outside this State if they are made accessible to the Commissioner on seven business-daysí notice that is sent in a record.

(e) All records maintained by the licensee and authorized delegates as required in subsections (a) through (d) are open to inspection by the Commissioner or the Commissionerís authorized representative, including another state agency authorized by the Commissioner.

85:15-7-6. Money laundering reports.

A licensee and all authorized delegates shall file all reports required by federal currency reporting, record keeping, and suspicious transaction reporting requirements as set forth in 31 U.S.C. Section 5311, 31 C.F.R. Section 103, and other federal and state laws pertaining to money laundering.


Subchapter 9. PERMISSIBLE INVESTMENTS

85:15-9-1. Maintenance of permissible investments.

(a) A licensee shall maintain at all times permissible investments that have a market value computed in accordance with generally accepted accounting principles of not less than the aggregate amount of all of money transmitted from all states by the licensee.

(b) The Commissioner, with respect to any licensees, may limit the extent to which a type of investment within a class of permissible investments may be considered a permissible investment, except for money and certificates of deposit issued by a bank. The Commissioner may allow other types of investments that the Commissioner determines to have a safety substantially equivalent to other permissible investments.


85:15-9-2. Types of permissible investments.

(a) Except to the extent otherwise limited by the Commissioner pursuant to Section 85:15-9-1, the following investments are permissible under Section 85:15-9-1:

(1) cash, a certificate of deposit, or senior debt obligation of an insured depositary institution, as defined in the Federal Deposit Insurance Act;

(2) banker's acceptance or bill of exchange that is eligible for purchase upon endorsement by a member bank of the Federal Reserve System and is eligible for purchase by a Federal Reserve Bank;

(3) an investment bearing a rating of one of the three highest grades as defined by a nationally recognized organization that rates securities;

(4) an investment security that is an obligation of the United States or a department, agency, or instrumentality thereof; an investment in an obligation that is guaranteed fully as to principal and interest by the United States; or an investment in an obligation of a State or a governmental subdivision, agency, or instrumentality thereof;

(5) receivables that are payable to a licensee from its authorized delegates, in the ordinary course of business, pursuant to contracts which are not past due or doubtful of collection if the aggregate amount of receivables under this paragraph does not exceed 20 percent of the total permissible investments of a licensee and the licensee does not hold at one time receivables under this paragraph in any one person aggregating more than 10 percent of the licensee's total permissible investments; and

(6) a share or a certificate issued by an open-end management investment company that is registered with the United States Securities and Exchange Commission under the Investment Companies Act of 1940, and whose portfolio is restricted by the management company's investment policy to investments specified in paragraphs (1) through (4).

(b) The following investments are permissible under Section 85:15-9-1, but only to the extent specified:

(1) an interest-bearing bill, note, bond, or debenture of a person whose equity shares are traded on a national securities exchange or on a national over-the-counter market, if the aggregate of investments under this paragraph does not exceed 20 percent of the total permissible investments of a licensee and the licensee does not at one time hold investments under this paragraph in any one person aggregating more than 10 percent of the licensee's total permissible investments;

(2) a share of a person traded on a national securities exchange or a national over-the-counter market or a share or a certificate issued by an open-end management investment company that is registered with the United States Securities and Exchange Commission under the Investment Companies Act of 1940, and whose portfolio is restricted by the management company's investment policy to shares of a person traded on a national securities exchange or a national over-the-counter market, if the aggregate of investments under this paragraph does not exceed 20 percent of the total permissible investments of a licensee and the licensee does not at one time hold investments in any one person aggregating more than 10 percent of the licensee's total permissible investments;

(3) a demand-borrowing agreement made to a corporation or a subsidiary of a corporation whose securities are traded on a national securities exchange if the aggregate of the amount of principal and interest outstanding under demand-borrowing agreements under this paragraph does not exceed 20 percent of the total permissible investments of a licensee and the licensee does not at one time hold principal and interest outstanding under demand-borrowing agreements under this paragraph with any one person aggregating more than 10 percent of the licensee's total permissible investments; and

(4) any other investment the Commissioner designates, to the extent specified by the Commissioner.

(c) The aggregate of investments under subsection (b) may not exceed 50 percent of the total permissible investments of a licensee calculated in accordance with Section 85:15-9-1.

Subchapter 11. ENFORCEMENT.

85:15-11-1. Suspension and revocation.

(a) The Commissioner may suspend or revoke a license or order a licensee to revoke the designation of an authorized delegate if:

(1) the licensee violates the Act;

(2) the licensee does not cooperate with an examination or investigation by the Commissioner or the Commissionerís designee;

(3) the licensee engages in fraud, intentional misrepresentation, or gross negligence;

(4) an authorized delegate is convicted of a violation of a state or federal anti-money laundering statute, or violates a rule adopted or an order issued under the Act, as a result of the licenseeís willful misconduct or willful blindness;

(5) the competence, experience, character, or general fitness of the licensee, authorized delegate, person in control of a licensee, or responsible person of the licensee or authorized delegate indicates that it is not in the public interest to permit the person to provide money services;

(6) the licensee engages in an unsafe or unsound practice;

(7) the licensee is insolvent, suspends payment of its obligations, or makes a general assignment for the benefit of its creditors;

(8) the licensee does not remove an authorized delegate after the Commissioner issues and serves upon the licensee a final order including a finding that the authorized delegate has violated the Act; or

(9) a material misstatement of fact in an initial or renewal application, the loss of license in another jurisdiction (due to fraud or dishonest dealing) and criminal convictions involving fraud or dishonest dealing as grounds for license denial, suspension or non-renewal.

(b) In determining whether a licensee is engaging in an unsafe or unsound practice, the Commissioner may consider the size and condition of the licenseeís money transmission, the magnitude of the loss, the gravity of the violation of the Act, and the previous conduct of the person involved.

85:15-11-2. Suspension and revocation of authorized delegates.

(a) The Commissioner may issue an order suspending or revoking the designation of an authorized delegate, if the Commissioner finds that:

(1) the authorized delegate violated the Act or an order issued under the Act;

(2) the authorized delegate did not cooperate with an examination or investigation by the Commissioner or the Commissionerís designee;

(3) the authorized delegate engaged in fraud, intentional misrepresentation, or gross negligence;

(4) the authorized delegate is charged with a violation of a state or federal anti-money laundering statute or other criminal statutes in connection with its money transmission;

(5) the competence, experience, character, or general fitness of the authorized delegate or a person in control of the authorized delegate indicates that it is not in the public interest to permit the authorized delegate to provide money services; or

(6) the authorized delegate is engaging in an unsafe or unsound practice.

(b) In determining whether an authorized delegate is engaging in an unsafe or unsound practice, the Commissioner may consider the size and condition of the authorized delegateís provision of money services, the magnitude of the loss, the gravity of the violation of the Act, and the previous conduct of the authorized delegate.

(c) An authorized delegate may apply for relief from a suspension or revocation of designation as an authorized delegate according to procedures prescribed by the Commissioner.


85:15-11-3. Orders to cease and desist.

(a) If the Commissioner determines that a violation of the Act or an order issued under the Act by a licensee or authorized delegate is likely to cause immediate and irreparable harm to the licensee, its customers, or the public as a result of the violation, or cause insolvency or significant dissipation of assets of the licensee, the Commissioner may issue an order requiring the licensee or authorized delegate to cease and desist from the violation. The order becomes effective upon service of it upon the licensee or authorized delegate.

(b) The Commissioner may issue an order against a licensee to cease and desist from providing money services through an authorized delegate that is the subject of a separate order by the Commissioner.

(c) An order to cease and desist remains effective and enforceable pending the completion of an administrative proceeding pursuant to sections 85:15-11-1 or 85:15-11-2.

(d) A licensee or an authorized delegate that is served with an order to cease and desist may petition the Oklahoma County District Court, for a judicial order setting aside, limiting, or suspending the enforcement, operation, or effectiveness of the order pending the completion of an administrative proceeding pursuant to sections 85:15-11-1 or 85:15-11-2.

(e) An order to cease and desist expires unless the Commissioner commences an administrative proceeding pursuant to sections 85:15-11-1 or 85:15-11-2 within 10 days after it is issued.


85:15-11-4. Consent orders. The Commissioner may enter into a consent order at any time with a person to resolve a matter arising under the Act or a rule adopted or order issued under the Act. A consent order must be signed by the person to whom it is issued or by the person's authorized representative, and must indicate agreement with the terms contained in the order. A consent order may provide that it does not constitute an admission by a person that the Act or an order issued under the Act has been violated.

85:15-11-5. Civil penalties.

The Commissioner may assess a civil penalty against a person that violates the Act or an order issued under the Act in an amount not to exceed $100 per day for each day the violation is outstanding, plus the Stateís costs and expenses for the investigation and prosecution of the matter, including reasonable attorney's fees.


85:15-11-6. Hearings.

Except as otherwise provided in the Act, the Commissioner may not suspend or revoke a license, suspend or revoke the designation of an authorized delegate, or assess a civil penalty without notice and an opportunity to be heard. The Commissioner shall also hold a hearing when requested to do so by an applicant whose application for a license is denied.