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1994 SESSION
LD2755845Be it enacted by the General Assembly of Virginia:
1. That §§ 6.1-370, 6.1-371, 6.1-372, 6.1-373, 6.1-374, 6.1-375, 6.1-377, and 6.1-378.1 of the Code of Virginia are amended and reenacted as follows:
§ 6.1-370. Definitions.
As used in this chapter,:
"money Money order" means a check, traveler's check,
draft, or other instrument for the transmission or payment of
money;
"Money transmitter" means a person who receives money from one person for transmission to another person, by electronic or other means.
§ 6.1-371. License required; exceptions.
No person except a bank, trust company, building and loan association,
savings and loan association, or credit union authorized to do business in
this Commonwealth shall engage in the business of selling money orders
or engage in business as a money transmitter on or after January 1,
1995, for a fee or other consideration, unless it such
person obtains from the State Corporation Commission a license to
engage in such business. The provisions of this chapter shall not apply to
the United States government.
§ 6.1-372. Same; application; balance sheet required; filing fee; surety bond.
Applications for a license shall be made on forms furnished by the Commission
and shall set forth the name and address of the applicant, a description of
the manner in which and the locations at which it proposes to do business,
and such additional relevant information as the Commission requires. The
application shall be accompanied by such financial statements as the
Commission may require, a filing fee of $500 and a surety bond satisfactory
to the Commission in the principal amount as determined by the Commission but
not less than $25,000, and conditioned as the Commission may require for the
benefit of purchasers, payees, and holders of money orders sold by the
licensee and its agents in this Commonwealth , and for the benefit of
purchasers of money transmission services . In the case of an
applicant who proposes to sell money orders in its own name at no more than
two locations, the filing fee shall be $100, and the minimum bond amount
shall be $5,000 for each location.
§ 6.1-373. Same; annual fee; renewal.
If a license is denied, the filing fee shall not be refunded. If a license
is issued, the filing fee shall constitute the license fee for the period
ending on the following June 30. Each licensee shall pay to the Commission
annually on or before July 1 a license fee of $250 and shall file a
statement setting forth the location or the locations at which its money
orders are sold by each April 15 an annual report on a form
prescribed by the Commission. All fees shall be paid into the state
treasury and credited to the "Banking Fund - State Corporation Commission."
In the case of a licensee authorized to sell money orders at no more
than two locations, the annual license fee shall be $100.
§ 6.1-374. License required; conditions prerequisite to issuance; revocation for inability to meet obligations; reinstatement after revocation.
A. The Commission shall not issue a license unless it is of the opinion that the applicant will be able to and will perform its obligations to purchasers of money transmission services and purchasers, payees, and holders of money orders sold by it and its agents in this Commonwealth, and that the financial responsibility, character, reputation, experience, and general fitness of the applicant and its members, senior officers, directors, and principal stockholders are such as to warrant belief that the business will be operated efficiently and fairly, in the public interest, and in accordance with the law and regulations.
B. 1. The Commission may revoke a license, after hearing and not less than ten days' notice, if it reasonably determines that the licensee may be unable to perform its obligations, or that the licensee has willfully failed without reasonable cause to pay or provide for the payment of any of its obligations; but shall reinstate the license if the licensee proves that it has performed all of its obligations.
2. The Commission may also revoke a license, after hearing and not less than ten days' notice, upon any of the following:
a. Any ground for denial of a license under this chapter;
b. Any violation of the provisions of this chapter or regulations promulgated by the Commission pursuant thereto, or a violation of any other law or regulation applicable to the conduct of the licensee's business;
c. Conviction of a felony or misdemeanor involving fraud, misrepresentation, or deceit;
d. Entry of a judgment against such licensee involving fraud, misrepresentation, or deceit;
e. Entry of a federal or state administrative order against such licensee for violation of any law or any regulation applicable to the conduct of his business;
f. Refusal to permit an investigation or examination by the Commission;
g. Failure to pay any fee or assessment imposed by this chapter; or
h. Failure to comply with any order of the Commission.
§ 6.1-375. Selling without license; examination of books by Commission; penalty.
Any person required by this chapter to have a license who sells money orders
or engages in business as a money transmitter without first being
licensed shall be guilty of a misdemeanor Class
6 felony. Any person who, as an officer, director, partner, or
agent, knowingly assists such unlicensed person to sell money orders shall be
guilty of a misdemeanor. The Commission shall have authority to examine
the books and records of all persons engaged in the sale of money orders
or in money transmission services either directly or through
agents and shall report violations of this chapter to the attorney for the
Commonwealth of the city or county in which such violation occurs. The
Commission shall make an examination of the books and records of each
licensee as often as it is deemed to be in the public interest, and shall
adjust the surety bond as it may deem necessary. Every licensee so examined
shall pay all costs and expenses associated with such examination.
§ 6.1-377. Conduct of business at more than one location; license not required of agents of licensee.
A licensee may conduct its business at one or more locations within this
Commonwealth and through or by means of such agents as the licensee may from
time to time designate or appoint. No license under this chapter shall be
required of any agent of a licensee, or other person, firm, corporation or
other entity selling money orders or money transmission services
of a licensee person licensed under this chapter.
§ 6.1-378.1. Rules and regulations.
The Commission may promulgate such rules and regulations as it deems
appropriate to effect the purposes of this chapter. Before promulgating any
such regulation, the Commission shall give reasonable notice of its content
and shall afford interested parties an opportunity to present evidence
and be heard, in accordance with the Rules of Practice and Procedure of
the Commission.
2. That § 6.1-376 of the Code of Virginia is repealed.