New York Codes, Rules and Regulations
Title 3 - BANKING
Chapter III - SUPERINTENDENT'S REGULATIONS
Subchapter B - NON-BANKING ORGANIZATIONS
Part 406 - Money Transmitters
Section 406.2 - Definitions

Universal Citation: 3 NY Comp Codes Rules and Regs ยง 406.2

Current through Register Vol. 46, No. 12, March 20, 2024

For purposes of this Part:

(a) The term money transmission shall include all instruments sold or issued including travelers checks, money orders, checks, drafts, orders, wire or electronic transfers, facsimile transfers and shipments by courier for the transmission or payment of money.

(b) The term travelers check means an instrument for the payment of money which:

(1) is designated on its face by the term travelers check or by any similar term or spelling or is commonly known and marketed as a travelers check, and not by the term money order or by any substantially similar term; and

(2)
(i) if issued in United States currency, is in the sum of $10 or a multiple thereof, if less than $100, or in the sum of $100 or a whole multiple thereof; or

(ii) if issued in any foreign currency, is in an even denomination of such currency; and

(3) contains a provision for a specimen signature of the purchaser to be completed at the time of purchase; and

(4) contains a provision for a counter-signature of the purchaser to be completed at the time of negotiation.

(c) The term money order means an instrument for the payment of money (whether or not negotiable) which:

(1) is designated on its face by the term money order or by any similar term or is commonly known and marketed as a money order, and not also by the term travelers check, official check, cashiers check, bank check or by any substantially similar term; and

(2) is customarily subject to a dollar limit stated on its face which has been set by the drawer; and

(3) requires the purchaser to sign its name, provide its address and to fill in the name of the payee.

(d) The terms person, licensee and check shall have the respective meanings specified in Banking Law, section 640.

(e) The terms agent and subagent means any person designated or appointed by the licensee to engage in money transmission at locations other than an office of the licensee as provided in Banking Law, section 648, but does not include licensed cashers of checks which act as agents of licensed money transmitters under applicable regulations.

(f) The term corporate licensee shall include any licensee, wherever organized, which is a corporation or association, having written articles of incorporation or association, but shall not include a partnership.

(g) The term principal officer means chairman of the board, president, chairman of the executive committee, executive vice-president, comptroller, and any other persons who perform similar functions.

(h) The term principal stockholder means any person (or group of persons acting in concert) who is the beneficial owner of 25 percent or more of outstanding voting shares of any class.

(i) The term control shall have the meaning specified in Banking Law, section 652-a.

(j) The terms fund, holder(s), New York instrument(s), New York traveler's check(s), purchaser(s) and uninsured money transmitter shall have the respective meanings specified in Banking Law, section 653.

(k) Notwithstanding the foregoing definitions, no person who issues or delivers a check, draft or other instrument or document for the transmission or payment of money or which evidences an obligation for the transmission or payment of money, shall be deemed to have issued or sold such check, draft, instrument or document, within the meaning of section 653(6), (9) or 640(4) of the Banking Law if such check, draft instrument or document:

(1) is sold or issued in connection with a loan or extension of credit other than a loan or extension of credit to purchase a money order or New York traveler's check; or

(2) is sold or issued to effect a withdrawal or transfer of funds from a credit balance maintained with the seller or issuer; or

(3) evidences or relates to a credit balance; or

(4) evidences an obligation of a banking institution insured by a Federal insuring agency; or

(5) evidences an obligation arising out of a letter of credit, borrowing or similar type of financing or arising out of the purchase or sale of securities; or

(6) is denominated in and arises out of a transaction involving a currency other than U.S. dollars, if the person purchasing such check, draft, instrument or document is engaged in the business of purchasing or selling such currency; or

(7) effects a transfer of funds between, among, or by order of banking institutions and clearinghouses, or is transferred in connection with the collection of such check, draft, instrument or document.

(l) The term agent of a payee means any person authorized by a payee to receive funds on behalf of the payee and to deliver such funds received from the payor to the payee.

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