Mississippi Bullion Depository; establish.

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To: Banking and Financial
Services
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Carpenter

HOUSE BILL NO. 1530

AN ACT TO ESTABLISH THE MISSISSIPPI BULLION DEPOSITORY; TO 1
DEFINE CERTAIN TERMS RELATING TO THE DEPOSITORY; TO PROVIDE THAT 2
SUCH DEPOSITORY IS ESTABLISHED TO SERVE AS THE CUSTODIAN, 3
GUARDIAN, AND ADMINISTRATOR OF CERTAIN BULLION AND SPECIE THAT MAY 4
BE TRANSFERRED TO OR OTHERWISE ACQUIRED BY THE STATE OF 5
MISSISSIPPI OR AN AGENCY, DEPARTMENT, INSTITUTION, 6
INSTRUMENTALITY, OR POLITICAL SUBDIVISION OF THE STATE OF 7
MISSISSIPPI; TO REQUIRE THAT THE DEPOSITORY BE ADMINISTERED AS A 8
DIVISION OF THE OFFICE OF THE STATE TREASURER AND UNDER THE 9
DIRECTION AND SUPERVISION OF A BULLION DEPOSITORY ADMINISTRATOR; 10
TO PROVIDE THE DUTIES OF THE BULLION DEPOSITORY ADMINISTRATOR; TO 11
AUTHORIZE THE DEPOSITORY TO RECEIVE A DEPOSIT OF BULLION OR SPECIE 12
FROM OR ON BEHALF OF A PERSON ACTING IN THE PERSON'S OWN RIGHT, AS 13
TRUSTEE, OR IN ANOTHER FIDUCIARY CAPACITY, IN ACCORDANCE WITH ANY 14
RULES OR REGULATIONS ADOPTED BY THE STATE TREASURER; TO REQUIRE 15
THAT THE DEPOSITORY RECORD THE AMOUNT OF PRECIOUS METALS A PERSON 16
DEPOSITS, REGARDLESS OF FORM, IN UNITS OF TROY OUNCES PURE, AND 17
THE RECORD MUST ALSO SPECIFY THE TYPE AND QUANTITY OF EACH 18
PRECIOUS METAL DEPOSITED; TO AUTHORIZE THE STATE TREASURER TO 19
RESTRICT THE FORMS IN WHICH DEPOSITS OF PRECIOUS METALS MAY BE 20
MADE TO THOSE FORMS THAT CONVENIENTLY LEND THEMSELVES TO 21
MEASUREMENT AND ACCOUNTING IN UNITS OF TROY OUNCES AND 22
STANDARDIZED FRACTIONS OF TROY OUNCES; TO REQUIRE THE DEPOSITORY 23
TO DELIVER ANY PRECIOUS METAL HELD BY OR ON BEHALF OF THE 24
DEPOSITORY IN BULLION, SPECIE, OR A COMBINATION THEREOF, ON THE 25
ORDER OF A DEPOSITORY ACCOUNT HOLDER IN A QUANTITY OF THAT 26
PRECIOUS METAL AS IS AVAILABLE IN SUCH ACCOUNT HOLDER'S ACCOUNT; 27
TO AUTHORIZE A DEPOSITORY ACCOUNT HOLDER TO TRANSFER ANY PORTION 28
OF THE BALANCE OF THE HOLDER'S DEPOSITORY ACCOUNT BY CHECK, DRAFT, 29
OR DIGITAL ELECTRONIC INSTRUCTION TO ANOTHER DEPOSITORY ACCOUNT 30
HOLDER OR TO A PERSON WHO AT THE TIME THE TRANSFER IS INITIATED IS 31
NOT A DEPOSITORY ACCOUNT HOLDER; TO REQUIRE A DEPOSITOR TO 32
CONTRACT WITH THE DEPOSITORY TO BE ABLE TO ESTABLISH A DEPOSITORY 33
ACCOUNT; TO PROVIDE CERTAIN REQUIREMENTS FOR SUCH CONTRACT BETWEEN 34
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A DEPOSITORY AND DEPOSITOR; TO PROVIDE THAT A CAUSE OF ACTION FOR 35
DENIAL OF DEPOSIT LIABILITY ON A DEPOSITORY ACCOUNT CONTRACT 36
WITHOUT A MATURITY DATE DOES NOT ACCRUE UNTIL THE DEPOSITORY HAS 37
DENIED LIABILITY AND GIVEN NOTICE OF THE DENIAL TO THE DEPOSITORY 38
ACCOUNT HOLDER; TO PROVIDE THAT A DEPOSITORY ACCOUNT MAY BE 39
TRANSFERRED ON THE BOOKS OF THE DEPOSITORY ONLY ON PRESENTATION TO 40
THE DEPOSITORY OF EVIDENCE OF TRANSFER SATISFACTORY TO THE 41
DEPOSITORY AND AN APPLICATION FOR THE TRANSFER SUBMITTED BY THE 42
PERSON TO WHOM THE DEPOSITORY ACCOUNT IS TO BE TRANSFERRED; TO 43
PROHIBIT THE DEPOSITORY FROM PAYING ON A DEPOSITORY ACCOUNT ANY 44
INTEREST, AN AMOUNT IN THE NATURE OF INTEREST, OR A FEE OR OTHER 45
PAYMENT FOR THE USE OR FORBEARANCE OF USE OF MONEY, BULLION, 46
SPECIE, OR PRECIOUS METALS DEPOSITED TO A DEPOSITORY ACCOUNT; TO 47
PROVIDE THAT THE DEPOSITORY HAS A LIEN ON EACH DEPOSITORY ACCOUNT 48
OWNED BY A DEPOSITORY ACCOUNT HOLDER TO SECURE ANY FEES, CHARGES, 49
OR OTHER OBLIGATIONS OWED OR THAT MAY BECOME OWED TO THE 50
DEPOSITORY IN CONNECTION WITH ANY OF SUCH ACCOUNT HOLDER'S 51
DEPOSITORY ACCOUNTS AS PROVIDED BY THE TERMS OF THE ACCOUNT 52
HOLDER'S APPLICABLE DEPOSITORY ACCOUNT CONTRACT; TO AUTHORIZE THE 53
DEPOSITORY, WITHOUT NOTICE TO OR CONSENT OF THE DEPOSITORY ACCOUNT 54
HOLDER, TO TRANSFER ON THE DEPOSITORY'S BOOKS THE BALANCE OF SUCH 55
ACCOUNT HOLDER'S DEPOSITORY ACCOUNT TO PAY OR SATISFY THE 56
OBLIGATION UPON DEFAULT IN THE PAYMENT OR IN THE SATISFACTION OF 57
SUCH ACCOUNT HOLDER'S OBLIGATION, AS DETERMINED BY REFERENCE TO 58
THE EXCHANGE RATES APPLICABLE AT THE TIME OF THE TRANSFER; TO 59
AUTHORIZE CERTAIN INDIVIDUALS AND ENTITIES TO INVEST MONEY IN A 60
DEPOSITORY ACCOUNT BY PURCHASING PRECIOUS METALS AND DEPOSITING 61
SUCH PRECIOUS METALS WITH THE DEPOSITORY OR A DEPOSITORY AGENT; TO 62
PROVIDE THAT UNLESS A TERM OF THE DEPOSITORY ACCOUNT PROVIDES 63
OTHERWISE, A PERSON ON WHOSE SIGNATURE PRECIOUS METALS MAY BE 64
WITHDRAWN FROM A DEPOSITORY ACCOUNT THAT IS JOINTLY HELD IN THE 65
NAMES OF TWO OR MORE PERSONS MAY, BY A SIGNED PLEDGE, PLEDGE AND 66
TRANSFER TO THE DEPOSITORY OR TO A THIRD PARTY ALL OR PART OF THE 67
ACCOUNT; TO AUTHORIZE THE DEPOSITORY OR A DEPOSITORY AGENT TO 68
ACCEPT A DEPOSITORY ACCOUNT IN THE NAME OF A FIDUCIARY, INCLUDING 69
AN ADMINISTRATOR, EXECUTOR, CUSTODIAN, GUARDIAN, OR TRUSTEE, FOR A 70
NAMED BENEFICIARY; TO REQUIRE THE DEPOSITORY TO RECOGNIZE THE 71
AUTHORITY OF A POWER OF ATTORNEY AUTHORIZED IN WRITING BY A 72
DEPOSITORY ACCOUNT HOLDER TO MANAGE OR WITHDRAW PRECIOUS METALS 73
FROM THE DEPOSITORY ACCOUNT HOLDER'S DEPOSITORY ACCOUNT UNTIL THE 74
DEPOSITORY RECEIVES WRITTEN OR ACTUAL NOTICE OF THE REVOCATION OF 75
THAT AUTHORITY; TO REQUIRE THE DEPOSITORY TO ENTER INTO 76
TRANSACTIONS AND RELATIONSHIPS WITH BULLION BANKS, DEPOSITORIES, 77
DEALERS, CENTRAL BANKS, SOVEREIGN WEALTH FUNDS, FINANCIAL 78
INSTITUTIONS, INTERNATIONAL NONGOVERNMENTAL ORGANIZATIONS, AND 79
OTHER PERSONS, LOCATED INSIDE OR OUTSIDE OF MISSISSIPPI OR INSIDE 80
OR OUTSIDE OF THE UNITED STATES, AS THE STATE TREASURER DETERMINES 81
TO BE PRUDENT AND SUITABLE TO FACILITATE THE OPERATIONS OF THE 82
DEPOSITORY; TO PROVIDE CERTAIN PROHIBITIONS FOR THE BULLION 83
DEPOSITORY; TO REQUIRE THE STATE TREASURER TO ESTABLISH THE 84
REFERENCES BY WHICH THE OFFICIAL EXCHANGE RATE FOR PRICING 85
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PRECIOUS METALS TRANSACTIONS IN TERMS OF UNITED STATES DOLLARS OR 86
OTHER CURRENCY MUST BE ESTABLISHED AT THE TIME OF A DEPOSITORY 87
TRANSACTION; TO REQUIRE THE STATE TREASURER TO ESTABLISH 88
PROCEDURES AND FACILITIES THROUGH WHICH THE RATES ARE MADE 89
DISCOVERABLE AT ALL REASONABLE TIMES BY SYSTEM PARTICIPANTS, BOTH 90
ON A REAL-TIME BASIS AND RETROSPECTIVELY; TO REQUIRE THE STATE 91
TREASURER TO ESTABLISH PROCEDURES AND REQUIREMENTS FOR THE 92
DEPOSITORY AND DEPOSITORY AGENTS DESIGNED TO MINIMIZE THE BURDEN 93
TO SYSTEM PARTICIPANTS OF ACCOUNTING FOR AND REPORTING TAXABLE 94
GAINS AND LOSSES ARISING OUT OF DEPOSITORY TRANSACTIONS AS 95
DENOMINATED IN UNITED STATES DOLLARS OR ANOTHER CURRENCY; TO 96
REQUIRE THE STATE TREASURER TO SUBMIT TO THE GOVERNOR AND TO THE 97
LEGISLATURE A REPORT ON THE STATUS, CONDITION, OPERATIONS, AND 98
PROSPECTS FOR THE DEPOSITORY AND DEPOSITORY PARTICIPATION NOT 99
LATER THAN SEPTEMBER 30 OF EACH YEAR; TO REQUIRE THAT THE 100
DEPOSITORY USE PRIVATE, INDEPENDENTLY MANAGED FIRMS AND 101
INSTITUTIONS LICENSED AS DEPOSITORY AGENTS AS INTERMEDIARIES TO 102
CONDUCT RETAIL TRANSACTIONS IN BULLION AND SPECIE ON BEHALF OF THE 103
DEPOSITORY WITH CURRENT AND PROSPECTIVE DEPOSITORY ACCOUNT 104
HOLDERS; TO PROVIDE THAT THE STATE TREASURER SHALL REQUIRE A 105
DEPOSITORY AGENT TO MAINTAIN SUITABLE SYSTEMS AND PROCESSES FOR 106
ELECTRONIC INFORMATION SHARING AND COMMUNICATION WITH THE STATE 107
TREASURER AND THE DEPOSITORY TO ENSURE THAT ALL TRANSACTIONS 108
EFFECTED ON BEHALF OF THE DEPOSITORY ARE REPORTED TO AND 109
INTEGRATED INTO THE DEPOSITORY'S RECORDS NOT LATER THAN 11:59:59 110
P.M. ON THE DATE OF EACH TRANSACTION; TO REQUIRE A DEPOSITORY 111
AGENT TO SUBMIT MONTHLY, QUARTERLY, AND ANNUAL REPORTS OF ALL 112
DEPOSITORY TRANSACTIONS NO LATER THAN THE 15TH DAY OF THE MONTH 113
FOLLOWING THE EXPIRATION OF THE PERIOD WITH RESPECT TO WHICH 114
REPORT IS SUBMITTED; TO PROVIDE THAT A PERSON MAY NOT ENGAGE IN 115
THE BUSINESS OF RENDERING DEPOSITORY AGENT SERVICES OR ADVERTISE, 116
SOLICIT, OR HOLD ITSELF OUT AS A PERSON THAT ENGAGES IN THE 117
BUSINESS OF SUCH SERVICES UNLESS THE PERSON IS LICENSED, AND HAS 118
RECEIVED THE REQUISITE CERTIFICATIONS OR IS EXCLUDED FROM 119
LICENSING REQUIREMENTS UNDER THE MISSISSIPPI MONEY TRANSMITTERS 120
ACT; TO PROVIDE THAT A PERSON ENGAGES IN THE BUSINESS OF 121
DEPOSITORY AGENT SERVICES IF THE PERSON RENDERS A DEPOSITORY AGENT 122
SERVICE, REGARDLESS OF WHETHER COMPENSATION IS SOUGHT OR RECEIVED 123
FOR THE SERVICE, DIRECTLY OR INDIRECTLY OR IF THE SERVICE IS 124
INCIDENTAL TO ANY OTHER BUSINESS IN WHICH THE PERSON IS PRIMARILY 125
ENGAGED; TO PROVIDE THAT A PERSON SOLICITS, ADVERTISES, OR HOLDS 126
THE PERSON OUT AS A PERSON THAT ENGAGES IN THE BUSINESS OF 127
DEPOSITORY AGENT SERVICES IF THE PERSON REPRESENTS THAT THE PERSON 128
WILL CONDUCT DEPOSITORY AGENT SERVICES; TO AUTHORIZE A DEPOSITORY 129
AGENT LICENSE HOLDER TO ENGAGE IN DEPOSITORY AGENT SERVICES 130
BUSINESS AT ONE OR MORE LOCATIONS IN MISSISSIPPI OWNED DIRECTLY OR 131
INDIRECTLY BY THE LICENSE HOLDER UNDER A SINGLE LICENSE; TO 132
REQUIRE AN APPLICANT FOR A DEPOSITORY AGENT LICENSE TO SUBMIT AN 133
APPLICATION IN ACCORDANCE WITH THE MISSISSIPPI MONEY TRANSMITTERS 134
ACT AND TO PROVIDE CERTAIN REQUIREMENTS FOR SUCH APPLICATION; TO 135
REQUIRE THE DEPARTMENT OF BANKING AND CONSUMER FINANCE TO 136
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INVESTIGATE SUCH APPLICANT AND ACT ON THE APPLICATION IN 137
ACCORDANCE WITH THE MISSISSIPPI MONEY TRANSMITTERS ACT; TO 138
AUTHORIZE THE COMMISSIONER OF BANKING AND CONSUMER FINANCE TO 139
ISSUE A TEMPORARY DEPOSITORY AGENT LICENSE TO A PERSON THAT IS 140
ENGAGING IN DEPOSITORY AGENT SERVICES, BUT HAS NOT OBTAINED A 141
LICENSE UNDER THIS ACT UNDER CERTAIN CIRCUMSTANCES; TO PROVIDE 142
THAT A DEPOSITORY AGENT LICENSE HOLDER IS LIABLE FOR THE DELIVERY 143
TO OR FOR THE ACCOUNT OF THE DEPOSITORY OR EACH DEPOSITOR, AS 144
APPLICABLE, OF ALL BULLION, SPECIE, AND MONEY PAYABLE OR 145
DELIVERABLE IN CONNECTION WITH THE TRANSACTIONS IN WHICH THE 146
LICENSE HOLDER ENGAGES ON BEHALF OF THE DEPOSITORY; TO REQUIRE A 147
DEPOSITORY AGENT LICENSE HOLDER TO HOLD IN TRUST ALL CASH, 148
BULLION, SPECIE, AND OTHER ASSETS RECEIVED IN THE ORDINARY COURSE 149
OF ITS BUSINESS UNTIL THE TIME THE DELIVERY OBLIGATION IS 150
DISCHARGED; TO REQUIRE THAT A DEPOSITORY AGENT LICENSE HOLDER'S 151
NAME AND MAILING ADDRESS OR TELEPHONE NUMBER MUST BE PROVIDED TO 152
THE PURCHASER IN CONNECTION WITH EACH DEPOSITORY AGENT SERVICES 153
TRANSACTION CONDUCTED BY THE DEPOSITORY AGENT LICENSE HOLDER; TO 154
BRING FORWARD SECTIONS 75-16-9 THROUGH 75-16-87, MISSISSIPPI CODE 155
OF 1972, WHICH RELATE TO THE MONEY TRANSMISSION MODERNIZATION ACT, 156
FOR PURPOSES OF POSSIBLE AMENDMENT; TO AMEND SECTIONS 75-16-5, 157
75-16-7, 75-16-13, 75-16-25 AND 75-16-67, MISSISSIPPI CODE OF 158
1972, TO MAKE MINOR, NONSUBSTANTIVE CHANGES; AND FOR RELATED 159
PURPOSES. 160
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 161
SECTION 1. (1) As used in this act, the following terms 162
have the meanings as defined in this section, unless the context 163
clearly indicates otherwise: 164
(a) "Administrator" means the bullion depository 165
administrator appointed under Section 3 of this act. 166
(b) "Bullion" means precious metals that are formed 167
into uniform shapes and quantities such as ingots, bars, or 168
plates, with uniform content and purity, as are suitable for or 169
customarily used in the purchase, sale, storage, transfer, and 170
delivery of bulk or wholesale transactions in precious metals. 171
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(c) "Business day" means a day other than a Saturday, 172
Sunday, or banking holiday for a bank chartered under the laws of 173
this state. 174
(d) "Deposit" means the establishment of an executory 175
obligation of the depository to deliver to the order of the person 176
establishing with the depository the obligation, on demand, a 177
quantity of a specified precious metal, in bullion, specie, or a 178
combination of bullion and specie, equal to the quantity of the 179
same precious metal delivered by or on behalf of the depositor 180
into the custody of: 181
(i) The depository; or 182
(ii) A depository agent. 183
(e) "Depositor" means a person who makes a deposit. 184
(f) "Depository" means the Mississippi Bullion 185
Depository created by this act. 186
(g) "Depository account" means the rights, interests, 187
and entitlements established in favor of a depositor with respect 188
to a deposit in accordance with this act, and rules or regulations 189
adopted under this act. 190
(h) "Depository account holder," regarding a depository 191
account, means the original depositor or a successor or assignee 192
of the depositor respecting the depository account. 193
(i) "Depository agent" means a person licensed in 194
accordance with this act to serve as an intermediary between the 195
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depository and a retail customer in making a transaction in 196
precious metals bullion or specie. 197
(j) "Depository agent license" means a license issued 198
under this act. 199
(k) "Depository agent services" means services rendered 200
to the general public for or on behalf of the Mississippi Bullion 201
Depository in the nature of purchasing, selling, transferring, 202
accepting, transporting, delivering, or otherwise dealing in 203
precious metals bullion or specie in connection with the creation, 204
transfer, clearing, settlement, or liquidation of the rights and 205
interests of a depository account holder and a direct or indirect 206
transferee of a depository account holder. The term "depository 207
agent services" does not include: 208
(i) Participation as a party or counterparty to a 209
transaction, including an agreement with respect to a transaction, 210
in or in connection with a contract for the purchase or sale of a 211
person's rights and interests as a depository account holder, as a 212
cash contract for present delivery, a cash contract for deferred 213
shipment or delivery, or a contract for future delivery, where the 214
underlying deliverable consists of the depository account holder's 215
interest in the depository account, rather than the underlying 216
precious metal represented by the depository account balance; 217
(ii) The opening, transfer, settlement, or 218
liquidation of any derivative of a contract, including a forward 219
transaction, swap transaction, currency transaction, future 220
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transaction, index transaction, or option on or other derivative 221
of a transaction of any of those types, in the nature of a cap 222
transaction, floor transaction, collar transaction, repurchase 223
transaction, reverse repurchase transaction, buy-and-sell-back 224
transaction, securities lending transaction, or other financial 225
instrument or interest, including an option with respect to a 226
transaction, or any combination of these transactions; or 227
(iii) The rendition of services exclusively in 228
support of the opening, transfer, settlement, or liquidation of 229
transaction derivatives through a central counterparty, such as 230
those customarily rendered by a clearinghouse, clearing 231
association, or clearing corporation, or through an interbank 232
payment system, physical or electronic trading facility, broker or 233
brokerage firm, or similar entity, facility, system, or 234
organization. 235
(l) "Precious metal" means a metal, including gold and 236
silver that: 237
(i) Bears a high value-to-weight ratio relative to 238
common industrial metals; and 239
(ii) Customarily is formed into bullion or specie. 240
(m) "Specie" means a precious metal stamped into coins 241
of uniform shape, size, design, content, and purity, suitable for 242
or customarily used as currency, as a medium of exchange, or as 243
the medium for purchase, sale, storage, transfer, or delivery of 244
precious metals in retail or wholesale transactions. 245
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SECTION 2. (1) The Mississippi Bullion Depository is 246
established as an agency of this state in the Office of the State 247
Treasurer. 248
(2) The depository is established to serve as the custodian, 249
guardian, and administrator of certain bullion and specie that may 250
be transferred to or otherwise acquired by the State of 251
Mississippi, or an agency, department, institution, 252
instrumentality, or political subdivision of the State of 253
Mississippi, or any agency, department, or institution of a 254
political subdivision of the state. 255
SECTION 3. (1) The depository is administered as a division 256
of the Office of the State Treasurer and under the direction and 257
supervision of a bullion depository administrator appointed by the 258
State Treasurer with the advice and consent of the Governor, 259
Lieutenant Governor, and Senate. 260
(2) The bullion depository administrator shall: 261
(a) Administer, supervise, and direct the operations 262
and affairs of the depository and depository agents; and 263
(b) Liaise with the State Treasurer and other divisions 264
of the Office of the State Treasurer to ensure that each 265
transaction with the depository that involves state money, that 266
involves an agency, department, institution, instrumentality, or 267
political subdivision of the State of Mississippi, or any agency, 268
department, or institution of a political subdivision of the 269
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state, or that involves a private person is planned, administered, 270
and executed in a manner to achieve the purposes of this act. 271
(3) The administrator may appoint, subject to the approval 272
of the State Treasurer, a deputy administrator or other 273
subordinate officer as necessary and appropriate to the efficient 274
administration of the depository. 275
SECTION 4. (1) The following are not available for 276
legislative appropriation: 277
(a) A deposit to the depository; 278
(b) Bullion or specie held by or on behalf of the 279
depository or a depository agent; 280
(c) Bullion or specie in transit to or from the 281
depository or a depository agent; and 282
(d) A receivable or other amount owed to the depository 283
in settlement of a transaction in bullion or specie. 284
(2) Bullion, specie, and other assets described by 285
subsection (1) of this section are subject to redemption, 286
liquidation, or transfer exclusively to discharge an obligation of 287
the depository to depository account holders, depository agents, 288
bullion banks, financial institutions, or other intermediaries in 289
accordance with this act, and any rules or regulations adopted 290
under this act. 291
(3) Revenue that the depository earns from fees, charges, or 292
other payments received in the course of depository operations 293
shall be transferred to the State General Fund. 294
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SECTION 5. (1) The depository may receive a deposit of 295
bullion or specie from or on behalf of a person acting in the 296
person's own right, as trustee, or in another fiduciary capacity, 297
in accordance with any rules or regulations adopted by the State 298
Treasurer, as appropriate, to: 299
(a) Ensure compliance with law; and 300
(b) Protect the interests of: 301
(i) The depository; 302
(ii) Depository account holders; 303
(iii) The State of Mississippi, and any agency, 304
department, institution, instrumentality, or political subdivision 305
of the State of Mississippi, or any agency, department, or 306
institution of a political subdivision of the state; and 307
(iv) The public at large. 308
(2) The depository shall record the amount of precious 309
metals a person deposits, regardless of form, in units of troy 310
ounces pure, and the records must also specify the type and 311
quantity of each precious metal deposited. 312
(3) The State Treasurer, by rule or regulation, shall adopt 313
standards by which the quantities of precious metals deposited are 314
credited to a depositor's depository account by reference to the 315
particular form in which the metals were deposited, classified by 316
mint, denomination, weight, assay mark, or other indicator, as 317
applicable. The standards must conform to applicable national and 318
international standards of weights and measures. 319
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(4) The State Treasurer, by rule or regulation, may, if he 320
or she determines that to do so is in the public interest, 321
restrict the forms in which deposits of precious metals may be 322
made to those forms that conveniently lend themselves to 323
measurement and accounting in units of troy ounces and 324
standardized fractions of troy ounces. 325
(5) The depository shall adjust each depository account 326
balance to reflect additions to or withdrawals or deliveries from 327
the account. 328
SECTION 6. (1) The depository shall deliver any precious 329
metal held by or on behalf of the depository in bullion, specie, 330
or a combination of bullion and specie, on the order of a 331
depository account holder in a quantity of that precious metal as 332
is available in the depository account holder's depository 333
account. 334
(2) The depository shall make a delivery described by 335
subsection (1) of this section on demand by the presentment of a 336
suitable check, draft, or digital electronic instruction to the 337
depository or a depository agent. The State Treasurer, by rule or 338
regulation, shall adopt the forms, standards, and processes 339
through which an order for delivery on demand may be made, 340
presented, and honored. 341
(3) The depository shall make a delivery at the depository's 342
settlement facility designated by the State Treasurer, shipping to 343
an address specified by the account holder or, at the depository's 344
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discretion, at a facility of a depository agent at which 345
presentment is made, not later than five (5) business days after 346
the date of presentment. 347
SECTION 7. (1) In accordance with any rules or regulations 348
adopted under this act, a depository account holder may transfer 349
any portion of the balance of the holder's depository account by 350
check, draft, or digital electronic instruction to another 351
depository account holder or to a person who at the time the 352
transfer is initiated is not a depository account holder. 353
(2) The depository shall adjust the depository account 354
balances of the depository accounts to reflect a transfer 355
transaction between depository account holders on presentment of 356
the check, draft, or other instruction by reducing the payor's 357
depository account balance and increasing the depository account 358
balance of the payee accordingly. 359
(3) If a depository account holder transfers to a payee who 360
is not a depository account holder any portion of the balance of 361
the holder's depository account, the depository shall allow the 362
payee to establish a depository account by presentment of the 363
payor's check, draft, or instruction to the depository or to a 364
depository agent. The depository shall credit a newly established 365
account on behalf of the payee and shall debit the payor's account 366
accordingly. 367
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SECTION 8. (1) To establish a depository account, a 368
depositor must contract with the depository for a depository 369
account. The contract must specify: 370
(a) The terms applicable to the account, including any 371
special terms; and 372
(b) The conditions on which withdrawals or deliveries 373
with respect to the account may be made. 374
(2) The execution of a contract for a depository account 375
described by this section may be made, as prescribed by any rules 376
or regulations adopted under this act, by electronic or digital 377
transmission. 378
(3) The depository or a depository agent shall hold the 379
contract for a depository account in the records pertaining to the 380
account. 381
(4) A contract for a depository account executed by a 382
depositor and the depository is considered a contract in writing 383
for all purposes, and may be evidenced by one or more agreements, 384
deposit receipts, signature cards, amendment notices, or other 385
documentation as provided by law. 386
(5) The depository and the depository account holder may 387
amend a contract for a depository account by agreement, or the 388
depository may amend the deposit contract by mailing a written 389
notice of the amendment to the account holder, separately or as an 390
enclosure with or part of the account holder's statement of 391
account or passbook. In the case of amendment by notice from the 392
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depository, the notice must include the text and effective date of 393
the amendment. The effective date may not be earlier than the 394
30th day after the date the notice is mailed, except as otherwise 395
provided under this act. 396
SECTION 9. (1) A cause of action for denial of deposit 397
liability on a depository account contract without a maturity date 398
does not accrue until the depository has denied liability and 399
given notice of the denial to the depository account holder. 400
(2) The depository's act of furnishing an account statement 401
or passbook, whether in physical, digital, or electronic form, 402
constitutes a denial of liability and the giving of such notice as 403
to any amount not shown on the statement or passbook. 404
(3) The depository's sovereign immunity from suit is waived 405
for an action brought by a depositor for the denial of deposit 406
liability. 407
(4) The depository's liability for a denial of deposit 408
liability is limited to the amount on deposit for which liability 409
was denied. A depositor may not recover consequential damages, 410
exemplary damages, pre- or post-judgment interest, costs, or 411
attorney's fees. 412
(5) A cause of action authorized by this section must be 413
brought in a court of competent jurisdiction before the expiration 414
of one (1) year after the date it accrues, or such cause of action 415
is barred. 416
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SECTION 10. The State Treasurer, by rule or regulation, may 417
establish fees, service charges, and penalties to be charged a 418
depository account holder for a service or activity regarding a 419
depository account, including a fee for an overdraft, an 420
insufficient fund check or draft, or a stop payment order. 421
SECTION 11. Unless the depository acknowledges in writing a 422
pledge of a depository account, the depository may treat the 423
holder of record of the account as the owner of the account for 424
all purposes and without regard to a notice to the contrary. 425
SECTION 12. (1) A depository account may be transferred on 426
the books of the depository only on presentation to the depository 427
of: 428
(a) Evidence of transfer satisfactory to the 429
depository; and 430
(b) An application for the transfer submitted by the 431
person to whom the depository account is to be transferred. 432
(2) A person to whom a depository account is to be 433
transferred must accept the transferred account subject to the 434
terms of the deposit contract, this act, and any rules or 435
regulations adopted under this act. 436
SECTION 13. The depository shall not pay on a depository 437
account: 438
(a) Interest; 439
(b) An amount in the nature of interest; or 440
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(c) A fee or other payment for the use or forbearance 441
of use of money, bullion, specie, or precious metals deposited to 442
a depository account. 443
SECTION 14. (1) Without the need of any further agreement 444
or pledge, the depository has a lien on each depository account 445
owned by a depository account holder to secure any fees, charges, 446
or other obligations owed or that may become owed to the 447
depository in connection with any of the depository account 448
holder's depository accounts as provided by the terms of the 449
depository account holder's applicable depository account 450
contract. 451
(2) On default in the payment or in the satisfaction of a 452
depository account holder's obligation, the depository, without 453
notice to or consent of the depository account holder, may 454
transfer on the depository's books all or part of the balance of a 455
depository account holder's depository account to the extent 456
necessary to pay or satisfy the obligation, as determined by 457
reference to the exchange rates applicable at the time of the 458
transfer. 459
(3) The depository by written instrument may waive wholly or 460
partly the depository's lien on a depository account. 461
(4) Subject to a lien created as provided by this section, 462
the depository shall recognize the lawful pledge to a third party 463
by a depository account holder of the depository account holder's 464
rights, interests, and entitlements in and to a depository account 465
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as an intangible asset. On the satisfaction of other requirements 466
of law in respect of the perfection and enforcement of a pledge of 467
that type, the depository shall take all steps reasonably 468
necessary and appropriate to effectuate on the depository's books 469
any transfer of a depository account or of all or part of a 470
depository account balance to the account of the secured party on 471
the successful enforcement of the pledge. 472
SECTION 15. (1) The following persons may invest the 473
person's money in a depository account by purchasing precious 474
metals and depositing the precious metals with the depository or a 475
depository agent: 476
(a) An individual or fiduciary, including an 477
administrator, executor, custodian, guardian, or trustee; 478
(b) An agency, department, institution, 479
instrumentality, or political subdivision of the State of 480
Mississippi, or any agency, department, or institution of a 481
political subdivision of the state; 482
(c) A business or nonprofit corporation; 483
(d) A charitable or educational corporation or 484
association; or 485
(e) A financial institution, including a bank, savings 486
and loan association, or credit union. 487
(2) An investment by a school district in a depository 488
account may be made instead of an investment as provided in Title 489
37, Mississippi Code of 1972, and the depository may be used by a 490
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district instead of a depository bank for the purposes of Title 491
37, Mississippi Code of 1972. 492
SECTION 16. The applicable provisions of Title 91, 493
Mississippi Code of 1972, govern a depository account. 494
SECTION 17. (1) Unless a term of the depository account 495
provides otherwise, a person on whose signature precious metals 496
may be withdrawn from a depository account that is jointly held in 497
the names of two or more persons may, by a signed pledge, pledge 498
and transfer to the depository or to a third party all or part of 499
the account. 500
(2) A pledge made as described by subsection (1) of this 501
section does not sever or terminate the joint and survivorship 502
ownership of the account, to the extent applicable to the account 503
before the pledge. 504
SECTION 18. (1) The depository or a depository agent may 505
accept a depository account in the name of a fiduciary, including 506
an administrator, executor, custodian, guardian, or trustee, for a 507
named beneficiary. 508
(2) A fiduciary may open, add to, or withdraw precious 509
metals from an account described by subsection (1) of this 510
section. 511
(3) Except as otherwise provided by law, a payment or 512
delivery to a fiduciary or an acquittance signed by the fiduciary 513
to whom a payment or delivery is made is a discharge of the 514
depository for the payment or delivery. 515
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(4) After a person who holds a depository account in a 516
fiduciary capacity dies, the depository may pay or deliver to the 517
beneficiary of the account the quantity of precious metals 518
represented by the balance in the depository account, plus other 519
rights relating to the depository account, wholly or partly, if 520
the depository has no written notice or order of the probate court 521
of: 522
(a) A revocation or termination of the fiduciary 523
relationship; or 524
(b) Any other disposition of the beneficial estate. 525
(5) The depository has no further liability for a payment 526
made or right delivered under subsection (4) of this section. 527
SECTION 19. (1) If the depository opens a depository 528
account for a person claiming to be the trustee for another 529
person, and the depository has no other notice of the existence or 530
terms of the trust other than a written claim against the account: 531
(a) The person claiming to be the trustee, on the 532
person's signature, may withdraw precious metals from the account; 533
and 534
(b) If the person claiming to be the trustee dies, the 535
depository may pay or deliver the quantity of precious metals 536
represented by the balance in the account to the person for whom 537
the account was opened. 538
(2) The depository has no further liability for a payment or 539
delivery made as provided by subsection (1) of this section. 540
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SECTION 20. (1) The depository shall recognize the 541
authority of a power of attorney authorized in writing by a 542
depository account holder to manage or withdraw precious metals 543
from the depository account holder's depository account until the 544
depository receives written or actual notice of the revocation of 545
that authority. 546
(2) For purposes of this section, written notice of the 547
death or adjudication of incompetency of a depository account 548
holder is considered to be written notice of revocation of the 549
authority of the account holder's power of attorney. 550
SECTION 21. The depository shall enter into transactions and 551
relationships with bullion banks, depositories, dealers, central 552
banks, sovereign wealth funds, financial institutions, 553
international nongovernmental organizations, and other persons, 554
located inside or outside of this state or inside or outside of 555
the United States, as the State Treasurer determines to be prudent 556
and suitable to facilitate the operations of the depository and to 557
further the purposes of this act. 558
SECTION 22. (1) The depository shall not take any of the 559
following actions, and any attempt by the depository to take any 560
of the following actions is void ab initio and of no force or 561
effect: 562
(a) Entering into a precious metals leasing, 563
sale-leaseback, forward transaction, swap transaction, future 564
transaction, index transaction, or option on or other derivative 565
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of any of those, whether in the nature of a cap transaction, floor 566
transaction, collar transaction, repurchase transaction, reverse 567
repurchase transaction, buy-and-sell-back transaction, securities 568
lending transaction, or other financial instrument or interest 569
intended to or having the effect of hedging or leveraging the 570
depository's holdings of precious metals, including any option 571
with respect to any of these transactions, or any combination of 572
these transactions, except that the limitation provided by this 573
subdivision does not apply to a transaction entered into to limit 574
the depository's exposure to post-signature price risks associated 575
with executory agreements to purchase or sell precious metals in 576
the ordinary course of depository operations and does not apply to 577
policies of insurance purchased to insure against ordinary 578
casualty risks such as theft, damage or destruction, loss during 579
shipment, or similar risks; 580
(b) Crediting the depository account balances of a 581
depository account holder, or disposing of any precious metals, if 582
to do so would cause the aggregate depository account balances 583
with respect to any precious metal represented by all depository 584
accounts to exceed the aggregate quantities of such precious metal 585
held by or for the benefit of the depository and the depository's 586
depository agents; 587
(c) Entering into or maintaining a deposit, trust, or 588
similar relationship for the custody of precious metals by a third 589
party outside this state, directly or indirectly, for the account 590
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or benefit of the depository if the State Treasurer, by rule or 591
regulation, establishes that: 592
(i) The custody or intermediary arrangements in 593
question do not meet the State Treasurer's standards of safety, 594
security, and liquidity; or 595
(ii) Except in those cases where such relationship 596
may be incidental to the performance of or preparation for 597
purchase and sale transactions with counterparties located outside 598
of this state, suitable alternate arrangements for physical 599
custody of the precious metals inside this state have been 600
established and are available; 601
(d) Extending credit to a person, including credit 602
secured by a depository account or other assets, except an 603
extension of credit incidental to the performance of the functions 604
and responsibilities otherwise provided by this act; or 605
(e) Engaging in a business or activity that, if 606
conducted by a private person, would be subject to regulation in 607
this state as a banking or savings and loan function. 608
SECTION 23. (1) A purported confiscation, requisition, 609
seizure, or other attempt to control the ownership, disposition, 610
or proceeds of a withdrawal, transfer, liquidation, or settlement 611
of a depository account, including the precious metals represented 612
by the balance of a depository account, if effected by a 613
governmental or quasi-governmental authority other than an 614
authority of this state or by a financial institution or other 615
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person acting on behalf of or pursuant to a directive or 616
authorization issued by a governmental or quasi-governmental 617
authority other than an authority of this state, in the course of 618
a generalized declaration of illegality or emergency relating to 619
the ownership, possession, or disposition of one or more precious 620
metals, contracts, or other rights to the precious metals or 621
contracts or derivatives of the ownership, possession, 622
disposition, contracts, or other rights, is void ab initio and of 623
no force or effect. 624
(2) The depository in the case of receiving notice of a 625
purported confiscation, requisition, seizure, or other attempt to 626
control the ownership, disposition, or proceeds of a withdrawal, 627
transfer, liquidation, or settlement of a depository account, 628
including the precious metals represented by the balance of a 629
depository account, effected by a governmental or 630
quasi-governmental authority other than an authority of this state 631
or by a financial institution or other person acting on behalf of 632
or pursuant to a directive or authorization issued by a 633
governmental or quasi-governmental authority other than an 634
authority of this state, in the course of a generalized 635
declaration of illegality or emergency relating to the ownership, 636
possession, or disposition of one or more precious metals, 637
contracts, or other rights to the precious metals or contracts or 638
derivatives of the ownership, possession, disposition, contracts, 639
or other rights, may not recognize the governmental or 640
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quasi-governmental authority, financial institution, or other 641
person acting as the lawful successor of the registered holder of 642
a depository account in question. 643
(3) On receipt of notice of any transaction described by 644
subsection (1) of this section, with respect to all or any portion 645
of the balance of a depository account, the depository shall 646
suspend withdrawal privileges associated with the balances of the 647
depository account until suitable substitute arrangements may be 648
effected in accordance with any rules or regulations of the State 649
Treasurer to enable the registered account holder to take delivery 650
of the precious metals represented by the account balances in 651
question. A voluntary transfer of a depository account balance or 652
of a depository account among depository account holders may 653
continue to take place unaffected by the suspension, and the 654
depository shall recognize to the full extent authorized by this 655
act, and any rules or regulations adopted under this act. 656
SECTION 24. The State Treasurer, by rule or regulation, 657
shall establish the references by which the official exchange rate 658
for pricing precious metals transactions in terms of United States 659
dollars or other currency must be established at the time of a 660
depository transaction. The State Treasurer shall establish 661
procedures and facilities through which the rates are made 662
discoverable at all reasonable times by system participants, both 663
on a real-time basis and retrospectively. 664
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SECTION 25. The State Treasurer, by rule or regulation, 665
shall establish procedures and requirements for the depository and 666
depository agents designed to minimize the burden to system 667
participants of accounting for and reporting taxable gains and 668
losses arising out of depository transactions as denominated in 669
United States dollars or another currency. 670
SECTION 26. The State Treasurer shall submit to the Governor 671
and to the Legislature a report on the status, condition, 672
operations, and prospects for the depository and depository 673
participation not later than September 30 of each year. 674
SECTION 27. The depository shall use private, independently 675
managed firms and institutions licensed as depository agents as 676
intermediaries to conduct retail transactions in bullion and 677
specie on behalf of the depository with current and prospective 678
depository account holders. 679
SECTION 28. The State Treasurer, by rule or regulation, 680
shall require a depository agent to maintain suitable systems and 681
processes for electronic information sharing and communication 682
with the State Treasurer and the depository to ensure that all 683
transactions effected on behalf of the depository are reported to 684
and integrated into the depository's records not later than 685
11:59:59 p.m. on the date of each transaction. 686
SECTION 29. A depository agent shall submit monthly, 687
quarterly, and annual reports of all depository transactions not 688
later than the 15th day of the month following the expiration of 689
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the period with respect to which such report is submitted. The 690
report must contain information and be in the form and format as 691
required by the State Treasurer. 692
SECTION 30. A depository agent license holder shall prepare 693
written reports and statements as follows: 694
(a) The renewal report, including an audited 695
unconsolidated financial statement that is dated as of the last 696
day of the license holder's fiscal year that ended in the 697
immediately preceding calendar year; 698
(b) A quarterly interim financial statement and report 699
regarding the permissible investments required to be maintained 700
under applicable rules that reflect the license holder's financial 701
condition and permissible investments as of the last day of the 702
calendar quarter to which the statement and report relate and that 703
are prepared not later than the 45th day after the last day of the 704
calendar quarter; and 705
(c) Any other report required by the Department of 706
Banking and Consumer Finance, or reasonably requested by the 707
Commissioner of Banking and Consumer Finance to determine 708
compliance with this act. 709
SECTION 31. (1) Notwithstanding any other provision of this 710
chapter, a money service that constitutes both a depository agent 711
service and a money transmission service, or both a depository 712
agent service and a currency exchange service, for purposes of 713
this act constitutes a depository agent service only. 714
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(2) A depository agent service described by subsection (1) 715
of this section is not subject to a provision of this act 716
applicable uniquely to money transmission services or currency 717
exchange services. 718
(3) A person who renders a service that constitutes a 719
depository agent service, including a depository agent service 720
described by subsection (1) of this section, and renders another 721
service that constitutes money transmission or currency exchange 722
service only, is subject to the requirements of this act 723
applicable to each type of service rendered. 724
SECTION 32. (1) A person may not engage in the business of 725
rendering depository agent services or advertise, solicit, or hold 726
itself out as a person that engages in the business of depository 727
agent services unless the person is: 728
(a) Licensed under this act, and has received the 729
requisite certifications from the comptroller of its facilities, 730
systems, processes, and procedures as required by this act, or any 731
applicable rules or regulations adopted; or 732
(b) Excluded from licensing requirements under the 733
Mississippi Money Transmitters Act. 734
(2) For purposes of this act: 735
(a) A person engages in the business of depository 736
agent services if the person renders a depository agent service, 737
regardless of whether: 738
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(i) Compensation is sought or received for the 739
service, directly or indirectly; and 740
(ii) The service is incidental to any other 741
business in which the person is primarily engaged; and 742
(b) A person solicits, advertises, or holds the person 743
out as a person that engages in the business of depository agent 744
services if the person represents that the person will conduct 745
depository agent services. 746
(4) Notwithstanding subsection (3) of this section, a person 747
does not engage in the business of depository agent services by 748
engaging in a transaction for the person's own depository account 749
or for the account of another person acting as a fiduciary that 750
would constitute depository agent services if conducted for 751
another person. 752
(5) A depository agent license holder may engage in 753
depository agent services business at one or more locations in 754
this state owned directly or indirectly by the license holder 755
under a single license. 756
SECTION 33. In addition to the general qualifications for 757
licensure set forth in the Mississippi Money Transmitters Act, an 758
applicant for a depository agent license must demonstrate to the 759
satisfaction of the Commissioner of Banking and Consumer Finance 760
that the: 761
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(a) Applicant's financial condition will enable the 762
applicant to safely and soundly engage in the business of 763
depository agent services; and 764
(b) Applicant does not engage in any activity or 765
practice that adversely affects the applicant's safety and 766
soundness. 767
SECTION 34. (1) An applicant for a depository agent license 768
must submit an application in accordance with the Mississippi 769
Money Transmitters Act. 770
(2) At the time an application for a depository agent 771
license is submitted, an applicant must file with the Department 772
of Banking and Consumer Finance: 773
(a) An application fee in the amount established by the 774
department; 775
(b) Audited financial statements that are satisfactory 776
to the Commissioner of Banking and Consumer Finance for purposes 777
of determining whether the applicant has the minimum net worth 778
required under applicable rules and is likely to maintain the 779
required minimum net worth if a license is issued; and 780
(c) Security in the amount of Five Hundred Thousand 781
Dollars ($500,000.00) that meets the requirements of any 782
applicable rules or regulations, and an undertaking or agreement 783
that the applicant will increase or supplement the security to 784
equal the aggregate security required by the commissioner before 785
the issuance of the license and the start of operations. 786
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SECTION 35. The Department of Banking and Consumer Finance 787
shall investigate the applicant and act on the application in 788
accordance with the Mississippi Money Transmitters Act. 789
SECTION 36. (1) The Commissioner of Banking and Consumer 790
Finance may issue a temporary depository agent license to a person 791
that is engaging in depository agent services, but has not 792
obtained a license under this act, if the person: 793
(a) Certifies in writing that the person qualifies for 794
the license and will submit a completed license application not 795
later than the sixtieth day after the date the temporary license 796
is issued; 797
(b) Submits a recent financial statement acceptable to 798
the commissioner that reflects the minimum net worth required 799
under applicable regulations; 800
(c) Provides security that meets the requirements 801
specified by the commissioner, but not less than Five Hundred 802
Thousand Dollars ($500,000.00); 803
(d) Agrees in writing that, until a permanent license 804
is issued, the person will engage only in activities being 805
conducted at existing locations; and 806
(e) Pays the application fee and a nonrefundable 807
temporary license fee in the amount established by the Department 808
of Banking and Consumer Finance. 809
(2) The effective period for a temporary depository agent 810
license may not exceed ninety (90) days after the date the license 811
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is issued. The commissioner may extend the effective period for 812
not more than thirty (30) days if necessary to complete the 813
processing of a timely filed application for which approval is 814
likely. 815
SECTION 37. A depository agent license holder is liable for 816
the delivery to or for the account of the depository or each 817
depositor, as applicable, of all bullion, specie, and money 818
payable or deliverable in connection with the transactions in 819
which the license holder engages on behalf of the depository. 820
SECTION 38. (1) A depository agent license holder shall 821
hold in trust all cash, bullion, specie, and other assets received 822
in the ordinary course of its business until the time the delivery 823
obligation is discharged. A trust resulting from the depository 824
agent license holder's actions is in favor of the persons to whom 825
such delivery obligations are owed. 826
(2) If a depository agent license holder commingles any 827
money or other property received for delivery with money or other 828
property owned or controlled by the depository agent license 829
holder, all commingled money and other property are impressed with 830
a trust as provided by this section in an amount equal to the 831
amount of money or property received for delivery, less the amount 832
of fees paid for the delivery. 833
(3) If the commissioner revokes a depository agent license, 834
all money and other property held in trust by the depository agent 835
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license holder is assigned to the commissioner for the benefit of 836
the persons to whom the related delivery obligations are owed. 837
(4) Money or other property of a depository agent license 838
holder impressed with a trust under this section may not be 839
considered an asset or property of the license holder in the event 840
of bankruptcy, receivership, or a claim against the license holder 841
unrelated to the license holder's obligations under this act. 842
SECTION 39. (1) A depository agent license holder's name 843
and mailing address or telephone number must be provided to the 844
purchaser in connection with each depository agent services 845
transaction conducted by the depository agent license holder. 846
(2) A depository agent license holder receiving currency or 847
an instrument payable in currency for transmission must comply 848
with the Mississippi Money Transmitters Act. 849
SECTION 40. Section 75-16-5, Mississippi Code of 1972, is 850
amended as follows: 851
75-16-5. Definitions. For purposes of this chapter, the 852
following definitions shall apply: 853
(a) "Acting in concert" means persons knowingly acting 854
together with a common goal of jointly acquiring control of a 855
licensee whether or not pursuant to an express agreement. 856
(b) "Authorized delegate" means a person a licensee 857
designates to engage in money transmission on behalf of the 858
licensee. 859
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(c) "Average daily money transmission liability" means 860
the amount of the licensee's outstanding money transmission 861
obligations in this state at the end of each day in a given period 862
of time, added together and divided by the total number of days in 863
the given period of time. For purposes of calculating average 864
daily money transmission liability under this chapter for any 865
licensee required to do so, the given period of time shall be the 866
quarters ending March 31, June 30, September 30 and December 31. 867
(d) "Bank Secrecy Act" means the Bank Secrecy Act, 31 868
USC Section 5311 et seq. and its implementing regulations, as 869
amended and recodified from time to time. 870
(e) "Closed loop stored value" means stored value that 871
is redeemable by the issuer only for goods or services provided by 872
the issuer or its affiliate or franchisees of the issuer or its 873
affiliate, except to the extent required by applicable law to be 874
redeemable in cash for its cash value. 875
(f) "Control" means: 876
(i) 1. The power to vote, directly or indirectly, 877
at least twenty-five percent (25%) of the outstanding voting 878
shares or voting interests of a licensee or person in control of a 879
licensee; 880
2. The power to elect or appoint a majority 881
of key individuals or executive officers, managers, directors, 882
trustees or other persons exercising managerial authority of a 883
person in control of a licensee; or 884
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3. The power to exercise, directly or 885
indirectly, a controlling influence over the management or 886
policies of a licensee or person in control of a licensee; 887
(ii) Rebuttable Presumption of Control; 888
1. A person is presumed to exercise a 889
controlling influence when the person holds the power to vote, 890
directly or indirectly, at least ten percent (10%) of the 891
outstanding voting shares or voting interests of a licensee or 892
person in control of a licensee; 893
2. A person presumed to exercise a 894
controlling influence as defined by this paragraph (f) can rebut 895
the presumption of control if the person is a passive investor; 896
(iii) For purposes of determining the percentage 897
of a person controlled by any other person, the person's interest 898
shall be aggregated with the interest of any other immediate 899
family member, including the person's spouse, parents, children, 900
siblings, mothers- and fathers-in-law, sons- and daughters-in-law, 901
brothers- and sisters-in-law, and any other person who shares such 902
person's home. 903
(g) "Eligible rating" means a credit rating of any of 904
the three (3) highest rating categories provided by an eligible 905
rating service, whereby each category may include rating category 906
modifiers such as "plus" or "minus" for S&P, or the equivalent for 907
any other eligible rating service. Long-term credit ratings are 908
deemed eligible if the rating is equal to A- or higher by S&P, or 909
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the equivalent from any other eligible rating service. Short-term 910
credit ratings are deemed eligible if the rating is equal to or 911
higher than A-2 or SP-2 by S&P, or the equivalent from any other 912
eligible rating service. In the event that ratings differ among 913
eligible rating services, the highest rating shall apply when 914
determining whether a security bears an eligible rating. 915
(h) "Eligible rating service" means any Nationally 916
Recognized Statistical Rating Organization (NRSRO) as defined by 917
the U.S. Securities and Exchange Commission, and any other 918
organization designated by the commissioner by rule, regulation or 919
order. 920
(i) "Federally insured depository financial 921
institution" means a bank, credit union, savings and loan 922
association, trust company, savings association, savings bank, 923
industrial bank or industrial loan company organized under the 924
laws of the United States or any state of the United States, when 925
such bank, credit union, savings and loan association, trust 926
company, savings association, savings bank, industrial bank or 927
industrial loan company has federally insured deposits. 928
(j) "In this state" means at a physical location within 929
this state for a transaction requested in person. For a 930
transaction requested electronically or by phone, the provider of 931
money transmission may determine if the person requesting the 932
transaction is "in this state" by relying on other information 933
provided by the person regarding the location of the individual's 934
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residential address or a business entity's principal place of 935
business or other physical address location, and any records 936
associated with the person that the provider of money transmission 937
may have that indicate such location, including, but not limited 938
to, an address associated with an account. 939
(k) "Individual" means a natural person. 940
(l) "Key individual" means any individual ultimately 941
responsible for establishing or directing policies and procedures 942
of the licensee, such as an executive officer, manager, director 943
or trustee. 944
(m) "Licensee" means a person licensed under this 945
chapter. 946
(n) "Material litigation" means litigation, that 947
according to United States generally accepted accounting 948
principles, is significant to a person's financial health and 949
would be required to be disclosed in the person's annual audited 950
financial statements, report to shareholders, or similar records. 951
(o) "Money" means a medium of exchange that is 952
authorized or adopted by the United States or a foreign 953
government. The term includes a monetary unit of account 954
established by an intergovernmental organization or by agreement 955
between two (2) or more governments. 956
(p) "Monetary value" means a medium of exchange, 957
whether or not redeemable in money. 958
(q) "Money transmission" means any of the following: 959
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(i) Selling or issuing payment instruments to a 960
person located in this state; 961
(ii) Selling or issuing stored value to a person 962
located in this state; and 963
(iii) Receiving money or monetary value for 964
transmission from a person located in this state. 965
(r) "MSB accredited state" means a state agency that is 966
accredited by the Conference of State Bank Supervisors and Money 967
Transmitter Regulators Association for money transmission 968
licensing and supervision. 969
(s) "Multistate licensing process" means any agreement 970
entered into by and among state regulators relating to coordinated 971
processing of applications for money transmission licenses, 972
applications for the acquisition of control of a licensee, control 973
determinations, or notice and information requirements for a 974
change of key individuals. 975
(t) "NMLS" means the Nationwide Multistate Licensing 976
System and Registry developed by the Conference of State Bank 977
Supervisors and the American Association of Residential Mortgage 978
Regulators and owned and operated by the State Regulatory 979
Registry, LLC, or any successor or affiliated entity, for the 980
licensing and registration of persons in financial services 981
industries. 982
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(u) "Outstanding money transmission obligations" shall 983
be established and extinguished in accordance with applicable 984
state law and shall mean: 985
(i) Any payment instrument or stored value issued 986
or sold by the licensee to a person located in the United States 987
or reported as sold by an authorized delegate of the licensee to a 988
person who is located in the United States that has not yet been 989
paid or refunded by or for the licensee, or escheated in 990
accordance with applicable abandoned property laws; 991
(ii) Any money received for transmission by the 992
licensee or an authorized delegate in the United States from a 993
person located in the United States that has not been received by 994
the payee or refunded to the sender, or escheated in accordance 995
with applicable abandoned property laws; or 996
(iii) For purposes of this paragraph (u), "in the 997
United States" shall include, to the extent applicable, a person 998
in any state, territory, or possession of the United States; the 999
District of Columbia; the Commonwealth of Puerto Rico; or a U.S. 1000
military installation that is located in a foreign country. 1001
(v) "Passive investor" means a person that: 1002
(i) Does not have the power to elect a majority of 1003
key individuals or executive officers, managers, directors, 1004
trustees or other persons exercising managerial authority of a 1005
person in control of a licensee; 1006
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(ii) Is not employed by and does not have any 1007
managerial duties of the licensee or person in control of a 1008
licensee; 1009
(iii) Does not have the power to exercise, 1010
directly or indirectly, a controlling influence over the 1011
management or policies of a licensee or person in control of a 1012
licensee; and 1013
(iv) Either: 1014
1. Attests to subparagraphs (i), (ii) and 1015
(iii) in this paragraph, in a form and in a medium prescribed by 1016
the commissioner; or 1017
2. Commits to the passivity characteristics 1018
of subparagraphs (i), (ii) and (iii) of this paragraph, in a 1019
written document. 1020
(w) "Payment instrument" means a written or electronic 1021
check, draft, money order, traveler's check or other written or 1022
electronic instrument for the transmission or payment of money or 1023
monetary value, whether or not negotiable. The term does not 1024
include stored value or any instrument that (i) is redeemable by 1025
the issuer only for goods or services provided by the issuer or 1026
its affiliate or franchisees of the issuer or its affiliate, 1027
except to the extent required by applicable law to be redeemable 1028
in cash for its cash value; or (ii) is not sold to the public but 1029
issued and distributed as part of a loyalty, rewards, or 1030
promotional program. 1031
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(x) "Person" means any individual, general partnership, 1032
limited partnership, limited liability company, corporation, 1033
trust, association, joint-stock corporation or other corporate 1034
entity identified by the commissioner. 1035
(y) "Receiving money for transmission" or "money 1036
received for transmission" means receiving money or monetary value 1037
in the United States for transmission within or outside the United 1038
States by electronic or other means. 1039
(z) "Stored value" means monetary value representing a 1040
claim against the issuer evidenced by an electronic or digital 1041
record, and that is intended and accepted for use as a means of 1042
redemption for money or monetary value, or payment for goods or 1043
services. The term includes, but is not limited to, "prepaid 1044
access" as defined by 31 CFR Section 1010.100, as amended or 1045
recodified from time to time. Notwithstanding the foregoing, the 1046
term "stored value" does not include a payment instrument or 1047
closed loop stored value, or stored value not sold to the public 1048
but issued and distributed as part of a loyalty, rewards or 1049
promotional program. 1050
(aa) "Tangible net worth" means the aggregate assets of 1051
a licensee excluding all intangible assets, less liabilities, as 1052
determined in accordance with United States generally accepted 1053
accounting principles. 1054
SECTION 41. Section 75-16-7, Mississippi Code of 1972, is 1055
amended as follows: 1056
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75-16-7. Exemptions. This chapter does not apply to: 1057
(a) An operator of a payment system to the extent that 1058
it provides processing, clearing or settlement services, between 1059
or among persons exempted by this section or licensees, in 1060
connection with wire transfers, credit card transactions, debit 1061
card transactions, stored value transactions, automated clearing 1062
house transfers or similar funds transfers; 1063
(b) A person appointed as an agent of a payee to 1064
collect and process a payment from a payor to the payee for goods 1065
or services, other than money transmission itself, provided to the 1066
payor by the payee, provided that: 1067
(i) There exists a written agreement between the 1068
payee and the agent directing the agent to collect and process 1069
payments from payors on the payee's behalf; 1070
(ii) The payee holds the agent out to the public 1071
as accepting payments for goods or services on the payee's behalf; 1072
and 1073
(iii) Payment for the goods and services is 1074
treated as received by the payee upon receipt by the agent so that 1075
the payor's obligation is extinguished and there is no risk of 1076
loss to the payor if the agent fails to remit the funds to the 1077
payee; 1078
(c) A person who acts as an intermediary by processing 1079
payments between an entity that has directly incurred an 1080
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outstanding money transmission obligation to a sender, and the 1081
sender's designated recipient, provided that the entity: 1082
(i) Is properly licensed or exempt from licensing 1083
requirements under this chapter; 1084
(ii) Provides a receipt, electronic record or 1085
other written confirmation to the sender identifying the entity as 1086
the provider of money transmission in the transaction; and 1087
(iii) Bears sole responsibility to satisfy the 1088
outstanding money transmission obligation to the sender, including 1089
the obligation to make the sender whole in connection with any 1090
failure to transmit the funds to the sender's designated 1091
recipient; 1092
(d) The United States or a department, agency, or 1093
instrumentality thereof, or its agent; 1094
(e) Money transmission by the United States Postal 1095
Service or by an agent of the United States Postal Service; 1096
(f) A state, county, city, or any other governmental 1097
agency or governmental subdivision or instrumentality of a state, 1098
or its agent; 1099
(g) A federally insured depository financial 1100
institution, bank holding company, office of an international 1101
banking corporation, foreign bank that establishes a federal 1102
branch pursuant to the International Bank Act, 12 USC Section 1103
3102, as amended or recodified from time to time, corporation 1104
organized pursuant to the Bank Service Corporation Act, 12 USC 1105
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Sections 1861-1867, as amended or recodified from time to time, or 1106
corporation organized under the Edge Act, 12 USC Sections 611-633, 1107
as amended or recodified from time to time, under the laws of a 1108
state or the United States; 1109
(h) Electronic funds transfer of governmental benefits 1110
for a federal, state, county or governmental agency by a 1111
contractor on behalf of the United States or a department, agency 1112
or instrumentality thereof, or on behalf of a state or 1113
governmental subdivision, agency or instrumentality thereof; 1114
(i) A board of trade designated as a contract market 1115
under the federal Commodity Exchange Act, 7 USC Sections 1-25, as 1116
amended or recodified from time to time, or a person that, in the 1117
ordinary course of business, provides clearance and settlement 1118
services for a board of trade to the extent of its operation as or 1119
for such a board; 1120
(j) A registered futures commission merchant under the 1121
federal commodities laws to the extent of its operation as such a 1122
merchant; 1123
(k) A person registered as a securities broker-dealer 1124
under federal or state securities laws to the extent of its 1125
operation as such a broker-dealer; 1126
(l) An individual employed by a licensee, authorized 1127
delegate or any person exempted from the licensing requirements of 1128
this chapter when acting within the scope of employment and under 1129
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the supervision of the licensee, authorized delegate or exempted 1130
person as an employee and not as an independent contractor; 1131
(m) A person expressly appointed as a third-party 1132
service provider to or agent of an entity exempted under paragraph 1133
(g) of this section, solely to the extent that: 1134
(i) Such service provider or agent is engaging in 1135
money transmission on behalf of and pursuant to a written 1136
agreement with the exempt entity that sets forth the specific 1137
functions that the service provider or agent is to perform; and 1138
(ii) The exempt entity assumes all risk of loss 1139
and all legal responsibility for satisfying the outstanding money 1140
transmission obligations owed to purchasers and holders of the 1141
outstanding money transmission obligations upon receipt of the 1142
purchaser's or holder's money or monetary value by the service 1143
provider or agent; 1144
(n) A person exempt by regulation or order if the 1145
commissioner finds such exemption to be in the public interest and 1146
that the regulation of such person is not necessary for the 1147
purposes of this chapter; or 1148
(o) A payroll processing service provider, which means 1149
a person receiving money for transmission pursuant to a contract 1150
with a person to deliver wages or salaries, make payment of 1151
payroll taxes to state and federal agencies, make payments 1152
relating to employee benefit plans, or make distributions of other 1153
authorized deductions from wages or salaries. 1154
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SECTION 42. Section 75-16-9, Mississippi Code of 1972, is 1155
brought forward as follows: 1156
75-16-9. Authority to require demonstration of exemption. 1157
The commissioner may require that any person claiming to be exempt 1158
from licensing pursuant to Section 75-16-7 provide information and 1159
documentation to the commissioner demonstrating that it qualifies 1160
for any claimed exemption. 1161
SECTION 43. Section 75-16-11, Mississippi Code of 1972, is 1162
brought forward as follows: 1163
75-16-11. Implementation. (1) In order to carry out the 1164
purposes of this chapter, the commissioner may, subject to the 1165
provisions of Section 75-16-13(1) and (2): 1166
(a) Enter into agreements or relationships with other 1167
government officials or federal and state regulatory agencies and 1168
regulatory associations in order to improve efficiencies and 1169
reduce regulatory burden by standardizing methods or procedures, 1170
and sharing resources, records or related information obtained 1171
under this chapter; 1172
(b) Use, hire, contract or employ analytical systems, 1173
methods or software to examine or investigate any person subject 1174
to this chapter; 1175
(c) Accept, from other state or federal government 1176
agencies or officials, licensing, examination or investigation 1177
reports made by such other state or federal government agencies or 1178
officials; and 1179
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(d) Accept audit reports made by an independent 1180
certified public accountant or other qualified third-party auditor 1181
for an applicant or licensee and incorporate the audit report in 1182
any report of examination or investigation. 1183
(2) The commissioner shall have the broad administrative 1184
authority to administer, interpret and enforce this chapter, and 1185
to promulgate rules or regulations implementing this chapter and 1186
to recover the cost of administering and enforcing this chapter by 1187
imposing and collecting proportionate and equitable fees and costs 1188
associated with applications, examinations, investigations, and 1189
other actions required to achieve the purpose of this chapter. 1190
SECTION 44. Section 75-16-13, Mississippi Code of 1972, is 1191
amended as follows: 1192
75-16-13. Confidentiality. (1) Except as otherwise 1193
provided in subsection (2) of this section, all information or 1194
reports obtained by the commissioner from an applicant, licensee 1195
or authorized delegate, and all information contained in or 1196
related to an examination, investigation, operating report or 1197
condition report prepared by, on behalf of, or for the use of the 1198
commissioner, or financial statements, balance sheets or 1199
authorized delegate information, are confidential and are not 1200
subject to disclosure under this state's public records law. 1201
(2) The commissioner may disclose information not otherwise 1202
subject to disclosure under subsection (1) of this section to 1203
representatives of state or federal agencies who promise in a 1204
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record that they will maintain the confidentiality of the 1205
information or where the commissioner finds that the release is 1206
necessary for the protection and interest of the public in 1207
accordance with state public records law. 1208
(3) This section does not prohibit the commissioner from 1209
disclosing to the public a list of all licensees or the aggregated 1210
financial or transactional data concerning those licensees. 1211
(4) Information contained in the records of the department 1212
that is not confidential and may be made available to the public 1213
either on the department's website, upon receipt by the department 1214
of a written request, or in NMLS shall include: 1215
(a) The name, business address, telephone number and 1216
unique identifier of a licensee; 1217
(b) The business address of a licensee's registered 1218
agent for service; 1219
(c) The name, business address and telephone number of 1220
all authorized delegates; 1221
(d) The terms of or a copy of any bond filed by a 1222
licensee, provided that confidential information, including, but 1223
not limited to, prices and fees for such bond is redacted; 1224
(e) Copies of any nonconfidential final orders of the 1225
department relating to any violation of this chapter or 1226
regulations implementing this chapter. 1227
(5) Imposition of an administrative fine or penalty under 1228
this chapter. 1229
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SECTION 45. Section 75-16-15, Mississippi Code of 1972, is 1230
brought forward as follows: 1231
75-16-15. Supervision. (1) The commissioner may conduct an 1232
annual examination or investigation of a licensee or authorized 1233
delegate or otherwise take independent action authorized by this 1234
chapter or by a rule or regulation adopted or order issued under 1235
this chapter at any time or times the commissioner deems proper to 1236
administer and enforce this chapter, regulations implementing this 1237
chapter, and other applicable law, including the Bank Secrecy Act 1238
and the USA PATRIOT ACT. The commissioner may: 1239
(a) Conduct an examination either on-site or off-site 1240
as the commissioner may require; 1241
(b) Conduct an examination in conjunction with an 1242
examination conducted by representatives of other state agencies 1243
or agencies of another state or of the federal government; 1244
(c) Accept the examination report of another state 1245
agency or an agency of another state or of the federal government, 1246
or a report prepared by an independent accounting firm, which on 1247
being accepted is considered for all purposes as an official 1248
report of the commissioner; and 1249
(d) Summon and examine under oath a key individual or 1250
employee of a licensee or authorized delegate and require the 1251
person to produce records regarding any matter related to the 1252
condition and business of the licensee or authorized delegate. 1253
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(2) A licensee or authorized delegate shall provide, and the 1254
commissioner shall have full and complete access to, all records 1255
the commissioner may require to conduct a complete examination. 1256
The records must be provided at the location and in the format 1257
specified by the commissioner, provided, the commissioner may 1258
utilize multistate record production standards and examination 1259
procedures when such standards will reasonably achieve the 1260
requirements of this subsection. The refusal of access to such 1261
records by a licensee shall be cause for revocation of its 1262
license. 1263
(3) Unless otherwise directed by the commissioner, a 1264
licensee shall pay all costs actually incurred in connection with 1265
an examination of the licensee or the licensee's authorized 1266
delegates. 1267
SECTION 46. Section 75-16-17, Mississippi Code of 1972, is 1268
brought forward as follows: 1269
75-16-17. Networked supervision. (1) To efficiently and 1270
effectively administer and enforce this chapter and to minimize 1271
regulatory burden, the commissioner is authorized and encouraged 1272
to participate in multistate supervisory processes established 1273
between states and coordinated through the Conference of State 1274
Bank Supervisors, Money Transmitter Regulators Association and 1275
affiliates and successors thereof for all licensees that hold 1276
licenses in this state and other states. As a participant in 1277
multistate supervision, the commissioner will: 1278
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(a) Cooperate, coordinate and share information with 1279
other state and federal regulators in accordance with Section 1280
75-16-13; 1281
(b) Enter into written cooperation, coordination or 1282
information-sharing contracts or agreements with organizations the 1283
membership of which is made up of state or federal governmental 1284
agencies; and 1285
(c) Cooperate, coordinate and share information with 1286
organizations the membership of which is made up of state or 1287
federal governmental agencies, provided that the organizations 1288
agree in writing to maintain the confidentiality and security of 1289
the shared information in accordance with Section 75-16-13. 1290
(2) The commissioner may not waive, and nothing in this 1291
section constitutes a waiver of, the commissioner's authority to 1292
conduct an examination or investigation or otherwise take 1293
independent action authorized by this chapter or a rule or 1294
regulation adopted, or order issued under this chapter to enforce 1295
compliance with applicable state or federal law. 1296
(3) A joint examination or investigation, or acceptance of 1297
an examination or investigation report, does not waive an 1298
examination assessment provided for in this chapter. 1299
SECTION 47. Section 75-16-19, Mississippi Code of 1972, is 1300
brought forward as follows: 1301
75-16-19. Relationship to federal law. (1) In the event 1302
state money transmission jurisdiction is conditioned on a federal 1303
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law, any inconsistencies between a provision of this chapter and 1304
the federal law governing money transmission shall be governed by 1305
the applicable federal law to the extent of the inconsistency. 1306
(2) In the event of any inconsistencies between this chapter 1307
and a federal law that governs pursuant to subsection (1) of this 1308
section, the commissioner may provide interpretive guidance that: 1309
(a) Identifies the inconsistency; and 1310
(b) Identifies the appropriate means of compliance with 1311
federal law. 1312
SECTION 48. Section 75-16-21, Mississippi Code of 1972, is 1313
brought forward as follows: 1314
75-16-21. License required. (1) A person may not engage in 1315
the business of money transmission or advertise, solicit or hold 1316
itself out as providing money transmission unless the person is 1317
licensed under this chapter; 1318
(2) Subsection (1) of this section does not apply to: 1319
(a) A person who is an authorized delegate of a person 1320
licensed under this chapter acting within the scope of authority 1321
conferred by a written contract with the licensee; or 1322
(b) A person who is exempt pursuant to Section 75-16-7 1323
and does not engage in money transmission outside the scope of 1324
such exemption. 1325
(3) A license issued under Section 75-16-29 is not 1326
transferable or assignable. 1327
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SECTION 49. Section 75-16-23, Mississippi Code of 1972, is 1328
brought forward as follows: 1329
75-16-23. Consistent state licensing. (1) To establish 1330
consistent licensing between this state and other states, the 1331
commissioner is authorized and encouraged to: 1332
(a) Implement all licensing provisions of this chapter 1333
in a manner that is consistent with other states that have adopted 1334
this chapter or multistate licensing processes; and 1335
(b) Participate in nationwide protocols for licensing 1336
cooperation and coordination among state regulators provided that 1337
such protocols are consistent with this chapter. 1338
(2) In order to fulfill the purposes of this chapter, the 1339
commissioner is authorized and encouraged to establish 1340
relationships or contracts with NMLS or other entities designated 1341
by NMLS to enable the commissioner to: 1342
(a) Collect and maintain records; 1343
(b) Coordinate multistate licensing processes and 1344
supervision processes; 1345
(c) Process fees; and 1346
(d) Facilitate communication between state and 1347
licensees or other persons subject to this chapter. 1348
(3) The commissioner is authorized and encouraged to utilize 1349
NMLS for all aspects of licensing in accordance with this chapter, 1350
including, but not limited to, license applications, applications 1351
for acquisitions of control, surety bonds, reporting, criminal 1352
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history background checks, credit checks, fee processing and 1353
examinations. 1354
(4) The commissioner is authorized and encouraged to utilize 1355
NMLS forms, processes and functionalities in accordance with this 1356
chapter. In the event NMLS does not provide functionality, forms, 1357
or processes for a provision of this chapter, the commissioner is 1358
authorized and encouraged to strive to implement the requirements 1359
in a manner that facilitates uniformity with respect to licensing, 1360
supervision, reporting and regulation of licensees which are 1361
licensed in multiple jurisdictions. 1362
(5) For the purpose of participating in the Nationwide 1363
Multistate Licensing System & Registry, the commissioner is 1364
authorized to waive or modify, in whole or in part, by rule, 1365
regulation or order, any or all of the requirements and to 1366
establish new requirements as necessary to participate in the 1367
Nationwide Multistate Licensing System & Registry. 1368
SECTION 50. Section 75-16-25, Mississippi Code of 1972, is 1369
amended as follows: 1370
75-16-25. Application for license. (1) Applicants for a 1371
license shall apply in a form and in a medium as prescribed by the 1372
commissioner. Each such form shall contain content as set forth 1373
by rule, regulation, instruction or procedure of the commissioner 1374
and may be changed or updated by the commissioner in accordance 1375
with applicable law in order to carry out the purposes of this 1376
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chapter and maintain consistency with NMLS licensing standards and 1377
practices. The application must state or contain, as applicable: 1378
(a) The legal name and residential and business 1379
addresses of the applicant and any fictitious or trade name used 1380
by the applicant in conducting its business; 1381
(b) A list of any criminal convictions of the applicant 1382
and any material litigation in which the applicant has been 1383
involved in the ten-year period next preceding the submission of 1384
the application; 1385
(c) A description of any money transmission previously 1386
provided by the applicant and the money transmission that the 1387
applicant seeks to provide in this state; 1388
(d) A list of the applicant's proposed authorized 1389
delegates and the locations in this state where the applicant and 1390
its authorized delegates propose to engage in money transmission; 1391
(e) A list of other states in which the applicant is 1392
licensed to engage in money transmission and any license 1393
revocations, suspensions or other disciplinary action taken 1394
against the applicant in another state; 1395
(f) Information concerning any bankruptcy or 1396
receivership proceedings affecting the licensee or a person in 1397
control of a licensee; 1398
(g) A sample form of contract for authorized delegates, 1399
if applicable; 1400
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(h) A sample form of payment instrument or stored 1401
value, as applicable; 1402
(i) The name and address of any federally insured 1403
depository financial institution through which the applicant plans 1404
to conduct money transmission; and 1405
(j) Any other information the commissioner or NMLS 1406
requires with respect to the applicant. 1407
(2) If an applicant is a corporation, limited liability 1408
company, partnership or other legal entity, the applicant shall 1409
also provide: 1410
(a) The date of the applicant's incorporation or 1411
formation and state or country of incorporation or formation; 1412
(b) If applicable, a certificate of good standing from 1413
the state or country in which the applicant is incorporated or 1414
formed; 1415
(c) A brief description of the structure or 1416
organization of the applicant, including any parents or 1417
subsidiaries of the applicant, and whether any parents or 1418
subsidiaries are publicly traded; 1419
(d) The legal name, any fictitious or trade name, all 1420
business and residential addresses and the employment, as 1421
applicable, in the ten-year period next preceding the submission 1422
of the application of each key individual and person in control of 1423
the applicant; 1424
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(e) A list of any criminal convictions and material 1425
litigation in which a person in control of the applicant that is 1426
not an individual has been involved in the ten-year period next 1427
preceding the submission of the application; 1428
(f) A copy of audited financial statements of the 1429
applicant for the most recent fiscal year and for the two-year 1430
period next preceding the submission of the application; 1431
(g) A certified copy of unaudited financial statements 1432
of the applicant for the most recent fiscal quarter; 1433
(h) If the applicant is a publicly traded corporation, 1434
a copy of the most recent report filed with the United States 1435
Securities and Exchange Commission under Section 13 of the U.S. 1436
Securities Exchange Act of 1934, 15 USC Section 78m, as amended or 1437
recodified from time to time; 1438
(i) If the applicant is a wholly owned subsidiary of: 1439
(i) A corporation publicly traded in the United 1440
States, a copy of audited financial statements for the parent 1441
corporation for the most recent fiscal year or a copy of the 1442
parent corporation's most recent report filed under Section 13 of 1443
the U.S. Securities Exchange Act of 1934, 15 USC Section 78m, as 1444
amended or recodified from time to time; or 1445
(ii) A corporation publicly traded outside the 1446
United States, a copy of similar documentation filed with the 1447
regulator of the parent corporation's domicile outside the United 1448
States; 1449
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(j) The name and address of the applicant's registered 1450
agent in this state; and 1451
(k) Any other information the commissioner requires 1452
with respect to the applicant. 1453
(3) A nonrefundable license fee of One Thousand Five Hundred 1454
Dollars ($1,500.00) must accompany an application for a license 1455
under this section. However, beginning with calendar year 2025 1456
and for each subsequent calendar year, on or before July 1 of the 1457
following year, the Mississippi Department of Banking and Consumer 1458
Finance will issue a memo authorizing a new license fee under this 1459
section. The new amount will be calculated by applying any 1460
increase or decrease in the United States Bureau of Labor 1461
Statistics Consumer Price Index for All Urban Consumers (CPI-U) 1462
for the previous calendar year to the previous fee amount and 1463
rounding that amount upward to the nearest One-Hundred-Dollar 1464
increment. 1465
(4) The commissioner may waive one or more requirements of 1466
subsections (1) and (2) of this section or permit an applicant to 1467
submit other information in lieu of the required information. 1468
SECTION 51. Section 75-16-27, Mississippi Code of 1972, is 1469
brought forward as follows: 1470
75-16-27. Information requirements for certain individuals. 1471
(1) Any individual in control of a licensee or applicant, any 1472
individual who seeks to acquire control of a licensee and each key 1473
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individual shall furnish to the commissioner through NMLS the 1474
following items: 1475
(a) The individual's fingerprints for submission to the 1476
Federal Bureau of Investigation and the commissioner for purposes 1477
of a national criminal history background check unless the person 1478
currently resides outside of the United States and has resided 1479
outside of the United States for the last ten (10) years; 1480
(b) Personal history and experience in a form and in a 1481
medium prescribed by the commissioner, to obtain the following: 1482
(i) An independent credit report from a consumer 1483
reporting agency unless the individual does not have a social 1484
security number, in which case, this requirement shall be waived; 1485
(ii) Information related to any criminal 1486
convictions or pending charges; provided an applicant shall not 1487
have been convicted of a felony in any jurisdiction or a 1488
misdemeanor of fraud, theft, forgery, bribery, embezzlement, or 1489
making a fraudulent or false statement in any jurisdiction; and 1490
(iii) Information related to any regulatory or 1491
administrative action and any civil litigation involving claims of 1492
fraud, misrepresentation, conversion, mismanagement of funds, 1493
breach of fiduciary duty or breach of contract. 1494
(2) If the individual has resided outside of the United 1495
States at any time in the last ten (10) years, the individual 1496
shall also provide an investigative background report prepared by 1497
an independent search firm that meets the following requirements: 1498
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(a) At a minimum, the search firm shall: 1499
(i) Demonstrate that it has sufficient knowledge, 1500
resources, and employs accepted and reasonable methodologies to 1501
conduct the research of the background report; and 1502
(ii) Not be affiliated with or have an interest 1503
with the individual it is researching. 1504
(b) At a minimum, the investigative background report 1505
shall be written in the English language and shall contain the 1506
following: 1507
(i) If available in the individual's current 1508
jurisdiction of residency, a comprehensive credit report, or any 1509
equivalent information obtained or generated by the independent 1510
search firm to accomplish such report, including a search of the 1511
court data in the countries, provinces, states, cities, towns, and 1512
contiguous areas where the individual resided and worked; 1513
(ii) Criminal records information for the past ten 1514
(10) years, including, but not limited to, felonies, misdemeanors, 1515
or similar convictions for violations of law in the countries, 1516
provinces, states, cities, towns, and contiguous areas where the 1517
individual resided and worked; 1518
(iii) Employment history; 1519
(iv) Media history, including an electronic search 1520
of national and local publications, wire services, and business 1521
applications; and 1522
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(v) Financial services-related regulatory history, 1523
including, but not limited to, money transmission, securities, 1524
banking, insurance, and mortgage-related industries. 1525
SECTION 52. Section 75-16-29, Mississippi Code of 1972, is 1526
brought forward as follows: 1527
75-16-29. Issuance of license. (1) When an application for 1528
an original license under this chapter appears to include all the 1529
items and addresses all of the matters that are required, the 1530
application is complete and the commissioner shall promptly notify 1531
the applicant in a record of the date on which the application is 1532
determined to be complete, and: 1533
(a) The commissioner shall approve or deny the 1534
application within one hundred twenty (120) days after the 1535
completion date; or 1536
(b) If the application is not approved or denied within 1537
one hundred twenty (120) days after the completion date: 1538
(i) The application is approved; 1539
(ii) The license takes effect as of the first 1540
business day after expiration of the one-hundred-twenty-day 1541
period; and 1542
(iii) The commissioner may for good cause extend 1543
the application period. 1544
(2) A determination by the commissioner that an application 1545
is complete and is accepted for processing means only that the 1546
application, on its face, appears to include all of the items, 1547
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including the Criminal Background Check response from the FBI, and 1548
address all of the matters that are required, and is not an 1549
assessment of the substance of the application or of the 1550
sufficiency of the information provided. 1551
(3) When an application is filed and considered complete 1552
under this section, the commissioner shall investigate the 1553
applicant's financial condition and responsibility, financial and 1554
business experience, character and general fitness. The 1555
commissioner may conduct an on-site investigation of the 1556
applicant, the cost of which the applicant must pay. The 1557
commissioner shall issue a license to an applicant under this 1558
section if the commissioner finds that all of the following 1559
conditions have been fulfilled: 1560
(a) The applicant has complied with Sections 75-16-25 1561
and 75-16-27; and 1562
(b) The financial condition and responsibility, 1563
financial and business experience, competence, character and 1564
general fitness of the applicant; and the competence, experience, 1565
character and general fitness of the key individuals and persons 1566
in control of the applicant indicate that it is in the interest of 1567
the public to permit the applicant to engage in money 1568
transmission. 1569
(4) If an applicant avails itself or is otherwise subject to 1570
a multistate licensing process: 1571
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(a) The commissioner is authorized and encouraged to 1572
accept the investigation results of a lead investigative state for 1573
the purpose of subsection (3) of this section if the lead 1574
investigative state has sufficient staffing, expertise, and 1575
minimum standards; or 1576
(b) If Mississippi is a lead investigative state, the 1577
commissioner is authorized and encouraged to investigate the 1578
applicant pursuant to subsection (3) of this section and the 1579
timeframes established by agreement through the multistate 1580
licensing process, provided, however, that in no case shall such 1581
timeframe be noncompliant with the application period in 1582
subsection (1)(a) of this section. 1583
(5) The commissioner shall issue a formal written notice of 1584
the denial of a license application. The commissioner shall set 1585
forth in the notice of denial the specific reasons for the denial 1586
of the application. An applicant whose application is denied by 1587
the commissioner under this subsection (5) may appeal within 1588
thirty (30) days after receipt of the written notice of the 1589
denial. Such appeal shall be to the Chancery Court of the First 1590
Judicial District of Hinds County, Mississippi. 1591
(6) The initial license term shall begin on the day the 1592
application is approved. The license shall expire on December 31 1593
of the year in which the license term began, unless the initial 1594
license date is between November 1 and December 31, in which 1595
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instance the initial license term shall run through December 31 of 1596
the following year. 1597
SECTION 53. Section 75-16-31, Mississippi Code of 1972, is 1598
brought forward as follows: 1599
75-16-31. Renewal of license. (1) A license under this 1600
chapter shall be renewed annually. 1601
(a) An annual renewal fee of Eight Hundred Dollars 1602
($800.00) plus One Hundred Dollars ($100.00) for each location in 1603
excess of one in Mississippi through which the licensee plans to 1604
conduct money transmission during the license year for which the 1605
fee is paid, shall be paid, provided that in no event shall the 1606
annual renewal fee exceed Five Thousand Eight Hundred Dollars 1607
($5,800.00). Such renewal fee shall be paid no more than sixty 1608
(60) days before the license expiration. 1609
(b) The renewal term shall be for a period of one (1) 1610
year and shall begin on January 1 of each year after the initial 1611
license term and shall expire on December 31 of the year the 1612
renewal term begins. 1613
(2) A licensee shall submit a renewal report with the 1614
renewal fee, in a form and in a medium prescribed by the 1615
commissioner. The renewal report must state or contain a 1616
description of each material change in information submitted by 1617
the licensee in its original license application which has not 1618
been reported to the commissioner. 1619
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(3) The commissioner, for good cause, may grant an extension 1620
of the renewal date. 1621
(4) The commissioner is authorized and encouraged to utilize 1622
NMLS to process license renewals provided that such functionality 1623
is consistent with this section. 1624
SECTION 54. Section 75-16-33, Mississippi Code of 1972, is 1625
brought forward as follows: 1626
75-16-33. Maintenance of license. (1) If a licensee does 1627
not continue to meet the qualifications or satisfy the 1628
requirements that apply to an applicant for a new money 1629
transmission license, the commissioner may suspend or revoke the 1630
licensee's license in accordance with the procedures established 1631
by this chapter or other applicable state law for such suspension 1632
or revocation. 1633
(2) An applicant for a money transmission license must 1634
demonstrate that it meets or will meet, and a money transmission 1635
licensee must at all times meet, the requirements in Sections 1636
75-16-61, 75-16-63 and 75-16-65. 1637
SECTION 55. Section 75-16-35, Mississippi Code of 1972, is 1638
brought forward as follows: 1639
75-16-35. Acquisition of control. (1) Any person, or group 1640
of persons acting in concert, seeking to acquire control of a 1641
licensee shall obtain the written approval of the commissioner 1642
prior to acquiring control. 1643
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(2) A person, or group of persons acting in concert, seeking 1644
to acquire control of a licensee shall, in cooperation with the 1645
licensee: 1646
(a) Submit an application in a form and in a medium 1647
prescribed by the commissioner; and 1648
(b) Submit a nonrefundable fee as required under 1649
Section 75-16-25 with the request for approval. 1650
(3) Upon request, the commissioner may permit a licensee or 1651
the person, or group of persons acting in concert, to submit some 1652
or all information required by the commissioner pursuant to 1653
subsection (2)(a) of this section without using NMLS. 1654
(4) The application required by subsection (2)(a) of this 1655
section shall include information required by Section 75-16-27 for 1656
any new key individuals who have not previously completed the 1657
requirements of Section 75-16-27 for a licensee. 1658
(5) When an application for acquisition of control under 1659
this section appears to include all the items and address all of 1660
the matters that are required, the application shall be considered 1661
complete, and the commissioner shall promptly notify the applicant 1662
in a record of the date on which the application was determined to 1663
be complete and: 1664
(a) The commissioner shall approve or deny the 1665
application within sixty (60) days after the completion date; or 1666
(b) If the application is not approved or denied within 1667
sixty (60) days after the completion date: 1668
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(i) The application is approved; and 1669
(ii) The person, or group of persons acting in 1670
concert, are not prohibited from acquiring control. 1671
(c) The commissioner may for good cause extend the 1672
application period. 1673
(6) A determination by the commissioner that an application 1674
is complete and is accepted for processing means only that the 1675
application, on its face, appears to include all of the items and 1676
address all of the matters that are required, and is not an 1677
assessment of the substance of the application or of the 1678
sufficiency of the information provided. 1679
(7) When an application is filed and considered complete 1680
under subsection (5) of this section, the commissioner shall 1681
investigate the financial condition and responsibility, financial 1682
and business experience, character and general fitness of the 1683
person, or group of persons acting in concert, seeking to acquire 1684
control. The commissioner shall approve an acquisition of control 1685
pursuant to this section if the commissioner finds that all of the 1686
following conditions have been fulfilled: 1687
(a) The requirements of subsections (2) and (4) of this 1688
section have been met, as applicable; and 1689
(b) The financial condition and responsibility, 1690
financial and business experience, competence, character and 1691
general fitness of the person, or group of persons acting in 1692
concert, seeking to acquire control; and the competence, 1693
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experience, character and general fitness of the key individuals 1694
and persons that would be in control of the licensee after the 1695
acquisition of control indicate that it is in the interest of the 1696
public to permit the person, or group of persons acting in 1697
concert, to control the licensee. 1698
(8) If an applicant avails itself or is otherwise subject to 1699
a multistate licensing process: 1700
(a) The commissioner is authorized and encouraged to 1701
accept the investigation results of a lead investigative state for 1702
the purpose of subsection (7) of this section if the lead 1703
investigative state has sufficient staffing, expertise and minimum 1704
standards; or 1705
(b) If Mississippi is a lead investigative state, the 1706
commissioner is authorized and encouraged to investigate the 1707
applicant pursuant to subsection (7) of this section and the 1708
timeframes established by agreement through the multistate 1709
licensing process. 1710
(9) The commissioner shall issue a formal written notice of 1711
the denial of an application to acquire control. The commissioner 1712
shall set forth in the notice of denial the specific reasons for 1713
the denial of the application. An applicant whose application is 1714
denied by the commissioner under this section may appeal within 1715
thirty (30) days after receipt of the written notice of the 1716
denial. Such appeal shall be to the Chancery Court of the First 1717
Judicial District of Hinds County, Mississippi. 1718
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(10) The requirements of subsections (1) and (2) of this 1719
section do not apply to any of the following: 1720
(a) A person who acts as a proxy for the sole purpose 1721
of voting at a designated meeting of the shareholders or holders 1722
of voting shares or voting interests of a licensee or a person in 1723
control of a licensee; 1724
(b) A person who acquires control of a licensee by 1725
devise or descent; 1726
(c) A person who acquires control of a licensee as a 1727
personal representative, custodian, guardian, conservator or 1728
trustee, or as an officer appointed by a court of competent 1729
jurisdiction or by operation of law; 1730
(d) A person who is exempt under Section 75-16-7(7); 1731
(e) A person who the commissioner determines is not 1732
subject to subsection (1) of this section based on the public 1733
interest; 1734
(f) A public offering of securities of a licensee or a 1735
person in control of a licensee; or 1736
(g) An internal reorganization of a person in control 1737
of the licensee where the ultimate person in control of the 1738
licensee remains the same. 1739
(11) Persons in subsection (10)(b), (c), (d), (f) and (g) of 1740
this section in cooperation with the licensee shall notify the 1741
commissioner within fifteen (15) days after the acquisition of 1742
control. 1743
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(12) Streamlined Acquisition of Control. 1744
(a) The requirements of subsections (1) and (2) of this 1745
section do not apply to a person who has complied with and 1746
received approval to engage in money transmission under this 1747
chapter or was identified as a person in control in a prior 1748
application filed with and approved by the commissioner or by an 1749
MSB accredited state pursuant to a multistate licensing process, 1750
provided that: 1751
(i) The person has not had a license revoked or 1752
suspended or controlled a licensee that has had a license revoked 1753
or suspended while the person was in control of the licensee in 1754
the previous five (5) years; 1755
(ii) If the person is a licensee, the person is 1756
well managed and has received at least a satisfactory rating for 1757
compliance at its most recent examination by an MSB accredited 1758
state if such rating was given; 1759
(iii) The licensee to be acquired is projected to 1760
meet the requirements of Sections 75-16-61, 75-16-63 and 75-16-65 1761
after the acquisition of control is completed, and if the person 1762
acquiring control is a licensee, that licensee is also projected 1763
to meet the requirements of Sections 75-16-61, 75-16-63 and 1764
75-16-65 after the acquisition of control is completed; 1765
(iv) The licensee to be acquired will not 1766
implement any material changes to its business plan as a result of 1767
the acquisition of control, and if the person acquiring control is 1768
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a licensee, that licensee also will not implement any material 1769
changes to its business plan as a result of the acquisition of 1770
control; and 1771
(v) The person provides notice of the acquisition 1772
in cooperation with the licensee and attests to this paragraph 1773
(a)(i), (ii), (iii) and (iv) in a form and in a medium prescribed 1774
by the commissioner. 1775
(b) If the notice is not disapproved within thirty (30) 1776
days after the date on which the notice was determined to be 1777
complete, the notice is deemed approved. 1778
(13) Before filing an application for approval to acquire 1779
control of a licensee a person may request in writing a 1780
determination from the commissioner as to whether the person would 1781
be considered a person in control of a licensee upon consummation 1782
of a proposed transaction. If the commissioner determines that 1783
the person would not be a person in control of a licensee, the 1784
proposed person and transaction is not subject to the requirements 1785
of subsections (1) and (2) of this section. 1786
(14) If a multistate licensing process includes a 1787
determination pursuant to subsection (13) of this section and an 1788
applicant avails itself or is otherwise subject to the multistate 1789
licensing process: 1790
(a) The commissioner is authorized and encouraged to 1791
accept the control determination of a lead investigative state 1792
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with sufficient staffing, expertise, and minimum standards for the 1793
purpose of subsection (13) of this section; or 1794
(b) If a state is a lead investigative state, the 1795
commissioner is authorized and encouraged to investigate the 1796
applicant pursuant to subsection (13) of this section and the 1797
timeframes established by agreement through the multistate 1798
licensing process. 1799
SECTION 56. Section 75-16-37, Mississippi Code of 1972, is 1800
brought forward as follows: 1801
75-16-37. Notice and information requirements for a change 1802
of key individuals. (1) A licensee adding or replacing any key 1803
individual shall: 1804
(a) Provide notice in a manner prescribed by the 1805
commissioner within fifteen (15) days after the effective date of 1806
the key individual's appointment; and 1807
(b) Provide information as required by Section 75-16-27 1808
within forty-five (45) days of the effective date. 1809
(2) Within ninety (90) days of the date on which the notice 1810
provided pursuant to subsection (1) of this section was determined 1811
to be complete, the commissioner may issue a notice of disapproval 1812
of a key individual if the competence, experience, character or 1813
integrity of the individual would not be in the best interests of 1814
the public or the customers of the licensee to permit the 1815
individual to be a key individual of such licensee. 1816
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(3) A notice of disapproval shall contain a statement of the 1817
basis for disapproval and shall be sent to the licensee and the 1818
disapproved individual. A licensee may appeal a notice of 1819
disapproval within thirty (30) days after receipt of such notice 1820
of disapproval. Such appeal shall be to the Chancery Court of the 1821
First Judicial District of Hinds County, Mississippi. 1822
(4) If the notice provided pursuant to subsection (1) of 1823
this section is not disapproved within ninety (90) days after the 1824
date on which the notice was determined to be complete, the key 1825
individual is deemed approved. 1826
(5) If a multistate licensing process includes a key 1827
individual notice review and disapproval process pursuant to this 1828
section and the licensee avails itself or is otherwise subject to 1829
the multistate licensing process: 1830
(a) The commissioner is authorized and encouraged to 1831
accept the determination of another state if the investigating 1832
state has sufficient staffing, expertise, and minimum standards 1833
for the purpose of this section; or 1834
(b) If Mississippi is a lead investigative state, the 1835
commissioner is authorized and encouraged to investigate the 1836
applicant pursuant to subsection (2) of this section and the 1837
timeframes established by agreement through the multistate 1838
licensing process. 1839
SECTION 57. Section 75-16-39, Mississippi Code of 1972, is 1840
brought forward as follows: 1841
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75-16-39. Report of condition. (1) Each licensee shall 1842
submit a report of condition (i.e. call report) within forty-five 1843
(45) days of the end of the calendar quarter, or within any 1844
extended time as the commissioner may prescribe. 1845
(2) The report of condition shall include: 1846
(a) Financial information at the licensee level; 1847
(b) Nationwide and state-specific money transmission 1848
transaction information in every jurisdiction in the United States 1849
where the licensee is licensed to engage in money transmission; 1850
(c) Permissible investments report; 1851
(d) Transaction destination country reporting for money 1852
received for transmission, if applicable; and 1853
(e) Any other information the commissioner requires 1854
with respect to the licensee. The commissioner is authorized and 1855
encouraged to utilize NMLS for the submission of the report 1856
required by this subsection (1) of this section and is authorized 1857
to change or update as necessary the requirements of this section 1858
to carry out the purposes of this chapter and maintain consistency 1859
with NMLS reporting. 1860
(3) The information required by subsection (2)(d) of this 1861
section shall only be included in a report of condition submitted 1862
within forty-five (45) days of the end of the fourth calendar 1863
quarter. 1864
SECTION 58. Section 75-16-41, Mississippi Code of 1972, is 1865
brought forward as follows: 1866
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75-16-41. Audited financials. (1) Each licensee shall, 1867
within ninety (90) days after the end of each fiscal year, or 1868
within any extended time as the commissioner may prescribe, file 1869
with the commissioner: 1870
(a) An audited financial statement of the licensee for 1871
the fiscal year prepared in accordance with United States 1872
Generally Accepted Accounting Principles; and 1873
(b) Any other information as the commissioner may 1874
require. 1875
(2) The audited financial statements shall be prepared by an 1876
independent certified public accountant or independent public 1877
accountant who is satisfactory to the commissioner. 1878
(3) The audited financial statements shall include or be 1879
accompanied by a certificate of opinion of the independent 1880
certified public accountant or independent public accountant that 1881
is satisfactory in form and content to the commissioner. If the 1882
certificate or opinion is qualified, the commissioner may order 1883
the licensee to take any action as the commissioner may find 1884
necessary to enable the independent or certified public accountant 1885
or independent public accountant to remove the qualification. 1886
SECTION 59. Section 75-16-43, Mississippi Code of 1972, is 1887
brought forward as follows: 1888
75-16-43. Authorized delegate reporting. (1) Each licensee 1889
shall submit a report of authorized delegates within forty-five 1890
(45) days of the end of the calendar quarter. The commissioner is 1891
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authorized and encouraged to utilize NMLS for the submission of 1892
the report required by this subsection provided that such 1893
functionality is consistent with the requirements of this section. 1894
Such utilization shall include the NMLS Uniform Authorized Agent 1895
Reporting (UAAR) process, or such other similar process as 1896
designated by NMLS. 1897
(2) The authorized delegate report shall include, at a 1898
minimum, each authorized delegate's: 1899
(a) Company legal name; 1900
(b) Taxpayer employer identification number; 1901
(c) Principal provider identifier; 1902
(d) Physical address; 1903
(e) Mailing address; 1904
(f) Any business conducted in other states; 1905
(g) Any fictitious or trade name; 1906
(h) Contact person name, phone number, and email; 1907
(i) Start date as licensee's authorized delegate; 1908
(j) End date acting as licensee's authorized delegate, 1909
if applicable; and 1910
(k) Any other information the commissioner requires 1911
with respect to the authorized delegate. 1912
SECTION 60. Section 75-16-45, Mississippi Code of 1972, is 1913
brought forward as follows: 1914
75-16-45. Reports of certain events. (1) A licensee shall 1915
file a report with the commissioner within one (1) business day 1916
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after the licensee has reason to know of the occurrence of any of 1917
the following events: 1918
(a) The filing of a petition by or against the licensee 1919
under the United States Bankruptcy Code, 11 USC 101-110, as 1920
amended or recodified from time to time, for bankruptcy or 1921
reorganization; 1922
(b) The filing of a petition by or against the licensee 1923
for receivership, the commencement of any other judicial or 1924
administrative proceeding for its dissolution or reorganization, 1925
or the making of a general assignment for the benefit of its 1926
creditors; or 1927
(c) The commencement of a proceeding to revoke or 1928
suspend its license in a state or country in which the licensee 1929
engages in business or is licensed. 1930
(2) A licensee shall file a report with the commissioner 1931
within three (3) business day after the licensee has reason to 1932
know of the occurrence of any of the following events: 1933
(a) A charge or conviction of the licensee or of a key 1934
individual or person in control of the licensee for a felony; or 1935
(b) A charge or conviction of an authorized delegate 1936
for a felony. 1937
SECTION 61. Section 75-16-47, Mississippi Code of 1972, is 1938
brought forward as follows: 1939
75-16-47. Bank Secrecy Act reports. A licensee and an 1940
authorized delegate shall file all reports required by federal 1941
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currency reporting, record keeping, and suspicious activity 1942
reporting requirements as set forth in the Bank Secrecy Act and 1943
other federal and state laws pertaining to money laundering. The 1944
timely filing of a complete and accurate report required under 1945
this section with the appropriate federal agency is deemed 1946
compliant with the requirements of this section. 1947
SECTION 62. Section 75-16-49, Mississippi Code of 1972, is 1948
brought forward as follows: 1949
75-16-49. Records. (1) A licensee shall maintain the 1950
following records, for determining its compliance with this 1951
chapter for at least five (5) years: 1952
(a) A record of each money transmission obligation 1953
sold; 1954
(b) A general ledger posted at least monthly containing 1955
all asset, liability, capital, income and expense accounts; 1956
(c) Bank statements and bank reconciliation records; 1957
(d) Records of outstanding money transmission; 1958
(e) Records of each outstanding money transmission 1959
obligation paid within the five-year period; 1960
(f) A list of the last-known names and addresses of all 1961
of the licensee's authorized delegates; and 1962
(g) Any other records the commissioner requires by 1963
rule, regulation or order. 1964
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(2) The items specified in subsection (1) of this section 1965
may be maintained in photographic, electronic or other similar 1966
form. 1967
(3) Records specified in subsection (1) of this section may 1968
be maintained outside this state if they are made accessible to 1969
the commissioner on seven (7) business days' notice that is sent 1970
in a record. 1971
(4) All records maintained by the licensee as required in 1972
subsections (1) through (3) of this section are open to inspection 1973
by the commissioner pursuant to Section 75-16-15(1). 1974
SECTION 63. Section 75-16-51, Mississippi Code of 1972, is 1975
brought forward as follows: 1976
75-16-51. Relationship between licensee and authorized 1977
delegate. (1) In this section, "remit" means to make direct 1978
payments of money to a licensee or its representative authorized 1979
to receive money or to deposit money in a bank in an account 1980
specified by the licensee. 1981
(2) Before a licensee is authorized to conduct business 1982
through an authorized delegate or allows a person to act as the 1983
licensee's authorized delegate, the licensee must: 1984
(a) Adopt, and update as necessary, written policies 1985
and procedures designed to ensure that the licensee's authorized 1986
delegates comply with applicable state and federal law; 1987
(b) Enter into a written contract that complies with 1988
subsection (4) of this section; and 1989
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(c) Conduct a risk-based background investigation 1990
sufficient for the licensee to determine whether the authorized 1991
delegate has complied and will likely comply with applicable state 1992
and federal law. 1993
(3) An authorized delegate must operate in full compliance 1994
with this chapter. 1995
(4) The written contract required by subsection (2) of this 1996
section must be signed by the licensee and the authorized delegate 1997
and, at a minimum, must: 1998
(a) Appoint the person signing the contract as the 1999
licensee's authorized delegate with the authority to conduct money 2000
transmission on behalf of the licensee; 2001
(b) Set forth the nature and scope of the relationship 2002
between the licensee and the authorized delegate and the 2003
respective rights and responsibilities of the parties; 2004
(c) Require the authorized delegate to agree to fully 2005
comply with all applicable state and federal laws, rules, and 2006
regulations pertaining to money transmission, including this 2007
chapter and regulations implementing this chapter, relevant 2008
provisions of the Bank Secrecy Act and the USA PATRIOT ACT; 2009
(d) Require the authorized delegate to remit and handle 2010
money and monetary value in accordance with the terms of the 2011
contract between the licensee and the authorized delegate; 2012
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(e) Impose a trust on money and monetary value net of 2013
fees received for money transmission for the benefit of the 2014
licensee; 2015
(f) Require the authorized delegate to prepare and 2016
maintain records as required by this chapter or regulations 2017
implementing this chapter, or as requested by the commissioner; 2018
(g) Acknowledge that the authorized delegate consents 2019
to examination or investigation by the commissioner; 2020
(h) State that the licensee is subject to regulation by 2021
the commissioner and that, as part of that regulation, the 2022
commissioner may suspend or revoke an authorized delegate 2023
designation or require the licensee to terminate an authorized 2024
delegate designation; and 2025
(i) Acknowledge receipt of the written policies and 2026
procedures required under subsection (2)(a) of this section. 2027
(5) If the licensee's license is suspended, revoked, 2028
surrendered or expired, the licensee must, within five (5) 2029
business days, provide documentation to the commissioner that the 2030
licensee has notified all applicable authorized delegates of the 2031
licensee whose names are in a record filed with the commissioner 2032
of the suspension, revocation, surrender or expiration of a 2033
license. Upon suspension, revocation, surrender or expiration of 2034
a license, applicable authorized delegates shall immediately cease 2035
to provide money transmission as an authorized delegate of the 2036
licensee. 2037
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(6) An authorized delegate of a licensee holds in trust for 2038
the benefit of the licensee all money net of fees received from 2039
money transmission. If any authorized delegate commingles any 2040
funds received from money transmission with any other funds or 2041
property owned or controlled by the authorized delegate, all 2042
commingled funds and other property shall be considered held in 2043
trust in favor of the licensee in an amount equal to the amount of 2044
money net of fees received from money transmission. 2045
(7) An authorized delegate may not use a subdelegate to 2046
conduct money transmission on behalf of a licensee. 2047
SECTION 64. Section 75-16-53, Mississippi Code of 1972, is 2048
brought forward as follows: 2049
75-16-53. Unauthorized activities. A person shall not 2050
engage in the business of money transmission on behalf of a person 2051
not licensed under this chapter or not exempt pursuant to Sections 2052
75-16-7 and 75-16-9. A person who engages in such activity 2053
provides money transmission to the same extent as if the person 2054
were a licensee, and shall be jointly and severally liable with 2055
the unlicensed or nonexempt person. 2056
SECTION 65. Section 75-16-55, Mississippi Code of 1972, is 2057
brought forward as follows: 2058
75-16-55. Timely transmission. (1) Every licensee shall 2059
forward all money received for transmission in accordance with the 2060
terms of the agreement between the licensee and the sender unless 2061
the licensee has a reasonable belief or a reasonable basis to 2062
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believe that the sender may be a victim of fraud or that a crime 2063
or violation of law, rule or regulation has occurred, is 2064
occurring, or may occur. 2065
(2) If a licensee fails to forward money received for 2066
transmission in accordance with this section, the licensee must 2067
respond to inquiries by the sender with the reason for the failure 2068
unless providing a response would violate a state or federal law, 2069
rule, or regulation. 2070
SECTION 66. Section 75-16-57, Mississippi Code of 1972, is 2071
brought forward as follows: 2072
75-16-57. Refunds. (1) This section does not apply to: 2073
(a) Money received for transmission subject to the 2074
federal Remittance Rule (12 CFR Part 1005, Subpart B), as amended 2075
or recodified from time to time; or 2076
(b) Money received for transmission pursuant to a 2077
written agreement between the licensee and payee to process 2078
payments for goods or services provided by the payee. 2079
(2) Every licensee shall refund to the sender within ten 2080
(10) days of receipt of the sender's written request for a refund 2081
of any and all money received for transmission unless any of the 2082
following occurs: 2083
(a) The money has been forwarded within ten (10) days 2084
of the date on which the money was received for transmission; 2085
(b) Instructions have been given committing an 2086
equivalent amount of money to the person designated by the sender 2087
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within ten (10) days of the date on which the money was received 2088
for transmission; 2089
(c) The agreement between the licensee and the sender 2090
instructs the licensee to forward the money at a time that is 2091
beyond ten (10) days of the date on which the money was received 2092
for transmission. If funds have not yet been forwarded in 2093
accordance with the terms of the agreement between the licensee 2094
and the sender, the licensee shall issue a refund in accordance 2095
with the other provisions of this section; 2096
(d) The refund is requested for a transaction that the 2097
licensee has not completed based on a reasonable belief or a 2098
reasonable basis to believe that a crime or violation of law, rule 2099
or regulation has occurred, is occurring, or may occur; or 2100
(e) The refund request does not enable the licensee to: 2101
(i) Identify the sender's name and address or 2102
telephone number; or 2103
(ii) Identify the particular transaction to be 2104
refunded in the event the sender has multiple transactions 2105
outstanding. 2106
SECTION 67. Section 75-16-59, Mississippi Code of 1972, is 2107
brought forward as follows: 2108
75-16-59. Receipts. (1) This section does not apply to: 2109
(a) Money received for transmission subject to the 2110
federal Remittance Rule (12 CFR Part 1005, Subpart B), as amended 2111
or recodified from time to time; 2112
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(b) Money received for transmission that is not 2113
primarily for personal, family or household purposes; or 2114
(c) Money received for transmission pursuant to a 2115
written agreement between the licensee and payee to process 2116
payments for goods or services provided by the payee. 2117
(2) For purposes of this section, "receipt" means a paper 2118
receipt, electronic record or other written confirmation. For a 2119
transaction conducted in person, the receipt may be provided 2120
electronically if the sender requests or agrees to receive an 2121
electronic receipt. For a transaction conducted electronically or 2122
by phone, a receipt may be provided electronically. All 2123
electronic receipts shall be provided in a retainable form. 2124
(3) Every licensee or its authorized delegate shall provide 2125
the sender a receipt for money received for transmission. 2126
(a) The receipt shall contain the following 2127
information, as applicable: 2128
(i) The name of the sender; 2129
(ii) The name of the designated recipient; 2130
(iii) The date of the transaction; 2131
(iv) The unique transaction or identification 2132
number; 2133
(v) The name of the licensee, NMLS Unique ID, the 2134
licensee's business address and the licensee's customer service 2135
telephone number; 2136
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(vi) The amount of the transaction in United 2137
States dollars; 2138
(vii) Any fee charged by the licensee to the 2139
sender for the transaction; and 2140
(viii) Any taxes collected by the licensee from 2141
the sender for the transaction. 2142
(b) The receipt required by this section shall be in 2143
English and in the language principally used by the licensee or 2144
authorized delegate to advertise, solicit or negotiate, either 2145
orally or in writing, for a transaction conducted in person, 2146
electronically or by phone, if other than English. 2147
SECTION 68. Section 75-16-61, Mississippi Code of 1972, is 2148
brought forward as follows: 2149
75-16-61. Net worth. (1) A licensee under this chapter 2150
shall maintain at all times a tangible net worth of the greater of 2151
One Hundred Thousand Dollars ($100,000.00) or three percent (3%) 2152
of total assets for the first One Hundred Million Dollars 2153
($100,000,000.00), two percent (2%) of additional assets for One 2154
Hundred Million Dollars ($100,000,000.00) to One Billion Dollars 2155
($1,000,000,000.00), and one-half percent (0.5%) of additional 2156
assets for over One Billion Dollars ($1,000,000,000.00). 2157
(2) Tangible net worth must be demonstrated at initial 2158
application by the applicant's most recent audited statements 2159
pursuant to Section 75-16-25(2)(f). 2160
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(3) Notwithstanding the foregoing provisions of this 2161
section, the commissioner shall have the authority, for good cause 2162
shown, to exempt, in part or in whole, from the requirements of 2163
this section for any applicant or licensee. 2164
SECTION 69. Section 75-16-63, Mississippi Code of 1972, is 2165
brought forward as follows: 2166
75-16-63. Surety bond. (1) An applicant for a money 2167
transmission license must provide, and a licensee at all times 2168
must maintain, security consisting of a surety bond issued by a 2169
bonding company or insurance company authorized to do business in 2170
the State of Mississippi and in a form satisfactory to the 2171
commissioner or, with the commissioner's approval, a deposit 2172
instead of a bond in accordance with this section. 2173
(2) The amount of the required security shall be 2174
the greater of One Hundred Thousand Dollars ($100,000.00) or an 2175
amount equal to one hundred percent (100%) of the licensee's 2176
average daily money transmission liability in this state 2177
calculated for the most recently completed three-month period, up 2178
to a maximum of Five Hundred Thousand Dollars ($500,000.00). A 2179
licensee that maintains a bond in the maximum amount provided for 2180
in subsection (1) of this section or in this subsection, as 2181
applicable, shall not be required to calculate its average daily 2182
money transmission liability in this state for purposes of this 2183
section. 2184
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(3) A licensee may exceed the maximum required bond amount 2185
pursuant to Section 75-16-67(1)(e). 2186
(4) The bond shall be in a form satisfactory to the 2187
commissioner and shall run to the state for the use and benefit of 2188
the Department of Banking and Consumer Finance and any claimants 2189
against the licensee or his agents to secure the faithful 2190
performance of the obligations of the licensee and his agents with 2191
respect to the receipt, handling, transmission and payment of 2192
money in connection with money transmissions in Mississippi. 2193
(5) Any claimants against the licensee or his agents may 2194
themselves bring suit directly on the bond, or the Attorney 2195
General may bring suit thereon in behalf of those claimants, 2196
either in one (1) action or successive actions. 2197
(6) The commissioner may increase the required amount of the 2198
bond or deposit upon the basis of the impaired financial condition 2199
of a licensee as evidenced by a reduction in net worth, financial 2200
losses or other relevant criteria. 2201
(7) Any provision in this chapter to the contrary 2202
notwithstanding, the commissioner may at any time, if in the 2203
commissioner's sole opinion the protection of the public so 2204
requires, increase the principal sum of the bond or deposit 2205
required of any applicant or licensee by this chapter but in no 2206
case shall the principal sum of the bond or deposit required 2207
exceed One Million Dollars ($1,000,000.00). 2208
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SECTION 70. Section 75-16-65, Mississippi Code of 1972, is 2209
brought forward as follows: 2210
75-16-65. Maintenance of permissible. (1) A licensee shall 2211
maintain at all times permissible investments that have a market 2212
value computed in accordance with United States Generally Accepted 2213
Accounting Principles of not less than the aggregate amount of all 2214
of its outstanding money transmission obligations. 2215
(2) Except for permissible investments enumerated in Section 2216
75-16-67(1), the commissioner, with respect to any licensee, may 2217
by rule, regulation or order limit the extent to which a specific 2218
investment maintained by a licensee within a class of permissible 2219
investments may be considered a permissible investment, if the 2220
specific investment represents undue risk to customers, not 2221
reflected in the market value of investments. 2222
(3) Permissible investments, even if commingled with other 2223
assets of the licensee, are held in trust for the benefit of the 2224
purchasers and holders of the licensee's outstanding money 2225
transmission obligations in the event of insolvency, the filing of 2226
a petition by or against the licensee under the United States 2227
Bankruptcy Code, 11 USC Sections 101-110, as amended or recodified 2228
from time to time, for bankruptcy or reorganization, the filing of 2229
a petition by or against the licensee for receivership, the 2230
commencement of any other judicial or administrative proceeding 2231
for its dissolution or reorganization, or in the event of an 2232
action by a creditor against the licensee who is not a beneficiary 2233
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of this statutory trust. No permissible investments impressed 2234
with a trust pursuant to this subsection (3) shall be subject to 2235
attachment, levy of execution or sequestration by order of any 2236
court, except for a beneficiary of this statutory trust. 2237
(4) Upon the establishment of a statutory trust in 2238
accordance with subsection (3) of this section or when any funds 2239
are drawn on a letter of credit pursuant to Section 75-16-67(1), 2240
the commissioner shall notify the applicable regulator of each 2241
state in which the licensee is licensed to engage in money 2242
transmission, if any, of the establishment of the trust or the 2243
funds drawn on the letter of credit, as applicable. Notice shall 2244
be deemed satisfied if performed pursuant to a multistate 2245
agreement or through NMLS. Funds drawn on a letter of credit, and 2246
any other permissible investments held in trust for the benefit of 2247
the purchasers and holders of the licensee's outstanding money 2248
transmission obligations, are deemed held in trust for the benefit 2249
of such purchasers and holders on a pro rata and equitable basis 2250
in accordance with statutes pursuant to which permissible 2251
investments are required to be held in this state, and other 2252
states, as applicable. Any statutory trust established hereunder 2253
shall be terminated upon extinguishment of all of the licensee's 2254
outstanding money transmission obligations. 2255
(5) The commissioner, by rule, regulation or by order may 2256
allow other types of investments that the commissioner determines 2257
are of sufficient liquidity and quality to be a permissible 2258
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investment. The commissioner is authorized to participate in 2259
efforts with other state regulators to determine that other types 2260
of investments are of sufficient liquidity and quality to be a 2261
permissible investment. 2262
SECTION 71. Section 75-16-67, Mississippi Code of 1972, is 2263
amended as follows: 2264
75-16-67. Types of permissible investments. (1) The 2265
following investments are permissible under Section 75-16-65: 2266
(a) Cash (including demand deposits, savings deposits, 2267
and funds in such accounts held for the benefit of the licensee's 2268
customers in a federally insured depository financial institution) 2269
and cash equivalents including ACH items in transit to the 2270
licensee and ACH items or international wires in transit to a 2271
payee, cash in transit via armored car, cash in smart safes, cash 2272
in licensee-owned locations, debit card or credit card-funded 2273
transmission receivables owed by any bank, or money market mutual 2274
funds rated "AAA" by S&P, or the equivalent from any eligible 2275
rating service; 2276
(b) Certificates of deposit or senior debt obligations 2277
of an insured depository institution, as defined in Section 3 of 2278
the Federal Deposit Insurance Act, 12 USC Section 1813, as amended 2279
or recodified from time to time, or as defined under the federal 2280
Credit Union Act, 12 USC Section 1781, as amended or recodified 2281
from time to time; 2282
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(c) An obligation of the United States or a commission, 2283
agency, or instrumentality thereof; an obligation that is 2284
guaranteed fully as to principal and interest by the United 2285
States; or an obligation of a state or a governmental subdivision, 2286
agency, or instrumentality thereof; 2287
(d) The full drawable amount of an irrevocable standby 2288
letter of credit for which the stated beneficiary is the 2289
commissioner that stipulates that the beneficiary need only draw a 2290
sight draft under the letter of credit and present it to obtain 2291
funds up to the letter of credit amount within seven (7) days of 2292
presentation of the items required by subparagraph (iii) of this 2293
paragraph (d). 2294
(i) The letter of credit must: 2295
1. Be issued by a federally insured 2296
depository financial institution, a foreign bank that is 2297
authorized under federal law to maintain a federal agency or 2298
federal branch office in a state or states, or a foreign bank that 2299
is authorized under state law to maintain a branch in a state that 2300
a. bears an eligible rating or whose parent company bears an 2301
eligible rating; and b. is regulated, supervised, and examined by 2302
United States federal or state authorities having regulatory 2303
authority over banks, credit unions, and trust companies; 2304
2. Be irrevocable, unconditional and indicate 2305
that it is not subject to any condition or qualifications outside 2306
of the letter of credit; 2307
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3. Not contain reference to any other 2308
agreements, documents or entities, or otherwise provide for any 2309
security interest in the licensee; and 2310
4. Contain an issue date and expiration date, 2311
and expressly provide for automatic extension, without a written 2312
amendment, for an additional period of one (1) year from the 2313
present or each future expiration date, unless the issuer of the 2314
letter of credit notifies the commissioner in writing by certified 2315
or registered mail or courier mail or other receipted means, at 2316
least sixty (60) days prior to any expiration date, that the 2317
irrevocable letter of credit will not be extended. 2318
(ii) In the event of any notice of expiration or 2319
nonextension of a letter of credit issued under subparagraph (i)4 2320
of this paragraph (d), the licensee shall be required to 2321
demonstrate to the satisfaction of the commissioner, fifteen (15) 2322
days prior to expiration, that the licensee maintains and will 2323
maintain permissible investments in accordance with Section 2324
75-16-65(1) upon the expiration of the letter of credit. If the 2325
licensee is not able to do so, the commissioner may draw on the 2326
letter of credit in an amount up to the amount necessary to meet 2327
the licensee's requirements to maintain permissible investments in 2328
accordance with Section 75-16-65(1). Any such draw shall be 2329
offset against the licensee's outstanding money transmission 2330
obligations. The drawn funds shall be held in trust by the 2331
commissioner or the commissioner's designated agent, to the extent 2332
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authorized by law, as agent for the benefit of the purchasers and 2333
holders of the licensee's outstanding money transmission 2334
obligations. 2335
(iii) The letter of credit shall provide that the 2336
issuer of the letter of credit will honor, at sight, a 2337
presentation made by the beneficiary to the issuer of the 2338
following documents on or prior to the expiration date of the 2339
letter of credit: 2340
1. The original letter of credit (including 2341
any amendments); and 2342
2. A written statement from the beneficiary 2343
stating that any of the following events have occurred: 2344
a. The filing of a petition by or 2345
against the licensee under the United States Bankruptcy Code, 11 2346
USC Sections 101-110, as amended or recodified from time to time, 2347
for bankruptcy or reorganization; 2348
b. The filing of a petition by or 2349
against the licensee for receivership, or the commencement of any 2350
other judicial or administrative proceeding for its dissolution or 2351
reorganization; 2352
c. The seizure of assets of a licensee 2353
by a commissioner pursuant to an emergency order issued in 2354
accordance with applicable law, on the basis of an action, 2355
violation, or condition that has caused or is likely to cause the 2356
insolvency of the licensee; or 2357
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d. The beneficiary has received notice 2358
of expiration or nonextension of a letter of credit and the 2359
licensee failed to demonstrate to the satisfaction of the 2360
beneficiary that the licensee will maintain permissible 2361
investments in accordance with Section 75-16-65(1) upon the 2362
expiration or nonextension of the letter of credit. 2363
(iv) The commissioner may designate an agent to 2364
serve on the commissioner's behalf as beneficiary to a letter of 2365
credit so long as the agent and letter of credit meet requirements 2366
established by the commissioner. The commissioner's agent may 2367
serve as agent for multiple licensing authorities for a single 2368
irrevocable letter of credit if the proceeds of the drawable 2369
amount for the purposes of this paragraph (d) are assigned to the 2370
commissioner. 2371
(v) The commissioner is authorized and encouraged 2372
to participate in multistate processes designed to facilitate the 2373
issuance and administration of letters of credit, including, but 2374
not limited to, services provided by the NMLS and State Regulatory 2375
Registry, LLC; 2376
(e) One hundred percent (100%) of the surety bond or 2377
deposit provided for under Section 75-16-63 that exceeds the 2378
average daily money transmission liability in this state; 2379
(f) Any other investment approved by the commissioner. 2380
(2) Unless permitted by the commissioner by rule, regulation 2381
or by order to exceed the limit as set forth herein, the following 2382
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investments are permissible under Section 75-16-65 to the extent 2383
specified: 2384
(a) Receivables that are payable to a licensee from its 2385
authorized delegates in the ordinary course of business that are 2386
less than seven (7) days old, up to fifty percent (50%) of the 2387
aggregate value of the licensee's total permissible investments; 2388
(b) Of the receivables permissible under paragraph (a) 2389
of this subsection, receivables that are payable to a licensee 2390
from a single authorized delegate in the ordinary course of 2391
business may not exceed ten percent (10%) of the aggregate value 2392
of the licensee's total permissible investments; 2393
(c) The following investments are permissible up to 2394
twenty percent (20%) per category and combined up to fifty percent 2395
(50%) of the aggregate value of the licensee's total permissible 2396
investments: 2397
(i) A short-term (up to six (6) months) investment 2398
bearing an eligible rating; 2399
(ii) Commercial paper bearing an eligible rating; 2400
(iii) A bill, note, bond, or debenture bearing an 2401
eligible rating; 2402
(iv) United States tri-party repurchase agreements 2403
collateralized at one hundred percent (100%) or more with U.S. 2404
government or agency securities, municipal bonds, or other 2405
securities bearing an eligible rating; 2406
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(v) Money market mutual funds rated less than 2407
"AAA" and equal to or higher than "A-" by S&P, or the equivalent 2408
from any other eligible rating service; and 2409
(vi) A mutual fund or other investment fund 2410
composed solely and exclusively of one or more permissible 2411
investments listed in subsection (1)(a) through (c) of this 2412
section; 2413
(d) Cash (including demand deposits, savings deposits, 2414
and funds in such accounts held for the benefit of the licensee's 2415
customers) at foreign depository institutions are permissible up 2416
to ten percent (10%) of the aggregate value of the licensee's 2417
total permissible investments if the licensee has received a 2418
satisfactory rating in its most recent examination and the foreign 2419
depository institution: 2420
(i) Has an eligible rating; 2421
(ii) Is registered under the Foreign Account Tax 2422
Compliance Act; 2423
(iii) Is not located in any country subject to 2424
sanctions from the Office of Foreign Asset Control; and 2425
(iv) Is not located in a high-risk or 2426
noncooperative jurisdiction as designated by the Financial Action 2427
Task Force. 2428
SECTION 72. Section 75-16-69, Mississippi Code of 1972, is 2429
brought forward as follows: 2430
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75-16-69. Suspension and revocation. (1) The commissioner 2431
may suspend or revoke a license or order a licensee to revoke the 2432
designation of an authorized delegate if: 2433
(a) The licensee or any authorized delegate, agent, or 2434
representative violates this chapter or a rule or regulation 2435
adopted or an order issued under this chapter; 2436
(b) The licensee or any authorized delegate, agent, or 2437
representative does not cooperate with an examination or 2438
investigation by the commissioner; 2439
(c) The licensee or any authorized delegate, agent, or 2440
representative engages in fraud, intentional misrepresentation, or 2441
gross negligence; 2442
(d) An authorized delegate is convicted of a violation 2443
of a state or federal anti-money laundering statute, or violates a 2444
rule or regulation adopted or an order issued under this chapter, 2445
as a result of the licensee's willful misconduct or willful 2446
blindness; 2447
(e) The competence, experience, character, or general 2448
fitness of the licensee, authorized delegate, person in control of 2449
a licensee, key individual, or responsible person of the 2450
authorized delegate indicates that it is not in the public 2451
interest to permit the person to provide money transmission; 2452
(f) The licensee or any authorized delegate, agent, or 2453
representative engages in an unsafe or unsound practice; 2454
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(g) The licensee is insolvent, suspends payment of its 2455
obligations, or makes a general assignment for the benefit of its 2456
creditors; or 2457
(h) The licensee does not remove an authorized delegate 2458
after the commissioner issues and serves upon the licensee a final 2459
order including a finding that the authorized delegate has 2460
violated this chapter. 2461
(2) In determining whether a licensee is engaging in an 2462
unsafe or unsound practice, the commissioner may consider the size 2463
and condition of the licensee's money transmission, the magnitude 2464
of the loss, the gravity of the violation of this chapter, and the 2465
previous conduct of the person involved. 2466
SECTION 73. Section 75-16-71, Mississippi Code of 1972, is 2467
brought forward as follows: 2468
75-16-71. Notice and hearing. (1) Except where a license 2469
is automatically revoked without any act of the commissioner as 2470
specially provided in this section, no license shall be revoked 2471
except on ten (10) days' notice (the first day of the ten-day 2472
period to be the date stated on the notice, which shall be the day 2473
it is mailed) to the licensee by the commissioner, sent by letter 2474
by United States registered mail, return receipt requested, to the 2475
licensee's business address set forth in the application. 2476
(2) Upon receipt of the notice, as stated in the registered 2477
mail receipt, the licensee may, within five (5) days thereafter 2478
(which five-day period may be wholly or partially outside of the 2479
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ten-day period) make written demand for a hearing by the 2480
commissioner, which demand must be accompanied by an additional 2481
surety bond or securities deposit, as hereafter provided, the 2482
principal sum or the market value thereof to be specified by the 2483
commissioner in the revocation notice. 2484
(3) The revocation notice shall not become final during the 2485
period of time in which the licensee may demand such hearing nor 2486
if licensee demands a hearing, until the matter has been finally 2487
determined by the commissioner or by the courts, provided that the 2488
licensee posts together with his written demand for hearing an 2489
additional corporate surety bond, written by the same surety that 2490
wrote the bond required under Section 75-16-63 or an additional 2491
deposit in addition to the deposit theretofore made by the 2492
licensee under Section 75-16-63 which additional surety bond or 2493
deposit shall be in a principal amount or of a market value deemed 2494
adequate by the commissioner as specified in the revocation order 2495
but not exceeding One Million Dollars ($1,000,000.00), provided 2496
that if the licensee originally deposited with his application 2497
under Section 75-16-63 a corporate surety bond, the additional 2498
deposit provided in this section must be another corporate surety 2499
bond or an increase of the first one and may not be a deposit, or 2500
if the licensee originally made a deposit, the additional deposit 2501
shall also be of the same manner and not a corporate surety bond. 2502
The bond or deposit shall secure the same obligations as does the 2503
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corporate surety bond or deposit required by Section 75-16-63, but 2504
shall be in addition to the bond or deposit required thereby. 2505
(4) Upon receipt of the written demand, the commissioner 2506
shall thereafter, with reasonable promptness, hear and determine 2507
the matter as provided by law or regulation. 2508
(5) If the licensee deems himself aggrieved by the 2509
determination or order of the commissioner, he may within thirty 2510
(30) days after the determination or order, have the determination 2511
or order reviewed by an appeal to the Chancery Court of the First 2512
Judicial District of Hinds County, Mississippi, by filing a 2513
petition setting out the specific order or action or part thereof 2514
by which the person deems himself aggrieved. All those petitions 2515
shall be given preferred settings and shall be heard by the court 2516
as speedily as possible. Such an appeal shall be perfected upon 2517
the posting of a bond for the costs of the appeal accompanied by 2518
the petition. Any party to the appeal may appeal to the Supreme 2519
Court of Mississippi from the decree or order of the chancery 2520
court, within thirty (30) days from the rendition of the decree or 2521
order, in the manner provided by law for appeals to the Supreme 2522
Court of Mississippi from chancery courts. 2523
(6) Final revocation of the license, whether automatic or by 2524
final determination of the commissioner or the courts, shall 2525
cancel as of the date of final revocation all bonds or deposits 2526
theretofore deposited by the licensee under any provision of this 2527
section, provided that the licensee (and his corporate surety, if 2528
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any) shall not be relieved of any accrued liabilities, and 2529
provided further, where the licensee made a deposit, that there 2530
shall not be returned to the licensee any of the deposit until the 2531
commissioner determines that all accrued liabilities (including, 2532
but not limited to, the principal sums thereof, accrued interest 2533
thereon, and court costs, if any, assessed to the licensee) of the 2534
licensee under this section have been satisfied in full. 2535
(7) The commissioner may at any time revoke a license, on 2536
any ground on which he might refuse to grant a license, for 2537
failure to pay an annual fee or for violation of any provision of 2538
this section, subject to the provisions of this section. 2539
(8) A license shall be automatically and finally revoked 2540
without any act or further act of the commissioner and without any 2541
right of the licensee to any hearing or further hearing by the 2542
commissioner or the courts and without any right of the licensee 2543
or the commissioner to reinstate or have reinstated the license, 2544
in the following instances: (a) at expiration of the sixty-day 2545
notice period, if the corporate surety gives notice of 2546
cancellation of its bond or any of them; (b) upon failure by 2547
licensee to pay when due the annual license fee required by 2548
Section 75-16-31; (c) upon failure by licensee to file when due 2549
any information required by this chapter; (d) in case of a 2550
revocation notice under subsection (1) of this section, failure by 2551
the licensee to demand hearing as provided therein or failure to 2552
deposit any additional corporate surety bond or deposit as 2553
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required by the commissioner; (e) upon a license revocation order 2554
becoming final at any stage; (f) failure by licensee to deposit 2555
when due any additional corporate surety bond or deposit required 2556
by the commissioner under Section 75-16-63(8); or (g) upon final 2557
conviction of licensee as to any offense covered by this chapter. 2558
(9) If a revocation order becomes final for any reason or in 2559
any manner, the license may not be reinstated, except upon new 2560
application as if the licensee had never been licensed before. 2561
The commissioner may deny the new application on grounds that a 2562
previous application was denied or a previous license to applicant 2563
was revoked or any ground or grounds on which he may deny an 2564
original application. 2565
SECTION 74. Section 75-16-73, Mississippi Code of 1972, is 2566
brought forward as follows: 2567
75-16-73. Orders to cease and desist. (1) If the 2568
commissioner determines that a violation of this chapter or of a 2569
rule or regulation adopted or an order issued under this chapter 2570
by a licensee or authorized delegate is likely to cause immediate 2571
and irreparable harm to the licensee, its customers, or the public 2572
as a result of the violation, or cause insolvency or significant 2573
dissipation of assets of the licensee, the commissioner may issue 2574
an order requiring the licensee or authorized delegate to cease 2575
and desist from the violation. The order becomes effective upon 2576
service of it upon the licensee or authorized delegate. 2577
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(2) When the commissioner has reasonable cause to believe 2578
that a person is violating any provision of this chapter, the 2579
commissioner, in addition to and without prejudice to the 2580
authority provided elsewhere in this chapter, may sue in the 2581
Chancery Court of the First Judicial District of Hinds County, 2582
Mississippi, to enjoin the person from engaging in or continuing 2583
the violation or from doing any act in furtherance of the 2584
violation. In such an action, the court may enter any order or 2585
judgment awarding a preliminary or permanent injunction. 2586
(3) An order to cease and desist remains effective until 2587
rescinded or released by the commissioner or appealed as provided 2588
in this section. 2589
(4) A licensee that is served with an order to cease and 2590
desist may petition the Chancery Court of the First Judicial 2591
District of Hinds County, Mississippi, for a judicial order 2592
setting aside, limiting, or suspending the enforcement, operation, 2593
or effectiveness of the order. 2594
SECTION 75. Section 75-16-75, Mississippi Code of 1972, is 2595
brought forward as follows: 2596
75-16-75. Consent orders. The commissioner may enter into a 2597
consent order at any time with a person to resolve a matter 2598
arising under this chapter or a rule or regulation adopted or 2599
order issued under this chapter. A consent order must be signed 2600
by the person to whom it is issued or by the person's authorized 2601
representative, and must indicate agreement with the terms 2602
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contained in the order. A consent order may provide that it does 2603
not constitute an admission by a person that this chapter or a 2604
rule or regulation adopted or an order issued under this chapter 2605
has been violated. 2606
SECTION 76. Section 75-16-77, Mississippi Code of 1972, is 2607
brought forward as follows: 2608
75-16-77. Criminal penalties. (1) A person who 2609
intentionally makes a false statement, misrepresentation, or false 2610
certification in a record filed or required to be maintained under 2611
this chapter or that intentionally makes a false entry or omits a 2612
material entry in such a record is guilty of a felony and, upon 2613
conviction thereof, shall be fined no less than Five Hundred 2614
Dollars ($500.00) nor more than Three Thousand Dollars 2615
($3,000.00), and may also be punished by imprisonment in the 2616
custody of the Department of Corrections for a term not less than 2617
one (1) year and not more than five (5) years. 2618
(2) A person that knowingly engages in an activity for which 2619
a license is required under this chapter without being licensed 2620
under this chapter and who receives more than Five Hundred Dollars 2621
($500.00) in compensation within a thirty-day period from this 2622
activity is guilty of a felony and, upon conviction thereof, shall 2623
be fined no less than Five Hundred Dollars ($500.00) nor more than 2624
Three Thousand Dollars ($3,000.00), and may also be punished by 2625
imprisonment in the custody of the Department of Corrections for a 2626
term not less than one (1) year and not more than five (5) years. 2627
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(3) A person that knowingly engages in an activity for which 2628
a license is required under this chapter without being licensed 2629
under this chapter and who receives no more than Five Hundred 2630
Dollars ($500.00) in compensation within a thirty-day period from 2631
this activity is guilty of a misdemeanor and, upon conviction, 2632
shall be fined not less than One Hundred Dollars ($100.00) nor 2633
more than Five Hundred Dollars ($500.00), and may also be confined 2634
to the county jail for not more than twelve (12) months. 2635
SECTION 77. Section 75-16-79, Mississippi Code of 1972, is 2636
brought forward as follows: 2637
75-16-79. Civil penalties. (1) The commissioner may assess 2638
a civil penalty against a person that violates this chapter or a 2639
rule or regulation adopted or an order issued under this chapter 2640
in an amount not to exceed One Thousand Dollars ($1,000.00) per 2641
day for each day the violation is outstanding, plus this state's 2642
costs and expenses for the investigation and prosecution of the 2643
matter, including reasonable attorney's fees. 2644
(2) If any person engages in business as provided for in 2645
this chapter without paying the license fee provided for in this 2646
chapter before beginning business or before the expiration of the 2647
person's current license, as the case may be, then the person 2648
shall be liable for the full amount of the license fee plus a 2649
penalty in an amount not to exceed One Thousand Dollars 2650
($1,000.00) for each day that the person has engaged in the 2651
business without a license or after the expiration of a license. 2652
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SECTION 78. Section 75-16-81, Mississippi Code of 1972, is 2653
brought forward as follows: 2654
75-16-81. Unlicensed persons. (1) If the commissioner has 2655
reason to believe that a person has violated or is violating 2656
Section 75-16-21, the commissioner may issue an order to show 2657
cause why an order to cease and desist should not issue requiring 2658
that the person cease and desist from the violation of Section 2659
75-16-21. 2660
(2) In an emergency, the commissioner may petition the 2661
Chancery Court of the First Judicial District of Hinds County, 2662
Mississippi, for the issuance of a temporary restraining order ex 2663
parte pursuant to the Mississippi Rules of Civil Procedure. 2664
(3) An order to cease and desist becomes effective upon 2665
service of it upon the person. 2666
(4) An order to cease and desist remains effective and 2667
enforceable until rescinded or released by the commissioner or 2668
appealed as provided in this section. 2669
(5) A person that is served with an order to cease and 2670
desist for violating Section 75-16-21 may petition the Chancery 2671
Court of the First Judicial District of Hinds County, Mississippi, 2672
for a judicial order setting aside, limiting, or suspending the 2673
enforcement, operation, or effectiveness of the order. 2674
SECTION 79. Section 75-16-83, Mississippi Code of 1972, is 2675
brought forward as follows: 2676
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75-16-83. Investigation of possible violations. In addition 2677
to and without prejudice to the authority provided elsewhere in 2678
this chapter, the commissioner, or his duly authorized 2679
representative, for the purpose of discovering violations of this 2680
chapter and for the purpose of determining whether persons are 2681
subject to the provisions of this chapter, may examine persons 2682
licensed under this chapter and persons reasonably suspected by 2683
the commissioner of conducting business that requires a license 2684
under this chapter, including all relevant books, records and 2685
papers employed by those persons in the transaction of their 2686
business, and may summon witnesses and examine them under oath 2687
concerning matters relating to the business of those persons, or 2688
such other matters as may be relevant to the discovery of 2689
violations of this chapter, including, without limitation, the 2690
conduct of business without a license as required under this 2691
chapter. 2692
SECTION 80. Section 75-16-85, Mississippi Code of 1972, is 2693
brought forward as follows: 2694
75-16-85. Uniformity of application and construction. In 2695
applying and construing this chapter, consideration must be given 2696
to the need to promote uniformity of the law with respect to its 2697
subject matter among states that enact it. 2698
SECTION 81. Section 75-16-87, Mississippi Code of 1972, is 2699
brought forward as follows: 2700
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ST: Mississippi Bullion Depository; establish.
75-16-87. Transition period. (1) A person licensed in this 2701
state to engage in the business of money transmission shall not be 2702
subject to the provisions of this chapter, to the extent that they 2703
conflict with current law or establish new requirements not 2704
imposed under current law, until such time as the licensee renews 2705
its current license or for twelve (12) months after July 1, 2025, 2706
whichever is later. 2707
(2) Notwithstanding subsection (1) of this section, a 2708
licensee shall only be required to amend its authorized delegate 2709
contracts for contracts entered into or amended after the 2710
effective date or the completion of any transition period 2711
contemplated under subsection (1) of this section. Nothing herein 2712
shall be construed as limiting an authorized delegate's 2713
obligations to operate in full compliance with this chapter as 2714
required by Section 75-16-51(3). 2715
SECTION 82. This act shall take effect and be in force from 2716
and after July 1, 2026. 2717