Legislation

Search OpenLegislation Statutes
This entry was published on 2014-09-22
The selection dates indicate all change milestones for the entire volume, not just the location being viewed. Specifying a milestone date will retrieve the most recent version of the location before that date.
SECTION 640
Definitions
Banking (BNK) CHAPTER 2, ARTICLE 13-B
§ 640. Definitions. In this article, unless the context or subject
matter otherwise requires:

1. "Person" means an individual, partnership, corporation,
association, joint stock association, trust or other group, however
organized.

2. "Licensee" means any person duly licensed by the superintendent
pursuant to this article.

3. "Check" means any check, draft, travelers check, money order or
other instrument for the transmission or payment of money.

4. "purchaser", "holder", "New York instrument" and "New York
traveler's check" shall have the respective meanings ascribed to such
terms by section six hundred fifty-three of this chapter.

5. "Payment instrument" means any check, draft, money order, or other
instrument or order for the transmission or payment of money, whether or
not such instrument or order is negotiable, and sold to one or more
persons. "Payment instrument" does not include a traveler's check, any
instrument which is redeemable by the issuer in merchandise or services,
a letter of credit or a permissible investment as defined in this
section.

6. "Outstanding payment instruments" means unpaid payment instruments
sold anywhere in the United States and whose sale has been reported to a
licensee.

7. "Traveler's check" means an instrument, regardless of its form,
specifically identified on the instrument as a traveler's check and
issued in either written form, with a provision for a specimen signature
of the purchaser to be completed at the time of purchase and a
counter-signature of the purchaser to be completed at the time of its
negotiation, or in electronic form with a provision for the electronic
equivalent of the specimen signature and counter signature. An
instrument shall not be identified as a traveler's check if it fails to
comply, as the case may be, with either the written or electronic
signature requirements of this subdivision.

8. "Outstanding traveler's checks" means unpaid traveler's checks sold
anywhere in the United States and whose sale has been reported to a
licensee.

9. "Permissible investments" means:

(i) cash;

(ii) certificates of deposit or other debt instruments of a commercial
bank;

(iii) bills of exchange or time drafts drawn on and accepted by a
commercial bank, otherwise known as bankers acceptances, which are
eligible for purchase by member banks of the federal reserve system;

(iv) commercial paper of prime quality as defined by a nationally
recognized organization which rates such securities;

* (v) interest-bearing bills, notes, bonds, debentures or other
obligations issued or guaranteed by the United States or any state or
other local governmental entity or any agent or instrumentality thereof,
bearing a rating of one of the three highest grades by a nationally
recognized investment service organization that has been engaged
regularly in rating state and municipal issues for a period of not less
than five years;

* NB Effective until notification of the superintendent of financial
services

* (v) interest-bearing bills, notes, bonds, debentures or other
obligations issued or guaranteed by the United States or any state or
other local governmental entity or any agent or instrumentality thereof,
which meet the standards of creditworthiness established by regulation
by the superintendent;

* NB Effective upon notification of the superintendent of financial
services

* (vi) interest-bearing bills, notes, bonds, debentures or preferred
stock traded on any national securities exchange or on a national
over-the-counter market or bearing a rating of one of the three highest
grades by a nationally recognized investment service organization that
has been engaged regularly in rating corporate debt or equity issues for
a period of not less than five years; and

* NB Effective until notification of the superintendent of financial
services

* (vi) interest-bearing bills, notes, bonds, debentures or preferred
stock traded on any national securities exchange or on a national
over-the-counter market or which meet the standards of creditworthiness
established by regulation by the superintendent; and

* NB Effective upon notification of the superintendent of financial
services

(vii) such other investments or assets if and as approved by the
superintendent.

Except for cash and certificates of deposit of a commercial bank, any
particular investment within the classes of investments authorized by
this section is subject to disqualification for one or more licensees
for the purpose of this article, if unsatisfactory for any reason in the
opinion of the superintendent. Notwithstanding the foregoing provisions
of this section, the superintendent shall have the power to limit, with
respect to any particular licensee or all licensees, the extent to which
any class of investments authorized by this section, except for cash and
certificates of deposit of a commercial bank, may be considered a
permissible investment.

10. "Agent" means any person designated or appointed by the licensee
pursuant to a written agency contract to engage in money transmission
activities at locations other than a duly authorized office of the
licensee as provided in section six hundred forty-eight of this article.
Except for a licensee, any person acting as agent engaging in money
transmission activities absent such a written agency contract shall be
deemed to be in violation of section six hundred forty-one of this
article and may be subject to criminal prosecution pursuant to section
six hundred fifty of this article. Such term shall not be deemed to
include any banking corporation incorporated or licensed under this
chapter or under the laws of the United States or any other state or any
casher of checks licensed under this chapter.