Financial Institutions (GFI) — Title 12. Miscellaneous Institutions and Activities

Is a general partner, an officer, a director, or a member, or occupies a similar position or performs a similar function;

Directly or indirectly has the right to vote 5% or more of a class of voting securities, or has the power to sell or direct the sale of 5% or more of a class of voting securities, of a licensee or license applicant; or

In the case of a partnership, a limited partnership, a limited liability partnership, a limited liability company, or any other business entity:

The fee charged for the check cashing service does not exceed the fee permitted under this subtitle;

No additional fee is charged to defer the presentment or deposit of the payment instrument; and

The check cashing service is not subject to renewal or extension by any means.

The subsidiary’s or affiliate’s name and address, and the names and addresses of each:

Any other information that the Commissioner requests.

The provisions of §§ 12-113 through 12-121, inclusive, and §§ 12-123 through 12-127, inclusive, of this subtitle; and

Any regulation, except to the extent the regulation concerns licensing, adopted under this subtitle.

Notify all licensees of the transfer period; and

Provide instructions for the transfer of licensing information to NMLS.

The fees charged for check cashing services; and

How to contact the Office of Financial Regulation with comments or complaints; and

The date of the transaction;

The face value of the check cashed;

The fee charged; and

The net dollar amount paid to the customer.

The names and addresses of each owner who owns more than 5% of the person; and

The officers and director or principal of the person;

Command the confidence of the public; and

Warrant the belief that the business will be operated lawfully, honestly, fairly, and efficiently; and

Complete, sign, and submit to the Commissioner an application made under oath in the form, and in accordance with the process, that the Commissioner requires; and

Provide all the information that the Commissioner requests.

The applicant’s legal name and any trade name used by the applicant in accordance with § 2–121 of this article;

The applicant’s principal executive office address;

If the applicant is not an individual, the name and residence address of each control person;

The address of each additional location, if any, that:

If the licensee operates a mobile unit, the vehicle identification number of each mobile unit and the geographic area where each mobile unit will be operating; and

Any other information that the Commissioner requires for an investigation and findings under § 12–109 of this subtitle.

Deny the application;

Notify the applicant immediately of the denial;

Refund the license fee; and

Retain the investigation fee.

Within 10 days after the Commissioner denies an application, the Commissioner shall send a written notice to the applicant stating the reasons for the denial.

The notice shall be sent by United States mail, e–mail, or any means provided through NMLS to the address listed in the application.

The general public may reasonably view as a location that offers check cashing services, including any location that investigates customer complaints or directly communicates with customers verbally, electronically, or in writing;

Houses any core operational infrastructure or technology systems;

Conducts any core management, information security and technology, risk and compliance, or finance functions; or

Is otherwise required to be listed in NMLS by regulation the Commissioner adopts under this subtitle; and

In which the license is issued, if the license is issued before November 1; or

Immediately following the year in which the license is issued, if the license is issued on or after November 1.

The licensee’s unique identifier; and

A statement advising consumers of the availability of the NMLS Consumer Access website to verify the licensing status of the licensee.

The licensee’s unique identifier; and

A link to the NMLS Consumer Access website.

The name of the customer;

The transaction date;

The type and amount of payment instrument;

The amount of fee charged; and

A complete description of the identification presented by the customer; and

A valid driver’s license with photograph issued by a state government;

A valid identity card with photograph issued by a state government;

A valid United States passport or alien registration card; and

A valid uniformed services identification card.

A felony; or

A misdemeanor that is directly related to the fitness and qualification of the person to provide check cashing services;

Commits any fraud;

Engages in any illegal or dishonest activities; or

Misrepresents or fails to disclose any material facts to anyone entitled to that information;

Is controlled by a foreign bank;

Controls a foreign bank; or

Is controlled by persons who control a foreign bank or foreign bank holding company.

The Riegle–Neal Interstate Banking and Branching Efficiency Act of 1994 or other federal law; or

Title 5, Subtitle 9 or Subtitle 10 of this article.

The direct or indirect ownership of, or the right to control, 25% or more of the voting shares of the licensee; or

The ability to elect a majority of the directors or otherwise effect a change in policy of the licensee; and

Is a general partner, an officer, or a director of a money transmitter, or a person who occupies a similar position or performs a similar function;

Directly or indirectly has the right to vote 10% or more of a class of voting securities, or has the power to sell or direct the sale of 10% or more of a class of voting securities, of a money transmitter; or

In the case of a partnership, a limited partnership, a limited liability partnership, a limited liability company, or any other business entity:

Is located in this State or maintains a branch in this State; and

Is authorized to maintain deposit or share accounts;

Obligations of or guaranteed by the United States, its departments, agencies, or instrumentalities, or obligations of any state, territory, or municipality or any political subdivision of any state, territory, or municipality;

Any investment securities, money market mutual funds, interest–bearing bills or notes, debentures, or stock traded on any national securities exchange or on a national over–the–counter market bearing a rating of one of the three highest grades as defined by a nationally recognized organization that rates such securities; and

Any demand borrowing agreement or agreements in an amount or aggregate amount which does not exceed 10% of the net worth of the company liable for payment under the agreement or agreements as shown on financial statements certified by a certified public accountant acceptable to the Commissioner, provided that the company is a corporation or a subsidiary of a corporation whose capital stock is listed on a national exchange and is not a licensee or authorized delegate of a licensee under this subtitle; or

A bill payer service; and

An accelerated mortgage payment service.

There is written agreement between the payor and the agent that directs the agent to provide payroll processing services on the payor’s behalf;

The payor holds the agent out to employees and other payees as providing payroll processing services on the payor’s behalf; and

The payor’s obligation to a payee, including an employee or another party entitled to receive funds via the payroll processing services provided by the agent, is not extinguished if the agent fails to remit the funds to the payee.

Is located in this State or maintains a branch in this State; and

Is authorized to maintain deposit or share accounts;

Obligations of or guaranteed by the United States, its departments, agencies, or instrumentalities, or obligations of any state, territory, or municipality or any political subdivision of any state, territory, or municipality;

Any investment securities, money market mutual fund, interest–bearing bills or notes, debentures or stock traded on any national securities exchange or on a national over–the–counter market bearing a rating of one of the three highest grades as defined by a nationally recognized organization that rates such securities; and

Any demand borrowing agreement or agreements in an amount or aggregate amount which does not exceed 10% of the net worth of the company liable for payment under the agreement or agreements as shown on financial statements certified by a certified public accountant acceptable to the Commissioner, provided that the company is a corporation or a subsidiary of a corporation whose capital stock is listed on a national exchange and is not a licensee or authorized delegate of a licensee under this subtitle;

A card;

A code;

An electronic serial number;

A mobile identification; or

A personal identification.

Engage in the business of money transmission;

Warrant the belief that the business of money transmission will be conducted lawfully, honestly, fairly, and efficiently; and

Command the confidence of the public;

If the applicant is a sole proprietor, the applicant shall have the required experience;

If the applicant is a joint venture or partnership, at least one of the coventurers or general partners shall have the required experience; and

If the applicant is any other type of business, at least one of the principal officers or members shall have the required experience.

Complete, sign, and submit to the Commissioner an application made under oath in the form, and in accordance with the process, that the Commissioner requires; and

Provide all information that the Commissioner requests.

The address of the principal executive office of the applicant;

The address of each additional location, if any, that:

If the licensee operates a self–service financial kiosk, the following information for each self–service financial kiosk:

Be prepared in accordance with generally accepted accounting principles applied on a consistent basis;

Be a certified opinion audit prepared by an independent certified public accountant;

Include a schedule of all permissible investments, if any, of the applicant; and

Be no older than 12 months before the date of the application;

An independent credit report from a consumer reporting agency described in the federal Fair Credit Reporting Act, 15 U.S.C. § 1681a(p); and

Information related to any administrative, civil, or criminal findings by any governmental jurisdiction; and

Business history in a form prescribed by NMLS, including:

For each control person, personal history in a form prescribed by NMLS.

The state, national, or international criminal history records of the person; and

A printed statement listing any conviction or other disposition of, and any plea of guilty or nolo contendere to, any criminal charge;

An update of the initial criminal history records check or criminal history background check of the person; and

A revised statement listing any conviction or other disposition of, and any plea of guilty or nolo contendere to, any criminal charge occurring after the date of the initial criminal history records check or criminal history background check; and

Notify the applicant immediately of this fact;

Subject to the hearing provisions of § 12–428 of this subtitle, deny the application;

Return the surety device filed under § 12–407 of this subtitle; and

Keep the license fee and the investigation fee.

The general public may reasonably view as a location that offers money transmission services, including any location that investigates customer complaints or directly communicates with customers verbally, electronically, or in writing;

Houses any core operational infrastructure or technology systems;

Conducts any core management, information security and technology, risk and compliance, or finance functions; or

Is otherwise required to be listed in NMLS by regulation the Commissioner adopts under this subtitle; and

The licensee’s unique identifier; and

A statement advising consumers of the availability of the NMLS Consumer Access website to verify the licensing status of the licensee.

A notice stating, “the Commissioner of Financial Regulation for the State of Maryland will accept all questions or complaints regarding this authorized delegate of (name of licensee and unique identifier) at (address of Commissioner), phone (toll–free phone number of the Commissioner)”; and

A statement advising consumers of the availability of the NMLS Consumer Access website to verify the licensing status of the licensee.

The licensee’s unique identifier;

A link to the NMLS Consumer Access website; and

A notice stating, “The Commissioner of Financial Regulation for the State of Maryland will accept all questions or complaints from Maryland residents regarding (name of licensee and unique identifier) at (address of Commissioner), phone (toll–free phone number of the Commissioner)”.

The license is issued, if the license is issued before November 1; or

Succeeding the year that the license is issued, if the license is issued on or after November 1.

A renewal application in the form and in accordance with the process that the Commissioner requires;

A financial statement that complies with the requirements of § 12–407(b)(4) of this subtitle; and

Any other information that the Commissioner reasonably requires to determine that the renewal applicant continues to be eligible to be licensed.

The State; and

Any individual who has been damaged by a violation of State law or regulation governing the business of money transmission committed by a licensee or an authorized delegate of a licensee.

In the amount required under subsection (d) of this section;

Issued by a surety company that:

Conditioned that the licensee and any authorized delegate of the licensee shall:

Shall be continuous;

May not be aggregated or cumulative, whether or not the bond is renewed, continued, replaced, or modified;

May not be determined by adding together the penal sum of the bond, or any part of the penal sum of the bond, in existence at any two or more points in time;

Shall be considered to be one continuous obligation, regardless of increases or decreases in the penal sum of the bond;

May not be affected by:

May not require an administrative enforcement action by the Commissioner as a prerequisite to liability; and

Shall continue for 3 years after the later of the date on which:

A bond may be canceled by the surety or the licensee by giving notice of cancellation to the Commissioner.

Notice under subparagraph (i) of this paragraph shall:

A cancellation of a bond under this paragraph is not effective until 90 days after receipt of a notice of cancellation by the Commissioner.

A claimant; or

The Commissioner for the benefit of a claimant or the State.

Shall pay the amount of the bond to the Commissioner for pro rata distribution to claimants; and

Is relieved of liability under the bond.

If the penal amount of a bond is reduced by payment of a claim or judgment, the licensee shall file a new or additional bond with the Commissioner.

The Commissioner may permit a bond to be reduced or eliminated if the amount of the licensee’s payment instruments outstanding in the State are reduced.

Have a market value equal to the amount required under subsection (d) of this section; and

Be held by the Commissioner to secure the same obligations as are required to be secured by a surety bond under subsection (b) of this section.

The Commissioner may place the investments in the custody of any qualified trust company in this State.

The licensee shall pay the compensation of this custodian.

$150,000; or

100% of the applicant’s average daily money transmission liability in the State calculated for the most recently completed quarter, up to a maximum of $2,000,000.

Engages in:

Does not engage in any other business regulated under this subtitle.

A licensee shall allow an individual to voluntarily be disqualified from sending money transmissions from or receiving money transmissions in the State.

A licensee may require an individual to provide written notice of the individual’s disqualification to the licensee at the address on the licensee’s license.

Unless extended under paragraph (2) of this subsection or terminated under paragraph (3) of this subsection, a disqualification is effective until January 1 of the year following the year in which notice of the individual’s disqualification is given to the licensee.

Before a disqualification becomes ineffective, an individual may extend the disqualification by giving written notice of the extension to the licensee at the address on the licensee’s license.

An extension of a disqualification under subparagraph (i) of this paragraph is effective until January 1 of the year following the year in which notice of the extension is given to the licensee.

The licensee provides to the Commissioner, through NMLS and in accordance with any regulations adopted by the Commissioner, notice of the addition, deletion, or modification;

The addition, deletion, or modification of the location is recorded with the information associated with the licensee’s license in NMLS; and

The addition, deletion, or modification of the location otherwise complies with this subtitle.

Notifies the Commissioner through NMLS of the proposed change;

Makes a request through NMLS that the Commissioner approve the proposed change;

Provides any information the Commissioner may require under paragraph (3) of this subsection; and

Receives the approval of the Commissioner through NMLS.

Within 60 days after the date the Commissioner receives the request; or

If the Commissioner requests information from the licensee under paragraph (2) of this subsection, within 60 days after the date the information is received by the Commissioner.

The filing for bankruptcy or reorganization by the licensee;

The institution of revocation or suspension proceedings against the licensee by any state or governmental authority with regard to the licensee’s money transmission activities in any state;

Any felony indictment or conviction of the licensee or any of its officers or directors related to money transmission activities;

The commencement of any civil action by a buyer or holder of a payment instrument or person for whom or to whom money is transmitted against a licensee; and

The filing of any material litigation against the licensee.

Remit the proceeds to the licensee or the licensee’s authorized representative; or

Deposit the proceeds in the licensee’s account with a financial institution.

An affidavit that gives the reason for the request and states the facts relating to the loss of or other failure to produce the original payment instrument; and

A personal indemnity bond or, if the total amount of the payment instruments for which a duplicate is requested is $150 or more, a lost instrument corporate bond instead of a personal indemnity bond.

Makes any material misstatement in an application for a license;

Conducts the business of money transmission in an unsafe or unsound manner;

Refuses to permit the Commissioner to make an examination authorized under this subtitle;

Willfully fails to make a report required under this subtitle;

Is convicted under the laws of the United States or any state of a felony or a misdemeanor that is directly related to the fitness and qualification of the person to engage in the business of money transmission;

In connection with any money transmission transaction:

Violates any provision of this subtitle or any regulation adopted under this subtitle, or any other law regulating the business of money transmission; or

Otherwise demonstrates unworthiness, bad faith, dishonesty, or any other quality that indicates that the business of the licensee has not been or will not be conducted honestly, fairly, equitably, and efficiently; or

Has inadequate net worth and the licensee, after 10 days’ written notice from the Commissioner, fails to take steps that the Commissioner deems necessary to remedy the deficiency;

Becomes insolvent;

Has suspended payment of its obligations, made an assignment for the benefit of its creditors, or admitted its inability to pay its debts as they become due; or

Has applied for an adjudication of bankruptcy, reorganization, arrangement, or other relief under any bankruptcy proceeding.

Has violated any provision of this subtitle or any regulation adopted or order issued under this subtitle;

Has engaged or participated in an unsafe or unsound act with respect to the business of money transmission;

Has made or caused to be made in any application or report filed with the Commissioner or in a proceeding before the Commissioner, a statement which was at the time and in the circumstances under which it was made, false or misleading with respect to a material fact, or has omitted to state in an application or report a material fact which is required to be stated; or

Has failed to cooperate with an examination or investigation by the Commissioner authorized by this subtitle; or

It is in the public interest to modify or rescind the order; and

It is reasonable to believe that the authorized delegate, if and when permitted to resume acting as an authorized delegate of a licensee, will comply with all applicable provisions of this subtitle and any regulation adopted or order issued under this subtitle.

To cease and desist and to take affirmative action from the violation and any further similar violations; and

Requiring the violator to take affirmative action to correct the violation including the restitution of money or property to any person aggrieved by the violation.

$10,000 for the first violation; and

$25,000 for each subsequent violation from which the violator failed to cease and desist or for which the violator failed to take affirmative action.

Encouraging and supporting the business and commercial development of such businesses; and

Participating in and supporting special State, federal, local or private industry programs intended to make available, offer, encourage, guarantee, or otherwise facilitate loan and other financing programs for socially or economically disadvantaged businesses.

$1,000; plus

8 cents for each $1,000 of the assets of the financial institution over $1,000,000.

A national banking association;

A State banking institution;

A credit union that is organized under the laws of this State or of the United States;

Any other organization that is organized under the banking laws of the State and subject to the supervision of the Commissioner;

A savings and loan association that is organized under the laws of the State or of the United States; or

Persons engaged in the business of cashing checks for a fee unless performed incidental to the sale of goods or services.