Sec. 36a-573. (Formerly Sec. 36-243). Charge of greater than legal interest. No
person, except as authorized by the provisions of sections 36a-555 to 36a-573, inclusive,
shall, directly or indirectly, charge, contract for or receive any interest, charge or consideration greater than twelve per cent per annum upon the loan, use or forbearance of
money or credit of the amount or value of (1) five thousand dollars or less for any such
transaction entered into before October 1, 1997, and (2) fifteen thousand dollars or less
for any such transaction entered into on and after October 1, 1997. The provisions of this
section shall apply to any person who, as security for any such loan, use or forbearance of
money or credit, makes a pretended purchase of property from any person and permits
the owner or pledgor to retain the possession thereof, or who, by any device or pretense
of charging for the person's services or otherwise, seeks to obtain a greater compensation
than twelve per cent per annum. No loan for which a greater rate of interest or charge
than is allowed by the provisions of sections 36a-555 to 36a-573, inclusive, has been
contracted for or received, wherever made, shall be enforced in this state, and any person
in any way participating therein in this state shall be subject to the provisions of said
sections, provided, a loan lawfully made after June 5, 1986, in compliance with a validly
enacted licensed loan law of another state to a borrower who was not, at the time of
the making of such loan, a resident of Connecticut but who has become a resident of
Connecticut, may be acquired by a licensee and its interest provision shall be enforced
in accordance with its terms.
(1949 Rev., S. 5952; 1949, S. 2765d; 1957, P.A. 439, S. 4; 1963, P.A. 175, S. 7; 1969, P.A. 242, S. 7; P.A. 77-129, S.
7; P.A. 86-216, S. 1, 3; P.A. 94-122, S. 268, 340; P.A. 97-13, S. 3.)
History: 1963 act included "charge" in provision re twelve per cent interest and raised applicable loan limit from six
hundred to one thousand dollars; 1969 act raised limit to one thousand eight hundred dollars and deleted reference to loan,
etc. of "goods or things in action"; P.A. 77-129 raised limit to five thousand dollars and added proviso re loans exceeding
allowed interest rate or charge; P.A. 86-216 amended section to permit a licensed small loan company to enforce an interest
provision against an out of state borrower who becomes a Connecticut resident, even if the interest rate exceeds the
maximum rate permitted under Connecticut law; P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-243 transferred to Sec. 36a-573 in 1995; P.A. 97-13 increased limit from five thousand to fifteen thousand dollars for loan
transactions entered into on and after October 1, 1997.
Annotations to former section 36-243:
Under former statute note is void and unenforceable if maker owes licensee more than $300. 109 C. 116. Cited. 115
C. 106. Cited. 149 C. 159. Cited. 201 C. 89, 99.
Secs. 36a-574 to 36a-579. Reserved for future use.
PART IV
CHECK CASHING SERVICES
Sec. 36a-580. (Formerly Sec. 36-564). Definitions. Applicability of provisions.
(a) For purposes of this chapter:
(1) "General facility" means a facility at a fixed location where a licensee may
engage in the business of cashing checks, drafts or money orders and which is open to
the general public for at least six hours per day four days per week.
(2) "Limited facility" means a mobile facility, where on no more than two days per
week, on property occupied by an employer, a licensed operator of a general facility
may, under written contract with such employer, engage in the business of cashing
payroll checks for the employees of the employer.
(b) The provisions of this section and sections 36a-581 to 36a-589, inclusive, shall
not apply to: (1) Checks, drafts or money orders cashed without consideration or charge;
(2) checks, drafts or money orders cashed as an incident to the conduct of any other
lawful business where not more than fifty cents is charged for cashing such check, draft
or money order; or (3) any institution subject to and under the general supervision of
any agency of the United States or any entity subject to the general supervision of the
commissioner.
(P.A. 88-200, S. 1; P.A. 94-122, S. 269, 340; P.A. 95-253, S. 12, 19.)
History: Sec. 21-111 transferred to Sec. 36-564 in 1991; P.A. 94-122 made technical changes, effective January 1,
1995; Sec. 36-564 transferred to Sec. 36a-580 in 1995; P.A. 95-253 added the definitions of "general facility" and "limited
facility" as Subsec. (a) and designated prior provisions as Subsec. (b), effective July 6, 1995.
Sec. 36a-581. (Formerly Sec. 36-565). License required. Application. (a) Except as provided for in section 36a-580, no person shall engage in the business of cashing
checks, drafts or money orders for consideration without obtaining a license to operate
a general facility or a license to operate a limited facility for each location where such
business is to be conducted.
(b) Each licensee of a limited facility shall continuously maintain at least one operating general facility. A licensee of a limited facility shall not pay any compensation
or consideration to any employer.
(c) An application for a check cashing license or renewal of such license shall be
in writing, under oath and on a form provided by the commissioner. The application
shall set forth: (1) The name and address of the applicant; (2) if the applicant is a firm
or partnership, the names and addresses of each member of the firm or partnership;
(3) if the applicant is a corporation, the names and addresses of each officer, director,
authorized agent and each shareholder owning ten per cent or more of the outstanding
stock of such corporation; (4) if the applicant is a limited liability company, the names
and addresses of each manager and authorized agent of such limited liability company;
(5) each location where the check cashing business is to be conducted and the type of
facility that will be operated at that location; (6) the business plan, which shall include
the proposed days and hours of operation; (7) the amount of liquid assets available for
each location which shall not be less than the amount specified in subdivision (6) of
subsection (e) of this section; (8) for each limited facility, a copy of the executed contract
evidencing the proposed arrangement between the applicant and the employer; and (9)
any other information the commissioner may require.
(d) A licensee shall not change the location specified on its license unless, prior to
such change in location, the licensee files an application with the commissioner for
change in location accompanied by the location transfer fee and receives the approval
of the commissioner. A licensee of a limited facility shall not change its approved days
and hours of operation unless, prior to any such change, the licensee files an application
with and receives the approval of the commissioner.
(e) Upon the filing of the required application and the applicable application and
license fees, the commissioner shall investigate the facts and may issue a license if the
commissioner finds that (1) the applicant is in all respects properly qualified and of
good character, (2) if the applicant is a firm or partnership, each member of the firm or
partnership is in all respects properly qualified and of good character, (3) if the applicant
is a corporation, each officer, director, authorized agent and each shareholder owning
ten per cent or more of the outstanding stock of such corporation is in all respects properly
qualified and of good character, (4) if the applicant is a limited liability company, each
manager and authorized agent is in all respects properly qualified and of good character,
(5) granting such license would not be against the public interest, (6) the applicant has
a feasible plan for conducting business, and (7) the applicant has available and shall
continuously maintain liquid assets of at least ten thousand dollars for each general
facility location and at least two thousand five hundred dollars for each limited facility
location specified in the application.
(f) An applicant or licensee shall promptly notify the commissioner, in writing, of
any change in the information provided in its initial or renewal application for licensure
or most recent renewal of such license.
(P.A. 88-200, S. 2; P.A. 89-178, S. 2, 8; P.A. 91-11, S. 1; P.A. 94-122, S. 270, 340; P.A. 95-253, S. 13, 19; P.A. 04-14, S. 1.)
History: P.A. 89-178 substituted the commissioner of banking for the commissioner of consumer protection in Subsec.
(a); Sec. 21-112 transferred to Sec. 36-565 in 1991; P.A. 91-11 amended Subsec. (c) to insert Subdiv. indicators, adding
provisions to require the commissioner, prior to issuing a license, to find a need in the community for the services to be
provided by the applicant and that the applicant has a feasible business plan; P.A. 94-122 made technical changes, effective
January 1, 1995; Sec. 36-565 transferred to Sec. 36a-581 in 1995; P.A. 95-253 amended Subsec. (a) to provide for separate
licenses for general and limited facilities, added a new Subsec. (b) to require a licensee of a limited facility to maintain at
least one general facility, relettered Subsec. (b) as (c) and amended Subsec. (c) by providing for the form of application
and by adding Subdivs. (4) to (7), inclusive, re the contents of the application, added a new Subsec. (d) re change in location,
in type of facility or in time of operation, relettered Subsec. (c) as (e) and amended Subsec. (e) by adding new Subdivs. (2)
and (3) re applications by firms, partnerships or corporations, deleting former Subdiv. (3) re need for services, renumbering
Subdivs. (4) and (5) as (5) and (6), respectively, and adding a fee for each limited facility in Subdiv. (6), effective July 6,
1995; P.A. 04-14 amended Subsec. (c) to insert new Subdiv. (4) requiring application to set forth the names and addresses
of each manager and authorized agent if applicant is a limited liability company and to redesignate existing Subdivs. (4)
to (8) as Subdivs. (5) to (9), respectively, amended Subsec. (d) to restate provisions and require approval of the commissioner
for application for change in location, to provide that licensee of limited facility shall not change approved days and hours
of operation unless licensee files application with and receives approval of commissioner, and to eliminate prohibition re
change in the type of facility, amended Subsec. (e) to insert new Subdiv. (4) authorizing commissioner to issue license if
commissioner finds that each manager and authorized agent is in all respects properly qualified and of good character if
applicant is a limited liability company and to redesignate existing Subdivs. (4) to (6) as Subdivs. (5) to (7), respectively,
and added Subsec. (f) requiring applicant or licensee to notify commissioner of any change in information provided.
Sec. 36a-582. (Formerly Sec. 36-566). License fee. Automatic suspension of
license, renewal license or location transfer approval. Notice. Opportunity for
hearing. Expenses of examination. (a) Each applicant for a check cashing license shall
pay to the commissioner a nonrefundable initial application fee of one thousand dollars
and a nonrefundable license fee of one hundred dollars for each location. Each licensee
shall pay to the commissioner a nonrefundable location transfer fee of one hundred
dollars for each application to transfer a location. Each license issued pursuant to section
36a-581 shall expire at the close of business on June thirtieth of each year unless such
license is renewed. Each licensee shall, on or before June twentieth of each year, pay
to the commissioner a renewal application fee of seven hundred fifty dollars and a
renewal license fee for each location of fifty dollars for the succeeding year, commencing
July first.
(b) If the commissioner determines that a check filed with the commissioner to pay
an application or license fee has been dishonored, the commissioner shall automatically
suspend the license or approval or a renewal license that has been issued but is not yet
effective. The commissioner shall give the licensee notice of the automatic suspension
pending proceedings for revocation or refusal to renew such license and an opportunity
for a hearing on such actions in accordance with section 36a-51. If the commissioner
determines that a check filed with the commissioner to pay a location transfer fee has
been dishonored, the commissioner shall automatically suspend the location transfer
approval pending revocation of such approval by the commissioner and an opportunity
for a hearing on such actions in accordance with section 36a-51.
(c) Each applicant or licensee shall pay the expenses of any examination or other
investigation under sections 36a-580 to 36a-589, inclusive.
(d) No abatement of the application, license or location transfer fee shall be made
if the license is surrendered, cancelled, revoked or suspended prior to the expiration of
the period for which it was issued.
(P.A. 88-200, S. 3; P.A. 89-178, S. 3, 8; P.A. 92-89, S. 16, 20; P.A. 94-122, S. 271, 340; P.A. 95-253, S. 14, 19; P.A.
04-14, S. 2; 04-257, S. 106.)
History: P.A. 89-178 substituted the commissioner of banking for the commissioner of consumer protection in Subsec.
(a); Sec. 21-113 transferred to Sec. 36-566 in 1991; P.A. 92-89 increased the license fees in Subsec. (a) from two hundred
fifty to one thousand dollars; P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-566 transferred to
Sec. 36a-582 in 1995; P.A. 95-253 amended Subsec. (a) to change the license fee and renewal license fee and to add
application and location transfer fees, and made technical changes to Subsecs. (b) and (c), effective July 6, 1995; P.A. 04-14 inserted new Subsec. (b), requiring commissioner to automatically suspend license or approval or renewal license if
commissioner determines that a check filed to pay an application or license fee has been dishonored and requiring commissioner to give notice of the automatic suspension pending proceedings for revocation or refusal to renew and an opportunity
for a hearing in accordance with Sec. 36a-51, and providing that if commissioner determines a check filed to pay a location
transfer fee has been dishonored, commissioner shall automatically suspend the location transfer approval pending revocation of such approval by commissioner and an opportunity for a hearing in accordance with Sec. 36a-51, and redesignated
existing Subsecs. (b) and (c) as Subsecs. (c) and (d), respectively; P.A. 04-257 made a technical change in Subsec. (a).
Sec. 36a-583. (Formerly Sec. 36-567). Posting of license required. License not
transferable or assignable. The license for each facility shall be conspicuously posted
in that facility during the hours of operation. Such license shall not be transferable or
assignable.
(P.A. 88-200, S. 4; P.A. 95-253, S. 15, 19.)
History: Sec. 21-114 transferred to Sec. 36-567 in 1991; Sec. 36-567 transferred to Sec. 36a-583 in 1995; P.A. 95-253
made technical changes re the contents, location and timing of the postings, effective July 6, 1995.
Sec. 36a-584. (Formerly Sec. 36-568). Maximum fees for the cashing of state
checks. Regulations. Maximum amount of check that may be cashed by check
cashing licensee. Exceptions. (a) A check cashing licensee shall not charge or collect
in fees, charges or otherwise, a sum in excess of one per cent of the check for cashing
a check drawn by the state of Connecticut and payable within this state to a recipient
of public assistance, as defined in section 36a-304, if the check is negotiated to the
licensee by the original payee of the check, and if the payee produces reasonable identification, as provided for in regulations adopted pursuant to section 36a-305.
(b) No check cashing licensee shall cash an item if the amount exceeds two thousand
five hundred dollars. This subsection shall not apply to (1) the cashing of any check,
draft or money order drawn by the United States, any state or any political subdivision
of a state, or by any department, bureau, agency, authority, instrumentality or officer,
acting in such officer's official capacity, of the United States, any state or any political
subdivision of a state, (2) the cashing of any check which has been certified by the
depository institution on which it has been drawn, (3) the cashing of any check drawn
by an insurance company for the payment of a claim, and (4) the cashing of any check
drawn by an attorney from the attorney's clients' funds account.
(P.A. 88-200, S. 5; P.A. 89-178, S. 4, 8; P.A. 91-11, S. 2; P.A. 94-122, S. 272, 340; P.A. 95-253, S. 16, 19.)
History: P.A. 89-178 amended Subsec. (a) by imposing a cap of one per cent per check on certain state checks and
requiring the commissioner of banking to establish by regulation a fee schedule for other checks; Sec. 21-115 transferred
to Sec. 36-568 in 1991; P.A. 91-11 amended Subsec. (b) by adding Subdivs. (1) to (4), inclusive, re exceptions to the
maximum amount of a check that may be cashed by a check cashing service; P.A. 94-122 made technical changes, effective
January 1, 1995; Sec. 36-568 transferred to Sec. 36a-584 in 1995; P.A. 95-253 changed "check cashing service" to "check
cashing licensee", effective July 6, 1995.
Sec. 36a-585. (Formerly Sec. 36-569). Maximum fees set by Banking Commissioner. The commissioner shall, by regulation adopted in accordance with the provisions
of chapter 54, establish the maximum fees which may be charged by a licensee for
cashing a check, draft or money order drawn on a depository institution. No check
cashing licensee shall charge any sum in excess of that established by such regulation.
In establishing maximum fees under this section, the commissioner shall consider: (1)
The effect any change in rates will have on consumers; (2) start-up costs, operational
expenses, volume of business, and any other information the commissioner deems relevant. The licensee shall conspicuously post and at all times display, at each place of
business, a schedule of fees permitted under sections 36a-580 to 36a-589, inclusive.
The sum of any payment made by an employee or by an employer on behalf of the
employee to a licensee of a limited facility for cashing payroll checks shall not exceed the
percentage limitation for maximum fees established by the commissioner in regulations
adopted pursuant to this section.
(P.A. 89-178, S. 5, 8; P.A. 94-122, S. 273, 340; P.A. 95-253, S. 17, 19.)
History: P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-569 transferred to Sec. 36a-585 in
1995; P.A. 95-253 added the ceiling on the sum of payments to a licensee of a limited facility and changed "check cashing
service" to "checking cashing licensee", effective July 6, 1995.
Sec. 36a-586. (Formerly Sec. 36-570). Records to be maintained by check cashing licensee. Reporting requirements. (a) Each check cashing licensee shall use and
maintain at a general facility in this state, in the form satisfactory to the commissioner,
such books, records and accounts as will enable the commissioner to determine whether
the licensee is complying with the provisions of sections 36a-580 to 36a-589, inclusive.
Each licensee shall retain such books, records and accounts for not less than the periods
of time specified in regulations adopted by the commissioner in accordance with section
36a-588.
(b) Before a licensee deposits with any financial institution a check, draft or money
order cashed by such licensee, the item shall be endorsed with the actual name under
which the licensee is doing business and must have the words "licensed check cashing
service" legibly written or stamped immediately after or below such name.
(c) Each check cashing licensee shall comply with the applicable provisions of the
Currency and Foreign Transactions Reporting Act, 31 USC Section 5311 et seq., as
from time to time amended, and any regulations adopted under such provisions, as from
time to time amended.
(P.A. 88-200, S. 6; P.A. 89-178, S. 6, 8; P.A. 94-122, S. 274, 340; P.A. 95-253, S. 18, 19; P.A. 98-192, S. 2.)
History: P.A. 89-178 amended Subsec. (a) by substituting the commissioner of banking for the commissioner of consumer protection; Sec. 21-116 transferred to Sec. 36-570 in 1991; P.A. 94-122 made technical changes, effective January
1, 1995; Sec. 36-570 transferred to Sec. 36a-586 in 1995; P.A. 95-253 changed "check cashing service" to "check cashing
licensee" and made technical changes in Subsec. (a), effective July 6, 1995; P.A. 98-192 added new Subsec. (c) re compliance with federal Currency and Foreign Transactions Reporting Act.
Sec. 36a-587. (Formerly Sec. 36-571). Suspension, revocation or refusal to renew license. Hearings. Enforcement powers of commissioner. (a) The commissioner
may suspend, revoke or refuse to renew any license issued pursuant to section 36a-581,
in accordance with the provisions of section 36a-51, for any reason which would be
sufficient grounds for the commissioner to deny an application for a license under sections 36a-580 to 36a-589, inclusive, or if the commissioner finds that the licensee or
any owner, director, officer, member, partner, shareholder, trustee, employee or agent
of such licensee has done any of the following: (1) Made any material misstatement in
the application; (2) committed any fraud, engaged in dishonest activities or made any
misrepresentation; (3) violated any provision of sections 36a-580 to 36a-589, inclusive,
or any regulation promulgated under said sections; or (4) demonstrated incompetency
or untrustworthiness to act as a licensed check cashing service.
(b) Whenever it appears to the commissioner that any person has violated, is violating or is about to violate the provisions of sections 36a-580 to 36a-589, inclusive, the
commissioner may take action against such person in accordance with section 36a-50.
(P.A. 88-200, S. 7; 88-230, S. 1, 12; P.A. 89-178, S. 7, 8; P.A. 90-98, S. 1, 2; P.A. 93-142, S. 4, 7, 8; P.A. 94-122, S.
275, 340.)
History: P.A. 88-230 replaced "judicial district of Hartford-New Britain" with "judicial district of Hartford", effective
September 1, 1991; P.A. 89-178 amended Subsec. (a) by substituting the commissioner of banking for the commissioner
of consumer protection; Sec. 21-117 transferred to Sec. 36-571 in 1991; P.A. 90-98 changed the effective date of P.A. 88-230 from September 1, 1991, to September 1, 1993; P.A. 93-142 changed the effective date of P.A. 88-230 from September
1, 1993, to September 1, 1996, effective June 14, 1993; P.A. 94-122 deleted Subsec. (c) re cease and desist provisions and
made technical changes, effective January 1, 1995; Sec. 36-571 transferred to Sec. 36a-587 in 1995.
Sec. 36a-588. (Formerly Sec. 36-572). Regulations. The commissioner shall
adopt, pursuant to chapter 54, such regulations as may be necessary to carry out the
provisions of sections 36a-580 to 36a-589, inclusive.
(P.A. 88-200, S. 8.)
History: Sec. 21-118 transferred to Sec. 36-572 in 1991; Sec. 36-572 transferred to Sec. 36a-588 in 1995.
Sec. 36a-589. (Formerly Sec. 36-573). Violations. A violation of any of the provisions of sections 36a-580 to 36a-589, inclusive, shall be deemed an unfair or deceptive
trade practice under subsection (a) of section 42-110b.
(P.A. 88-200, S. 9.)
History: Sec. 21-119 transferred to Sec. 36-573 in 1991; Sec. 36-573 transferred to Sec. 36a-589 in 1995.
Annotation to former section 36-573:
Cited. 231 C. 707, 727.
Secs. 36a-590 to 36a-594. Reserved for future use.
PART V
PAYMENT INSTRUMENTS. MONEY TRANSMISSION
Sec. 36a-595. (Formerly Sec. 36-530). Short title: Money Transmission Act.
Sections 36a-595 to 36a-610, inclusive, shall be known and may be cited as the "Money
Transmission Act".
(P.A. 81-264, S. 1; P.A. 01-56, S. 2.)
History: Sec. 36-530 transferred to Sec. 36a-595 in 1995; P.A. 01-56 changed citation from "Money Order and Travelers
Check Licensees Act" to "Money Transmission Act".
Sec. 36a-596. (Formerly Sec. 36-531). Definitions. As used in sections 36a-595
to 36a-610, inclusive:
(1) "Electronic payment instrument" means a card or other tangible object for the
transmission or payment of money which contains a microprocessor chip, magnetic
stripe, or other means for the storage of information, that is prefunded and for which
the value is decremented upon each use, but does not include a card or other tangible
object that is redeemable by the issuer in the issuer's goods or services.
(2) "Holder" means a person, other than a purchaser, who is either in possession of
a Connecticut payment instrument and is the named payee thereon or in possession of
a Connecticut payment instrument issued or endorsed to such person or bearer or in
blank. "Holder" does not include any person who is in possession of a lost, stolen or
forged Connecticut payment instrument.
(3) "Licensee" means any person licensed pursuant to sections 36a-595 to 36a-610,
inclusive.
(4) "Material litigation" means any litigation that, according to generally accepted
accounting principles, is deemed significant to a person's financial health and would
be required to be referenced in a person's annual audited financial statements, report to
shareholders or similar documents.
(5) "Monetary value" means a medium of exchange, whether or not redeemable in
money.
(6) "Money order" means any check, draft, money order or other payment instrument. "Money order" does not include a travelers check or electronic payment instrument.
(7) "Money transmission" means engaging in the business of receiving money or
monetary value for current or future transmission or the business of transmitting money
or monetary value within the United States or to locations outside the United States by
any and all means including, but not limited to, payment instrument, wire, facsimile or
electronic transfer or issuing stored value.
(8) "Net worth" means the excess of assets over liabilities as determined by generally accepted accounting principles.
(9) "Outstanding" means, in the case of a money order, travelers check, electronic
payment instrument or stored value, that: (A) It is sold or issued in the United States;
(B) a report of it has been received by a licensee from its agents or subagents; and (C)
it has not yet been paid by the issuer.
(10) "Payment instrument" means a money order, travelers check or electronic payment instrument that evidences either an obligation for the transmission or payment of
money, or the purchase or the deposit of funds for the purchase of such money order,
travelers check or electronic payment instrument. A payment instrument is a "Connecticut payment instrument" if it is sold in this state.
(11) "Permissible investment" means: (A) Cash in United States currency; (B) time
deposits, as defined in section 36a-2, or other debt instruments of a bank; (C) bills of
exchange or bankers acceptances which are eligible for purchase by member banks of
the Federal Reserve System; (D) commercial paper of prime quality; (E) interest-bearing
bills, notes, bonds, debentures or other obligations issued or guaranteed by: (i) The
United States or any of its agencies or instrumentalities, or (ii) any state, or any agency,
instrumentality, political subdivision, school district or legally constituted authority of
any state if such investment is of prime quality; (F) interest-bearing bills or notes, or
bonds, debentures or preferred stocks, traded on any national securities exchange or on
a national over-the-counter market, if such debt or equity investments are of prime
quality; (G) receivables due from selling agents consisting of the proceeds of the sale
of payment instruments which are not past due or doubtful of collection; (H) gold; and (I)
any other investments approved by the commissioner. Notwithstanding the provisions of
this subdivision, if the commissioner at any time finds that an investment of a licensee is
unsatisfactory for investment purposes, the investment shall not qualify as a permissible
investment.
(12) "Prime quality" of an investment means that it is within the top four rating
categories in any rating service recognized by the commissioner unless the commissioner determines for any licensee that only those investments in the top three rating
categories qualify as "prime quality".
(13) "Purchaser" means a person who buys or has bought a Connecticut payment
instrument.
(14) "Stored value" means monetary value that is evidenced by an electronic record.
For the purposes of this subdivision, "electronic record" means information that is stored
in an electronic medium and is retrievable in perceivable form.
(15) "Travelers check" means a payment instrument for the payment of money that
contains a provision for a specimen signature of the purchaser to be completed at the time
of a purchase of the instrument and a provision for a countersignature of the purchaser to
be completed at the time of negotiation.
(P.A. 81-264, S. 2; P.A. 87-9, S. 2, 3; P.A. 92-12, S. 96; P.A. 94-122, S. 276, 340; P.A. 98-192, S. 3; 98-258, S. 4; P.A.
01-56, S. 3; P.A. 02-73, S. 84; P.A. 04-14, S. 3; 04-136, S. 43.)
History: (Revisor's note: Pursuant to P.A. 87-9 "banking commissioner" was changed editorially by the Revisors to
"commissioner of banking"); P.A. 92-12 redesignated Subdivs. and Subparas.; P.A. 94-122 deleted former Subdivs. (1)
and (2) defining "commissioner" and "financial institution", renumbered former Subdivs. (3) through (9) as Subdivs. (1)
through (7), deleted Subdiv. (10) defining "person" and renumbered former Subdivs. (11) through (13) as Subdivs. (8)
through (10), effective January 1, 1995; Sec. 36-531 transferred to Sec. 36a-596 in 1995; (Revisor's note: In 1997 the
reference in Subdiv. (7) to "... time deposits, as defined in subdivision (55) of section 36a-2 ..." was corrected editorially
by the Revisors to "... time deposits, as defined in subdivision (62) of section 36a-2 ..." to reflect the current internal
numbering of that section); P.A. 98-192 added new Subdiv. (1) defining "electronic payment instrument", made conforming
changes and redesignated existing Subdivs. (1) to (10) as Subdivs. (2) to (11); P.A. 98-258 made a technical change in
Subdiv. (7); P.A. 01-56 made technical changes in Subdiv. (2) defining "holder", deleted former Subdiv. (3) defining
"instrument" and renumbered existing Subdiv. (4) as Subdiv. (3), added new Subdiv. (4) defining "material litigation",
made technical changes in Subdiv. (5) defining "money order", added new Subdiv. (6) defining "money transmission"
and renumbered existing Subdivs. (6) and (7) as Subdivs. (7) and (8), redefined "outstanding" in redesignated Subdiv. (8),
added new Subdiv. (9) defining "payment instrument", renumbered existing Subdivs. (8) to (11) as Subdivs. (10) to (13)
and made technical changes in redesignated Subdivs. (10) to (13); P.A. 02-73 amended Subdiv.(10)(B) by changing
reference from Subdiv. (63) to Subdiv. (65) of Sec. 36a-2; P.A. 04-14 added definitions of "monetary value" in new Subdiv.
(5) and "stored value" and "electronic record" in new Subdiv. (14), renumbering the existing Subdivs. accordingly, inserted
references to "monetary value" and "current or future" transmission in definition of "money transmission", inserted references to "stored value" in definitions of "money transmission" and "outstanding" and, in Subpara. (A) of the latter definition,
inserted "or issued", and made a technical change in definition of "permissible investment", effective April 16, 2004; P.A.
04-136 amended Subdiv. (10)(B) to make a technical change, effective May 12, 2004.
Sec. 36a-597. (Formerly Sec. 36-532). License required. Penalty. (a) No person
shall engage in the business of issuing Connecticut payment instruments, or engage in
the business of money transmission, without first obtaining a license from the commissioner as provided in section 36a-600. No person shall engage in such business or in
the business of selling Connecticut payment instruments as an agent or subagent, except
as an agent or subagent of a licensee or an entity or a person exempt under section 36a-609 and in accordance with section 36a-607.
(b) Any person who knowingly engages in the business of issuing Connecticut payment instruments, or who knowingly engages in the business of money transmission,
without obtaining a license, as provided in section 36a-600, shall be guilty of a class D
felony. Each transaction in violation of the provisions of this subsection shall constitute
a separate offense.
(P.A. 81-264, S. 3; P.A. 01-56, S. 4; P.A. 03-61, S. 3; P.A. 04-61, S. 1.)
History: Sec. 36-532 transferred to Sec. 36a-597 in 1995; P.A. 01-56 changed "Connecticut instruments" to "Connecticut
payment instruments" and reworded language re money transmission; P.A. 03-61 substituted "or an entity or a person
exempt under section 36a-609 and in accordance with" for "as provided in"; P.A. 04-61 designated existing provisions as
Subsec. (a) and added new Subsec. (b) re criminal penalty for knowingly engaging in business of issuing Connecticut
payment instruments or money transmission without a license.
Sec. 36a-598. (Formerly Sec. 36-533). Application. (a) Each application for an
original or renewal license required under sections 36a-595 to 36a-610, inclusive, shall
be made in writing and under oath to the commissioner in such form as the commissioner
may prescribe. The application shall include:
(1) The exact name of the applicant and, if incorporated, the date of incorporation
and the state where incorporated;
(2) The complete address of the principal office from which the business is to be
conducted, and of the office where the books and records of the applicant are maintained
and to be maintained, including the street and number, if any, and the municipality and
county of such offices;
(3) The complete name and address of each of the applicant's branches, subsidiaries,
affiliates and agents and subagents, if any, engaging in this state in the business of selling
or issuing Connecticut payment instruments, or engaging in the business of money
transmission;
(4) The name, title, address and telephone number of the person to whom notice of
the commissioner's approval or disapproval of the application shall be sent and to whom
any inquiries by the commissioner concerning the application shall be directed;
(5) The name and residence address of (A) the individual, if the applicant is an
individual; (B) the partners, if the applicant is a partnership; (C) the directors, trustees,
principal officers, and any shareholder owning ten per cent or more of each class of its
securities, if the applicant is a corporation or association; or (D) the managers, if the
applicant is a limited liability company, and sufficient information pertaining to the
name and address, in a form acceptable to the commissioner, on such partners, directors,
trustees, principal officers, managers, and any shareholder owning ten per cent or more
of each class of its securities, as the commissioner deems necessary to make the findings
under section 36a-600;
(6) The most recently audited unconsolidated financial statement of the applicant,
including its balance sheet and receipts and disbursements for the preceding year, prepared by an independent certified public accountant acceptable to the commissioner;
(7) A list of the applicant's permissible investments, the book and market values
of such investments, and the dollar amount of the applicant's aggregate outstanding
payment instruments (A) as of the date of the financial statement filed in accordance
with subdivision (6) of this subsection; and (B) as of a date no earlier than thirty business
days prior to the filing of the application;
(8) The history of material litigation and criminal convictions for the five-year period prior to the date of the application of (A) the individual, if the applicant is an
individual; (B) the partners, if the applicant is a partnership; (C) the directors, trustees,
principal officers and any shareholder owning ten per cent or more of each class of its
securities, if the applicant is a corporation or association; or (D) the managers, if the
applicant is a limited liability company, and sufficient information pertaining to the
history of material litigation and criminal convictions, in a form acceptable to the commissioner, on such partners, directors, trustees, principal officers and any shareholder
owning ten per cent or more of each class of its securities;
(9) (A) The surety bond required by subsection (a) of section 36a-602, if applicable;
(B) A list of the investments maintained in accordance with subsection (c) of section
36a-602, if applicable, and the book and market values of any such investments (i) as
of the date of the financial statement filed in accordance with subdivision (6) of this
subsection; and (ii) as of a date no earlier than thirty business days prior to the filing of
the application;
(C) The commissioner may defer compliance with the provisions of this subdivision
until after the commissioner rules on the application, but the commissioner shall not
issue a license until an applicant complies with the provisions of this subdivision;
(10) A statement of whether the applicant will engage in the business of issuing
money orders, travelers checks or electronic payment instruments or engage in the business of money transmission in this state;
(11) Any other information the commissioner may require.
(b) An applicant or licensee shall promptly notify the commissioner, in writing, of
any change in the information provided in the application for license or most recent
renewal of such license.
(P.A. 81-264, S. 4; P.A. 92-12, S. 97; P.A. 94-122, S. 277, 340; P.A. 98-192, S. 4; P.A. 01-56, S. 5; P.A. 03-19, S. 84;
P.A. 04-14, S. 4.)
History: P.A. 92-12 redesignated Subsecs. and Subdivs.; P.A. 94-122 made technical changes, effective January 1,
1995; Sec. 36-533 transferred to Sec. 36a-598 in 1995; P.A. 98-192 amended Subdiv. (9) by adding reference to electronic
payment instrument and making conforming changes; P.A. 01-56 amended Subdiv. (5) by changing twenty per cent stock
ownership threshold to ten per cent ownership of securities and required name and addresses of persons holding securities,
added new Subdiv. (8) re history of material litigation and criminal convictions, renumbered existing Subdivs. (8) to (10)
as Subdivs. (9) to (11), added language re money transmission in Subdivs. (3) and (10) and made technical and conforming
changes throughout; P.A. 03-19 made a technical change in Subdiv. (10), effective May 12, 2003; P.A. 04-14 designated
existing provisions as Subsec. (a), and amended same by inserting in Subdivs. (5) and (8) new Subpara. (D) re managers,
if applicant is a limited liability company, inserting reference to "managers" in Subdiv. (5), and making technical changes
in Subdivs. (7)(A) and (9)(B), and inserted new Subsec. (b) requiring applicant or licensee to notify commissioner of any
change in information provided.
Sec. 36a-599. (Formerly Sec. 36-534). Investigation and license fees. Term of
license. (a) Each application for an original license shall be accompanied by a nonrefundable investigation fee of five hundred dollars and a license fee of one thousand dollars.
Each application for a renewal license shall be accompanied by a license fee of one
thousand dollars. The license fee shall be refunded if the application for an original
license is denied, the commissioner refuses to issue a renewal license or an application
for a license or renewal license is withdrawn prior to issuance of a license or renewal
license by the commissioner.
(b) A license issued pursuant to sections 36a-595 to 36a-610, inclusive, shall remain
in full force and effect through the thirtieth day of June following its date of issuance,
unless earlier surrendered, suspended or revoked pursuant to said sections.
(P.A. 81-264, S. 5; P.A. 88-150, S. 8; P.A. 92-89, S. 15, 20; P.A. 98-192, S. 5; P.A. 01-56, S. 6.)
History: P.A. 88-150 amended Subsec. (a) by increasing the investigation fee to five hundred dollars and increasing
the license fee to five hundred dollars, and deleted obsolete Subsec. (c) concerning license fees and the term of a license;
P.A. 92-89 deleted the five-hundred-dollar investigation fee and increased the license fee from five hundred to one thousand
dollars in Subsec. (a); Sec. 36-534 transferred to Sec. 36a-599 in 1995; P.A. 98-192 amended Subsec. (a) by imposing a
nonrefundable investigation fee of five hundred dollars; P.A. 01-56 amended Subsec. (a) by eliminating the investigation
fee for a renewal license and by making conforming language changes re renewal license fee and refund of fees.