69th OREGON LEGISLATIVE ASSEMBLY--1997 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 633
A-Engrossed
Senate Bill 127
Ordered by the Senate March 31
Including Senate Amendments dated March 31
Printed pursuant to Senate Interim Rule 213.28 by order of the
President of the Senate in conformance with presession filing
rules, indicating neither advocacy nor opposition on the part
of the President (at the request of Department of Consumer and
Business Services)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.
Requires licensing of money transmission businesses. Defines
terms. Modifies provisions for sale of checks.
Declares emergency, effective { - June 1, 1997 - } { + on
passage + }.
A BILL FOR AN ACT
Relating to money transmission; creating new provisions; amending
ORS 717.010, 717.020, 717.030, 717.040, 717.050, 717.060,
717.075, 717.080, 717.084, 717.086, 717.090, 717.095, 717.100,
717.120, 717.130, 717.140, 717.150 and 717.160; repealing ORS
717.070, 717.110 and 717.910; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 717.010 is amended to read:
717.010. As used in this chapter, unless the context requires
otherwise:
{ - (1) 'Bank' means a state chartered bank or savings bank
or a national bank authorized to do business in this state. - }
{ - (2) 'Check' means any check, draft, money order, personal
money order or other instrument for the transmission or payment
of money. - }
{ - (3) 'Deliver' means to deliver a check to the first
person who, in payment for the check, makes or purports to make a
remittance of or against the face amount of the check, whether
the deliveror signs the check or charges a fee in addition to the
face amount. - }
{ + (1) 'Authorized agent' means any entity, including a
subagent, designated by a money transmission licensee under this
chapter to act on the licensee's behalf.
(2) 'Check casher' means a business that, for a fee or other
valuable consideration, cashes any payment instrument. ' Check
casher' does not include a business that cashes a payment
instrument incidental to providing a product or service or cashes
a traveler's check or a foreign denomination instrument.
(3) 'Check seller' means a business that sells payment
instruments. + }
(4) 'Director' means the Director of the Department of Consumer
and Business Services.
(5) 'Licensee' means a person licensed by the
{ - director - } { + Director of the Department of Consumer and
Business Services to conduct a money transmission business + }
pursuant to this chapter.
{ + (6) 'Money sender business' or 'money sender' means a
business that provides money transmission service.
(7) 'Money transmission' means the business of receiving money
for transmission or transmitting money within the United States
or to locations abroad by any and all means, including but not
limited to transfers by payment instrument, wire, facsimile or
electronic transfer.
(8) 'Money transmission business' means any business operating
as a:
(a) Money sender;
(b) Check seller; or
(c) Check casher.
(9) 'Money transmission service' includes accepting or
transferring currency or funds denominated in the currency of any
country and transmitting the currency or funds, or the value of
the currency or funds, by any means.
(10) 'Payment instrument' means any check, draft, money order,
including a personal money order, traveler's check or other
instrument or written order for the payment of money sold or
issued to one or more persons, whether or not the instrument is
negotiable. 'Payment instrument' does not include any credit card
voucher, letter of credit or any instrument that is redeemable by
the issuer in goods or services. + }
{ - (6) 'Personal money order' means any instrument for the
transmission or payment of money in relation to which the
purchaser or remitter appoints or purports to appoint the seller
of the personal money order as agent for the receipt,
transmission or handling of money, whether the instrument is
signed by the seller, the purchaser or remitter or some other
person. - }
{ - (7) 'Sell' means to sell, issue or deliver a check. - }
SECTION 2. ORS 717.020 is amended to read:
717.020. This chapter may be cited as the { - ' Sale of
Checks Act.' - } { + 'Money Transmission Act.' + }
SECTION 3. ORS 717.030 is amended to read:
717.030. { + (1) + } Except as provided in ORS 717.040, a
person { - or agents or subagents of the person - } { +
acting directly or through an authorized agent shall not conduct
a money transmission business + }
{ - , shall not engage in the business of selling checks, as a
service or for a fee or other consideration, - } unless
{ + appropriately + } licensed under this chapter. { - The
business of selling checks does not, of itself, constitute
banking or branch banking for the purposes of the Bank Act. - }
{ + (2) Conducting a money transmission business does not, of
itself, constitute banking or branch banking for the purposes of
the Bank Act.
(3) The Director of the Department of Consumer and Business
Services has jurisdiction over a person operating a money
transmission business regardless of whether the person is acting
as a principal or agent of the business or is a licensee under
this chapter. + }
SECTION 4. ORS 717.040 is amended to read:
717.040. { - A license to sell checks is not required of: - }
{ - (1) Banks, trust companies, building and loan
associations and savings and loan associations. - }
{ - (2) Incorporated telegraph companies to the extent they
receive money for immediate transmission by telegraph. - }
{ - (3) Agents or subagents of a licensee if they are persons
referred to in subsections (1) and (2) of this section and ORS
717.120. - }
{ + (1) A license to conduct a money transmission business is
not required for:
(a) Any company that accepts deposits in this state that is
insured under the Federal Deposit Insurance Corporation Act (12
U.S.C. 1811 et seq. as amended), or its subsidiary. This
subsection does not apply to an agent that is not itself a
subsidiary of a company insured by the Federal Deposit Insurance
Corporation.
(b) Credit unions or trust companies.
(c) Authorized agents of a money transmission business
licensee.
(d) The United States or any department, agency or
instrumentality thereof.
(e) The United States Post Office.
(f) The state or any political subdivision thereof.
(g) The provision of electronic transfer of government benefits
for any federal, state, county or other agency as defined in the
Federal Reserve Board Regulation E, by a contractor for and on
behalf of the United States or any department, agency or
instrumentality thereof, or any state or any political
subdivision thereof.
(h) The provision or handling of electronic or other transfer
of escrowed moneys by an escrow agent licensed under ORS 696.511.
(2) The Director of the Department of Consumer and Business
Services may by rule or order modify or waive the application of
this chapter to any person or group of persons when it is
determined that adequate regulation is provided by law or another
agency of this state.
(3) The director may by rule or order temporarily suspend the
application of this chapter to any person or group while the
director considers whether an exemption should be granted and
during the pendency of any rulemaking proceeding proposing to
create an exemption. + }
SECTION 5. { + (1) Money transmission business licenses shall
be issued in the following categories:
(a) Money sender if any part of the person's business involves
money transmission services;
(b) Check seller if any part of the person's business involves
the sale of payment instruments; or
(c) Check casher if the person's business involves cashing
payment instruments for a fee and cashing payment instruments is
not incidental to the provision of a product or service.
(2) A person may be licensed in more than one category at the
same time. The same application may be used whether a person is
applying for one or more categories.
(3) Subsection (1) of this section does not apply to an
authorized agent of a licensee while acting under the scope of
the license held by the licensee. + }
SECTION 6. { + (1) A money transmission business license shall
be effective at the beginning of the calendar year and terminate
at the end of the same calendar year. If a new application is
filed during the calendar year, the fee shall be prorated.
(2) The licensing application and renewal fee is $350
regardless of the number of categories applied for. No additional
fee shall be charged for adding or reducing the number of
categories under which the applicant is licensed.
(3) The application fee is nonrefundable. However, if a license
is granted, the fee shall be applied to the license fee for the
appropriate year. + }
SECTION 7. ORS 717.050 is amended to read:
717.050. { - An applicant for a license to sell checks shall
have a net worth of at least $100,000 computed according to
generally accepted accounting principles. - }
{ + (1) If an applicant for a license under this chapter is a
corporation, the corporation shall be, at the time of filing the
application and at all times after a license is issued, in good
standing in the state or country of its incorporation.
(2) If the applicant for a license under this chapter is not a
corporation, the applicant shall be, at the time of filing the
application and at all times after a license is issued, in good
standing in the state or country of its formation. + }
SECTION 8. ORS 717.060 is amended to read:
717.060. { + (1) + } An application for a license to
{ - sell checks - } { + conduct a money transmission
business + } shall be in writing, under oath and in the form
prescribed by the Director { + of the Department of Consumer and
Business Services + }.
{ + (2) + } The application shall state the full name and
business address of:
{ - (1) - } { + (a) + } The proprietor, if the applicant is
an individual.
{ - (2) - } { + (b) + } Every member, if the applicant is a
partnership or association, except that if the applicant is a
joint stock association having 50 or more members, only the name
and business address of the association and each officer and
director of the association is required to be stated on the
application.
{ - (3) Every trustee and officer, if the applicant is a
trust. - }
{ - (4) - } { + (c) + } The corporation and each officer
and director of the corporation, if the applicant is a
corporation.
{ + (3) The applicant shall describe the applicant's proposed
manner of doing business, including but not limited to:
(a) Procedures for dealing with customer funds such as trust
accounts, describing whether customer funds will be invested or
used for any purpose, describing the source of funds for
conducting business and funding redemptions on payment
instruments sold or money transmitted and, if applicable, methods
for providing cash for the check casher; and
(b) Procedures for handling payment instruments received from
customers if the instruments are dishonored on presentment for
payment.
(4) The applicant shall include the application fee as
prescribed in section 6 of this 1997 Act, payable to the
director.
(5) The applicant shall provide current financial statements
reasonably showing a net worth of at least $100,000 computed
according to generally accepted accounting principles. The
director may require that the financial statements be certified
by an independent public accountant.
(6) The applicant shall provide a surety bond issued as
provided in ORS 717.075 or a security deposit as provided in ORS
717.080.
(7) The applicant shall provide a list of the locations at
which the money transmission business is to be conducted if the
bond accompanying the application is in a principal sum of less
than $150,000.
(8) The director may require applicants to provide any
additional information the director determines is necessary to
make an informed decision whether to grant or deny the
application. + }
{ + NOTE: + } Sections 9 and 10 were deleted by amendment.
Subsequent sections were not renumbered.
SECTION 11. ORS 717.075 is amended to read:
717.075. { - (1) A surety bond accompanying an application
for a license to sell checks shall be: - }
{ - (a) Issued by a bonding or insurance company authorized
to do business in this state; - }
{ - (b) In the principal sum of $25,000 for the first
location and an additional principal sum of $5,000, to a maximum
principal sum of $150,000, for any other Oregon location at which
the applicant or agents or subagents of the applicant propose to
sell checks; - }
{ - (c) In a form satisfactory to the director; and - }
{ - (d) Payable to the State of Oregon for the benefit of any
claimants against the applicant or agents or subagents of the
applicant to secure the faithful performance of the obligations
of the applicant and the agents or subagents of the applicant
with respect to the receipt, handling, transmission and payment
of money in connection with the sale of checks. - }
{ - (2) The surety shall give the director at least 30 days'
written notice before it cancels or terminates its liability
under the bond. - }
{ - (3) The aggregate liability of the surety shall not
exceed the principal sum of the bond. - }
{ - (4) Claimants against the applicant or agents or
subagents of the applicant may bring suit directly on the bond,
or the Attorney General may bring suit on the bond on behalf of
claimants, in one action or successive actions. - }
{ + (1) A surety bond referred to in ORS 717.060 shall be:
(a) In a form satisfactory to the Director of the Department of
Consumer and Business Services;
(b) Payable to the State of Oregon for the benefit of any
claims against the applicant or authorized agents of the
applicant to secure the faithful performance of the obligations
of the applicant or authorized agents of the applicant with
respect to this chapter;
(c) Issued by a bonding or insurance company authorized to do
business in this state; and
(d) In the principal sum of $25,000 for the first location and
an additional principal sum of $5,000 for each additional
location, to a maximum principal sum of $150,000, covering all
Oregon locations at which the applicant or authorized agents of
the applicant propose to conduct a licensed money transmission
business.
(2) The aggregate liability of the surety shall not exceed the
principal sum of the bond.
(3) The surety shall give the director at least 30 days'
written notice before it cancels or terminates its liability
under the bond.
(4) Claims against the applicant or authorized agents of the
applicant may be brought directly on the bond, or the Attorney
General may bring suit on the bond on behalf of claimants, in one
action or successive actions. + }
SECTION 12. ORS 717.084 is amended to read:
717.084. { - If a license to sell checks is terminated,
securities deposited under ORS 717.080 shall be returned to the
licensee upon: - }
{ + (1) If a person licensed under this chapter wishes to
terminate a license, the person shall deliver the license to the
Director of the Department of Consumer and Business Services with
written notice that the license is voluntarily terminated.
(2) The director may terminate a license if it appears that a
licensee has abandoned the licensee's money transmission
business.
(3) Upon receiving notice that a license has been involuntarily
terminated or revoked, a licensee shall immediately surrender the
license to the director.
(4) The termination or revocation of a license shall not:
(a) Affect the licensee's civil or criminal liability for acts
committed prior to the termination or revocation;
(b) Affect the liability of the surety on the licensee's bond;
or
(c) Entitle the licensee to a return of any part of the license
fee.
(5) The director may establish procedures for the disposition
of the books, accounts or records of persons whose licenses have
been terminated or revoked. The director may also require any
action the director deems necessary for the protection of the
makers of payment instruments that are outstanding at the time of
surrender of the license and for the protection of any claims
against the deposit.
(6) If a license has been terminated or revoked, securities
deposited under ORS 717.080 shall be returned to the licensee
upon: + }
{ - (1) - } { + (a) + } Proof to the director that all
{ + claims subject to the deposit have been paid and all + }
issued and outstanding { - checks - } { + payment
instruments + } of the licensee, the { + authorized + } agents
{ - or subagents - } of the licensee, have been paid;
{ - (2) - } { + (b) + } The posting by a licensee of a
surety bond, in a form meeting the requirements of ORS 717.075,
in an amount to be determined by the director not to exceed the
amount of all of the issued and outstanding { - checks - }
{ + payment instruments + } of the licensee, { - the agents or
subagents - } { + or authorized agents + } of the licensee,
{ - which - } { + that + } have not been paid; or
{ - (3) - } { + (c) + } Proof to the director that the only
{ - checks - } { + payment instruments + } of the licensee
outstanding are those for which the purchaser, the payee or any
other holder has been reimbursed and those for which the funds
for their redemption have been deposited in compliance with ORS
98.302 to 98.436 and 98.992.
{ + (7) If one or more categories of a person's money
transmission business license remain valid, this section applies
only to the category or categories that have been terminated or
revoked. After the termination or revocation, the director shall
issue a new license reflecting the remaining category or
categories under which the person is licensed. + }
SECTION 13. ORS 717.090 is amended to read:
717.090. (1) When an application for a license { - to sell
checks has been - } { + as a money transmission business is + }
filed with the Director { + of the Department of Consumer and
Business Services + } and is accompanied by the fee and documents
required by ORS
{ - 717.070 - } { + 717.060 + }, 717.075 and 717.080, the
director shall investigate the qualifications of the applicant
and determine if the financial responsibility, financial
condition, business experience, character and general fitness of
the applicant indicate that the applicant's business will be
conducted honestly, carefully and efficiently. If the director
determines that such qualifications have been met, that the
applicant has a net worth of $100,000 { + , + } { - and - }
that the bond or deposit of a letter of credit or of securities
is in the prescribed amount, { + and that the applicant has met
the applicable requirements of ORS 717.060, 717.075 and
717.080, + } the director shall issue to the applicant a license
to engage in the { + applicable category of the money
transmission + } business { - of selling checks - } in this
state.
(2) In conducting the investigation of an applicant, the
director may investigate and consider the qualifications of
officers and directors of an applicant.
{ + (3) The director may at any time examine the business of
any licensee or any authorized agents of a licensee in order to
ascertain that business is being conducted in a lawful manner and
whether all moneys received for sale of payment instruments and
money transmission are properly accounted for.
(4) The directors, officers and employees of a licensee or
authorized agents of a licensee being examined by the director
shall exhibit to the director, on request, any or all of the
licensee's accounts, books, correspondence, memoranda, papers,
agreements and other records and shall otherwise facilitate the
examination as far as it may be in their power to do so. + }
SECTION 14. ORS 717.095 is amended to read:
717.095. The Director { + of the Department of Consumer and
Business Services + } may disapprove an application for a
{ + money transmission business + } license { - to sell
checks - } if the director finds during an investigation made
pursuant to ORS 717.090 that any person named in the application
submitted pursuant to ORS 717.060:
(1) Is insolvent, either in the sense that the person's
liabilities exceed the person's assets or that the person cannot
meet obligations as they mature, or is in such financial
condition that the person cannot continue in business with safety
to the person's customers;
(2) Has engaged in dishonest, fraudulent or illegal practices
or conduct in any business or profession;
(3) Has willfully or repeatedly violated or failed to comply
with any provisions of the Oregon Bank Act { + , Oregon
Securities Law, Savings Association Act, Oregon Credit Union Act,
Oregon Consumer Finance Act or Pawnbrokers Act + } or any rule or
order of the director { + adopted under those laws + };
(4) Has been convicted of a crime, an essential element of
which is fraud;
(5) Is not qualified to engage in the { + category of the
money transmission + } business { - of selling checks - }
{ + for which the person applied + } on the basis of such
factors as training, experience and knowledge of the business;
(6) Is permanently or temporarily enjoined by a court of
competent jurisdiction from engaging in or continuing any conduct
or practice involving any aspect of the banking business or of
the { + money transmission + } business { - of selling
checks - } ;
(7) Is the subject of an order of the Director of the
Department of Consumer and Business Services, subjecting the
person to a fine or other civil penalty, or removing the person
from an office in any entity regulated by { - either - }
{ + the + } director; or
(8) Is the subject of an order entered within the past five
years, subjecting the person to a fine or other civil penalty, or
removing the person from an office in a state banking
institution, a national bank, a state or federal savings
association, a state or federal credit union or a consumer
finance company, issued by the regulatory authority of another
state or of the Federal Government, with authority over such
banking institutions, savings association, credit unions or
consumer finance companies.
SECTION 15. ORS 717.100 is amended to read:
717.100. A licensee, whose surety bond or security deposit as
required by ORS { - 717.070 - } { + 717.060 + }, 717.075 and
717.080 is in a principal sum of less than $150,000, shall file
quarterly reports with the Director { + of the Department of
Consumer and Business Services + } showing the locations at which
{ - checks are sold - } { + the licensee conducts business + }
in this state as of January 1, April 1, July 1 and October 1 in
each year. The reports shall be filed with the director not later
than the 15th day after the end of the quarter for which the
report is made. Within 10 days after the date the report is
filed, the principal sum of the bond or securities shall be
increased or may be decreased to reflect any increase or decrease
in the number of locations at which a licensee { - sells
checks - } { + conducts a money transmission business + }.
{ + NOTE: + } Section 16 was deleted by amendment. Subsequent
sections were not renumbered.
SECTION 17. ORS 717.120 is amended to read:
717.120. A licensee may conduct { - the - } business
{ - of selling checks - } { + as allowed under the specific
categories of the license granted + } at one or more locations in
this state through { + authorized + } agents { - and
subagents - } appointed by the licensee. { + Authorized + }
agents { - or subagents - } so appointed shall not be required
to obtain a license under ORS 717.030 { + but are required to
comply with all other requirements binding the licensee whom they
serve as authorized agents + }.
SECTION 18. ORS 717.130 is amended to read:
717.130. { - A licensee who sells checks - } { + A check
seller conducting business + }, whether directly or through an
{ + authorized + } agent { + , + } { - or subagent - } is
liable:
(1) For the payment of all { - checks which the licensee
sells - } { + :
(a) Negotiable payment instruments sold, in the same manner + }
as the maker or drawer of a similar negotiable instrument is
liable under the negotiable instrument laws of this state; and
{ + (b) Non-negotiable payment instruments sold in the same
manner as the maker or drawer of a similar instrument is liable;
and + }
(2) For { - checks - } { + payment instruments + } on which
the { - licensee - } { + check seller + } is not designated as
maker or drawer, as if the
{ - licensee - } { + check seller + } had signed the
{ - check - } { + payment instrument + } as drawer.
{ + NOTE: + } Sections 19 through 34 were deleted by
amendment. Subsequent sections were not renumbered.
SECTION 35. { + (1) Each money transmission business licensee
under this chapter is subject to investigation and examination by
the Director of the Department of Consumer and Business Services.
The director may conduct an examination of each licensee to
determine whether the licensee is complying with the provisions
of this chapter and rules adopted thereunder and to secure
information required by the director under this chapter. The
examination of a licensee may be conducted periodically.
(2) In addition to examination under subsection (1) of this
section, the director may conduct examinations of a licensee at
other times as the director considers necessary.
(3) For purposes of any examination under this section:
(a) The director shall have free access to the place of
business and to the books, accounts, records, files, safes and
vaults of the licensee;
(b) The director may conduct an examination without prior
notice to the licensee; and
(c) The director shall have authority to examine under oath all
persons whose testimony the director may require in order to
conduct the examination.
(4) Each person examined under this section shall pay $60 per
hour for each examiner plus costs of an examination to the
Director of the Department of Consumer and Business Services. The
director may maintain an action for the recovery of such costs in
any court of competent jurisdiction. + }
SECTION 36. { + (1) In accordance with ORS 183.310 to 183.550,
the Director of the Department of Consumer and Business Services
may adopt rules for the purpose of carrying out the provisions of
this chapter.
(2) In addition to the notice requirements of ORS 183.310 to
183.550, before the director adopts a rule, the director shall
submit a copy of the rule to each licensee. + }
SECTION 37. { + (1)(a) The Director of the Department of
Consumer and Business Services may examine and investigate
complaints about or reports of alleged violations of this chapter
or of any rule or order adopted by the director under this
chapter.
(b) Where there is just cause to believe a violation has
occurred, regardless of whether administrative or other action is
taken, the director may order the actual cost of the examination
or investigation to be paid by the person who is the subject of
the examination or investigation. This paragraph applies
regardless of whether the alleged violator is licensed.
(2) The director may publish information concerning any
violation of this chapter or of any rule or order adopted by the
director under this chapter.
(3) For purposes of any investigation, examination or
proceeding under this chapter, the director may administer oaths
and affirmations, subpoena witnesses and compel their attendance,
take evidence and require the production of any accounts, books,
correspondence, memoranda, papers, agreements or other documents
or records that the director considers relevant or material to
the examination, investigation or proceeding.
(4) In the case of refusal to obey a subpoena issued to any
person, the Circuit Court for Marion County, upon application by
the director, may issue an order requiring the person to appear
before the director and to produce documentary evidence or other
evidence on the matter under investigation or in question.
Failure to obey the order of the court may be punished by the
court as contempt. + }
{ + NOTE: + } Sections 38 and 39 were deleted by amendment.
Subsequent sections were not renumbered.
SECTION 40. { + (1) The Director of the Department of Consumer
and Business Services may issue and serve upon a money
transmission business or a director, officer, employee, manager,
authorized agent or any agent of a money transmission business an
order to cease and desist from a violation when the director has
reasonable cause to believe that the person to whom the order is
directed is violating, has violated or is about to violate any
provision of this chapter or a rule or order of the Director of
the Department of Consumer and Business Services.
(2) An order under subsection (1) of this section shall
include:
(a) A statement of the facts constituting the violation;
(b) A provision requiring the person named in the order to
cease and desist from the violation. The provision may be
mandatory or otherwise;
(c) The effective date of the order; and
(d) Notice to the person named in the order of the right to a
contested case hearing under ORS 183.310 to 183.550.
(3) An order under this section remains in effect except as
provided in the order until it is withdrawn by the director or by
a court order.
(4) If an individual named in an order under this section fails
to comply with the order, the director may issue an order
removing or suspending the person from the office or position
held by the individual or revoking the license where the
individual is a sole proprietor, partner or chief executive
officer of the licensee.
(5) A person served an order may request a hearing as provided
in ORS 183.310 to 183.550. + }
SECTION 41. ORS 717.150 is amended to read:
717.150. { - (1) - } The Director { + of the Department of
Consumer and Business Services + } may revoke or suspend a
license { + :
(1) + } On any ground that the director may refuse to grant a
license { - or - } { + ;
(2) + } For violation of any provision of this chapter { + or
of rules or orders adopted by the director under this chapter;
or + }
{ + (3) If the licensee fails to pay a civil penalty or an
investigation, examination or renewal fee as required by the
director + }.
{ - (2) If the director has reasonable cause to believe that
grounds for revocation of a license exist, the director may
investigate the business, books and records of the licensee. - }
SECTION 42. { + If the Director of the Department of Consumer
and Business Services believes that any person has engaged in or
is about to engage in any act or practice constituting a
violation of any of the provisions of this chapter or of any rule
or order adopted by the director under this chapter, the director
may initiate an action in the Circuit Court for Marion County to
enjoin such acts or practices and to enforce compliance with any
provision of this chapter or of any rule or order adopted under
this chapter. Upon a proper showing, a permanent or temporary
injunction, restraining order or writ of mandamus shall be
granted or a receiver or conservator may be appointed for the
defendant's assets. The director shall not be required to post a
bond. + }
SECTION 43. { + All fees, charges, costs and fines collected
by the Director of the Department of Consumer and Business
Services under this chapter shall be paid to the State Treasurer
and credited as provided in ORS 705.145. + }
SECTION 44. ORS 717.080 is amended to read:
717.080. (1) In lieu of a surety bond or of any portion of the
principal sum of the surety bond, the applicant { + for any type
of money transmission license under this chapter + } may deposit
with the Director { + of the Department of Consumer and Business
Services + } or with a bank, { + savings bank, + } trust company
or national bank in this state that has been designated by the
applicant and approved by the director, an irrevocable letter of
credit issued by a commercial bank as defined in ORS 706.005, or
stocks, bonds, notes, debentures or other obligations of the
United States, any agency or instrumentality of the United
States, this state or a city, county, school district or
instrumentality of this state, or guaranteed by the United States
or this state. The letter of credit or securities deposited as
provided in this subsection shall be in an aggregate amount,
based upon principal amount or market value, whichever is lower,
of not less than the amount of the required surety bond or
portion of the surety bond and shall be held to secure the same
obligations as would the required surety bond.
(2) Securities deposited with the director shall be deposited
with the State Treasurer. The depositor may receive all interest
and dividends on the deposited securities. With the approval of
the director, the depositor may substitute other securities for
those deposited.
{ + NOTE: + } Section 45 was deleted by amendment. Subsequent
sections were not renumbered.
SECTION 46. ORS 717.140 is amended to read:
717.140. Every { - check - } { + payment instrument + }
sold by a licensee, directly or through an { + authorized + }
agent { - or subagent - } , shall bear the name of the licensee
clearly imprinted thereon.
SECTION 47. ORS 717.160 is amended to read:
717.160. (1) Except for nonpayment of { - the fee - }
{ + any fees + } required by { - ORS 717.110 - } { + section
6 of this 1997 Act + } and as provided in subsection (2) of this
section, a license shall not be denied, revoked or suspended by
the Director { + of the Department of Consumer and Business
Services + } without opportunity for a hearing in accordance with
ORS 183.415 to 183.430, 183.440 to 183.460, 183.470 to 183.485
and 183.490 to 183.500.
(2) If the immediate protection of the public interest so
requires, a license may be suspended without a hearing in
accordance with ORS 183.430 (2).
(3) An order of the director denying, revoking or suspending a
license issued under this chapter shall state the grounds upon
which the order is based and, except for a summary order issued
in accordance with ORS 183.430 (2) shall not become effective for
at least 20 days after written notice of the order has been sent
by registered or certified mail to the applicant or licensee at
the principal place of business of the applicant or licensee.
(4) Appeals from orders of the director may be taken to the
courts of this state as provided by ORS 183.415 to 183.500.
{ + + }
SECTION 48. ORS 717.086 is amended to read:
717.086. If the Director { + of the Department of Consumer and
Business Services + } determines that the bond, or letter of
credit or securities filed or deposited under ORS
{ - 717.070 - } { + 717.060 + }, 717.075 and 717.080 are
insecure, deficient in amount or exhausted in whole or in part,
the director may by written order require the filing of a new or
supplemental bond or the deposit of new or additional letters of
credit or securities. A licensee shall comply with the order of
the director within 10 days following service of the order upon
the licensee.
SECTION 49. { + Violation of section 3 of this 1997 Act is a
Class C felony. + }
SECTION 50. { + (1) The license of a person to sell checks
under ORS chapter 717 (1995 Edition) shall terminate on December
31, 1997.
(2) Following expiration of a license to sell checks under ORS
chapter 717 (1995 Edition) or December 31, 1997, whichever is
earlier, the person must apply for a money transmission business
license under this chapter.
(3) Persons who are licensed as check sellers under ORS chapter
717 (1995 Edition) may apply to have the scope of their licenses
expanded to include any category of the money transmission
business license during the term of the original license. If the
expansion application is approved, the licensee shall surrender
the original license and an amended license will be issued. To
apply for a license expansion, the licensee shall:
(a) Update the original application on file with the director,
provide the business operating plan required by ORS 717.060 and
provide any additional information required to qualify for the
category of license applied for; and
(b) Amend the licensee's surety bond or security deposit to
include any additional requirements under ORS 717.075 or 717.080.
If the surety bond or security deposit cannot be amended, an
additional surety bond or security deposit shall be provided. The
director is authorized to set a lesser or different requirement
that will provide equivalent coverage to that required by ORS
717.075 or 717.080. + }
SECTION 51. { + (1) Nothing in this Act is intended to affect
any action, proceeding or prosecution begun before and pending on
the effective date of this Act. The action, proceeding or
prosecution may be conducted and completed in the same manner and
under the same terms and conditions and with the same effect as
though it had been undertaken and completed before the effective
date of this Act.
(2) Nothing in this Act relieves a person of an obligation with
respect to a fine or other charge, penalty or other liability,
duty or obligation arising prior to the effective date of this
Act. Collection and enforcement of any such fine, charge, penalty
or other liability, duty or obligation may be conducted and
completed in the same manner and under the same terms and
conditions and with the same effect as though it had been
undertaken and completed before the effective date of this
Act. + }
SECTION 52. { + Sections 5, 6, 35, 36, 37, 40, 42, 43 and 49
of this Act are added to and made a part of ORS chapter 717. + }
SECTION 53. { + ORS 717.070, 717.110 and 717.910 are
repealed. + }
SECTION 54. { + (1) Except as provided in subsection (2) of
this section, this Act does not become operative until October 1,
1997, or 90 days following the close of the 1997 regular
legislative session, whichever is later.
(2) The Director of the Department of Consumer and Business
Services may take any action before the operative date of this
Act that is necessary to enable the director to exercise, on and
after the operative date of this Act, all the duties, functions
and powers conferred on the director by this Act. + }
SECTION 55. { + This Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this Act takes effect on its
passage. + }
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