Sections 8-7A-5 to 8-7A-15, inclusive, shall not apply to any of the following persons:

(1) A person that provides clearance or settlement services pursuant to a registration as a clearing agency or an exemption from such registration granted under the federal securities laws.

Terms Used In Alabama Code 8-7A-4

  • Contract: A legal written agreement that becomes binding when signed.
  • following: means next after. See Alabama Code 1-1-1
  • person: includes a corporation as well as a natural person. See Alabama Code 1-1-1
  • Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
  • state: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Alabama Code 1-1-1
(2) An operator of a payment system to the extent that it provides processing, clearing, or settlement services, between or among persons excluded by this section, in connection with wire transfers, credit card transactions, debit card transactions, stored-value transactions, automated clearing house transfers, or similar funds transfers.
(3) A person registered as a securities broker-dealer under federal or state securities laws to the extent of its operation as such a broker-dealer.
(4) Any person collecting, forwarding, or submitting payments to the state, a state agency, board, or commission, a quasi-governmental agency, or to persons in state custody, provided the person does all of the following:

a. Operates in this state exclusively for such purpose.
b. Has entered into a binding contract with the governmental entity or entities to provide money transmittal services to third parties.
c. Files a notice with the commission identifying all governmental agencies for whom the person has contracted to provide money transmittal services.
d. Has an independent audit performed on a yearly basis.
e. Immediately notifies the commission if any financial or other condition arises which would compromise the person’s ability to perform the services for which the person has contracted.
f. Maintains a segregated account or accounts for the deposit and transmittal of third-party payments which will not be comingled with any other funds.
g. Upon request, makes its books and records available for examination by the commission.
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