For purposes of this chapter:

“Acting in concert” means individuals knowingly acting together with a common goal of jointly acquiring control of a licensee whether or not pursuant to an express agreement.

“Applicant” means a person filing an application for a license under this chapter.

“Authorized delegate” means an entity designated by the licensee under this chapter to sell or issue payment instruments or engage in the business of transmitting money on behalf of a licensee.

“Commissioner” means the commissioner of financial institutions.

“Control” means:

(1) Ownership of, or the power to vote, twenty-five per cent or more of the outstanding voting securities or voting interests of a licensee or person in control. For purposes of determining the percentage of a licensee controlled by any person, there shall be aggregated with the person in control’s interest, the interest of any other person controlled by the person, including any spouse, parent, child, sibling, and any other person who shares the person’s home;

Terms Used In Hawaii Revised Statutes 489D-4

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Contract: A legal written agreement that becomes binding when signed.
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Federal Reserve System: The central bank of the United States. The Fed, as it is commonly called, regulates the U.S. monetary and financial system. The Federal Reserve System is composed of a central governmental agency in Washington, D.C. (the Board of Governors) and twelve regional Federal Reserve Banks in major cities throughout the United States. Source: OCC
  • Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
  • Litigation: A case, controversy, or lawsuit. Participants (plaintiffs and defendants) in lawsuits are called litigants.
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
  • Trustee: A person or institution holding and administering property in trust.
(2) The power to elect or appoint a majority of key individuals of a licensee; and
(3) The power to exercise directly or indirectly a controlling influence over the management or policies of a licensee or person in control of a licensee.

“Division” means the division of financial institutions within the department of commerce and consumer affairs.

“Electronic instrument” means a card or other tangible object, or an electronic or mobile wallet, for the transmission or payment of money, including a stored value card or device, 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. “Electronic instrument” does not include a card or other tangible object that is redeemable by the issuer in goods or services.

“Executive officer” means a president, chairperson of an executive committee, senior officer responsible for the licensee’s business, chief financial officer, or any other person who performs similar functions related to the licensee.

“Individual” means a natural person.

“Key individual” means any individual ultimately responsible for establishing or directing policies and procedures of the licensee, such as an executive officer, manager, director, or trustee.

“License” means a license under this chapter.

“Licensee” means a person licensed under this chapter.

“Material litigation” means any litigation that, according to generally accepted accounting principles, is deemed significant to an applicant’s or licensee’s financial health and would be required to be referenced in the applicant’s or licensee’s annual audited financial statements, report to shareholders, or similar documents.

“Money” means a medium of exchange that is authorized or adopted by the United States or a foreign government.

“Monetary value” means a medium of exchange, whether or not redeemable in money.

“Money transmission” means to engage in the business of:

(1) Selling or issuing payment instruments in the State;
(2) Selling or issuing stored value to a person located in the State; or
(3) Receiving money or monetary value for transmission from a person located in the State.

Money transmission does not apply to courier services.

“NMLS” means a multi-state licensing system developed and maintained by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators for the state licensing and registration of state-licensed financial services providers.

“Outstanding money transmission obligation” means:

(1) Any payment instrument or stored value issued by the licensee that has been sold in the United States:

(A) Directly by the licensee; or
(B) By an authorized delegate of the licensee in the United States, which has been reported to the licensee as having been sold,

and that has not yet been paid by or for the licensee; and

(2) All other outstanding money transmission obligations of the licensee issued in the United States.

“Passive investor” means a person who:

(1) Does not have the power to elect a majority of key individuals;
(2) Is not employed by and does not have any managerial duties of the licensee or person in control of a licensee;
(3) Does not have the power to exercise directly or indirectly a controlling influence over the management or policies of a licensee or person in control of a licensee; and
(4) Either:

(A) Attests to paragraphs (1), (2), and (3) in a form prescribed by the commissioner; or
(B) Commits to the passivity characteristics of paragraphs (1), (2), and (3) in a written document.

“Payment instrument” means any electronic or written check, draft, money order, traveler’s check, or other electronic instrument or written instrument or order for the transmission or payment of money, sold or issued to one or more persons, whether the instrument is negotiable. The term “payment instrument” does not include any stored value card, any letter of credit, or any instrument that is redeemable by the issuer in goods or services.

“Permissible investments” means:

(1) Cash;
(2) Certificates of deposit or other debt obligations of a financial institution, either domestic or foreign;
(3) Bills of exchange or time drafts drawn on and accepted by a commercial bank, known as bankers’ acceptances, that are eligible for purchase by member banks of the Federal Reserve System;
(4) Any investment bearing a rating of one of the three highest grades as defined by a nationally recognized organization that rates securities;
(5) Investment securities that are obligations of the United States, its agencies, or its instrumentalities, obligations that are guaranteed fully as to principal and interest by the United States, or any obligations of any state, municipality, or any political subdivision thereof;
(6) Shares in a money market mutual fund, interest-bearing bills, notes, or bonds, debentures or stock traded on any national securities exchange or on a national over-the-counter market, mutual funds primarily composed of these securities, or a fund composed of one or more permissible investments as set forth in paragraphs (1) to (5);
(7) Any demand borrowing agreement or agreements made with a corporation or a subsidiary of a corporation whose capital stock is listed on a national exchange;
(8) Receivables that are due to a licensee from its authorized delegates pursuant to a contract under § 489D-21, that are not past due or doubtful of collection; or
(9) Any other investments or security device approved by the commissioner.

“Person” means any individual, partnership, limited liability company, association, joint-stock association, trust, corporation, or other entity, however organized.

“Principal” means any person, or group of persons acting in concert, who exercises control over or has a twenty-five per cent ownership interest or more in an applicant or licensee under this chapter. “Principal” also includes a manager and key individual.

“Receiving money or monetary value for transmission” or “money or monetary value in connection with money transmission” means receiving money or monetary value in the United States for transmission within or outside the United States by electronic or other means.

“Remit” means:

(1) To make direct payment of the funds to the licensee or its representatives authorized to receive those funds; or
(2) To deposit the funds in a bank, credit union, savings and loan association, savings bank, financial services loan company, or other similar financial institution in an account specified by the licensee.

“Stored value” means monetary value that represents a claim against the issuer evidenced by an electronic or digital record and that is intended and accepted for use as a means of redemption for money or monetary value, or payment for goods or services. “Stored value” includes but is not limited to “prepaid access” as defined by title 31 C.F.R. § 1010.100, as may be amended or recodified. Notwithstanding the foregoing, “stored value” does not include a payment instrument or closed loop stored value, or stored value not sold to the public but issued and distributed as part of a loyalty, rewards, or promotional program.

“Tangible net worth” means the aggregate assets of a licensee excluding all intangible assets, less liabilities, as determined in accordance with United States generally accepted accounting principles.

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