Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
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.
(1) The United States or any department, agency, or instrumentality thereof;(2) The United States Postal Service;(3) The State or any political subdivisions thereof; (4) The electronic transfer of government benefits for any federal, state, or county governmental agency as defined in Consumer Financial Protection Bureau 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 subdivisions thereof;(5) An operator of a payment system to the extent that the operator provides processing, clearing, or settlement services between or among persons exempted by this section or licensees in connection with wire transfers, credit card transactions, debit card transactions, stored-value transactions, automated clearing house transfers, or similar fund transfers;(6) A person appointed as an agent of a payee to collect and process a payment from a payor to the payee for goods or services, other than money transmission itself, provided to the payor by the payee; provided that:
(A) There exists a written agreement between the payee and the agent directing the agent to collect and process payments from payors on the payee’s behalf;(B) The payee holds the agent out to the public as accepting payments for goods or services on the payee’s behalf; and(C) Payment for the goods and services is treated as received by the payee upon receipt by the agent so that the payor’s obligation is extinguished and there is no risk of loss to the payor if the agent fails to remit the funds to the payee;(7) A person that acts as an intermediary by processing payments between an entity that has directly incurred an outstanding money transmission obligation to a sender, and the sender’s designated recipient; provided that the entity:
(A) Is properly licensed or exempt from licensing requirements under this chapter;(B) Provides a receipt, electronic record, or other written confirmation to the sender identifying the entity as the provider of money transmission in the transaction; and(C) Bears sole responsibility to satisfy the outstanding money transmission obligation to the sender, including the obligation to make the sender whole in connection with any failure to transmit the funds to the sender’s designated recipient;(8) A person expressly appointed as a third party service provider to, or agent of, an entity exempt under section 489D-9.5, solely to the extent that the service provider or agent is engaging in money transmission on behalf of, and pursuant to, a written agreement with the exempt entity that sets forth the specific functions that the service provider or agent is to perform; provided that the exempt entity shall assume all risk of loss and all legal responsibility for satisfying the outstanding money transmission obligations owed to purchasers and holders of the outstanding money transmission obligations upon receipt of the purchaser’s or holder’s money or monetary value by the service provider or agent;(9) A board of trade designated as a contract market under the federal Commodity Exchange Act, title 7 United States Code sections 1 to 25, as may be amended or recodified, or a person that, in the ordinary course of business, provides clearance and settlement services for a board of trade to the extent of its operation as, or for, the board;(10) A registered futures commission merchant under the federal commodities laws to the extent of its operation as a registered futures commission merchant;(11) A person registered as a securities broker-dealer under federal or state securities laws to the extent of its operation as a registered securities broker-dealer;(12) An individual employed by a licensee, authorized delegate, or any person exempted from the licensing requirements of this chapter when acting within the scope of employment and under the supervision of the licensee, authorized delegate, or exempted person as an employee and not as an independent contractor; and(13) A person exempt by rule or order if the commissioner finds the exemption to be in the public interest and that the regulation of the person is not necessary for the purposes of this chapter.(b) Authorized delegates of a licensee acting within the scope of authority conferred by a written contract under section 489D-21 shall not be required to obtain a license pursuant to this chapter.(c) The commissioner may require any person claiming to be exempt from licensing pursuant to this section to provide information and documentation to the commissioner demonstrating that the person qualifies for any exemption claimed under this section.
