Michigan Laws 487.1004 – Applicability of act
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Terms Used In Michigan Laws 487.1004
- Agent of a payee: means a person appointed by a payee to collect and process payments as the bona fide agent of the payee. See Michigan Laws 487.1002
- Closed-loop prepaid access: means access to funds or the value of funds that is paid in advance, may be retrieved or transferred at some time in the future through a device or vehicle, and may be used only to acquire goods or services in transactions that involve 1 or more specific merchants or 1 or more specific locations. See Michigan Laws 487.1002
- 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.
- department: means the department of insurance and financial services. See Michigan Laws 487.1002
- Depository financial institution: means a bank, national bank, savings and loan association, savings bank, or credit union organized under the laws of this state, another state, the District of Columbia, the United States, or a territory or protectorate of the United States whose deposits are insured by an agency of the federal government. See Michigan Laws 487.1002
- Device or vehicle: means an object or information used to provide closed-loop prepaid access or prepaid access, such as a card, code, electronic serial number, mobile identification number, or personal identification number. See Michigan Laws 487.1002
- director: means the director of the department or his or her designee. See Michigan Laws 487.1002
- Electronic funds transfer: The transfer of money between accounts by consumer electronic systems-such as automated teller machines (ATMs) and electronic payment of bills-rather than by check or cash. (Wire transfers, checks, drafts, and paper instruments do not fall into this category.) Source: OCC
- Money: means a medium of exchange authorized or adopted by the United States or a foreign government as a part of its currency that is customarily used and accepted as a medium of exchange in the country of issuance. See Michigan Laws 487.1003
- Money transmission services: means selling or issuing payment instruments or closed-loop prepaid access or prepaid access devices or vehicles or receiving money or monetary value for transmission. See Michigan Laws 487.1003
- Payee: means the provider of goods or services, not including money transmission services, that is owed payment of money or other monetary value from the person that is paying for the goods or services. See Michigan Laws 487.1003
- Person: means an individual, partnership, association, corporation, limited liability company, trust, estate, joint venture, government, governmental subdivision, agency or instrumentality, public corporation, or any other legal entity. See Michigan Laws 487.1003
- Prepaid access: means access to funds or the value of funds that have been paid in advance and can be retrieved or transferred at some point in the future through a device or vehicle. See Michigan Laws 487.1003
- 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: means a state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, or any territory or protectorate of the United States. See Michigan Laws 487.1003
- United States: shall be construed to include the district and territories. See Michigan Laws 8.3o
This act does not apply to any of the following:
(a) The United States or a department, agency, or instrumentality of the United States.
(b) The United States Postal Service or a contractor to the extent that it provides money transmission services on behalf of the United States Postal Service.
(c) A state, county, city, or any other governmental subdivision of a state.
(d) A depository financial institution, office of an international banking corporation, or branch of a foreign bank; a bank holding company or subsidiary, as those terms are defined in section 2(a)(1) and 2(d) of the bank holding company act of 1956, 12 USC 1841; a bank service company organized under the bank service company act, 12 USC 1861 to 1867; a subsidiary or affiliate of a depository financial institution, or a subsidiary or affiliate of a holding company of a depository financial institution, if the depository financial institution maintains its main office or a branch office in this state; a credit union service organization, as that term is defined in section 102 of the credit union act, 2003 PA 215, MCL 490.102; or a corporation organized under the Edge act, 12 USC 611 to 633.
(e) A person, to the extent that it provides money transmission services as an agent for an entity described in subdivision (d), if both of the following are met:
(i) The agency relationship between the person that is providing the money transmission services and the entity described in subdivision (d) is established through written agreement.
(ii) The entity described in subdivision (d) remains responsible for providing the money transmission services to its customers.
(f) A person to the extent that it issues, sells, or distributes a closed-loop prepaid access device or vehicle, if the funds associated with that device or vehicle do not exceed $2,000.00 maximum value on any day.
(g) A person to the extent that it is acting as an agent of a payee, if the person demonstrates to the director that all of the following are met:
(i) There exists a written agreement between the payee and agent directing the agent to collect and process payments on the payee’s behalf.
(ii) The payee holds the agent out to the public as accepting payments on the payee’s behalf.
(iii) Payment is treated as received by the payee at the time it is received by the agent.
(h) An electronic funds transfer of governmental benefits for a federal, state, county, or governmental agency by a contractor on behalf of the United States or a department, agency, or instrumentality of the United States or a state or governmental subdivision, agency, or instrumentality of a state.
(i) A board of trade that is designated as a contract market under the commodity exchange act, 7 USC 1 to 27f, 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 that board.
(j) A registered futures commission merchant under the federal commodities laws, to the extent of its operation as a merchant.
(k) A person that provides clearance or settlement services under a registration as a clearing agency or an exemption from registration granted under the federal securities laws, to the extent of its operation as a provider under this subdivision.
(l) An operator of a payment system, to the extent that it provides processing, clearing, settlement, or other similar services between or among persons excluded under this section in connection with wire transfers, credit card transactions, debit card transactions, prepaid access transactions, closed-loop prepaid access transactions, automated clearinghouse transfers, or other similar funds transfers or transactions.
(m) A person that is registered as a securities broker-dealer under federal or state securities laws, to the extent of its operation as a registered broker-dealer.