North Dakota Code 13-09.1-02 – Exemptions
This chapter does not apply to:
Terms Used In North Dakota Code 13-09.1-02
- 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.
- 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
- Individual: means a human being. See North Dakota Code 1-01-49
- 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.
- Person: means an individual, organization, government, political subdivision, or government agency or instrumentality. See North Dakota Code 1-01-49
- Process: means a writ or summons issued in the course of judicial proceedings. See North Dakota Code 1-01-49
- 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 territories. See North Dakota Code 1-01-49
- United States: includes the District of Columbia and the territories. See North Dakota Code 1-01-49
- written: include "typewriting" and "typewritten" and "printing" and "printed" except in the case of signatures and when the words are used by way of contrast to typewriting and printing. See North Dakota Code 1-01-37
1. An operator of a payment system to the extent that it 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 funds transfers.
2. 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.
3. 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.
4. The United States or a department, agency, instrumentality, or its agent.
5. Money transmission by the United States postal service or by an agent of the United States postal service.
6. A state, county, city, or any other governmental agency or governmental subdivision, or instrumentality of a state, or its agent.
7. A federally insured depository financial institution, bank holding company, office of an international banking corporation, foreign bank that establishes a federal branch pursuant to the International Bank Act of 1978 [12 U.S.C. § 3102], corporation organized pursuant to the Bank Service Company Act [12 U.S.C. Sections 1861-1867], or corporation organized under the Edge Act [12 U.S.C. Sections 611-633].
8. 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, instrumentality, or on behalf of a state or governmental subdivision, agency, or instrumentality.
9. A board of trade designated as a contract market under the Commodity Exchange Act [7 U.S.C. Sections 1-25], 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 a board.
10. A registered futures commission merchant under the federal commodities laws to the extent of its operation as a merchant.
11. A person registered as a securities broker-dealer under federal or state securities laws to the extent of its operation as a 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.
13. A person expressly appointed as a third-party service provider to, or agent of an entity exempt under subsection 7, solely to the extent that:
a. 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; and
b. The exempt entity assumes 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.
14. A person exempt by regulation 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.