Oregon Statutes - Chapter 717 - Money Transmission - Section 717.200 - Definitions.

As used in ORS 717.200 to 717.320, 717.900 and 717.905, unless the context requires otherwise:

(1) “Applicant” means a person filing an application for a license under ORS 717.200 to 717.320, 717.900 and 717.905.

(2) “Authorized delegate” means a person designated by the licensee under the provisions of ORS 717.200 to 717.320, 717.900 and 717.905 to sell or issue payment instruments or engage in the business of transmitting money on behalf of a licensee.

(3) “Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a person, whether through ownership of voting securities, by contract or otherwise.

(4) “Controlling person” means any person in control of a licensee or applicant for a license.

(5) “Controlling shareholder” means any person, or group of persons acting in concert, that owns 25 percent or more of any voting class of an applicant’s stock.

(6) “Director” means the Director of the Department of Consumer and Business Services.

(7) “Electronic instrument” means a card or other tangible object for the transmission or payment of money that 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 the issuer’s goods or services.

(8) “Executive officer” means the licensee’s president, chairperson of the executive committee, senior officer responsible for the licensee’s business, chief financial officer and any other person who performs similar functions.

(9) “Licensee” means a person licensed under ORS 717.200 to 717.320, 717.900 and 717.905.

(10) “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.

(11) “Money transmission” means the sale or issuance of payment instruments or engaging in the business of receiving money for transmission or transmitting money within the United States or to locations abroad by any and all means, including but not limited to payment instrument, wire, facsimile or electronic transfer.

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

(13) “Outstanding payment instrument” means any payment instrument issued by a licensee that has been sold in the United States directly by the licensee or any payment instrument issued by a licensee that has been sold in the United States by an authorized delegate of the licensee, that has been reported to the licensee as having been sold and that has not yet been paid by or for the licensee.

(14) “Permissible investments” means:

(a) Cash;

(b) Certificates of deposit or other debt obligations of a financial institution, either domestic or foreign;

(c) Bills of exchange or time drafts drawn on and accepted by a commercial bank, otherwise known as bankers’ acceptances, that are eligible for purchase by member banks of the Federal Reserve System;

(d) Any investment security bearing a rating of one of the three highest grades as defined by a nationally recognized organization that rates such securities;

(e) Investment securities that are obligations of the United States Government, its agencies or instrumentalities, or 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;

(f) Shares in a money market mutual fund, interest-bearing bills, notes or bonds, debentures or stock traded on any national securities exchange or national market system, mutual funds primarily composed of such securities or a fund composed of one or more permissible investments as set forth herein;

(g) Any demand borrowing agreement or agreements made to a corporation or a subsidiary of a corporation whose capital stock is listed on a national securities exchange;

(h) Receivables that are due to a licensee from the licensee’s authorized delegates under a contract described in ORS 717.270 and that are not past due or doubtful of collection; or

(i) Any other investments or security device approved by the Director of the Department of Consumer and Business Services.

(15) “Person” means any individual, partnership, association, joint stock association, limited liability company, trust or corporation.

(16) “Remit” means either to make direct payment of the funds to a licensee or representatives of a licensee authorized to receive those funds, or to deposit the funds in a bank, credit union or savings and loan association or other similar financial institution in an account specified by the licensee.

(17) “Security device” means a surety bond, irrevocable letter of credit issued by an insured institution as defined in ORS 706.008 or other similar security acceptable to the Director of the Department of Consumer and Business Services. [1999 c.571 §2; 2001 c.104 §283]

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Last modified: August 7, 2008