Sec. 151.002. DEFINITIONS. (a) This section defines general terms that apply to an applicant for or holder of a money services license issued under this chapter, regardless of whether the license is a money transmission license, a currency exchange license, or a depository agent license. Additional terms that apply specifically to money transmission are defined in Section 151.301. Additional terms that apply specifically to currency exchange are defined in Section 151.501. Additional terms that apply specifically to depository agents are defined in Section 151.851.
(b) In this chapter:
(1) "Applicant" means a person that files an application for a license under this chapter.
(2) "Authorized delegate" means a person a license holder appoints under Section 151.402 to conduct money transmission on behalf of the license holder.
(4) "Commission" means the Finance Commission of Texas.
(5) "Commissioner" means the Banking Commissioner of Texas or a person designated by the banking commissioner and acting under the banking commissioner's direction and authority.
(6) "Control" means ownership of, or the power to directly or indirectly vote, 25 percent or more of the outstanding voting interests of a license holder or applicant, and includes an individual whose ownership is through one or more legal entities.
(7) "Currency exchange" has the meaning assigned by Section 151.501.
(8) "Currency exchange license" means a license issued under Subchapter F.
(9) "Department" means the Texas Department of Banking.
(10) "Executive officer" means a president, a presiding officer of the executive committee, a treasurer or chief financial officer, or any other individual who performs similar functions.
(12) "Location" means a place at which activity regulated by this chapter occurs.
(13) "Material litigation" means any litigation that, according to generally accepted accounting principles, is considered significant to an applicant's or license holder's financial health and would be required to be referenced in that entity's audited financial statements, report to shareholders, or similar documents.
(15) "Money transmission" has the meaning assigned by Section 151.301.
(16) "Money transmission license" means a license issued under Subchapter D.
(17) "Person" means an individual or legal entity.
(18) "Principal" means:
(A) with respect to a sole proprietorship, an owner; or
(B) with respect to a legal entity other than a sole proprietorship, an executive officer, director, general partner, trustee, or manager, as applicable.
(19) "Record" means information that is:
(A) inscribed on a tangible medium; or
(B) stored in an electronic or other medium and retrievable in perceivable form.
(20) "Responsible individual" means an individual who has direct control over or significant management policy and decision-making authority with respect to a license holder's ongoing, daily money services operations in this state.
(21) "USA PATRIOT ACT" means the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT ACT) Act of 2001 (Pub. L. No. 107-56, 115 Stat. 272).
(3) "Bank Secrecy Act" means the Bank Secrecy Act (31 U.S.C. Section 5311 et seq.), and its implementing regulations.
(9-a) "Depository agent" has the meaning assigned by Section 151.851.
(9-b) "Depository agent license" means a license issued under Subchapter J.
(9-c) "Depository agent services" means services rendered to the general public for or on behalf of the Texas Bullion Depository in the nature of purchasing, selling, transferring, accepting, transporting, delivering, or otherwise dealing in precious metals bullion or specie in connection with the creation, transfer, clearing, settlement, or liquidation of the rights and interests of a depository account holder and a direct or indirect transferee of a depository account holder, as those terms are defined by Subchapter J. The term "depository agent services" does not include:
(A) participation as a party or counterparty to a transaction, including an agreement with respect to a transaction, in or in connection with a contract for the purchase or sale of a person's rights and interests as a depository account holder, as a cash contract for present delivery, a cash contract for deferred shipment or delivery, or a contract for future delivery, where the underlying deliverable consists of the depository account holder's interest in the depository account, rather than the underlying precious metal represented by the depository account balance;
(B) the opening, transfer, settlement, or liquidation of any derivative of a contract described by Paragraph (A), including a forward transaction, swap transaction, currency transaction, future transaction, index transaction, or option on or other derivative of a transaction of any of those types, in the nature of a cap transaction, floor transaction, collar transaction, repurchase transaction, reverse repurchase transaction, buy-and-sell-back transaction, securities lending transaction, or other financial instrument or interest, including an option with respect to a transaction, or any combination of these transactions; or
(C) the rendition of services exclusively in support of the opening, transfer, settlement, or liquidation of transaction derivatives described by Paragraph (B) through a central counterparty, such as those customarily rendered by a clearinghouse, clearing association, or clearing corporation, or through an interbank payment system, physical or electronic trading facility, broker or brokerage firm, or similar entity, facility, system, or organization.
(11) "License holder" means a person that holds a money transmission license, a currency exchange license, or a depository agent license.
(14) "Money services" means money transmission, currency exchange, or depository agent services.
Added by Acts 2005, 79th Leg., Ch. 1099 (H.B. 2218), Sec. 1, eff. September 1, 2005.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 988 (H.B. 2134), Sec. 1, eff. September 1, 2013.
Acts 2015, 84th Leg., R.S., Ch. 1000 (H.B. 483), Sec. 2, eff. June 19, 2015.
Acts 2015, 84th Leg., R.S., Ch. 1000 (H.B. 483), Sec. 3, eff. June 19, 2015.
Text of section as amended by Acts 2015, 84th Leg., R.S., Ch. 75 (S.B. 899), Sec. 1
For text of section as amended by Acts 2015, 84th Leg., R.S., Ch. 1000 (H.B. 483), Sec. 4, see other Sec. 151.003.
Last modified: September 28, 2016