Money Transmission

ORS 717.200

As used in ORS 717.200 (Definitions) to 717.320 (Short title), 717.900 (Civil penalties) and 717.905 (Criminal penalties), unless the context requires otherwise:


“Applicant” means a person that files an application for a license under ORS 717.200 (Definitions) to 717.320 (Short title), 717.900 (Civil penalties) and 717.905 (Criminal penalties).


“Authorized delegate” means a person that a licensee designates under the provisions of ORS 717.200 (Definitions) to 717.320 (Short title), 717.900 (Civil penalties) and 717.905 (Criminal penalties) to sell or issue payment instruments or engage in the business of transmitting money on the licensee’s behalf.


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


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


“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.


(a) “Electronic instrument” means a card or other tangible object for transmitting or paying money that contains a microprocessor chip, magnetic stripe or other means for storing 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 the issuer may redeem in the issuer’s goods or services.


“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.


“Licensee” means a person licensed under ORS 717.200 (Definitions) to 717.320 (Short title), 717.900 (Civil penalties) and 717.905 (Criminal penalties).


“Material litigation” means any litigation that, according to generally accepted accounting principles, is significant to an applicant’s or licensee’s financial health and to which the applicant or licensee must refer in the applicant’s or licensee’s annual audited financial statements, report to shareholders or similar documents.


“Money” means a medium of exchange that:


The United States or a foreign government authorizes or adopts; or


Represents value that substitutes for currency but that does not benefit from government regulation requiring acceptance of the medium of exchange as legal tender.


“Money transmission” means selling or issuing 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.


“Nationwide Multistate Licensing System” means a system that the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators, or assigns of the Conference of State Bank Supervisors or the American Association of Residential Mortgage Regulators, develop and maintain for participating state agencies to use in licensing and registering mortgage loan originators and other persons that provide nondepository financial services.


(a) “Payment instrument” means any electronic or written check, draft, money order, traveler’s check or other electronic or written instrument or order for transmitting or paying 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.


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


“Permissible investments” means:




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


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;


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


Investment securities that are obligations of the United States Government, or agencies or instrumentalities of the United States Government, or obligations that the United States guarantees fully as to principal and interest, or any obligations of any state, municipality or any political subdivision of a state or municipality;


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;


Any demand borrowing agreement or agreements made with a corporation or a subsidiary of a corporation the capital stock of which is listed on a national securities exchange;


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


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


“Person” means an individual, partnership, association, joint stock association, limited liability company, trust or corporation.


“Remit” means either to pay funds directly to a licensee or representatives of a licensee authorized to receive the funds, or to deposit the funds in a bank, credit union or savings and loan association or other similar financial institution in an account that the licensee specifies.


“Security device” means a surety bond, irrevocable letter of credit issued by an insured institution as defined in ORS 706.008 (Additional definitions for Bank Act) or other similar security acceptable to the Director of the Department of Consumer and Business Services. [1999 c.571 §2; 2001 c.104 §283; 2015 c.118 §6]


Last accessed
Jun. 26, 2021