2011 Connecticut Code
Title 36a The Banking Law of Connecticut
Chapter 668 Nondepository Financial Institutions
Sec. 36a-596. (Formerly Sec. 36-531). Definitions.

      Sec. 36a-596. (Formerly Sec. 36-531). Definitions. As used in sections 36a-595 to 36a-610, inclusive:

      (1) "Electronic payment instrument" means a card or other tangible object for the transmission of money or monetary value or payment of money which 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, but does not include a card or other tangible object that is redeemable by the issuer in the issuer's goods or services.

      (2) "Holder" means a person, other than a purchaser, who is either in possession of a Connecticut payment instrument and is the named payee thereon or in possession of a Connecticut payment instrument issued or endorsed to such person or bearer or in blank. "Holder" does not include any person who is in possession of a lost, stolen or forged Connecticut payment instrument.

      (3) "Licensee" means any person licensed or required to be licensed pursuant to sections 36a-595 to 36a-610, inclusive.

      (4) "Material litigation" means any litigation that, according to generally accepted accounting principles, is deemed significant to a person's financial health and would be required to be referenced in a person's annual audited financial statements, report to shareholders or similar documents.

      (5) "Monetary value" means a medium of exchange, whether or not redeemable in money.

      (6) "Money order" means any check, draft, money order or other payment instrument. "Money order" does not include a travelers check or electronic payment instrument.

      (7) "Money transmission" means engaging in the business of receiving money or monetary value for current or future transmission or the business of transmitting money or monetary value within the United States or to locations outside the United States by any and all means including, but not limited to, payment instrument, wire, facsimile or electronic transfer or issuing stored value.

      (8) "Net worth" means the excess of assets over liabilities as determined by generally accepted accounting principles.

      (9) "Outstanding" means, in the case of a money order, travelers check, electronic payment instrument or stored value, that: (A) It is sold or issued in the United States; (B) a report of it has been received by a licensee from its agents; and (C) it has not yet been paid by the issuer.

      (10) "Payment instrument" means a money order, travelers check or electronic payment instrument that evidences either an obligation for the transmission of money or monetary value or payment of money, or the purchase or the deposit of funds for the purchase of such money order, travelers check or electronic payment instrument. A payment instrument is a "Connecticut payment instrument" if it is sold in this state.

      (11) "Permissible investment" means: (A) Cash in United States currency; (B) time deposits, as defined in section 36a-2, or other debt instruments of a bank; (C) bills of exchange or bankers acceptances which are eligible for purchase by member banks of the Federal Reserve System; (D) commercial paper of prime quality; (E) interest-bearing bills, notes, bonds, debentures or other obligations issued or guaranteed by: (i) The United States or any of its agencies or instrumentalities, or (ii) any state, or any agency, instrumentality, political subdivision, school district or legally constituted authority of any state if such investment is of prime quality; (F) interest-bearing bills or notes, or bonds, debentures or preferred stocks, traded on any national securities exchange or on a national over-the-counter market, if such debt or equity investments are of prime quality; (G) receivables due from selling agents consisting of the proceeds of the sale of payment instruments which are not past due or doubtful of collection; (H) gold; and (I) any other investments approved by the commissioner. Notwithstanding the provisions of this subdivision, if the commissioner at any time finds that an investment of a licensee is unsatisfactory for investment purposes, the investment shall not qualify as a permissible investment.

      (12) "Prime quality" of an investment means that it is within the top four rating categories in any rating service recognized by the commissioner unless the commissioner determines for any licensee that only those investments in the top three rating categories qualify as "prime quality".

      (13) "Purchaser" means a person who buys or has bought a Connecticut payment instrument or who has given money or monetary value for current or future transmission.

      (14) "Stored value" means monetary value that is evidenced by an electronic record. For the purposes of this subdivision, "electronic record" means information that is stored in an electronic medium and is retrievable in perceivable form.

      (15) "Travelers check" means a payment instrument for the payment of money that contains a provision for a specimen signature of the purchaser to be completed at the time of a purchase of the instrument and a provision for a countersignature of the purchaser to be completed at the time of negotiation.

      (16) "Unsafe or unsound practice" means a practice or conduct by a licensee or an agent of such licensee that is likely to result in a material loss, insolvency or dissipation of the licensee's assets or otherwise materially prejudice the interests of purchasers.

      (P.A. 81-264, S. 2; P.A. 87-9, S. 2, 3; P.A. 92-12, S. 96; P.A. 94-122, S. 276, 340; P.A. 98-192, S. 3; 98-258, S. 4; P.A. 01-56, S. 3; P.A. 02-73, S. 84; P.A. 04-14, S. 3; 04-136, S. 43; P.A. 07-91, S. 8; P.A. 09-208, S. 13.)

      History: (Revisor's note: Pursuant to P.A. 87-9 "banking commissioner" was changed editorially by the Revisors to "commissioner of banking"); P.A. 92-12 redesignated Subdivs. and Subparas.; P.A. 94-122 deleted former Subdivs. (1) and (2) defining "commissioner" and "financial institution", renumbered former Subdivs. (3) through (9) as Subdivs. (1) through (7), deleted Subdiv. (10) defining "person" and renumbered former Subdivs. (11) through (13) as Subdivs. (8) through (10), effective January 1, 1995; Sec. 36-531 transferred to Sec. 36a-596 in 1995; (Revisor's note: In 1997 the reference in Subdiv. (7) to "... time deposits, as defined in subdivision (55) of section 36a-2 ..." was corrected editorially by the Revisors to "... time deposits, as defined in subdivision (62) of section 36a-2 ..." to reflect the current internal numbering of that section); P.A. 98-192 added new Subdiv. (1) defining "electronic payment instrument", made conforming changes and redesignated existing Subdivs. (1) to (10) as Subdivs. (2) to (11); P.A. 98-258 made a technical change in Subdiv. (7); P.A. 01-56 made technical changes in Subdiv. (2) defining "holder", deleted former Subdiv. (3) defining "instrument" and renumbered existing Subdiv. (4) as Subdiv. (3), added new Subdiv. (4) defining "material litigation", made technical changes in Subdiv. (5) defining "money order", added new Subdiv. (6) defining "money transmission" and renumbered existing Subdivs. (6) and (7) as Subdivs. (7) and (8), redefined "outstanding" in redesignated Subdiv. (8), added new Subdiv. (9) defining "payment instrument", renumbered existing Subdivs. (8) to (11) as Subdivs. (10) to (13) and made technical changes in redesignated Subdivs. (10) to (13); P.A. 02-73 amended Subdiv.(10)(B) by changing reference from Subdiv. (63) to Subdiv. (65) of Sec. 36a-2; P.A. 04-14 added definitions of "monetary value" in new Subdiv. (5) and "stored value" and "electronic record" in new Subdiv. (14), renumbering the existing Subdivs. accordingly, inserted references to "monetary value" and "current or future" transmission in definition of "money transmission", inserted references to "stored value" in definitions of "money transmission" and "outstanding" and, in Subpara. (A) of the latter definition, inserted "or issued", and made a technical change in definition of "permissible investment", effective April 16, 2004; P.A. 04-136 amended Subdiv. (10)(B) to make a technical change, effective May 12, 2004; P.A. 07-91 inserted references to transmission "of money or monetary value" in definitions of "electronic payment instrument" and "payment instrument" in Subdivs. (1) and (10) ; P.A. 09-208 redefined "licensee" in Subdiv. (3), "outstanding" in Subdiv. (9) and "purchaser" in Subdiv. (13) and defined "unsafe or unsound practice" in Subdiv. (16), effective July 7, 2009.

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