2006 Kansas Code - 9-509

      9-509.   Transmission of money; financial statement by person engaging in business; deposit of security or bond; conditions; powers and duties of state bank commissioner. No person shall engage in the business of selling, issuing or delivering its check, draft, money order, personal money order, bill of exchange, evidence of indebtedness or other instrument for the transmission or payment of money, or, except as provided in K.S.A. 9-510, and amendments thereto, act as agent for another in the transmission of money in the face amount of a check, draft, money order, personal money order, bill of exchange, evidence of indebtedness or other instrument for the transmission or payment of money, as a service or for a fee or other consideration, unless:

      (a)   The net worth of such person is at all times not less than $100,000, as shown by a financial statement certified to by an owner, a partner or officer of the corporation or other entity in a form prescribed by the state bank commissioner and filed in the commissioner's office;

      (b)   such person has deposited and at all times keeps on deposit with the state treasurer, or a bank in this state approved by the state bank commissioner, cash or securities satisfactory to the state bank commissioner in an amount of $50,000 plus an additional sum of $5,000 for each location, in excess of one, at which such person proposes to conduct such business, but not to exceed $200,000; and

      (c)   such person submits a list to the commissioner of the names and addresses of the selling agents of such person.

      In lieu of such deposit of cash or securities, such person may give surety bond in an amount equal to that required for the deposit of cash or securities, in a form satisfactory to the state bank commissioner and issued by a company authorized to do business in this state, which bond shall run to the state of Kansas and be filed with the state bank commissioner. The deposit of cash or securities or surety bond shall be for the protection and benefit of purchasers or holders of instruments furnished by such person or for the protection of those for whom such person has agreed to act as agent in the transmission of money and to secure the faithful performance of the obligations of such person in respect to the receipt, handling, transmission and payment of money. The aggregate liability of the surety for all breaches of the conditions of the bond shall, in no event, exceed the amount of such bond. The surety on the bond shall have the right to cancel such bond upon giving 30 days' notice to the commissioner and thereafter shall be relieved of liability for any breach of condition occurring after the effective date of the cancellation. The state bank commissioner or any aggrieved party may enforce claims against such deposit of cash or securities or surety bond. So long as the depositing person is not in violation of this act, such person shall be permitted to receive all interest and dividends on the deposit and shall have the right to substitute other securities satisfactory to the state bank commissioner. If the deposit is made with a bank, any custodial fees shall be paid by such person. The financial statement shall be filed annually and at the time of filing each person shall pay to the state bank commissioner an annual fee in an amount established by rules and regulations adopted by the commissioner. The state bank commissioner may require any person to file a statement at more frequent intervals, but only the annual fee need be paid.

      The bank commissioner shall have the right to examine the books and records of any person operating in accordance with the provisions of this act at such person's expense, and if it appears that such person's financial affairs are unsound so as to affect the solvency of such person's operations then the bank commissioner is authorized to obtain a restraining order, or a temporary or permanent injunction without bond, in any court of competent jurisdiction so as to prevent such person, or any agents of such person, from continuing in business.

      History:   L. 1967, ch. 73, § 2; L. 1986, ch. 55, § 1; L. 1992, ch. 62, § 1; July 1.