2013 New Mexico Statutes
Chapter 58 - Financial Institutions and Regulations
Article 20 - Business of Selling Negotiable Checks, Drafts and Money Orders
Section 58-20-1 - Business of selling negotiable checks, drafts and money orders regulated. (1991)

A.   Any bank, insured building and loan association, credit union, telegraph company, governmental agency or instrumentality or railway express agency engaged in interstate commerce may directly engage in the business of selling, issuing or registering checks or money orders.  Trust companies and commercial banks may engage in such business through agents who shall not be deemed to be branches of the banks.  No person other than the foregoing shall engage in such business directly or indirectly without first obtaining a license and having a current license from the director of the financial institutions division of the regulation and licensing department.   

B.   Each application for a license to sell, issue or register checks or money orders in this state shall be made in writing and under oath to the director of the financial institutions division of the regulation and licensing department and shall include:   

(1)   the full name and business address of the applicant;   

(2)   a financial statement of the applicant as of the end of the last fiscal year for which an annual statement has, in accordance with normal accounting practice, been prepared, certified by a certified public accountant or a registered public accountant;   

(3)   letters of recommendation from the banks with which the applicant does business; and   

(4)   any other pertinent data that the director may require by regulation.   

C.   Each application for a license shall be accompanied by an investigation fee of one hundred fifty dollars ($150).  An additional investigation fee of twenty-five dollars ($25.00) for each agent of a licensee shall accompany the license application. If the license is granted, the investigation fee shall be applied to the license fee for the first year.  No investigation fee shall be refunded.   

D.   Each approved applicant shall furnish a corporate surety bond in the penal sum of ten thousand dollars ($10,000) and an additional principal sum of five thousand dollars ($5,000) for each location within the state at which checks or money orders of the licensee are issued or sold; provided, however, no licensee shall be required to furnish a bond in excess of two hundred thousand dollars ($200,000) for the faithful performance of the acts of the licensee and those of its agents as provided in this section. Each application for a license or for the renewal of a license shall be accompanied by a list of the locations, including agencies, at which the applicant engages in the business of issuing or selling checks or money orders.  The bond shall be conditioned upon the obligor's faithfully conforming to and abiding by the provisions of this section, honestly and faithfully applying all funds received and performing all obligations issued and sold under this section and paying to the state and to any person entitled thereto all money that becomes due and owing to the state or to the person under the provisions of this section because of any checks or money orders issued or sold in this state by the licensee or his agent or employee.  The bond shall remain in force until canceled by the surety, which cancellation may be had only upon thirty days' written notice to the director of the financial institutions division of the regulation and licensing department.  Cancellation shall not affect any liability incurred or accrued prior to the termination of the thirty-day period.  In lieu of the corporate surety bonds or of any portion of the principal thereof as required by this section, the applicant may deposit with the director or with such banks or national banks in this state as the applicant may designate, and the director may approve, interest-bearing stocks and bonds, notes, debentures or other obligations of the United States or any agency or instrumentality thereof or guaranteed by the United States, or of this state or of a city, county, town, village, school district or instrumentality of this state or guaranteed by this state, or certificates of deposit issued by state or national banks in New Mexico, to an aggregate amount, based upon principal amount or market value, whichever is lower, of not less than the amount of the required corporate surety bond or portion thereof. The securities shall be deposited and held to secure the same obligations as would the surety bond, but the depositor shall be entitled to receive all interest and dividends thereon, shall have the right, with the approval of the director, to substitute other securities for those deposited and shall be required so to do on written order of the director made for good cause shown.   

E.   Upon the filing of the application, the payment of the investigation fee and the approval by the director of the financial institutions division of the regulation and licensing department of the bond, the director shall investigate the financial responsibility, financial and business experience, character and general fitness of the applicant.  If the director finds that the applicant has a minimum net worth of one hundred thousand dollars ($100,000) and other factors and qualities meet the requirements of this section and warrant the belief that the applicant's business will be conducted honestly, fairly, equitably, carefully and efficiently and in a manner commanding the confidence and trust of the community, the director shall issue to the applicant a license to sell and issue checks and money orders subject to the provisions of this section.   

F.   Upon the filing of the application for an agent of a licensee to sell or issue checks or money orders accompanied by the bond and agent fee, a permit shall be issued by the director of the financial institutions division of the regulations and licensing department for a certain designated agent at a certain designated place of business.   

G.   The renewal license fee for a licensee shall be one hundred fifty dollars ($150), and the renewal license fee for each agent of a licensee shall be twenty-five dollars ($25.00).  An application for license renewal shall be filed with the director of the financial institutions division of the regulation and licensing department on or before February 28 of each year, on forms designated by the director.  The director shall charge and collect from an applicant a fee of ten dollars ($10.00) per day for late filings of renewal applications or three hundred dollars ($300), whichever is less.  Only one late charge shall be applied per license application, regardless of the number of agents or persons or entities covered by the application.   

H.   Each licensee shall keep full and complete records of all checks or money orders issued, of funds on hand and of all outstanding checks or money orders and shall file a statement correctly reflecting its net worth as of the close of its most recent fiscal year for which an annual statement has, in accordance with normal accounting practice, been prepared, the statement to be certified to by a certified public accountant or a registered public accountant satisfactory to the director of the financial institutions division of the regulation and licensing department, along with the application for renewal of license.   

I.   The director of the financial institutions division of the regulation and licensing department may at any time examine all the books, records, papers, assets and liabilities of every kind of any licensee to determine its financial condition and business methods.  The licensee shall pay a fee of one hundred fifty dollars ($150) a day or any portion thereof for the conduct of the examination.   

J.   The director of the financial institutions division of the regulation and licensing department may at any time revoke a license on any ground on which he might refuse to grant a license or for failure to pay an annual fee or for the violation of any provision of this section.  No license shall be denied or revoked except on ten days' notice to the applicant or licensee.  Upon receipt of notice, the applicant or licensee may, within five days of its receipt, make written demand for a hearing at his cost.  The director shall thereafter with reasonable promptness hear and determine the matter, and his decision shall be subject to judicial review in accordance with Section 58-1-45 NMSA 1978.   

K.   Whoever violates any provision of this section or any rule or regulation established pursuant to this section shall be punished by a fine of not more than one hundred dollars ($100) for each day during which a violation continues.