The Alabama Monetary Transmission Act
Filing Instructions


{Code of Alabama 1975, § 8-7a-1}

Please read these instructions carefully before preparing your application.

GENERAL

Applications for licensure must be completed on Form SA and must be submitted with all appropriate documents listed below. Incomplete applications will not be considered for licensing until all outstanding items have been submitted and fees paid.

Please type or print clearly when completing the application. Legible photocopies with original signatures are acceptable. All forms are to be completed. Type N/A or Not Applicable where appropriate. You may use a separate page when completing the application and form space is insufficient. However, information on inserted pages must be properly referenced by letter and number.

Full names and address must be provided, including zip codes and telephone numbers. This includes all trade names under which the applicant proposes to operate. Additionally, a list detailing all branch offices located in the State of Alabama must be provided.

All licenses pursuant to The Alabama Monetary Transmission Act expire as of March 31. Therefore, the appropriate renewal fees and
Form SR must be submitted by March 15 to renew licensure.


SUBMITTING YOUR APPLICATION

Once the application is completed, you should mail it, along with the appropriate fees, to the following address:

Alabama Securities Commission
Licensing Division
401 Adams Ave, Suite 280
Montgomery, AL  36104

Copies of all documents submitted should be retained for your records.


LICENSE REQUIRED, Code of Alabama,1975, Section 8-7A-5 (a) (b)

(a) A person may not engage in the business of money transmission or advertise, solicit, or hold itself out as providing money transmission unless the person meets one of the following requirements:

Is licensed under this chapter.

Is an authorized delegate of a person licensed under this chapter.

(b) A license under this chapter is not transferable or assignable


APPLICATION FOR LICENSE, Code of Alabama, 1975, Section 8-7A-6 (a) (b)

A person applying for license under this chapter shall do so in a form and in a medium prescribed by the Commission. The application shall contain all of the following information:

Completed FORM SA, to include:

• Legal name, business address, and any fictitious or trade name used by the applicant in conducting business.

• List of any criminal convictions of applicant within 10 year period preceding the submission of application.

• Description of any money transmission previously provided by the applicant.

• List of proposed authorized delegates and locations in the State of Alabama where delegates will engage in money transmission services.

• List of other states applicant is a licensed money transmitter and any disciplinary actions in other states to include revocations, suspension or any disciplinary action in another state.

• Information concerning any bankruptcy within the last seven years, or receivership proceedings affecting applicant, control person or affiliate of applicant.

• Sample form of any contract used by the authorized delegate or agent of the applicant and/or used by with consumers relating to the provision of money transmission services.

• Sample form of any payment instrument or instrument upon which stored value is recorded, if applicable.

• Names and addresses of any banks through which the applicant’s payment instruments and stored value will be paid.

• Any other information the Commission reasonably requires with respect to the applicant.

If applicant is not an individual or natural person, in additional to the information required above, applicant shall provide all of the following information:

• Date of the applicant’s incorporation formation and state or country of incorporation or formation.

• A certificate of good standing from the state or country which the applicant is incorporated or formed and proof of registration with the Alabama Secretary of State as a foreign corporation if incorporated in another state or country.

• Brief description of the structure or organization of the applicant, including any parent affiliate, or subsidiary of the applicant, and whether any parent, affiliate or subsidiary is publicly traded.

• Legal name, any fictitious name, all business and residential addresses and the employment, for the 10 years preceding the submission of the application for each executive officer, manager, director, or a person who has direct or indirect control of the applicant.

• List of criminal convictions of and material litigation involving, any executive officer, manager, director, or a person who has direct or indirect control of the applicant, for the 10 years preceding the submission of the application.

• Copy of the applicant’s audited financial statements for the most recent fiscal year and, if available, for the two-year period preceding the submission of the application.

• Copy of the applicant’s unconsolidated financial statements for the current fiscal year.

• If the applicant has a registered agent in this state, the name and address of the applicant’s registered agent.

• Any other information the commission reasonably requires with respect to the applicant.

FEES - Code of Alabama, 1975, Section 8-7A-6(c)

A nonrefundable filing fee and a license fee shall accompany an application for a license under this chapter.

The minimum filing fee and license fee shall not be less than five hundred $500.00 respectively.


BOND/SECURITY REQUIREMENT – Code of Alabama, 1975, Section 8-7A-7, Form SB

(a) A licensee shall maintain a surety bond, letter of credit, or other similar in an amount, determined by rule or order of the Commission, sufficient to secure faithful performance of the obligation of the licensee with respect to money transmission in Alabama.

(b) Security must be in a form satisfactory to the Commission payable to the Commission for the benefit of any claimant against the licensee.

(c) A claimant against a licensee may maintain an action on the bond, or the Commission may maintain an action on behalf of the claimant.

(d) A surety bond must cover claims for a minimum of five years after the licensee ceases to provide money transmission services in this state. The surety bond may be reduced or eliminated, at the discretion of the Commission, to the extent of the licensee’s outstanding payment instruments and stored-value obligation are less than the surety bond coverage.

(e) The Commission has discretion to accept other forms of security in lieu of the bond.

(f) In no event shall bond be set at an amount less than one hundred thousand dollars ($100,000), or the average daily outstanding obligations for money received for transmission in Alabama plus 50 percent of the average daily outstanding payment instrument and stored value obligations in Alabama, whichever is greater.

(g) The Commission may increase the amount of the security required to a maximum of five million dollars ($5,000,000) if the financial condition of a licensee so requires, as evidenced by reduction of net worth, financial losses, or other relevant criteria.


NET WORTH REQUIREMENT – Code of Alabama, 1975, Section 8-7A-6 (6) (7), Section 8-7A-10

A licensee under this chapter shall maintain a net worth of at least twenty-five thousand dollars ($25,000) determined in accordance with generally accepted accounting principles.


SALE OF CHECKS RENEWAL – Code of Alabama, 1975, Section 8-7A-9

(a) All licenses under this chapter shall expire on March 31 of the calendar year.

(b) A licensee under this chapter shall pay an annual renewal fee no later than March 15. The renewal fee shall be established by rule of the Commission and shall not be less than five hundred dollars ($500).

(c) A licensee under this chapter shall submit a renewal report with the renewal fee, in a form and in a medium prescribed by the Commission. The renewal report shall contain the following in information:

• Completed Form SR

• Copy of the licensee’s most recent audited financial statement.

• The number and monetary value of payment and store-value instruments sold by the licensee in this state which have not been included in a previous renewal report, and the monetary amount of payment and stored-value instruments currently outstanding.

• Description of each material change in information submitted by licensee in its original license application which has not been reported to the Commission.

• Proof that the licensee continues to maintain adequate security as required by Code of Alabama, 1975, Section 8-7A-7.

• A list of the locations in this state where the licensee or an authorized delegate of the licensee engages in money transmission.

(d) The renewal license shall become immediately effective upon expiration of the current license if the licensee has submitted the renewal fee pursuant to subsection (b) and the required reports pursuant to subsection (c) to the Commission.

(e) If the licensee fails to renew the license prior to March 31, the licensee shall have 20 days from the expiration date to submit the renewal fee and report required pursuant to subsections (b) and (c), plus a late fee of one hundred dollars ($100) for each day between expiration of the license and submission of the renewal report. If the licensee perfects renewal of the license prior to the expiration of the 20 days, the license renewal shall be effective on April 1, and the licensee shall not be liable for unlicensed monetary transmission during the period between the statutory expiration date and the date the renewal is perfected.


Reports - Code of Alabama, 1975, Section 8-7A-13


Records - Code of Alabama, 1975, Section 8-7A-14