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23-55-205. Issuance of license.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-55-205. Issuance of license.
(a) When an application is filed under this article, the commissioner shall investigate the applicant's financial condition and responsibility, financial and business experience, character, and general fitness. The commissioner may conduct an on-site investigation of the applicant, the reasonable cost of which the applicant must pay. The commissioner shall issue a license to an applicant under this subchapter if the commissioner finds that all of the following conditions have been fulfilled:
(1) the applicant has complied with §§ 23-55-202, 23-55-204, and 23-55-207; and
(2) the financial condition and responsibility, financial and business experience, competence, character, and general fitness of the applicant; and the competence, experience, character, and general fitness of the executive officers, managers, directors, and persons in control of, the applicant indicate that it is in the interest of the public to permit the applicant to engage in money transmission.
(b) When an application for an original license under this article is complete, the commissioner shall promptly notify the applicant in a record of the date on which the application was determined to be complete and:
(1) the commissioner shall approve or deny the application within 120 days after that date; or
(2) if the application is not approved or denied within 120 days after that date:
(A) the application is deemed approved; and
(B) the commissioner shall issue the license under this article, to take effect as of the first business day after expiration of the 120-day period.
(c) The commissioner may for good cause extend the application period.
(d) An applicant whose application is denied by the commissioner under this article may appeal, within 30 days
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-55-205
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. A text match is a research starting point; applicability is not established.
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Record provenance
Stable record: arkansas_code:legal_authorities:23-55-205
Source file: gov.ar.code.title.23.odt
Pages: Not recorded – Not recorded
Passage SHA-256: d36c6bc66bbaae107c79aa7df58511f85c1aafc45dcadd0e523f74f539c424c3
Source location: content.xml paragraph 26786
Stored source content
23-55-205. Issuance of license.
(a) When an application is filed under this article, the commissioner shall investigate the applicant's financial condition and responsibility, financial and business experience, character, and general fitness. The commissioner may conduct an on-site investigation of the applicant, the reasonable cost of which the applicant must pay. The commissioner shall issue a license to an applicant under this subchapter if the commissioner finds that all of the following conditions have been fulfilled:
(1) the applicant has complied with §§ 23-55-202, 23-55-204, and 23-55-207; and
(2) the financial condition and responsibility, financial and business experience, competence, character, and general fitness of the applicant; and the competence, experience, character, and general fitness of the executive officers, managers, directors, and persons in control of, the applicant indicate that it is in the interest of the public to permit the applicant to engage in money transmission.
(b) When an application for an original license under this article is complete, the commissioner shall promptly notify the applicant in a record of the date on which the application was determined to be complete and:
(1) the commissioner shall approve or deny the application within 120 days after that date; or
(2) if the application is not approved or denied within 120 days after that date:
(A) the application is deemed approved; and
(B) the commissioner shall issue the license under this article, to take effect as of the first business day after expiration of the 120-day period.
(c) The commissioner may for good cause extend the application period.
(d) An applicant whose application is denied by the commissioner under this article may appeal, within 30 days after receipt of the notice of the denial, from the denial and request a hearing before the commissioner.
(e) A license issued under this article expires annually at the close of business on December 31 unless the license is:
(1) renewed according to this article;
(2) surrendered by the license holder;
(3) suspended; or
(4) revoked by the commissioner.
Cross-references
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Arkansas Code — all titles (historical 2020) · legal_authorities
23-55-202. Application for license.
(a) In this section, “material litigation” means litigation that according to generally accepted accounting principles or international financial reporting standards is significant to an applicant's or a licensee's financial health and would be required to be disclosed in the applicant's or licensee's annual audited financial statements, report to shareholders, or similar records.
(b) A person applying for a license under this article shall do so in a form and in a medium prescribed by the commissioner. The application must state or contain:
(1) the legal name and residential and business addresses of the applicant and any fictitious or trade name used by the applicant in conducting its business;
(2) a list of any criminal convictions of the applicant and any material litigation in which the applicant has been involved in the 10-year period next preceding the submission of the application;
(3) a description of any money services previously provided by the applicant and the money services that the applicant seeks to provide in this State;
(4) a list of the applicant's proposed authorized delegates and the locations in this State where the applicant and its authorized delegates propose to engage in money transmission or provide other money services;
(5) a list of other States in which the applicant is licensed to engage in money transmission or provide other money services and any license revocations, suspensions, or other disciplinary action taken against the applicant in another State;
(6) information concerning any bankruptcy or receivership proceedings affecting the licensee;
(7) a sample form of contract for authorized delegates, if applicable, and a sample form of payment instrument or instrument upon which store
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-55-202
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 23-55-202. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-55-204. Surety bonds.
(a)(1) Except as otherwise provided in subsection (b), a money transmission licensee shall maintain a surety bond in an amount based on the previous year's:
(A) Money transmission dollar volume;
(B) Payment instrument dollar volume; and
(C) Stored value dollar volume.
(2) The minimum surety bond amount shall be at least $10,000, and the maximum surety bond amount shall not exceed $300,000.
(3) The commissioner may set specific required bond amounts by rule.
(b) The surety bond must be in a form satisfactory to the commissioner.
(c) Every surety bond shall provide for suit on the bond by any person who has a cause of action under this chapter. The aggregate liability of the surety to all persons, cumulative or otherwise, may not exceed the principal sum of the bond.
(d) A surety bond must cover claims for so long as the commissioner specifies, but for at least five years after the licensee ceases to provide money services in this State. However, the commissioner may permit the amount of a surety bond to be reduced or eliminated before the expiration of that time to the extent the amount of the licensee's payment instruments or stored-value and prepaid access obligations outstanding in this State is reduced.
(e) The commissioner may increase the amount of a surety bond required to a maximum of $1,000,000 if the financial condition of a licensee so requires, as evidenced by reduction of net worth, financial losses, or other relevant criteria.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-55-204
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 23-55-204. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-55-207. Net worth.
(a) A licensee under this article shall maintain a net worth that is calculated at $10,000 for every $1,000,000 of the total previous year's:
(1) Money transmission dollar volume;
(2) Payment instrument dollar volume; and
(3) Stored value dollar volume.
(b)(1) A licensee shall maintain a minimum net worth of at least $50,000.
(2) The commissioner may set specific required net worth amounts by rule.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-55-207
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 23-55-207. This identifies an authority to review, not proof of applicability.