Maryland

MD Code, Financial Institutions, § 12-401

12-401. Definitions

In general

(a) In this subtitle the following words have the meanings indicated.

Accelerated mortgage payment service

(b)(1) “Accelerated mortgage payment service” means the service of receiving funds from a mortgagor for the purpose of making mortgage payments to a mortgagee on behalf of the mortgagor in order to exceed the regularly scheduled minimum payment obligation under the terms of the mortgage.

(2) “Accelerated mortgage payment service” does not include the collection by a mortgagee of accelerated payments from the mortgagee’s own mortgagors.

Authorized delegate

(c)(1) “Authorized delegate” means a person who is authorized by a licensee to engage in the business of money transmission under the name of the licensee at any location other than the place of business specified in the license.

(2) “Authorized delegate” does not include a branch location of a licensee.

Bill payer service

(d)(1) “Bill payer service” means the service of receiving funds from an obligor for the purpose of paying the obligor’s bills, invoices, mortgages, or accounts.

(2) “Bill payer service” does not include the service described in paragraph (1) of this subsection that is provided by a nonprofit organization that is exempt from taxation under § 501(c)(3) of the Internal Revenue Code.

Branch location

(e)(1) “Branch location” means any location other than the principal executive office of a licensee or license applicant at which money transmission services are, or will be on licensure, conducted in the State or with a person in the State.

(2) “Branch location” does not include an authorized delegate.

Control

(f) “Control” means:

(1) If the licensee is a corporation:

(i) The direct or indirect ownership of, or the right to control, 25% or more of the voting shares of the licensee; or

(ii) The ability to elect a majority of the directors or otherwise effect a change in policy of the licensee; and

(2) If the licensee is a person other than a corporation, the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of the licensee, whether through ownership, by contract, or otherwise.

Control person

(g)(1) “Control person” means a person who has the power, directly or indirectly, to direct the management or policies of a money transmitter, whether through ownership of securities, by contract, or otherwise.

(2) “Control person” includes a person who:

(i) Is a general partner, an officer, or a director of a money transmitter, or a person who occupies a similar position or performs a similar function;

(ii) Directly or indirectly has the right to vote 10% or more of a class of voting securities, or has the power to sell or direct the sale of 10% or more of a class of voting securities, of a money transmitter; or

(iii) In the case of a partnership, a limited partnership, a limited liability partnership, a limited liability company, or any other business entity:

Has the right to receive on liquidation or dissolution of a money transmitter 10% or more of the capital of a money transmitter; or
Has contributed 10% or more of the capital of a money transmitter.

Currency

(h) “Currency” has the meaning stated in 31 C.F.R. § 1010.100(m).

Deposit in lieu of a surety bond

(i) “Deposit in lieu of a surety bond” means an investment in:

(1) Cash;

(2) Unless found by the Commissioner to be unacceptable, a certificate of deposit or other debt obligation, except a capital note, of a State-chartered or federally chartered financial institution, other-state bank, or foreign bank that:

(i) Is located in this State or maintains a branch in this State; and

(ii) Is authorized to maintain deposit or share accounts;

(3) Unless found by the Commissioner to be unacceptable:

(i) Obligations of or guaranteed by the United States, its departments, agencies, or instrumentalities, or obligations of any state, territory, or municipality or any political subdivision of any state, territory, or municipality;

(ii) Any investment securities, money market mutual funds, interest-bearing bills or notes, debentures, or stock traded on any national securities exchange or on a national over-the-counter market bearing a rating of one of the three highest grades as defined by a nationally recognized organization that rates such securities; and

(iii) Any demand borrowing agreement or agreements in an amount or aggregate amount which does not exceed 10% of the net worth of the company liable for payment under the agreement or agreements as shown on financial statements certified by a certified public accountant acceptable to the Commissioner, provided that the company is a corporation or a subsidiary of a corporation whose capital stock is listed on a national exchange and is not a licensee or authorized delegate of a licensee under this subtitle; or

(4) Any other investment that the Commissioner approves.

Executive officer

(j) “Executive officer” means a president, vice president, senior officer responsible for business operations, chief financial officer, or any other individual who performs similar functions.

License

(k) “License” means a license issued in any form by the Commissioner under this subtitle to engage in the business of money transmission, including as provided for through NMLS.

Licensee

(k-1) “Licensee” means a person licensed under this subtitle to engage in the business of money transmission.

Material litigation

(l) “Material litigation” means litigation that according to generally accepted accounting principles:

(1) Is deemed significant to an applicant’s or licensee’s financial health; and

(2) Would be required to be referenced in the applicant’s or licensee’s annual audited financial statements, report to shareholders, or similar document.

Monetary value

(m) “Monetary value” means a medium of exchange whether or not redeemable in money.

Money transmission

(n)(1) “Money transmission” means engaging in the business of selling or issuing payment instruments or prepaid access or receiving currency, funds, or other value that substitutes for currency and transferring currency, funds, or other value that substitutes for currency to another person or a location within or outside the United States by any means, including electronically, through the Internet, through a mobile application, through a network of persons, or through an informal value transfer system.

(2) “Money transmission” includes any other activity that the Commissioner identifies as money transmission by regulation.

Money transmitter

(o)(1) “Money transmitter” means a person that engages in money transmission that is required to be licensed under this subtitle, whether or not the person maintains a license.

(2) “Money transmitter” includes:

(i) A bill payer service; and

(ii) An accelerated mortgage payment service.

Outstanding money transmission

(p) “Outstanding money transmission” means:

(1) With respect to a payment instrument or prepaid access, a payment instrument or prepaid access, that has been sold or issued in the United States directly by a licensee or an authorized delegate of a licensee that has been reported as not yet paid by or for the licensee; and

(2) With respect to money received for transmission, currency, funds, or other value that substitutes for currency received by a licensee or an authorized delegate of a licensee that has been received but not yet paid to the beneficiary.

Payment instrument

(q)(1) “Payment instrument” means any electronic or written check, draft, money order, traveler’s check, or other electronic or written instrument or order for the transmission or payment of money, sold or issued to one or more persons, whether or not the instrument is negotiable.

(2) “Payment instrument” does not include any credit card voucher, letter of credit, or tangible object redeemable by the issuer in goods or services.

Permissible investment

(r) “Permissible investment” means:

(1) Cash;

(i) Is located in this State or maintains a branch in this State; and

(ii) Is authorized to maintain deposit or share accounts;

(3) Unless found by the Commissioner to be unacceptable:

(ii) Any investment securities, money market mutual fund, interest-bearing bills or notes, debentures or stock traded on any national securities exchange or on a national over-the-counter market bearing a rating of one of the three highest grades as defined by a nationally recognized organization that rates such securities; and

(4) Receivables that are due to a licensee from its authorized delegates under a contract described in § 12-413 of this subtitle that are not past due or doubtful of collection; or

(5) Any other investment that the Commissioner approves.

Prepaid access

(s)(1) “Prepaid access” means access to funds or the value of funds that have been paid in advance and can be retrieved or transferred at some point in the future through an electronic device or vehicle including:

(i) A card;

(ii) A code;

(iii) An electronic serial number;

(iv) A mobile identification; or

(v) A personal identification.

(2) “Prepaid access” does not include access to funds or the value of funds that may be redeemed only in the issuer’s goods or services.

Self-service financial kiosk

(t) “Self-service financial kiosk” means a stand-alone automated platform through which a consumer may obtain money transmission services.

Surety device

(u) “Surety device” means:

(1) A surety bond; or

(2) A deposit in lieu of a surety bond.

Unique identifier

(v) “Unique identifier” means a number or another identifier assigned by NMLS.

Credits

Added by Acts 1980, c. 33, § 2, eff. July 1, 1980. Amended by Acts 1980, c. 541, § 1, eff. July 1, 1980; Acts 1995, c. 432, § 1, eff. Oct. 1, 1995; Acts 1996, c. 10, § 1, eff. April 9, 1996; Acts 1996, c. 326, § 2, eff. July 1, 1996; Acts 1997, c. 23, § 1, eff. Oct. 1, 1997; Acts 1998, c. 21, § 1, eff. April 14, 1998; Acts 2002, c. 539, § 1, eff. Oct. 1, 2002; Acts 2003, c. 21, § 1, eff. April 8, 2003; Acts 2012, c. 78, § 1, eff. June 1, 2012; Acts 2014, c. 421, § 1, eff. Oct. 1, 2014; Acts 2021, c. 100, §§ 1 to 3, eff. Oct. 1, 2021; Acts 2021, c. 101, § 2, eff. Oct. 1, 2021.

MD Code, Financial Institutions, § 12-401, MD FIN INST § 12-401

Current through all legislation from the 2022 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.

12-402. Application of subtitle

In general

(a) The provisions of this subtitle do not apply to:

(1) Any banking institution;

(2) Any other-state bank;

(3) Any national banking association or savings bank;

(4) Any credit union;

(5) Any savings and loan association;

(6) The United States government or any of its departments, agencies, or instrumentalities;

(7) An accredited institution of higher education, as defined under § 10-101 of the Education Article;

(8) The sale of payment instruments by any person on behalf of any other person who is exempted by this subsection, if the payment instruments were received from the other person under a trust receipt for the specific purpose of sale;

(9) The provision of electronic transfer of government benefits for any federal, state, or county governmental agency as defined in Federal Reserve Board Regulation E, by a contractor for and on behalf of the United States or any of its departments, agencies, or instrumentalities, or any state or any political subdivision of any state; or

(10) Any authorized delegate of a licensee, acting within the scope of authority conferred by a written contract as described in § 12-413 of this subtitle.

Licensing of exempted persons

(b) Any person who is exempted by this section nevertheless may apply for and, if qualified, receive a license.

Credits

Added by Acts 1980, c. 33, § 2, eff. July 1, 1980. Amended by Acts 1980, c. 541, § 1, eff. July 1, 1980; Acts 1995, c. 213, § 2, eff. Sept. 29, 1995; Acts 1997, c. 23, § 1, eff. Oct. 1, 1997; Acts 2002, c. 539, § 1, eff. Oct. 1, 2002; Acts 2005, c. 592, § 1, eff. Oct. 1, 2005.

Formerly Art. 11, § 210.

MD Code, Financial Institutions, § 12-402, MD FIN INST § 12-402

Current through all legislation from the 2022 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.

12-403. Powers of Commissioner

To carry out the provisions of this subtitle, the Commissioner may:

(1) Adopt rules and regulations;

(2) Enter into cooperative and information sharing agreements with any federal or State agency having supervisory responsibility over the business of money transmission; and

(3) Provide any federal or State agency having supervisory responsibility over money transmission with any documents or other information.

Credits

Added by Acts 1980, c. 33, § 2, eff. July 1, 1980. Amended by Acts 1996, c. 326, § 2, eff. July 1, 1996; Acts 2002, c. 539, § 1, eff. Oct. 1, 2002.

Formerly Art. 11, § 219C.

MD Code, Financial Institutions, § 12-403, MD FIN INST § 12-403

Current through all legislation from the 2022 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.

12-404. Disposition and use of revenue received

In general

(a) All revenue received for the licensing of money transmitters under this subtitle and any other fee, examination assessment, or revenue received by the Commissioner under this subtitle shall be:

(1) Credited to the Nondepository Special Fund established under § 11-610 of this article; and

(2) Used in accordance with § 11-610(c) of this article.

Fines and penalties paid into General Fund

(b) Notwithstanding subsection (a) of this section, the Commissioner shall pay all fines and penalties collected by the Commissioner under this subtitle into the General Fund of the State.

Credits

Added by Acts 2002, c. 539, § 1, eff. Oct. 1, 2002. Amended by Acts 2016, c. 341, § 1, eff. July 1, 2016; Acts 2021, c. 100, § 3, eff. Oct. 1, 2021.

MD Code, Financial Institutions, § 12-404, MD FIN INST § 12-404

Current through all legislation from the 2022 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.

12-405. License required to engage in business of money transmission

In general

(a) A person may not engage in the business of money transmission if that person, or the person with whom that person engages in the business of money transmission, is located in the State unless that person:

(1) Is licensed by the Commissioner;

(2) Is an authorized delegate of a licensee under whose name the business of money transmission occurs; or

(3) Is a person exempted from licensing under this subtitle.

Valid unique identifiers issued by NMLS

(b) Each licensee or license applicant shall obtain and maintain a valid unique identifier issued by NMLS on forming an account with NMLS.

Applications through NMLS

Credits

Added as Financial Institutions § 12-404 by Acts 1980, c. 33, § 2, eff. July 1, 1980. Amended by Acts 1980, c. 541, § 1, eff. July 1, 1980; Acts 1996, c. 326, § 2, eff. July 1, 1996; Acts 1997, c. 23, § 1, eff. Oct. 1, 1997. Renumbered as Financial Institutions § 12-405 by Acts 2002, c. 539, § 1, eff. Oct. 1, 2002. Amended by Acts 2002, c. 539, § 1, eff. Oct. 1, 2002; Acts 2012, c. 78, § 1, eff. June 1, 2012; Acts 2018, c. 731, § 1, eff. Oct. 1, 2018; Acts. 2018, c. 732, § 3, eff. Oct. 1, 2018; Acts 2021, c. 100, § 3, eff. Oct. 1, 2021.

Formerly Art. 11, §§ 209, 211.

MD Code, Financial Institutions, § 12-405, MD FIN INST § 12-405

Current through all legislation from the 2022 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.

12-406. License qualifications

In general

(a) To qualify for a license, an applicant shall satisfy the Commissioner that the applicant:

(1) Is of good moral character and has sufficient financial responsibility, business experience, and general fitness to:

(i) Engage in the business of money transmission;

(ii) Warrant the belief that the business of money transmission will be conducted lawfully, honestly, fairly, and efficiently; and

(iii) Command the confidence of the public;

(2) Will keep at all times the permissible investments required under § 12-418 of this subtitle;

(3) Has a tangible net worth computed according to generally accepted accounting principles of at least $150,000, plus an additional net worth of $10,000 for each additional branch location or authorized delegate, up to a maximum of $500,000 as provided in subsection (b) of this section; and

(4) Has at least 3 years of experience in the business of money transmission or other related financial services business under the following conditions:

(i) If the applicant is a sole proprietor, the applicant shall have the required experience;

(ii) If the applicant is a joint venture or partnership, at least one of the coventurers or general partners shall have the required experience; and

(iii) If the applicant is any other type of business, at least one of the principal officers or members shall have the required experience.

Net worth requirements

(b) The Commissioner may require a net worth of up to $500,000, subject to consideration of the following:

(1) The nature and volume of the business or proposed business of the applicant;

(2) The amount, nature, quality, and liquidity of the assets of the applicant;

(3) The amount and nature of the liabilities, including contingent liabilities, of the applicant;

(4) The history of, and prospects for, the applicant to earn and retain income;

(5) The quality of the operations of the applicant;

(6) The quality of the management of the applicant;

(7) The nature and quality of the person that has control of the applicant; and

(8) Any other factor the Commissioner deems relevant.

Credits

Added as Financial Institutions § 12-405 by Acts 1980, c. 33, § 2, eff. July 1, 1980. Amended by Acts 1980, c. 541, § 1, eff. July 1, 1980; Acts 1995, c. 432, § 1, eff. Oct. 1, 1995; Acts 1996, c. 10, § 1, eff. April 9, 1996; Acts 1996, c. 326, § 2, eff. July 1, 1996. Renumbered as Financial Institutions § 12-406 by Acts 2002, c. 539, § 1, eff. Oct. 1, 2002. Amended by Acts 2002, c. 539, § 1, eff. Oct. 1, 2002; Acts 2021, c. 100, § 3, eff. Oct. 1, 2021.

Formerly Art. 11, § 213.

MD Code, Financial Institutions, § 12-406, MD FIN INST § 12-406

Current through all legislation from the 2022 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.

12-407. License applications

In general

(a)(1) To apply for a license, an applicant shall:

(i) Complete, sign, and submit to the Commissioner an application made under oath in the form, and in accordance with the process, that the Commissioner requires; and

(ii) Provide all information that the Commissioner requests.

(2) The applicant shall comply with all conditions and provisions of the application for a license.

Names, business addresses, financial statements, and information relating to agents

(b) An applicant shall provide:

(1) The trade name of the applicant, as filed with the State Department of Assessments and Taxation under § 1-406 of the Corporations and Associations Article, and any fictitious or other name used by the applicant in the conduct of the applicant’s business;

(2) The address of the principal executive office of the applicant, each branch location, and each self-service financial kiosk;

(3) The name, business address, and nature of the business of each authorized delegate to be appointed by the applicant;

(4) The most recent unconsolidated financial statement of the applicant that shall:

(i) Be prepared in accordance with generally accepted accounting principles applied on a consistent basis;

(ii) Be a certified opinion audit prepared by an independent certified public accountant;

(iii) Include a schedule of all permissible investments, if any, of the applicant; and

(iv) Be no older than 12 months before the date of the application;

(5) The name, address, and telephone number of the applicant’s resident agent in the State;

(6) A history of material litigation against the applicant, if any, for the past 3 years; and

(7) Any other information that the Commissioner reasonably requires.

Documents required of business entities

(1) Certified copies of the applicant’s certificate of incorporation, articles of incorporation, or articles of organization, or other instrument incorporating or forming the applicant, as amended, corrected, or supplemented; and

(2) The bylaws, operating agreement, or other equivalent internal governance documents, as amended or supplemented.

Certificate of good standing

(d) An applicant shall provide a certificate of good standing from the state in which the applicant is incorporated or organized and a certificate of good standing from the State Department of Assessments and Taxation.

Investigation and license fees

(e) With the application, the applicant shall pay to the Commissioner:

(1) A nonrefundable investigation fee of $1,000; and

(2) A nonrefundable license fee of $2,000.

Fees imposed by NMLS

(f) In addition to the license fee required under subsection (e) of this section, an applicant for an initial license shall pay to NMLS the fee that NMLS imposes in connection with processing the application.

Evidence of surety device

(g) With the application, the applicant shall file evidence of a surety device with the Commissioner as provided in § 12-412 of this subtitle.

Licenses for principal executive offices, branch locations, and self-service financial kiosks

(h)(1) In addition to any license required under §§ 12-405 and 12-410 of this subtitle, each money transmitter shall obtain and maintain a license for its principal executive office.

(2) For each branch location license for which an applicant applies, the applicant shall:

(i) Submit a separate application;

(ii) Pay a separate nonrefundable license fee of $1,000; and

(iii) Pay the application processing fee that NMLS imposes in connection with processing the application for the branch location.

(3) For each self-service financial kiosk license for which an applicant applies, the applicant shall:

(i) Submit a separate application;

(ii) Pay a separate nonrefundable license fee of $500; and

(iii) Pay the application processing fee that NMLS imposes in connection with processing the application for the self-service financial kiosk.

(4) If an applicant has or is applying for more than one license, the applicant may comply with subsection (g) of this section by filing evidence of only one surety device.

(5) If an applicant has or is applying for more than one license, the applicant is not required to pay a separate investigation fee.

Credits

Added as Financial Institutions § 12-406 by Acts 1980, c. 33, § 2, eff. July 1, 1980. Amended by Acts 1980, c. 541, § 1, eff. July 1, 1980; Acts 1996, c. 326, § 2, eff. July 1, 1996; Acts 1997, c. 23, § 1, eff. Oct. 1, 1997. Renumbered as Financial Institutions § 12-407 by Acts 2002, c. 539, § 1, eff. Oct. 1, 2002. Amended by Acts 2002, c. 539, § 1, eff. Oct. 1, 2002; Acts 2012, c. 78, § 1, eff. June 1, 2012; Acts 2021, c. 100, § 3, eff. Oct. 1, 2021.

Formerly Art. 11, §§ 212, 216.

MD Code, Financial Institutions, § 12-407, MD FIN INST § 12-407

Current through all legislation from the 2022 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.

12-408. Criminal history background checks of applicants or licensees

Corporations with securities exempt from registration

(a) This section does not apply to any corporation the securities of which are exempt from registration under § 11-601(8) or (12) of the Corporations and Associations Article or any wholly owned subsidiary of the corporation.

Information provided concerning identity of applicants

(b) In connection with an initial application for a license under § 12-407 of this subtitle, and at any other time that the Commissioner requests, an applicant or licensee shall provide to NMLS information concerning the applicant’s identity, including:

(1) Fingerprints for submission to the Federal Bureau of Investigation, and any other governmental agency or entity authorized to receive this information for a state, a national, or an international criminal history background check;

(2) In the case of a sole proprietorship, personal history and experience in a form prescribed by NMLS, including the submission of authorization for NMLS and the Commissioner to obtain:

(i) An independent credit report from a consumer reporting agency described in the federal Fair Credit Reporting Act, 15 U.S.C. § 1681a(p); and

(ii) Information related to any administrative, civil, or criminal findings by any governmental jurisdiction; and

(3) In the case of a corporation or another business entity:

(i) Business history in a form prescribed by NMLS, including:

The submission of a business credit report for the applicant that is no older than 3 months before the date of the application; and
Information related to any administrative, civil, or criminal findings by any governmental jurisdiction; and

(ii) For each control person, personal history in a form prescribed by NMLS.

Use of NMLS as channeling agent

(c) Subject to § 12-408.1 of this subtitle, to implement this subtitle, the Commissioner may use NMLS as a channeling agent to request information from and distribute information to the Department of Justice, any other governmental agency with subject matter jurisdiction, and any other state licensing entity that has money transmitters licensed or registered with NMLS.

Processing or other fees

(d) An applicant or a licensee who is required to provide fingerprints under subsection (b) of this section shall pay the processing or other fees required by the Federal Bureau of Investigation and NMLS.

Requests for state, national, or international criminal history records

(e) The Commissioner may request from the Federal Bureau of Investigation or NMLS, as applicable, for each person who is required to provide fingerprints under subsection (b) of this section:

(1)(i) The state, national, or international criminal history records of the person; and

(ii) A printed statement listing any conviction or other disposition of, and any plea of guilty or nolo contendere to, any criminal charge;

(2)(i) An update of the initial criminal history records check or criminal history background check of the person; and

(ii) A revised statement listing any conviction or other disposition of, and any plea of guilty or nolo contendere to, any criminal charge occurring after the date of the initial criminal history records check or criminal history background check; and

(3) An acknowledged receipt of the application for a criminal history records check or criminal history background check of the person.

Executive officers, general partners, or managing members of corporation

(f) If the applicant or licensee is a corporation or another business entity, the fingerprinting and criminal history records check requirements under subsection (b) of this section shall apply to an executive officer, a general partner, or a managing member of, or an individual serving in a similar capacity with respect to, the corporation or other business entity, as requested by the Commissioner.

Credits

Added by Acts 2002, c. 539, § 1, eff. Oct. 1, 2002. Amended by Acts 2012, c. 78, § 1, eff. June 1, 2012; Acts 2017, c. 253, § 1, eff. July 1, 2017.

MD Code, Financial Institutions, § 12-408, MD FIN INST § 12-408

Current through all legislation from the 2022 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.

12-409. Approval or denial of application

Currentness

Investigation by Commissioner

(a) After the filing of a complete application, the Commissioner shall investigate the financial condition and responsibility, financial and business experience, character, and general fitness of the applicant.

Deadline for decision

(b)(1) Unless the Commissioner notifies the applicant that a different time period is necessary, the Commissioner shall approve or deny each application for a license within 60 days after the date a complete application is filed.

(2) The applicant may by written request to the Commissioner withdraw the application at any time before the issuance of the license.

Duty of Commissioner to issue license to qualified applicants

Denial of application

(d)(1) If an applicant does not meet the requirements of this subtitle, the Commissioner shall:

(i) Notify the applicant immediately of this fact;

(ii) Subject to the hearing provisions of § 12-428 of this subtitle, deny the application;

(iii) Return the surety device filed under § 12-407 of this subtitle; and

(iv) Keep the license fee and the investigation fee.

(2) Within 30 days after the Commissioner denies an application, the Commissioner shall state the reasons for the denial in writing and mail them to the address listed in the application.

Credits

Added as Financial Institutions § 12-407 by Acts 1980, c. 33, § 2, eff. July 1, 1980. Amended by Acts 1980, c. 541, § 1, eff. July 1, 1980; Acts 1996, c. 326, § 2, eff. July 1, 1996. Renumbered as Financial Institutions § 12-409 by Acts 2002, c. 539, § 1, eff. Oct. 1, 2002. Amended by Acts 2002, c. 539, § 1, eff. Oct. 1, 2002; Acts 2012, c. 78, § 1, eff. June 1, 2012.

Formerly Art. 11, § 213.

MD Code, Financial Institutions, § 12-409, MD FIN INST § 12-409

Current through all legislation from the 2022 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.

12-410. Contents and transferability of licenses

Currentness

Name and address of licensee

(a)(1) Each license provided for through NMLS shall include the following information:

(i) The name of the licensee;

(ii) The trade name of the licensee;

(iii) The address at which the business is to be conducted; and

(iv) The unique identifier of the licensee.

(2) The unique identifier of the licensee shall constitute the license number for the license.

Authorization of licensee to do business

(b)(1) A license authorizes the licensee to do business under the license, at the licensed place of business.

(2) A license does not authorize the licensee to accept deposits or engage otherwise in a banking business except as authorized in this subtitle.

(3) Only one place of business may be maintained under any one license.

Information included on license

(1) Complies with § 12-407 of this subtitle; and

(2) Otherwise meets the requirements of this subtitle.

License not transferable

(d) A license may not be transferred or assigned.

Information to be posted or displayed at location or on website

(e)(1) Each licensee shall conspicuously post, in 48 point or larger type, at the licensee’s licensed location the following information:

(i) The licensee’s unique identifier; and

(ii) A statement advising consumers of the availability of the NMLS Consumer Access website to verify the licensing status of the licensee.

(2) Each authorized delegate, at each location open to the public, shall conspicuously post, in at least 48-point type, the following information:

(i) A notice stating, “The Commissioner of Financial Regulation for the State of Maryland will accept all questions or complaints regarding this authorized delegate of (name of licensee and unique identifier) at (address of Commissioner), phone (toll-free phone number of the Commissioner)”; and

(ii) A statement advising consumers of the availability of the NMLS Consumer Access website to verify the licensing status of the licensee.

(3) Each licensee shall conspicuously display the following information on the licensee’s website, any mobile application through which the services are offered, the outside of the self-service financial kiosk, any software application accessible to the public and used for money transmission services, and the profile page within each social media platform the licensee uses:

(i) The licensee’s unique identifier;

(ii) A link to the NMLS Consumer Access website; and

(iii) A notice stating, “The Commissioner of Financial Regulation for the State of Maryland will accept all questions or complaints from Maryland residents regarding (name of licensee and unique identifier) at (address of Commissioner), phone (toll-free phone number of the Commissioner)”.

Exception to posting of information

(f) A licensee is not required to post the information required in subsection (e)(1) of this section if the licensee does not regularly grant access to the licensed location to members of the general public.

Credits

Added as Financial Institutions § 12-408 by Acts 1980, c. 33, § 2, eff. July 1, 1980. Amended by Acts 1996, c. 326, § 2, eff. July 1, 1996. Renumbered as Financial Institutions § 12-410 by Acts 2002, c. 539, § 1, eff. Oct. 1, 2002. Amended by Acts 2002, c. 539, § 1, eff. Oct. 1, 2002; Acts 2012, c. 78, § 1, eff. June 1, 2012; Acts 2021, c. 100, § 3, eff. Oct. 1, 2021; Acts 2021, c. 101, § 2, eff. Oct. 1, 2021; Acts 2021, c. 109, § 5; Acts 2022, c. 135, § 1, eff. April 12, 2022.

Formerly Art. 11, §§ 208, 215, 216.

MD Code, Financial Institutions, § 12-410, MD FIN INST § 12-410

Current through all legislation from the 2022 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.

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