PRINTER'S NO. 3259
No. 2561 Session of 1994
INTRODUCED BY LaGROTTA, LESCOVITZ AND ROBERTS, MARCH 7, 1994
REFERRED TO COMMITTEE ON BUSINESS AND ECONOMIC DEVELOPMENT,
MARCH 7, 1994
AN ACT
1 Amending the act of September 2, 1965 (P.L.490, No.249),
2 entitled "An act providing for the licensing and regulation
3 of the business of transmitting money or credit for a fee or
4 other consideration by the issuance of money orders, by the
5 sale of checks or by other methods; conferring powers and
6 duties upon the Department of Banking; and imposing
7 penalties," further providing for exemptions, for
8 qualifications for a license, for fee, financial statement
9 and security and for authority of the Department of Banking.
10 The General Assembly of the Commonwealth of Pennsylvania
11 hereby enacts as follows:
12 Section 1. Section 3(1) of the act of September 2, 1965
13 (P.L.490, No.249), referred to as the Money Transmission
14 Business Licensing Law, is amended to read:
15 Section 3. Exemptions.--No license shall be required
16 hereunder of
17 (1) banks, bank and trust companies, savings banks and
18 private banks organized under the laws of this Commonwealth;
19 similar banking institutions organized under the laws of the
20 United States or of any other state which are insured by the
21 Federal Deposit Insurance Corporation; [and] savings and loan
1 associations and building and loan associations organized under
2 the laws of this Commonwealth or of the United States; and
3 credit unions organized under the laws of this Commonwealth of
4 the United States;
5 * * *
6 Section 2. Sections 4(1) and 6(a)(2) of the act, amended
7 July 9, 1977 (P.L.70, No.25), are amended to read:
8 Section 4. Qualifications for a License.--To qualify for a
9 license hereunder an applicant shall
10 (1) have a tangible net worth as determined by generally
11 accepted accounting principles of at least five hundred thousand
12 dollars ($500,000);
13 * * *
14 Section 6. Fee, Financial Statement and Security.--(a) Each
15 application for a license shall be accompanied by
16 * * *
17 (2) a financial statement showing a tangible net worth as
18 determined by generally accepted accounting principles of at
19 least five hundred thousand dollars ($500,000);
20 * * *
21 Section 3. Section 10 of the act is amended to read:
22 Section 10. Authority of the Department of Banking.--(a)
23 The Department of Banking shall have the right to suspend or
24 revoke the original or any renewed license granted under this
25 act if
26 (1) the licensee's bond or securities become inadequate and
27 the licensee after notice fails forthwith to furnish an adequate
28 bond or securities in the amount required by this act; or
29 (2) the licensee shall violate any provision of the act or
30 any rule or regulation issued by the Department of Banking under
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1 authority of this act; or
2 (3) the licensee shall fail to comply with any demand, rule
3 or regulation lawfully made by the Department of Banking under
4 authority of this act; or
5 (4) the licensee shall refuse to permit the Department of
6 Banking or its designated representative to make any examination
7 authorized by this act; or
8 (5) if any fact or condition is discovered which, if it had
9 been known at the time of the filing of the application for the
10 license, would have warranted the Department of Banking in
11 denying the application.
12 (b) Pursuant to a written agreement, the Department of
13 Banking may exchange examination and other pertinent information
14 and reports with money transmitter regulations in other states
15 to facilitate cooperative examinations of money transmitters.
16 Section 4. This act shall take effect immediately.
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