| 1 | 1 | | MISSISSIPPI LEGISLATURE 2025 Regular Session To: Banking and Financial Services By: Representative Carpenter House Bill 1044 AN ACT TO ESTABLISH THE MISSISSIPPI BULLION DEPOSITORY; TO DEFINE CERTAIN TERMS RELATING TO THE DEPOSITORY; TO PROVIDE THAT SUCH DEPOSITORY IS ESTABLISHED TO SERVE AS THE CUSTODIAN, GUARDIAN, AND ADMINISTRATOR OF CERTAIN BULLION AND SPECIE THAT MAY BE TRANSFERRED TO OR OTHERWISE ACQUIRED BY THE STATE OF MISSISSIPPI OR AN AGENCY, DEPARTMENT, INSTITUTION, INSTRUMENTALITY, OR POLITICAL SUBDIVISION OF THE STATE OF MISSISSIPPI; TO REQUIRE THAT THE DEPOSITORY BE ADMINISTERED AS A DIVISION OF THE OFFICE OF THE STATE TREASURER AND UNDER THE DIRECTION AND SUPERVISION OF A BULLION DEPOSITORY ADMINISTRATOR; TO PROVIDE THE DUTIES OF THE BULLION DEPOSITORY ADMINISTRATOR; TO AUTHORIZE THE DEPOSITORY TO RECEIVE A DEPOSIT OF BULLION OR SPECIE FROM OR ON BEHALF OF A PERSON ACTING IN THE PERSON'S OWN RIGHT, AS TRUSTEE, OR IN ANOTHER FIDUCIARY CAPACITY, IN ACCORDANCE WITH ANY RULES OR REGULATIONS ADOPTED BY THE STATE TREASURER; TO REQUIRE THAT THE DEPOSITORY RECORD THE AMOUNT OF PRECIOUS METALS A PERSON DEPOSITS, REGARDLESS OF FORM, IN UNITS OF TROY OUNCES PURE, AND THE RECORD MUST ALSO SPECIFY THE TYPE AND QUANTITY OF EACH PRECIOUS METAL DEPOSITED; TO AUTHORIZE THE STATE TREASURER TO RESTRICT THE FORMS IN WHICH DEPOSITS OF PRECIOUS METALS MAY BE MADE TO THOSE FORMS THAT CONVENIENTLY LEND THEMSELVES TO MEASUREMENT AND ACCOUNTING IN UNITS OF TROY OUNCES AND STANDARDIZED FRACTIONS OF TROY OUNCES; TO REQUIRE THE DEPOSITORY TO DELIVER ANY PRECIOUS METAL HELD BY OR ON BEHALF OF THE DEPOSITORY IN BULLION, SPECIE, OR A COMBINATION THEREOF, ON THE ORDER OF A DEPOSITORY ACCOUNT HOLDER IN A QUANTITY OF THAT PRECIOUS METAL AS IS AVAILABLE IN SUCH ACCOUNT HOLDER'S ACCOUNT; TO AUTHORIZE A DEPOSITORY ACCOUNT HOLDER TO TRANSFER ANY PORTION OF THE BALANCE OF THE HOLDER'S DEPOSITORY ACCOUNT BY CHECK, DRAFT, OR DIGITAL ELECTRONIC INSTRUCTION TO ANOTHER DEPOSITORY ACCOUNT HOLDER OR TO A PERSON WHO AT THE TIME THE TRANSFER IS INITIATED IS NOT A DEPOSITORY ACCOUNT HOLDER; TO REQUIRE A DEPOSITOR TO CONTRACT WITH THE DEPOSITORY TO BE ABLE TO ESTABLISH A DEPOSITORY ACCOUNT; TO PROVIDE CERTAIN REQUIREMENTS FOR SUCH CONTRACT BETWEEN A DEPOSITORY AND DEPOSITOR; TO PROVIDE THAT A CAUSE OF ACTION FOR DENIAL OF DEPOSIT LIABILITY ON A DEPOSITORY ACCOUNT CONTRACT WITHOUT A MATURITY DATE DOES NOT ACCRUE UNTIL THE DEPOSITORY HAS DENIED LIABILITY AND GIVEN NOTICE OF THE DENIAL TO THE DEPOSITORY ACCOUNT HOLDER; TO PROVIDE THAT A DEPOSITORY ACCOUNT MAY BE TRANSFERRED ON THE BOOKS OF THE DEPOSITORY ONLY ON PRESENTATION TO THE DEPOSITORY OF EVIDENCE OF TRANSFER SATISFACTORY TO THE DEPOSITORY AND AN APPLICATION FOR THE TRANSFER SUBMITTED BY THE PERSON TO WHOM THE DEPOSITORY ACCOUNT IS TO BE TRANSFERRED; TO PROHIBIT THE DEPOSITORY FROM PAYING ON A DEPOSITORY ACCOUNT ANY INTEREST, AN AMOUNT IN THE NATURE OF INTEREST, OR A FEE OR OTHER PAYMENT FOR THE USE OR FORBEARANCE OF USE OF MONEY, BULLION, SPECIE, OR PRECIOUS METALS DEPOSITED TO A DEPOSITORY ACCOUNT; TO PROVIDE THAT THE DEPOSITORY HAS A LIEN ON EACH DEPOSITORY ACCOUNT OWNED BY A DEPOSITORY ACCOUNT HOLDER TO SECURE ANY FEES, CHARGES, OR OTHER OBLIGATIONS OWED OR THAT MAY BECOME OWED TO THE DEPOSITORY IN CONNECTION WITH ANY OF SUCH ACCOUNT HOLDER'S DEPOSITORY ACCOUNTS AS PROVIDED BY THE TERMS OF THE ACCOUNT HOLDER'S APPLICABLE DEPOSITORY ACCOUNT CONTRACT; TO AUTHORIZE THE DEPOSITORY, WITHOUT NOTICE TO OR CONSENT OF THE DEPOSITORY ACCOUNT HOLDER, TO TRANSFER ON THE DEPOSITORY'S BOOKS THE BALANCE OF SUCH ACCOUNT HOLDER'S DEPOSITORY ACCOUNT TO PAY OR SATISFY THE OBLIGATION UPON DEFAULT IN THE PAYMENT OR IN THE SATISFACTION OF SUCH ACCOUNT HOLDER'S OBLIGATION, AS DETERMINED BY REFERENCE TO THE EXCHANGE RATES APPLICABLE AT THE TIME OF THE TRANSFER; TO AUTHORIZE CERTAIN INDIVIDUALS AND ENTITIES TO INVEST MONEY IN A DEPOSITORY ACCOUNT BY PURCHASING PRECIOUS METALS AND DEPOSITING SUCH PRECIOUS METALS WITH THE DEPOSITORY OR A DEPOSITORY AGENT; TO PROVIDE THAT UNLESS A TERM OF THE DEPOSITORY ACCOUNT PROVIDES OTHERWISE, A PERSON ON WHOSE SIGNATURE PRECIOUS METALS MAY BE WITHDRAWN FROM A DEPOSITORY ACCOUNT THAT IS JOINTLY HELD IN THE NAMES OF TWO OR MORE PERSONS MAY, BY A SIGNED PLEDGE, PLEDGE AND TRANSFER TO THE DEPOSITORY OR TO A THIRD PARTY ALL OR PART OF THE ACCOUNT; TO AUTHORIZE THE DEPOSITORY OR A DEPOSITORY AGENT TO ACCEPT A DEPOSITORY ACCOUNT IN THE NAME OF A FIDUCIARY, INCLUDING AN ADMINISTRATOR, EXECUTOR, CUSTODIAN, GUARDIAN, OR TRUSTEE, FOR A NAMED BENEFICIARY; TO REQUIRE THE DEPOSITORY TO RECOGNIZE THE AUTHORITY OF A POWER OF ATTORNEY AUTHORIZED IN WRITING BY A DEPOSITORY ACCOUNT HOLDER TO MANAGE OR WITHDRAW PRECIOUS METALS FROM THE DEPOSITORY ACCOUNT HOLDER'S DEPOSITORY ACCOUNT UNTIL THE DEPOSITORY RECEIVES WRITTEN OR ACTUAL NOTICE OF THE REVOCATION OF THAT AUTHORITY; TO REQUIRE THE DEPOSITORY TO ENTER INTO TRANSACTIONS AND RELATIONSHIPS WITH BULLION BANKS, DEPOSITORIES, DEALERS, CENTRAL BANKS, SOVEREIGN WEALTH FUNDS, FINANCIAL INSTITUTIONS, INTERNATIONAL NONGOVERNMENTAL ORGANIZATIONS, AND OTHER PERSONS, LOCATED INSIDE OR OUTSIDE OF MISSISSIPPI OR INSIDE OR OUTSIDE OF THE UNITED STATES, AS THE STATE TREASURER DETERMINES TO BE PRUDENT AND SUITABLE TO FACILITATE THE OPERATIONS OF THE DEPOSITORY; TO PROVIDE CERTAIN PROHIBITIONS FOR THE BULLION DEPOSITORY; TO REQUIRE THE STATE TREASURER TO ESTABLISH THE REFERENCES BY WHICH THE OFFICIAL EXCHANGE RATE FOR PRICING PRECIOUS METALS TRANSACTIONS IN TERMS OF UNITED STATES DOLLARS OR OTHER CURRENCY MUST BE ESTABLISHED AT THE TIME OF A DEPOSITORY TRANSACTION; TO REQUIRE THE STATE TREASURER TO ESTABLISH PROCEDURES AND FACILITIES THROUGH WHICH THE RATES ARE MADE DISCOVERABLE AT ALL REASONABLE TIMES BY SYSTEM PARTICIPANTS, BOTH ON A REAL-TIME BASIS AND RETROSPECTIVELY; TO REQUIRE THE STATE TREASURER TO ESTABLISH PROCEDURES AND REQUIREMENTS FOR THE DEPOSITORY AND DEPOSITORY AGENTS DESIGNED TO MINIMIZE THE BURDEN TO SYSTEM PARTICIPANTS OF ACCOUNTING FOR AND REPORTING TAXABLE GAINS AND LOSSES ARISING OUT OF DEPOSITORY TRANSACTIONS AS DENOMINATED IN UNITED STATES DOLLARS OR ANOTHER CURRENCY; TO REQUIRE THE STATE TREASURER TO SUBMIT TO THE GOVERNOR AND TO THE LEGISLATURE A REPORT ON THE STATUS, CONDITION, OPERATIONS, AND PROSPECTS FOR THE DEPOSITORY AND DEPOSITORY PARTICIPATION NOT LATER THAN SEPTEMBER 30 OF EACH YEAR; TO REQUIRE THAT THE DEPOSITORY USE PRIVATE, INDEPENDENTLY MANAGED FIRMS AND INSTITUTIONS LICENSED AS DEPOSITORY AGENTS AS INTERMEDIARIES TO CONDUCT RETAIL TRANSACTIONS IN BULLION AND SPECIE ON BEHALF OF THE DEPOSITORY WITH CURRENT AND PROSPECTIVE DEPOSITORY ACCOUNT HOLDERS; TO PROVIDE THAT THE STATE TREASURER SHALL REQUIRE A DEPOSITORY AGENT TO MAINTAIN SUITABLE SYSTEMS AND PROCESSES FOR ELECTRONIC INFORMATION SHARING AND COMMUNICATION WITH THE STATE TREASURER AND THE DEPOSITORY TO ENSURE THAT ALL TRANSACTIONS EFFECTED ON BEHALF OF THE DEPOSITORY ARE REPORTED TO AND INTEGRATED INTO THE DEPOSITORY'S RECORDS NOT LATER THAN 11:59:59 P.M. ON THE DATE OF EACH TRANSACTION; TO REQUIRE A DEPOSITORY AGENT TO SUBMIT MONTHLY, QUARTERLY, AND ANNUAL REPORTS OF ALL DEPOSITORY TRANSACTIONS NO LATER THAN THE 15TH DAY OF THE MONTH FOLLOWING THE EXPIRATION OF THE PERIOD WITH RESPECT TO WHICH REPORT IS SUBMITTED; TO PROVIDE THAT A PERSON MAY NOT ENGAGE IN THE BUSINESS OF RENDERING DEPOSITORY AGENT SERVICES OR ADVERTISE, SOLICIT, OR HOLD ITSELF OUT AS A PERSON THAT ENGAGES IN THE BUSINESS OF SUCH SERVICES UNLESS THE PERSON IS LICENSED, AND HAS RECEIVED THE REQUISITE CERTIFICATIONS OR IS EXCLUDED FROM LICENSING REQUIREMENTS UNDER THE MISSISSIPPI MONEY TRANSMITTERS ACT; TO PROVIDE THAT A PERSON ENGAGES IN THE BUSINESS OF DEPOSITORY AGENT SERVICES IF THE PERSON RENDERS A DEPOSITORY AGENT SERVICE, REGARDLESS OF WHETHER COMPENSATION IS SOUGHT OR RECEIVED FOR THE SERVICE, DIRECTLY OR INDIRECTLY OR IF THE SERVICE IS INCIDENTAL TO ANY OTHER BUSINESS IN WHICH THE PERSON IS PRIMARILY ENGAGED; TO PROVIDE THAT A PERSON SOLICITS, ADVERTISES, OR HOLDS THE PERSON OUT AS A PERSON THAT ENGAGES IN THE BUSINESS OF DEPOSITORY AGENT SERVICES IF THE PERSON REPRESENTS THAT THE PERSON WILL CONDUCT DEPOSITORY AGENT SERVICES; TO AUTHORIZE A DEPOSITORY AGENT LICENSE HOLDER TO ENGAGE IN DEPOSITORY AGENT SERVICES BUSINESS AT ONE OR MORE LOCATIONS IN MISSISSIPPI OWNED DIRECTLY OR INDIRECTLY BY THE LICENSE HOLDER UNDER A SINGLE LICENSE; TO REQUIRE AN APPLICANT FOR A DEPOSITORY AGENT LICENSE TO SUBMIT AN APPLICATION IN ACCORDANCE WITH THE MISSISSIPPI MONEY TRANSMITTERS ACT AND TO PROVIDE CERTAIN REQUIREMENTS FOR SUCH APPLICATION; TO REQUIRE THE DEPARTMENT OF BANKING AND CONSUMER FINANCE TO INVESTIGATE SUCH APPLICANT AND ACT ON THE APPLICATION IN ACCORDANCE WITH THE MISSISSIPPI MONEY TRANSMITTERS ACT; TO AUTHORIZE THE COMMISSIONER OF BANKING AND CONSUMER FINANCE TO ISSUE A TEMPORARY DEPOSITORY AGENT LICENSE TO A PERSON THAT IS ENGAGING IN DEPOSITORY AGENT SERVICES, BUT HAS NOT OBTAINED A LICENSE UNDER THIS ACT UNDER CERTAIN CIRCUMSTANCES; TO PROVIDE THAT A DEPOSITORY AGENT LICENSE HOLDER IS LIABLE FOR THE DELIVERY TO OR FOR THE ACCOUNT OF THE DEPOSITORY OR EACH DEPOSITOR, AS APPLICABLE, OF ALL BULLION, SPECIE, AND MONEY PAYABLE OR DELIVERABLE IN CONNECTION WITH THE TRANSACTIONS IN WHICH THE LICENSE HOLDER ENGAGES ON BEHALF OF THE DEPOSITORY; TO REQUIRE A DEPOSITORY AGENT LICENSE HOLDER TO HOLD IN TRUST ALL CASH, BULLION, SPECIE, AND OTHER ASSETS RECEIVED IN THE ORDINARY COURSE OF ITS BUSINESS UNTIL THE TIME THE DELIVERY OBLIGATION IS DISCHARGED; TO REQUIRE THAT A DEPOSITORY AGENT LICENSE HOLDER'S NAME AND MAILING ADDRESS OR TELEPHONE NUMBER MUST BE PROVIDED TO THE PURCHASER IN CONNECTION WITH EACH DEPOSITORY AGENT SERVICES TRANSACTION CONDUCTED BY THE DEPOSITORY AGENT LICENSE HOLDER; TO BRING FORWARD SECTIONS 75-15-3, 75-15-5, 75-15-7, 75-15-9, 75-15-11, 75-15-12, 75-15-19, 75-15-23, 75-15-25 AND 75-15-29, MISSISSIPPI CODE OF 1972, WHICH RELATE TO THE MISSISSIPPI MONEY TRANSMITTERS ACT, FOR PURPOSES OF POSSIBLE AMENDMENT; AND FOR RELATED PURPOSES. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: SECTION 1. (1) As used in this act, the following terms have the meanings as defined in this section, unless the context clearly indicates otherwise: (a) "Administrator" means the bullion depository administrator appointed under Section 3 of this act. (b) "Bullion" means precious metals that are formed into uniform shapes and quantities such as ingots, bars, or plates, with uniform content and purity, as are suitable for or customarily used in the purchase, sale, storage, transfer, and delivery of bulk or wholesale transactions in precious metals. (c) "Business day" means a day other than a Saturday, Sunday, or banking holiday for a bank chartered under the laws of this state. (d) "Deposit" means the establishment of an executory obligation of the depository to deliver to the order of the person establishing with the depository the obligation, on demand, a quantity of a specified precious metal, in bullion, specie, or a combination of bullion and specie, equal to the quantity of the same precious metal delivered by or on behalf of the depositor into the custody of: (i) The depository; or (ii) A depository agent. (e) "Depositor" means a person who makes a deposit. (f) "Depository" means the Mississippi Bullion Depository created by this act. (g) "Depository account" means the rights, interests, and entitlements established in favor of a depositor with respect to a deposit in accordance with this act, and rules or regulations adopted under this act. (h) "Depository account holder," regarding a depository account, means the original depositor or a successor or assignee of the depositor respecting the depository account. (i) "Depository agent" means a person licensed in accordance with this act to serve as an intermediary between the depository and a retail customer in making a transaction in precious metals bullion or specie. (j) "Depository agent license" means a license issued under this act. (k) "Depository agent services" means services rendered to the general public for or on behalf of the Mississippi Bullion Depository in the nature of purchasing, selling, transferring, accepting, transporting, delivering, or otherwise dealing in precious metals bullion or specie in connection with the creation, transfer, clearing, settlement, or liquidation of the rights and interests of a depository account holder and a direct or indirect transferee of a depository account holder. The term "depository agent services" does not include: (i) Participation as a party or counterparty to a transaction, including an agreement with respect to a transaction, in or in connection with a contract for the purchase or sale of a person's rights and interests as a depository account holder, as a cash contract for present delivery, a cash contract for deferred shipment or delivery, or a contract for future delivery, where the underlying deliverable consists of the depository account holder's interest in the depository account, rather than the underlying precious metal represented by the depository account balance; (ii) The opening, transfer, settlement, or liquidation of any derivative of a contract, including a forward transaction, swap transaction, currency transaction, future transaction, index transaction, or option on or other derivative of a transaction of any of those types, in the nature of a cap transaction, floor transaction, collar transaction, repurchase transaction, reverse repurchase transaction, buy-and-sell-back transaction, securities lending transaction, or other financial instrument or interest, including an option with respect to a transaction, or any combination of these transactions; or (iii) The rendition of services exclusively in support of the opening, transfer, settlement, or liquidation of transaction derivatives through a central counterparty, such as those customarily rendered by a clearinghouse, clearing association, or clearing corporation, or through an interbank payment system, physical or electronic trading facility, broker or brokerage firm, or similar entity, facility, system, or organization. (l) "Precious metal" means a metal, including gold and silver that: (i) Bears a high value-to-weight ratio relative to common industrial metals; and (ii) Customarily is formed into bullion or specie. (m) "Specie" means a precious metal stamped into coins of uniform shape, size, design, content, and purity, suitable for or customarily used as currency, as a medium of exchange, or as the medium for purchase, sale, storage, transfer, or delivery of precious metals in retail or wholesale transactions. SECTION 2. (1) The Mississippi Bullion Depository is established as an agency of this state in the Office of the State Treasurer. (2) The depository is established to serve as the custodian, guardian, and administrator of certain bullion and specie that may be transferred to or otherwise acquired by the State of Mississippi, or an agency, department, institution, instrumentality, or political subdivision of the State of Mississippi, or any agency, department, or institution of a political subdivision of the state. SECTION 3. (1) The depository is administered as a division of the Office of the State Treasurer and under the direction and supervision of a bullion depository administrator appointed by the State Treasurer with the advice and consent of the Governor, Lieutenant Governor, and Senate. (2) The bullion depository administrator shall: (a) Administer, supervise, and direct the operations and affairs of the depository and depository agents; and (b) Liaise with the State Treasurer and other divisions of the Office of the State Treasurer to ensure that each transaction with the depository that involves state money, that involves an agency, department, institution, instrumentality, or political subdivision of the State of Mississippi, or any agency, department, or institution of a political subdivision of the state, or that involves a private person is planned, administered, and executed in a manner to achieve the purposes of this act. (3) The administrator may appoint, subject to the approval of the State Treasurer, a deputy administrator or other subordinate officer as necessary and appropriate to the efficient administration of the depository. SECTION 4. (1) The following are not available for legislative appropriation: (a) A deposit to the depository; (b) Bullion or specie held by or on behalf of the depository or a depository agent; (c) Bullion or specie in transit to or from the depository or a depository agent; and (d) A receivable or other amount owed to the depository in settlement of a transaction in bullion or specie. (2) Bullion, specie, and other assets described by subsection (1) of this section are subject to redemption, liquidation, or transfer exclusively to discharge an obligation of the depository to depository account holders, depository agents, bullion banks, financial institutions, or other intermediaries in accordance with this act, and any rules or regulations adopted under this act. (3) Revenue that the depository earns from fees, charges, or other payments received in the course of depository operations shall be transferred to the State General Fund. SECTION 5. (1) The depository may receive a deposit of bullion or specie from or on behalf of a person acting in the person's own right, as trustee, or in another fiduciary capacity, in accordance with any rules or regulations adopted by the State Treasurer, as appropriate, to: (a) Ensure compliance with law; and (b) Protect the interests of: (i) The depository; (ii) Depository account holders; (iii) The State of Mississippi, and any agency, department, institution, instrumentality, or political subdivision of the State of Mississippi, or any agency, department, or institution of a political subdivision of the state; and (iv) The public at large. (2) The depository shall record the amount of precious metals a person deposits, regardless of form, in units of troy ounces pure, and the records must also specify the type and quantity of each precious metal deposited. (3) The State Treasurer, by rule or regulation, shall adopt standards by which the quantities of precious metals deposited are credited to a depositor's depository account by reference to the particular form in which the metals were deposited, classified by mint, denomination, weight, assay mark, or other indicator, as applicable. The standards must conform to applicable national and international standards of weights and measures. (4) The State Treasurer, by rule or regulation, may, if he or she determines that to do so is in the public interest, restrict the forms in which deposits of precious metals may be made to those forms that conveniently lend themselves to measurement and accounting in units of troy ounces and standardized fractions of troy ounces. (5) The depository shall adjust each depository account balance to reflect additions to or withdrawals or deliveries from the account. SECTION 6. (1) The depository shall deliver any precious metal held by or on behalf of the depository in bullion, specie, or a combination of bullion and specie, on the order of a depository account holder in a quantity of that precious metal as is available in the depository account holder's depository account. (2) The depository shall make a delivery described by subsection (1) of this section on demand by the presentment of a suitable check, draft, or digital electronic instruction to the depository or a depository agent. The State Treasurer, by rule or regulation, shall adopt the forms, standards, and processes through which an order for delivery on demand may be made, presented, and honored. (3) The depository shall make a delivery at the depository's settlement facility designated by the State Treasurer, shipping to an address specified by the account holder or, at the depository's discretion, at a facility of a depository agent at which presentment is made, not later than five (5) business days after the date of presentment. SECTION 7. (1) In accordance with any rules or regulations adopted under this act, a depository account holder may transfer any portion of the balance of the holder's depository account by check, draft, or digital electronic instruction to another depository account holder or to a person who at the time the transfer is initiated is not a depository account holder. (2) The depository shall adjust the depository account balances of the depository accounts to reflect a transfer transaction between depository account holders on presentment of the check, draft, or other instruction by reducing the payor's depository account balance and increasing the depository account balance of the payee accordingly. (3) If a depository account holder transfers to a payee who is not a depository account holder any portion of the balance of the holder's depository account, the depository shall allow the payee to establish a depository account by presentment of the payor's check, draft, or instruction to the depository or to a depository agent. The depository shall credit a newly established account on behalf of the payee and shall debit the payor's account accordingly. SECTION 8. (1) To establish a depository account, a depositor must contract with the depository for a depository account. The contract must specify: (a) The terms applicable to the account, including any special terms; and (b) The conditions on which withdrawals or deliveries with respect to the account may be made. (2) The execution of a contract for a depository account described by this section may be made, as prescribed by any rules or regulations adopted under this act, by electronic or digital transmission. (3) The depository or a depository agent shall hold the contract for a depository account in the records pertaining to the account. (4) A contract for a depository account executed by a depositor and the depository is considered a contract in writing for all purposes, and may be evidenced by one or more agreements, deposit receipts, signature cards, amendment notices, or other documentation as provided by law. (5) The depository and the depository account holder may amend a contract for a depository account by agreement, or the depository may amend the deposit contract by mailing a written notice of the amendment to the account holder, separately or as an enclosure with or part of the account holder's statement of account or passbook. In the case of amendment by notice from the depository, the notice must include the text and effective date of the amendment. The effective date may not be earlier than the 30th day after the date the notice is mailed, except as otherwise provided under this act. SECTION 9. (1) A cause of action for denial of deposit liability on a depository account contract without a maturity date does not accrue until the depository has denied liability and given notice of the denial to the depository account holder. (2) The depository's act of furnishing an account statement or passbook, whether in physical, digital, or electronic form, constitutes a denial of liability and the giving of such notice as to any amount not shown on the statement or passbook. (3) The depository's sovereign immunity from suit is waived for an action brought by a depositor for the denial of deposit liability. (4) The depository's liability for a denial of deposit liability is limited to the amount on deposit for which liability was denied. A depositor may not recover consequential damages, exemplary damages, pre- or post-judgment interest, costs, or attorney's fees. (5) A cause of action authorized by this section must be brought in a court of competent jurisdiction before the expiration of one (1) year after the date it accrues, or such cause of action is barred. SECTION 10. The State Treasurer, by rule or regulation, may establish fees, service charges, and penalties to be charged a depository account holder for a service or activity regarding a depository account, including a fee for an overdraft, an insufficient fund check or draft, or a stop payment order. SECTION 11. Unless the depository acknowledges in writing a pledge of a depository account, the depository may treat the holder of record of the account as the owner of the account for all purposes and without regard to a notice to the contrary. SECTION 12. (1) A depository account may be transferred on the books of the depository only on presentation to the depository of: (a) Evidence of transfer satisfactory to the depository; and (b) An application for the transfer submitted by the person to whom the depository account is to be transferred. (2) A person to whom a depository account is to be transferred must accept the transferred account subject to the terms of the deposit contract, this act, and any rules or regulations adopted under this act. SECTION 13. The depository shall not pay on a depository account: (a) Interest; (b) An amount in the nature of interest; or (c) A fee or other payment for the use or forbearance of use of money, bullion, specie, or precious metals deposited to a depository account. SECTION 14. (1) Without the need of any further agreement or pledge, the depository has a lien on each depository account owned by a depository account holder to secure any fees, charges, or other obligations owed or that may become owed to the depository in connection with any of the depository account holder's depository accounts as provided by the terms of the depository account holder's applicable depository account contract. (2) On default in the payment or in the satisfaction of a depository account holder's obligation, the depository, without notice to or consent of the depository account holder, may transfer on the depository's books all or part of the balance of a depository account holder's depository account to the extent necessary to pay or satisfy the obligation, as determined by reference to the exchange rates applicable at the time of the transfer. (3) The depository by written instrument may waive wholly or partly the depository's lien on a depository account. (4) Subject to a lien created as provided by this section, the depository shall recognize the lawful pledge to a third party by a depository account holder of the depository account holder's rights, interests, and entitlements in and to a depository account as an intangible asset. On the satisfaction of other requirements of law in respect of the perfection and enforcement of a pledge of that type, the depository shall take all steps reasonably necessary and appropriate to effectuate on the depository's books any transfer of a depository account or of all or part of a depository account balance to the account of the secured party on the successful enforcement of the pledge. SECTION 15. (1) The following persons may invest the person's money in a depository account by purchasing precious metals and depositing the precious metals with the depository or a depository agent: (a) An individual or fiduciary, including an administrator, executor, custodian, guardian, or trustee; (b) An agency, department, institution, instrumentality, or political subdivision of the State of Mississippi, or any agency, department, or institution of a political subdivision of the state; (c) A business or nonprofit corporation; (d) A charitable or educational corporation or association; or (e) A financial institution, including a bank, savings and loan association, or credit union. (2) An investment by a school district in a depository account may be made instead of an investment as provided in Title 37, Mississippi Code of 1972, and the depository may be used by a district instead of a depository bank for the purposes of Title 37, Mississippi Code of 1972. SECTION 16. The applicable provisions of Title 91, Mississippi Code of 1972, govern a depository account. SECTION 17. (1) Unless a term of the depository account provides otherwise, a person on whose signature precious metals may be withdrawn from a depository account that is jointly held in the names of two or more persons may, by a signed pledge, pledge and transfer to the depository or to a third party all or part of the account. (2) A pledge made as described by subsection (1) of this section does not sever or terminate the joint and survivorship ownership of the account, to the extent applicable to the account before the pledge. SECTION 18. (1) The depository or a depository agent may accept a depository account in the name of a fiduciary, including an administrator, executor, custodian, guardian, or trustee, for a named beneficiary. (2) A fiduciary may open, add to, or withdraw precious metals from an account described by subsection (1) of this section. (3) Except as otherwise provided by law, a payment or delivery to a fiduciary or an acquittance signed by the fiduciary to whom a payment or delivery is made is a discharge of the depository for the payment or delivery. (4) After a person who holds a depository account in a fiduciary capacity dies, the depository may pay or deliver to the beneficiary of the account the quantity of precious metals represented by the balance in the depository account, plus other rights relating to the depository account, wholly or partly, if the depository has no written notice or order of the probate court of: (a) A revocation or termination of the fiduciary relationship; or (b) Any other disposition of the beneficial estate. (5) The depository has no further liability for a payment made or right delivered under subsection (4) of this section. SECTION 19. (1) If the depository opens a depository account for a person claiming to be the trustee for another person, and the depository has no other notice of the existence or terms of the trust other than a written claim against the account: (a) The person claiming to be the trustee, on the person's signature, may withdraw precious metals from the account; and (b) If the person claiming to be the trustee dies, the depository may pay or deliver the quantity of precious metals represented by the balance in the account to the person for whom the account was opened. (2) The depository has no further liability for a payment or delivery made as provided by subsection (1) of this section. SECTION 20. (1) The depository shall recognize the authority of a power of attorney authorized in writing by a depository account holder to manage or withdraw precious metals from the depository account holder's depository account until the depository receives written or actual notice of the revocation of that authority. (2) For purposes of this section, written notice of the death or adjudication of incompetency of a depository account holder is considered to be written notice of revocation of the authority of the account holder's power of attorney. SECTION 21. The depository shall enter into transactions and relationships with bullion banks, depositories, dealers, central banks, sovereign wealth funds, financial institutions, international nongovernmental organizations, and other persons, located inside or outside of this state or inside or outside of the United States, as the State Treasurer determines to be prudent and suitable to facilitate the operations of the depository and to further the purposes of this act. SECTION 22. (1) The depository shall not take any of the following actions, and any attempt by the depository to take any of the following actions is void ab initio and of no force or effect: (a) Entering into a precious metals leasing, sale-leaseback, forward transaction, swap transaction, future transaction, index transaction, or option on or other derivative of any of those, whether in the nature of a cap transaction, floor transaction, collar transaction, repurchase transaction, reverse repurchase transaction, buy-and-sell-back transaction, securities lending transaction, or other financial instrument or interest intended to or having the effect of hedging or leveraging the depository's holdings of precious metals, including any option with respect to any of these transactions, or any combination of these transactions, except that the limitation provided by this subdivision does not apply to a transaction entered into to limit the depository's exposure to post-signature price risks associated with executory agreements to purchase or sell precious metals in the ordinary course of depository operations and does not apply to policies of insurance purchased to insure against ordinary casualty risks such as theft, damage or destruction, loss during shipment, or similar risks; (b) Crediting the depository account balances of a depository account holder, or disposing of any precious metals, if to do so would cause the aggregate depository account balances with respect to any precious metal represented by all depository accounts to exceed the aggregate quantities of such precious metal held by or for the benefit of the depository and the depository's depository agents; (c) Entering into or maintaining a deposit, trust, or similar relationship for the custody of precious metals by a third party outside this state, directly or indirectly, for the account or benefit of the depository if the State Treasurer, by rule or regulation, establishes that: (i) The custody or intermediary arrangements in question do not meet the State Treasurer's standards of safety, security, and liquidity; or (ii) Except in those cases where such relationship may be incidental to the performance of or preparation for purchase and sale transactions with counterparties located outside of this state, suitable alternate arrangements for physical custody of the precious metals inside this state have been established and are available; (d) Extending credit to a person, including credit secured by a depository account or other assets, except an extension of credit incidental to the performance of the functions and responsibilities otherwise provided by this act; or (e) Engaging in a business or activity that, if conducted by a private person, would be subject to regulation in this state as a banking or savings and loan function. SECTION 23. (1) A purported confiscation, requisition, seizure, or other attempt to control the ownership, disposition, or proceeds of a withdrawal, transfer, liquidation, or settlement of a depository account, including the precious metals represented by the balance of a depository account, if effected by a governmental or quasi-governmental authority other than an authority of this state or by a financial institution or other person acting on behalf of or pursuant to a directive or authorization issued by a governmental or quasi-governmental authority other than an authority of this state, in the course of a generalized declaration of illegality or emergency relating to the ownership, possession, or disposition of one or more precious metals, contracts, or other rights to the precious metals or contracts or derivatives of the ownership, possession, disposition, contracts, or other rights, is void ab initio and of no force or effect. (2) The depository in the case of receiving notice of a purported confiscation, requisition, seizure, or other attempt to control the ownership, disposition, or proceeds of a withdrawal, transfer, liquidation, or settlement of a depository account, including the precious metals represented by the balance of a depository account, effected by a governmental or quasi-governmental authority other than an authority of this state or by a financial institution or other person acting on behalf of or pursuant to a directive or authorization issued by a governmental or quasi-governmental authority other than an authority of this state, in the course of a generalized declaration of illegality or emergency relating to the ownership, possession, or disposition of one or more precious metals, contracts, or other rights to the precious metals or contracts or derivatives of the ownership, possession, disposition, contracts, or other rights, may not recognize the governmental or quasi-governmental authority, financial institution, or other person acting as the lawful successor of the registered holder of a depository account in question. (3) On receipt of notice of any transaction described by subsection (1) of this section, with respect to all or any portion of the balance of a depository account, the depository shall suspend withdrawal privileges associated with the balances of the depository account until suitable substitute arrangements may be effected in accordance with any rules or regulations of the State Treasurer to enable the registered account holder to take delivery of the precious metals represented by the account balances in question. A voluntary transfer of a depository account balance or of a depository account among depository account holders may continue to take place unaffected by the suspension, and the depository shall recognize to the full extent authorized by this act, and any rules or regulations adopted under this act. SECTION 24. The State Treasurer, by rule or regulation, shall establish the references by which the official exchange rate for pricing precious metals transactions in terms of United States dollars or other currency must be established at the time of a depository transaction. The State Treasurer shall establish procedures and facilities through which the rates are made discoverable at all reasonable times by system participants, both on a real-time basis and retrospectively. SECTION 25. The State Treasurer, by rule or regulation, shall establish procedures and requirements for the depository and depository agents designed to minimize the burden to system participants of accounting for and reporting taxable gains and losses arising out of depository transactions as denominated in United States dollars or another currency. SECTION 26. The State Treasurer shall submit to the Governor and to the Legislature a report on the status, condition, operations, and prospects for the depository and depository participation not later than September 30 of each year. SECTION 27. The depository shall use private, independently managed firms and institutions licensed as depository agents as intermediaries to conduct retail transactions in bullion and specie on behalf of the depository with current and prospective depository account holders. SECTION 28. The State Treasurer, by rule or regulation, shall require a depository agent to maintain suitable systems and processes for electronic information sharing and communication with the State Treasurer and the depository to ensure that all transactions effected on behalf of the depository are reported to and integrated into the depository's records not later than 11:59:59 p.m. on the date of each transaction. SECTION 29. A depository agent shall submit monthly, quarterly, and annual reports of all depository transactions not later than the 15th day of the month following the expiration of the period with respect to which such report is submitted. The report must contain information and be in the form and format as required by the State Treasurer. SECTION 30. A depository agent license holder shall prepare written reports and statements as follows: (a) The renewal report, including an audited unconsolidated financial statement that is dated as of the last day of the license holder's fiscal year that ended in the immediately preceding calendar year; (b) A quarterly interim financial statement and report regarding the permissible investments required to be maintained under applicable rules that reflect the license holder's financial condition and permissible investments as of the last day of the calendar quarter to which the statement and report relate and that are prepared not later than the 45th day after the last day of the calendar quarter; and (c) Any other report required by the Department of Banking and Consumer Finance, or reasonably requested by the Commissioner of Banking and Consumer Finance to determine compliance with this act. SECTION 31. (1) Notwithstanding any other provision of this chapter, a money service that constitutes both a depository agent service and a money transmission service, or both a depository agent service and a currency exchange service, for purposes of this act constitutes a depository agent service only. (2) A depository agent service described by subsection (1) of this section is not subject to a provision of this act applicable uniquely to money transmission services or currency exchange services. (3) A person who renders a service that constitutes a depository agent service, including a depository agent service described by subsection (1) of this section, and renders another service that constitutes money transmission or currency exchange service only, is subject to the requirements of this act applicable to each type of service rendered. SECTION 32. (1) A person may not engage in the business of rendering depository agent services or advertise, solicit, or hold itself out as a person that engages in the business of depository agent services unless the person is: (a) Licensed under this act, and has received the requisite certifications from the comptroller of its facilities, systems, processes, and procedures as required by this act, or any applicable rules or regulations adopted; or (b) Excluded from licensing requirements under the Mississippi Money Transmitters Act. (2) For purposes of this act: (a) A person engages in the business of depository agent services if the person renders a depository agent service, regardless of whether: (i) Compensation is sought or received for the service, directly or indirectly; and (ii) The service is incidental to any other business in which the person is primarily engaged; and (b) A person solicits, advertises, or holds the person out as a person that engages in the business of depository agent services if the person represents that the person will conduct depository agent services. (4) Notwithstanding subsection (3) of this section, a person does not engage in the business of depository agent services by engaging in a transaction for the person's own depository account or for the account of another person acting as a fiduciary that would constitute depository agent services if conducted for another person. (5) A depository agent license holder may engage in depository agent services business at one or more locations in this state owned directly or indirectly by the license holder under a single license. SECTION 33. In addition to the general qualifications for licensure set forth in the Mississippi Money Transmitters Act, an applicant for a depository agent license must demonstrate to the satisfaction of the Commissioner of Banking and Consumer Finance that the: (a) Applicant's financial condition will enable the applicant to safely and soundly engage in the business of depository agent services; and (b) Applicant does not engage in any activity or practice that adversely affects the applicant's safety and soundness. SECTION 34. (1) An applicant for a depository agent license must submit an application in accordance with the Mississippi Money Transmitters Act. (2) At the time an application for a depository agent license is submitted, an applicant must file with the Department of Banking and Consumer Finance: (a) An application fee in the amount established by the department; (b) Audited financial statements that are satisfactory to the Commissioner of Banking and Consumer Finance for purposes of determining whether the applicant has the minimum net worth required under applicable rules and is likely to maintain the required minimum net worth if a license is issued; and (c) Security in the amount of Five Hundred Thousand Dollars ($500,000.00) that meets the requirements of any applicable rules or regulations, and an undertaking or agreement that the applicant will increase or supplement the security to equal the aggregate security required by the commissioner before the issuance of the license and the start of operations. SECTION 35. The Department of Banking and Consumer Finance shall investigate the applicant and act on the application in accordance with the Mississippi Money Transmitters Act. SECTION 36. (1) The Commissioner of Banking and Consumer Finance may issue a temporary depository agent license to a person that is engaging in depository agent services, but has not obtained a license under this act, if the person: (a) Certifies in writing that the person qualifies for the license and will submit a completed license application not later than the sixtieth day after the date the temporary license is issued; (b) Submits a recent financial statement acceptable to the commissioner that reflects the minimum net worth required under applicable regulations; (c) Provides security that meets the requirements specified by the commissioner, but not less than Five Hundred Thousand Dollars ($500,000.00); (d) Agrees in writing that, until a permanent license is issued, the person will engage only in activities being conducted at existing locations; and (e) Pays the application fee and a nonrefundable temporary license fee in the amount established by the Department of Banking and Consumer Finance. (2) The effective period for a temporary depository agent license may not exceed ninety (90) days after the date the license is issued. The commissioner may extend the effective period for not more than thirty (30) days if necessary to complete the processing of a timely filed application for which approval is likely. SECTION 37. A depository agent license holder is liable for the delivery to or for the account of the depository or each depositor, as applicable, of all bullion, specie, and money payable or deliverable in connection with the transactions in which the license holder engages on behalf of the depository. SECTION 38. (1) A depository agent license holder shall hold in trust all cash, bullion, specie, and other assets received in the ordinary course of its business until the time the delivery obligation is discharged. A trust resulting from the depository agent license holder's actions is in favor of the persons to whom such delivery obligations are owed. (2) If a depository agent license holder commingles any money or other property received for delivery with money or other property owned or controlled by the depository agent license holder, all commingled money and other property are impressed with a trust as provided by this section in an amount equal to the amount of money or property received for delivery, less the amount of fees paid for the delivery. (3) If the commissioner revokes a depository agent license, all money and other property held in trust by the depository agent license holder is assigned to the commissioner for the benefit of the persons to whom the related delivery obligations are owed. (4) Money or other property of a depository agent license holder impressed with a trust under this section may not be considered an asset or property of the license holder in the event of bankruptcy, receivership, or a claim against the license holder unrelated to the license holder's obligations under this act. SECTION 39. (1) A depository agent license holder's name and mailing address or telephone number must be provided to the purchaser in connection with each depository agent services transaction conducted by the depository agent license holder. (2) A depository agent license holder receiving currency or an instrument payable in currency for transmission must comply with the Mississippi Money Transmitters Act. SECTION 40. Section 75-15-3, Mississippi Code of 1972, is brought forward as follows: 75-15-3. For the purposes of this chapter: (a) "Check" means any check, draft, money order, personal money order or other instrument, including but not limited to stored value cards, for the transmission or payment of money. The format of a check may be either paper, electronic, plastic or any combination thereof. (b) "Commissioner" means the Commissioner of Banking and Consumer Finance of the State of Mississippi. (c) "Deliver" means to deliver a check to the first person who in payment for same makes or purports to make a remittance of or against the face amount thereof, whether or not the deliverer also charges a fee in addition to the face amount, and whether or not the deliverer signs the check. (d) "Executive officer" means the licensee's president, chairman of the executive committee, senior officer responsible for the licensee's business, chief financial officer and any other person who performs similar functions. (e) "Licensee" means a person duly licensed by the commissioner under this chapter. (f) "Monetary value" means a medium of exchange, whether or not redeemable in money. (g) "Money transmission" means to engage in the business of the sale or issuance of checks or of receiving money or monetary value for transmission to a location within or outside the United States by any and all means, including but not limited to wire, facsimile or electronic transfer. (h) "Outstanding check" means any check issued or sold in Mississippi by or for the licensee that has been reported as sold but not yet paid by or for the licensee. (i) "Person" means any individual, partnership, association, joint-stock association, trust or corporation, but does not include the United States government or the government of this state. (j) "Personal money order" means any instrument for the transmission or payment of money in relation to which the purchaser or remitter appoints or purports to appoint the seller thereof as his agent for the receipt, transmission or handling of money, whether the instrument is signed by the seller or by the purchaser or remitter or some other person. (k) "Records" or "documents" means any item in hard copy or produced in a format of storage commonly described as electronic, imaged, magnetic, microphotographic or otherwise, and any reproduction so made shall have the same force and effect as the original thereof and be admitted in evidence equally with the original. (l) "Sell" means to sell, to issue or to deliver a check. (m) "Stored value" means monetary value that is evidenced by an electronic record. SECTION 41. Section 75-15-5, Mississippi Code of 1972, is brought forward as follows: 75-15-5. No person, except those specified in Section 75-15-7, shall engage in the business of money transmission, as a service or for a fee or other consideration, without having first obtained a license under this chapter. SECTION 42. Section 75-15-7, Mississippi Code of 1972, is brought forward as follows: 75-15-7. Nothing in this chapter shall apply to the sale or issuance or delivering of checks by: (a) Any financial institution whose deposits are insured by any agency of the United States government or any trust company authorized to do business in this state; (b) The government of the United States or any department or agent thereof; (c) The State of Mississippi or any municipal corporation, county or other political subdivision of this state; (d) Agents of a licensee, as provided for in Section 75-15-17, provided that this exemption shall apply only to the agent's acts on behalf of the licensee and this exemption shall not exempt the agent from the provisions of this chapter where he conducts money transmissions for his own account; (e) Attorneys-at-law, as to checks issued in the regular course of the practice of law; (f) Persons not carrying on the trade or business of money transmission, this exemption is intended to include persons who conduct money transmissions only as an incidental act to another trade or business regularly carried on by them and persons who only occasionally and infrequently conduct money transmissions for another person; or (g) The Nationwide Mortgage Licensing System and Registry for mortgage brokers, mortgage lenders and mortgage loan originators. SECTION 43. Section 75-15-9, Mississippi Code of 1972, is brought forward as follows: 75-15-9. Each application for a license to engage in the business of money transmission shall be made in writing and under oath to the commissioner in such form as he may prescribe. The application shall state the full name and business address of: (a) The proprietor, if the applicant is an individual; (b) Every member, if the applicant is a partnership or association; (c) The corporation and each executive officer and director thereof, if the applicant is a corporation; (d) Every trustee and officer if the applicant is a trust; (e) The applicant shall have a net worth of at least Twenty-five Thousand Dollars ($25,000.00) plus Fifteen Thousand Dollars ($15,000.00) for each location in excess of one (1) at which the applicant proposes to conduct money transmissions in this state, computed according to generally accepted accounting principles, but in no event shall the net worth be required to be in excess of Two Hundred Fifty Thousand Dollars ($250,000.00); (f) The financial responsibility, financial condition, business experience and character and general fitness of the applicant shall be such as reasonably to warrant the belief that applicant's business will be conducted honestly, carefully and efficiently; (g) Each application for a license shall be accompanied by an investigation fee of Fifty Dollars ($50.00) and license fee in the amount required by Section 75-15-15. All fees collected by the commissioner under the provisions of this chapter shall be deposited into the Consumer Finance Fund of the Department of Banking and Consumer Finance; (h) An applicant shall not have been convicted of a felony in any jurisdiction or a misdemeanor of fraud, theft, forgery, bribery, embezzlement, or making a fraudulent or false statement in any jurisdiction. SECTION 44. Section 75-15-11, Mississippi Code of 1972, is brought forward as follows: 75-15-11. Each application for a license shall be accompanied by: (a) Certified financial statements, reasonably satisfactory to the commissioner, showing that the applicant has a net worth of at least Twenty-five Thousand Dollars ($25,000.00) plus Fifteen Thousand Dollars ($15,000.00) for each location in excess of one (1) at which the applicant proposes to conduct money transmissions in this state, computed according to generally accepted accounting principles, but in no event shall the net worth be required to be in excess of Two Hundred Fifty Thousand Dollars ($250,000.00). (b) A surety bond issued by a bonding company or insurance company authorized to do business in this state, in the principal sum of Twenty-five Thousand Dollars ($25,000.00) or in an amount equal to outstanding money transmissions in Mississippi, whichever is greater, but in no event shall the bond be required to be in excess of Five Hundred Thousand Dollars ($500,000.00). However, the commissioner may increase the required amount of the bond upon the basis of the impaired financial condition of a licensee as evidenced by a reduction in net worth, financial losses or other relevant criteria. The bond shall be in form satisfactory to the commissioner and shall run to the state for the use and benefit of the Department of Banking and Consumer Finance and any claimants against the applicant or his agents to secure the faithful performance of the obligations of the applicant and his agents with respect to the receipt, handling, transmission and payment of money in connection with money transmissions in Mississippi. The aggregate liability of the surety in no event shall exceed the principal sum of the bond. The surety on the bond shall have the right to cancel the bond upon giving sixty (60) days' notice in writing to the commissioner and thereafter shall be relieved of liability for any breach of condition occurring after the effective date of the cancellation. Any claimants against the applicant or his agents may themselves bring suit directly on the bond, or the Attorney General may bring suit thereon in behalf of those claimants, either in one (1) action or successive actions. (c) In lieu of the corporate surety bond, the applicant may deposit with the State Treasurer bonds or other obligations of the United States or guaranteed by the United States or bonds or other obligations of this state or of any municipal corporation, county, or other political subdivision or agency of this state, or certificates of deposit of national or state banks doing business in Mississippi, having an aggregate market value at least equal to that of the corporate surety bond otherwise required. Those bonds or obligations or certificates of deposit shall be deposited with the State Treasurer to secure the same obligations as would a corporate surety bond, but the depositor shall be entitled to receive all interest and dividends thereon and shall have the right to substitute other bonds or obligations or certificates of deposit for those deposited, with the approval of the commissioner, and shall be required so to do on order of the commissioner made for good cause shown. The State Treasurer shall provide for custody of the bonds or obligations or certificates of deposits by a qualified trust company or bank located in the State of Mississippi or by any Federal Reserve Bank. The compensation, if any, of the custodian for acting as such under this section shall be paid by the depositing licensee. (d) Proof of registration as a money service business per 31 CFR Section 103.41, if applicable. (e) A set of fingerprints from any local law enforcement agency for each owner of a sole proprietorship, partners in a partnership or principal owners of a limited liability company that own at least ten percent (10%) of the voting shares of the company, shareholders owning ten percent (10%) or more of the outstanding shares of the corporation, except publically traded corporations and their subsidiaries, and any other executive officer with significant oversight duties of the business. In order to determine the applicant's suitability for license, the commissioner shall forward the fingerprints to the Department of Public Safety for a state criminal history records check, and the fingerprints shall be forwarded by the Department of Public Safety to the FBI for a national criminal history records check. The department shall not issue a license if it finds that the applicant, or any person who is an owner, partner, director or executive officer of the applicant, has been convicted of: (i) a felony in any jurisdiction; or (ii) a crime that, if committed within the state, would constitute a felony under the laws of this state; or (iii) a misdemeanor of fraud, theft, forgery, bribery, embezzlement or making a fraudulent or false statement in any jurisdiction. For the purposes of this chapter, a person shall be deemed to have been convicted of a crime if the person has pleaded guilty to a crime before a court or federal magistrate, or plea of nolo contendere, or has been found guilty of a crime by the decision or judgment of a court or federal magistrate or by the verdict of a jury, irrespective of the pronouncement of sentence or the suspension of a sentence, unless the person convicted of the crime has received a pardon from the President of the United States or the Governor or other pardoning authority in the jurisdiction where the conviction was obtained. SECTION 45. Section 75-15-12, Mississippi Code of 1972, is brought forward as follows: 75-15-12. (1) In addition to the bond required in Section 75-15-11, a licensee must possess permissible investments having an aggregate market value, calculated in accordance with generally accepted accounting principles, of not less than the aggregate amount of all outstanding checks issued or sold or money received for transmission by the licensee in the United States. This requirement may be waived by the commissioner if the dollar volume of a licensee's outstanding checks does not exceed the bond or other security devices posted by the licensee in accordance with Section 75-15-11. (2) Permissible investments, even if commingled with other assets of the licensee, shall be deemed by operation of law to be held in trust for the benefit of the purchasers and holders of the licensee's outstanding checks and money received for transmission and may not be considered an asset or property of the licensee in the event of bankruptcy, receivership or a claim against the licensee unrelated to any of the licensee's obligations under this chapter. (3) Permissible investments mean: (a) Cash; (b) Certificates of deposit or other debt obligations of a financial institution, either domestic or foreign; (c) Bills of exchange or time drafts drawn on and accepted by federally insured financial depository institutions; (d) Any investment bearing a rating of one (1) of the three (3) highest grades as defined by a nationally recognized organization that rates such securities; (e) Investment securities that are obligations of the United States, its agencies or instrumentalities, or obligations that are guaranteed fully as to principal and interest of the United States, or any obligations of any state, municipality or any political subdivision thereof; (f) Shares in a money market mutual fund, interest-bearing bills or notes or bonds, debentures or stock traded on any national securities exchange or on a national over-the-counter market, or mutual funds primarily composed of those securities or a fund composed of one or more permissible investments as set forth in this section; (g) Any demand borrowing agreement or agreements made to a corporation or a subsidiary of a corporation whose capital stock is listed on a national exchange; (h) Receivables that are due to a licensee from its agents, which are not past due or doubtful of collection; or (i) Any other investments approved by the commissioner. (4) The commissioner may limit or disallow for purposes of determining compliance with this section an investment, surety bond, letter of credit or other security otherwise permitted by this section if the commissioner determines it to be unsatisfactory for investment purposes or to pose a significant supervisory concern. SECTION 46. Section 75-15-19, Mississippi Code of 1972, is brought forward as follows: 75-15-19. (1) (a) Each licensee shall file with the commissioner within fifteen (15) days of the last business day of each month a report of the total amount of outstanding money transmissions in Mississippi. The principal sum of the surety bond or deposit required in Section 75-15-11 shall be adjusted, if appropriate, to reflect any changes in outstanding money transmissions. Licensees who maintain a surety bond in the principal sum of at least Five Hundred Thousand Dollars ($500,000.00) or a securities deposit having an aggregate market value of at least equal to Five Hundred Thousand Dollars ($500,000.00) shall be required to report the total amount of outstanding money transmissions in Mississippi on a quarterly basis. (b) Each licensee shall file an annual financial statement with the commissioner, audited by an independent certified public accountant or an independent registered accountant, within five (5) months after the close of the licensee's fiscal year. The financial statement shall include a balance sheet, a profit and loss statement, and a statement of retained earnings of the licensee and the licensee's agents resulting from the business of money transmission. (2) The commissioner may conduct or cause to be conducted an annual examination or audit of the books and records of any licensee at any time or times he deems proper, the cost of the examination or audit to be borne by the licensee. The refusal of access to the books and records shall be cause for the revocation of its license. The commissioner may charge the licensee an examination fee in an amount not less than Three Hundred Dollars ($300.00) nor more than Six Hundred Dollars ($600.00) for each licensed office, plus any actual expenses incurred while examining the licensee's records or books that are located outside the State of Mississippi. (3) Each licensee shall maintain the following books and records for a period of five (5) years and the books and records shall be available to the commissioner for inspection: (a) A record of each money transmission sold; (b) A general ledger, posted at least monthly, containing all assets, liabilities, capital, income and expense accounts; (c) Bank statements and bank reconciliation records; (d) Records of outstanding money transmissions; (e) Records of each money transmission paid within the five-year period; (f) A list of the names and addresses of all authorized agents; and (g) Any other records the commissioner may reasonably require by rule or regulation. The records required under this section may be maintained in photographic, electronic or other similar form. (4) Each licensee must maintain a written Bank Secrecy Act/Anti-Money Laundering Program that complies with 31 CFR Section 103.125, if applicable. (5) The commissioner may conduct a joint examination with representatives of other departments or agencies of another state or with the federal government. The commissioner may accept an examination report of another state or of the federal government or a report prepared by a certified public accountant instead of conducting an examination. A joint examination or an acceptance of an examination report does not preclude the commissioner from conducting his own examination. The report of a joint examination or an examination report accepted by the commissioner under this section is an official report of the commissioner for all purposes. (6) The department may adopt the necessary administrative regulations, not inconsistent with state law, for the enforcement of this chapter. SECTION 47. Section 75-15-23, Mississippi Code of 1972, is brought forward as follows: 75-15-23. Each licensee shall be liable for the payment of all money transmissions and for all checks that the licensee sells, in whatever form and whether directly or through an agent, as the maker or drawer thereof according to the negotiable instrument laws of this state, and shall be responsible only for those acts of the agent done on behalf of the licensee. Every check sold by a licensee directly or through an agent shall bear the name of the licensee clearly imprinted thereon. During the period of time that a person is an appointed agent for a licensee, the agent shall not directly or indirectly conduct his own money transmission business and the agent shall not be, continue to be, or become an officer, director, stockholder, employee, or agent of any other licensee under this chapter. When a person ceases to be an agent of a licensee, he shall immediately cease displaying his agent's appointment certificate, as provided under Section 75-15-17 of this chapter and shall immediately surrender same to the licensee. SECTION 48. Section 75-15-25, Mississippi Code of 1972, is brought forward as follows: 75-15-25. Whenever the bond or securities deposit required under Section 75-15-11 is less than Five Hundred Thousand Dollars ($500,000.00), the licensee may not at any time have a total amount in outstanding money transmissions or checks in Mississippi, in excess of the bond or securities deposit required of him under Section 75-15-11, and the licensee shall, in accordance with rules and regulations promulgated by the commissioner under this chapter, submit a written report to the commissioner on the last business day of each month regarding his money transmissions outstanding in Mississippi, whether issued by himself or through agents, provided that this limitation shall be the principal sum of the bond or the market value of the securities deposit required of the licensee under Section 75-15-11, and the sum of this limitation shall not be increased by any bond or securities deposit increase required by the commissioner under Section 75-15-29 or by deposit of any revocation order, suspension bond or securities deposit under Section 75-15-27. SECTION 49. Section 75-15-29, Mississippi Code of 1972, is brought forward as follows: 75-15-29. Any provision in this chapter to the contrary notwithstanding, the commissioner may at any time, if in his sole opinion the protection of the public so requires, increase the principal sum of the bond or the aggregate market value of the deposit required of any applicant or licensee by Section 75-15-11 but in no case shall the principal sum of the bond or the aggregate market value of the deposit required by Section 75-15-11 exceed Five Hundred Thousand Dollars ($500,000.00) and provided further, that in any situation, where a revocation order has been issued and the licensee involved has posted the additional bond required under Section 75-15-27, for suspension thereof, pending final determination, the commissioner may for the same reasons require the principal sum of the additional, suspension bond to be increased but in no case shall the principal sum thereof exceed Two Hundred Fifty Thousand Dollars ($250,000.00), and provided further that if the licensee originally deposited with his application under Section 75-15-11 a corporate surety bond, the additional increase provided in this section must be by another corporate surety bond or an increase of the first one, written by the same corporate surety that wrote the first one and may not be a deposit of securities or if the licensee originally deposited securities, the additional increase shall also be of securities and not a corporate surety bond. SECTION 50. This act shall take effect and be in force from and after July 1, 2025. |
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| 3 | 3 | | MISSISSIPPI LEGISLATURE |
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| 4 | 4 | | |
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| 5 | 5 | | 2025 Regular Session |
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| 6 | 6 | | |
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| 7 | 7 | | To: Banking and Financial Services |
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| 8 | 8 | | |
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| 9 | 9 | | By: Representative Carpenter |
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| 10 | 10 | | |
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| 11 | 11 | | # House Bill 1044 |
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| 12 | 12 | | |
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| 13 | 13 | | AN ACT TO ESTABLISH THE MISSISSIPPI BULLION DEPOSITORY; TO DEFINE CERTAIN TERMS RELATING TO THE DEPOSITORY; TO PROVIDE THAT SUCH DEPOSITORY IS ESTABLISHED TO SERVE AS THE CUSTODIAN, GUARDIAN, AND ADMINISTRATOR OF CERTAIN BULLION AND SPECIE THAT MAY BE TRANSFERRED TO OR OTHERWISE ACQUIRED BY THE STATE OF MISSISSIPPI OR AN AGENCY, DEPARTMENT, INSTITUTION, INSTRUMENTALITY, OR POLITICAL SUBDIVISION OF THE STATE OF MISSISSIPPI; TO REQUIRE THAT THE DEPOSITORY BE ADMINISTERED AS A DIVISION OF THE OFFICE OF THE STATE TREASURER AND UNDER THE DIRECTION AND SUPERVISION OF A BULLION DEPOSITORY ADMINISTRATOR; TO PROVIDE THE DUTIES OF THE BULLION DEPOSITORY ADMINISTRATOR; TO AUTHORIZE THE DEPOSITORY TO RECEIVE A DEPOSIT OF BULLION OR SPECIE FROM OR ON BEHALF OF A PERSON ACTING IN THE PERSON'S OWN RIGHT, AS TRUSTEE, OR IN ANOTHER FIDUCIARY CAPACITY, IN ACCORDANCE WITH ANY RULES OR REGULATIONS ADOPTED BY THE STATE TREASURER; TO REQUIRE THAT THE DEPOSITORY RECORD THE AMOUNT OF PRECIOUS METALS A PERSON DEPOSITS, REGARDLESS OF FORM, IN UNITS OF TROY OUNCES PURE, AND THE RECORD MUST ALSO SPECIFY THE TYPE AND QUANTITY OF EACH PRECIOUS METAL DEPOSITED; TO AUTHORIZE THE STATE TREASURER TO RESTRICT THE FORMS IN WHICH DEPOSITS OF PRECIOUS METALS MAY BE MADE TO THOSE FORMS THAT CONVENIENTLY LEND THEMSELVES TO MEASUREMENT AND ACCOUNTING IN UNITS OF TROY OUNCES AND STANDARDIZED FRACTIONS OF TROY OUNCES; TO REQUIRE THE DEPOSITORY TO DELIVER ANY PRECIOUS METAL HELD BY OR ON BEHALF OF THE DEPOSITORY IN BULLION, SPECIE, OR A COMBINATION THEREOF, ON THE ORDER OF A DEPOSITORY ACCOUNT HOLDER IN A QUANTITY OF THAT PRECIOUS METAL AS IS AVAILABLE IN SUCH ACCOUNT HOLDER'S ACCOUNT; TO AUTHORIZE A DEPOSITORY ACCOUNT HOLDER TO TRANSFER ANY PORTION OF THE BALANCE OF THE HOLDER'S DEPOSITORY ACCOUNT BY CHECK, DRAFT, OR DIGITAL ELECTRONIC INSTRUCTION TO ANOTHER DEPOSITORY ACCOUNT HOLDER OR TO A PERSON WHO AT THE TIME THE TRANSFER IS INITIATED IS NOT A DEPOSITORY ACCOUNT HOLDER; TO REQUIRE A DEPOSITOR TO CONTRACT WITH THE DEPOSITORY TO BE ABLE TO ESTABLISH A DEPOSITORY ACCOUNT; TO PROVIDE CERTAIN REQUIREMENTS FOR SUCH CONTRACT BETWEEN A DEPOSITORY AND DEPOSITOR; TO PROVIDE THAT A CAUSE OF ACTION FOR DENIAL OF DEPOSIT LIABILITY ON A DEPOSITORY ACCOUNT CONTRACT WITHOUT A MATURITY DATE DOES NOT ACCRUE UNTIL THE DEPOSITORY HAS DENIED LIABILITY AND GIVEN NOTICE OF THE DENIAL TO THE DEPOSITORY ACCOUNT HOLDER; TO PROVIDE THAT A DEPOSITORY ACCOUNT MAY BE TRANSFERRED ON THE BOOKS OF THE DEPOSITORY ONLY ON PRESENTATION TO THE DEPOSITORY OF EVIDENCE OF TRANSFER SATISFACTORY TO THE DEPOSITORY AND AN APPLICATION FOR THE TRANSFER SUBMITTED BY THE PERSON TO WHOM THE DEPOSITORY ACCOUNT IS TO BE TRANSFERRED; TO PROHIBIT THE DEPOSITORY FROM PAYING ON A DEPOSITORY ACCOUNT ANY INTEREST, AN AMOUNT IN THE NATURE OF INTEREST, OR A FEE OR OTHER PAYMENT FOR THE USE OR FORBEARANCE OF USE OF MONEY, BULLION, SPECIE, OR PRECIOUS METALS DEPOSITED TO A DEPOSITORY ACCOUNT; TO PROVIDE THAT THE DEPOSITORY HAS A LIEN ON EACH DEPOSITORY ACCOUNT OWNED BY A DEPOSITORY ACCOUNT HOLDER TO SECURE ANY FEES, CHARGES, OR OTHER OBLIGATIONS OWED OR THAT MAY BECOME OWED TO THE DEPOSITORY IN CONNECTION WITH ANY OF SUCH ACCOUNT HOLDER'S DEPOSITORY ACCOUNTS AS PROVIDED BY THE TERMS OF THE ACCOUNT HOLDER'S APPLICABLE DEPOSITORY ACCOUNT CONTRACT; TO AUTHORIZE THE DEPOSITORY, WITHOUT NOTICE TO OR CONSENT OF THE DEPOSITORY ACCOUNT HOLDER, TO TRANSFER ON THE DEPOSITORY'S BOOKS THE BALANCE OF SUCH ACCOUNT HOLDER'S DEPOSITORY ACCOUNT TO PAY OR SATISFY THE OBLIGATION UPON DEFAULT IN THE PAYMENT OR IN THE SATISFACTION OF SUCH ACCOUNT HOLDER'S OBLIGATION, AS DETERMINED BY REFERENCE TO THE EXCHANGE RATES APPLICABLE AT THE TIME OF THE TRANSFER; TO AUTHORIZE CERTAIN INDIVIDUALS AND ENTITIES TO INVEST MONEY IN A DEPOSITORY ACCOUNT BY PURCHASING PRECIOUS METALS AND DEPOSITING SUCH PRECIOUS METALS WITH THE DEPOSITORY OR A DEPOSITORY AGENT; TO PROVIDE THAT UNLESS A TERM OF THE DEPOSITORY ACCOUNT PROVIDES OTHERWISE, A PERSON ON WHOSE SIGNATURE PRECIOUS METALS MAY BE WITHDRAWN FROM A DEPOSITORY ACCOUNT THAT IS JOINTLY HELD IN THE NAMES OF TWO OR MORE PERSONS MAY, BY A SIGNED PLEDGE, PLEDGE AND TRANSFER TO THE DEPOSITORY OR TO A THIRD PARTY ALL OR PART OF THE ACCOUNT; TO AUTHORIZE THE DEPOSITORY OR A DEPOSITORY AGENT TO ACCEPT A DEPOSITORY ACCOUNT IN THE NAME OF A FIDUCIARY, INCLUDING AN ADMINISTRATOR, EXECUTOR, CUSTODIAN, GUARDIAN, OR TRUSTEE, FOR A NAMED BENEFICIARY; TO REQUIRE THE DEPOSITORY TO RECOGNIZE THE AUTHORITY OF A POWER OF ATTORNEY AUTHORIZED IN WRITING BY A DEPOSITORY ACCOUNT HOLDER TO MANAGE OR WITHDRAW PRECIOUS METALS FROM THE DEPOSITORY ACCOUNT HOLDER'S DEPOSITORY ACCOUNT UNTIL THE DEPOSITORY RECEIVES WRITTEN OR ACTUAL NOTICE OF THE REVOCATION OF THAT AUTHORITY; TO REQUIRE THE DEPOSITORY TO ENTER INTO TRANSACTIONS AND RELATIONSHIPS WITH BULLION BANKS, DEPOSITORIES, DEALERS, CENTRAL BANKS, SOVEREIGN WEALTH FUNDS, FINANCIAL INSTITUTIONS, INTERNATIONAL NONGOVERNMENTAL ORGANIZATIONS, AND OTHER PERSONS, LOCATED INSIDE OR OUTSIDE OF MISSISSIPPI OR INSIDE OR OUTSIDE OF THE UNITED STATES, AS THE STATE TREASURER DETERMINES TO BE PRUDENT AND SUITABLE TO FACILITATE THE OPERATIONS OF THE DEPOSITORY; TO PROVIDE CERTAIN PROHIBITIONS FOR THE BULLION DEPOSITORY; TO REQUIRE THE STATE TREASURER TO ESTABLISH THE REFERENCES BY WHICH THE OFFICIAL EXCHANGE RATE FOR PRICING PRECIOUS METALS TRANSACTIONS IN TERMS OF UNITED STATES DOLLARS OR OTHER CURRENCY MUST BE ESTABLISHED AT THE TIME OF A DEPOSITORY TRANSACTION; TO REQUIRE THE STATE TREASURER TO ESTABLISH PROCEDURES AND FACILITIES THROUGH WHICH THE RATES ARE MADE DISCOVERABLE AT ALL REASONABLE TIMES BY SYSTEM PARTICIPANTS, BOTH ON A REAL-TIME BASIS AND RETROSPECTIVELY; TO REQUIRE THE STATE TREASURER TO ESTABLISH PROCEDURES AND REQUIREMENTS FOR THE DEPOSITORY AND DEPOSITORY AGENTS DESIGNED TO MINIMIZE THE BURDEN TO SYSTEM PARTICIPANTS OF ACCOUNTING FOR AND REPORTING TAXABLE GAINS AND LOSSES ARISING OUT OF DEPOSITORY TRANSACTIONS AS DENOMINATED IN UNITED STATES DOLLARS OR ANOTHER CURRENCY; TO REQUIRE THE STATE TREASURER TO SUBMIT TO THE GOVERNOR AND TO THE LEGISLATURE A REPORT ON THE STATUS, CONDITION, OPERATIONS, AND PROSPECTS FOR THE DEPOSITORY AND DEPOSITORY PARTICIPATION NOT LATER THAN SEPTEMBER 30 OF EACH YEAR; TO REQUIRE THAT THE DEPOSITORY USE PRIVATE, INDEPENDENTLY MANAGED FIRMS AND INSTITUTIONS LICENSED AS DEPOSITORY AGENTS AS INTERMEDIARIES TO CONDUCT RETAIL TRANSACTIONS IN BULLION AND SPECIE ON BEHALF OF THE DEPOSITORY WITH CURRENT AND PROSPECTIVE DEPOSITORY ACCOUNT HOLDERS; TO PROVIDE THAT THE STATE TREASURER SHALL REQUIRE A DEPOSITORY AGENT TO MAINTAIN SUITABLE SYSTEMS AND PROCESSES FOR ELECTRONIC INFORMATION SHARING AND COMMUNICATION WITH THE STATE TREASURER AND THE DEPOSITORY TO ENSURE THAT ALL TRANSACTIONS EFFECTED ON BEHALF OF THE DEPOSITORY ARE REPORTED TO AND INTEGRATED INTO THE DEPOSITORY'S RECORDS NOT LATER THAN 11:59:59 P.M. ON THE DATE OF EACH TRANSACTION; TO REQUIRE A DEPOSITORY AGENT TO SUBMIT MONTHLY, QUARTERLY, AND ANNUAL REPORTS OF ALL DEPOSITORY TRANSACTIONS NO LATER THAN THE 15TH DAY OF THE MONTH FOLLOWING THE EXPIRATION OF THE PERIOD WITH RESPECT TO WHICH REPORT IS SUBMITTED; TO PROVIDE THAT A PERSON MAY NOT ENGAGE IN THE BUSINESS OF RENDERING DEPOSITORY AGENT SERVICES OR ADVERTISE, SOLICIT, OR HOLD ITSELF OUT AS A PERSON THAT ENGAGES IN THE BUSINESS OF SUCH SERVICES UNLESS THE PERSON IS LICENSED, AND HAS RECEIVED THE REQUISITE CERTIFICATIONS OR IS EXCLUDED FROM LICENSING REQUIREMENTS UNDER THE MISSISSIPPI MONEY TRANSMITTERS ACT; TO PROVIDE THAT A PERSON ENGAGES IN THE BUSINESS OF DEPOSITORY AGENT SERVICES IF THE PERSON RENDERS A DEPOSITORY AGENT SERVICE, REGARDLESS OF WHETHER COMPENSATION IS SOUGHT OR RECEIVED FOR THE SERVICE, DIRECTLY OR INDIRECTLY OR IF THE SERVICE IS INCIDENTAL TO ANY OTHER BUSINESS IN WHICH THE PERSON IS PRIMARILY ENGAGED; TO PROVIDE THAT A PERSON SOLICITS, ADVERTISES, OR HOLDS THE PERSON OUT AS A PERSON THAT ENGAGES IN THE BUSINESS OF DEPOSITORY AGENT SERVICES IF THE PERSON REPRESENTS THAT THE PERSON WILL CONDUCT DEPOSITORY AGENT SERVICES; TO AUTHORIZE A DEPOSITORY AGENT LICENSE HOLDER TO ENGAGE IN DEPOSITORY AGENT SERVICES BUSINESS AT ONE OR MORE LOCATIONS IN MISSISSIPPI OWNED DIRECTLY OR INDIRECTLY BY THE LICENSE HOLDER UNDER A SINGLE LICENSE; TO REQUIRE AN APPLICANT FOR A DEPOSITORY AGENT LICENSE TO SUBMIT AN APPLICATION IN ACCORDANCE WITH THE MISSISSIPPI MONEY TRANSMITTERS ACT AND TO PROVIDE CERTAIN REQUIREMENTS FOR SUCH APPLICATION; TO REQUIRE THE DEPARTMENT OF BANKING AND CONSUMER FINANCE TO INVESTIGATE SUCH APPLICANT AND ACT ON THE APPLICATION IN ACCORDANCE WITH THE MISSISSIPPI MONEY TRANSMITTERS ACT; TO AUTHORIZE THE COMMISSIONER OF BANKING AND CONSUMER FINANCE TO ISSUE A TEMPORARY DEPOSITORY AGENT LICENSE TO A PERSON THAT IS ENGAGING IN DEPOSITORY AGENT SERVICES, BUT HAS NOT OBTAINED A LICENSE UNDER THIS ACT UNDER CERTAIN CIRCUMSTANCES; TO PROVIDE THAT A DEPOSITORY AGENT LICENSE HOLDER IS LIABLE FOR THE DELIVERY TO OR FOR THE ACCOUNT OF THE DEPOSITORY OR EACH DEPOSITOR, AS APPLICABLE, OF ALL BULLION, SPECIE, AND MONEY PAYABLE OR DELIVERABLE IN CONNECTION WITH THE TRANSACTIONS IN WHICH THE LICENSE HOLDER ENGAGES ON BEHALF OF THE DEPOSITORY; TO REQUIRE A DEPOSITORY AGENT LICENSE HOLDER TO HOLD IN TRUST ALL CASH, BULLION, SPECIE, AND OTHER ASSETS RECEIVED IN THE ORDINARY COURSE OF ITS BUSINESS UNTIL THE TIME THE DELIVERY OBLIGATION IS DISCHARGED; TO REQUIRE THAT A DEPOSITORY AGENT LICENSE HOLDER'S NAME AND MAILING ADDRESS OR TELEPHONE NUMBER MUST BE PROVIDED TO THE PURCHASER IN CONNECTION WITH EACH DEPOSITORY AGENT SERVICES TRANSACTION CONDUCTED BY THE DEPOSITORY AGENT LICENSE HOLDER; TO BRING FORWARD SECTIONS 75-15-3, 75-15-5, 75-15-7, 75-15-9, 75-15-11, 75-15-12, 75-15-19, 75-15-23, 75-15-25 AND 75-15-29, MISSISSIPPI CODE OF 1972, WHICH RELATE TO THE MISSISSIPPI MONEY TRANSMITTERS ACT, FOR PURPOSES OF POSSIBLE AMENDMENT; AND FOR RELATED PURPOSES. |
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| 14 | 14 | | |
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| 15 | 15 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: |
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| 16 | 16 | | |
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| 17 | 17 | | SECTION 1. (1) As used in this act, the following terms have the meanings as defined in this section, unless the context clearly indicates otherwise: |
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| 18 | 18 | | |
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| 19 | 19 | | (a) "Administrator" means the bullion depository administrator appointed under Section 3 of this act. |
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| 20 | 20 | | |
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| 21 | 21 | | (b) "Bullion" means precious metals that are formed into uniform shapes and quantities such as ingots, bars, or plates, with uniform content and purity, as are suitable for or customarily used in the purchase, sale, storage, transfer, and delivery of bulk or wholesale transactions in precious metals. |
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| 22 | 22 | | |
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| 23 | 23 | | (c) "Business day" means a day other than a Saturday, Sunday, or banking holiday for a bank chartered under the laws of this state. |
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| 24 | 24 | | |
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| 25 | 25 | | (d) "Deposit" means the establishment of an executory obligation of the depository to deliver to the order of the person establishing with the depository the obligation, on demand, a quantity of a specified precious metal, in bullion, specie, or a combination of bullion and specie, equal to the quantity of the same precious metal delivered by or on behalf of the depositor into the custody of: |
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| 26 | 26 | | |
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| 27 | 27 | | (i) The depository; or |
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| 28 | 28 | | |
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| 29 | 29 | | (ii) A depository agent. |
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| 30 | 30 | | |
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| 31 | 31 | | (e) "Depositor" means a person who makes a deposit. |
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| 32 | 32 | | |
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| 33 | 33 | | (f) "Depository" means the Mississippi Bullion Depository created by this act. |
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| 34 | 34 | | |
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| 35 | 35 | | (g) "Depository account" means the rights, interests, and entitlements established in favor of a depositor with respect to a deposit in accordance with this act, and rules or regulations adopted under this act. |
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| 36 | 36 | | |
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| 37 | 37 | | (h) "Depository account holder," regarding a depository account, means the original depositor or a successor or assignee of the depositor respecting the depository account. |
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| 38 | 38 | | |
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| 39 | 39 | | (i) "Depository agent" means a person licensed in accordance with this act to serve as an intermediary between the depository and a retail customer in making a transaction in precious metals bullion or specie. |
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| 40 | 40 | | |
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| 41 | 41 | | (j) "Depository agent license" means a license issued under this act. |
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| 42 | 42 | | |
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| 43 | 43 | | (k) "Depository agent services" means services rendered to the general public for or on behalf of the Mississippi Bullion Depository in the nature of purchasing, selling, transferring, accepting, transporting, delivering, or otherwise dealing in precious metals bullion or specie in connection with the creation, transfer, clearing, settlement, or liquidation of the rights and interests of a depository account holder and a direct or indirect transferee of a depository account holder. The term "depository agent services" does not include: |
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| 44 | 44 | | |
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| 45 | 45 | | (i) Participation as a party or counterparty to a transaction, including an agreement with respect to a transaction, in or in connection with a contract for the purchase or sale of a person's rights and interests as a depository account holder, as a cash contract for present delivery, a cash contract for deferred shipment or delivery, or a contract for future delivery, where the underlying deliverable consists of the depository account holder's interest in the depository account, rather than the underlying precious metal represented by the depository account balance; |
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| 46 | 46 | | |
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| 47 | 47 | | (ii) The opening, transfer, settlement, or liquidation of any derivative of a contract, including a forward transaction, swap transaction, currency transaction, future transaction, index transaction, or option on or other derivative of a transaction of any of those types, in the nature of a cap transaction, floor transaction, collar transaction, repurchase transaction, reverse repurchase transaction, buy-and-sell-back transaction, securities lending transaction, or other financial instrument or interest, including an option with respect to a transaction, or any combination of these transactions; or |
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| 48 | 48 | | |
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| 49 | 49 | | (iii) The rendition of services exclusively in support of the opening, transfer, settlement, or liquidation of transaction derivatives through a central counterparty, such as those customarily rendered by a clearinghouse, clearing association, or clearing corporation, or through an interbank payment system, physical or electronic trading facility, broker or brokerage firm, or similar entity, facility, system, or organization. |
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| 50 | 50 | | |
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| 51 | 51 | | (l) "Precious metal" means a metal, including gold and silver that: |
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| 52 | 52 | | |
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| 53 | 53 | | (i) Bears a high value-to-weight ratio relative to common industrial metals; and |
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| 54 | 54 | | |
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| 55 | 55 | | (ii) Customarily is formed into bullion or specie. |
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| 56 | 56 | | |
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| 57 | 57 | | (m) "Specie" means a precious metal stamped into coins of uniform shape, size, design, content, and purity, suitable for or customarily used as currency, as a medium of exchange, or as the medium for purchase, sale, storage, transfer, or delivery of precious metals in retail or wholesale transactions. |
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| 58 | 58 | | |
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| 59 | 59 | | SECTION 2. (1) The Mississippi Bullion Depository is established as an agency of this state in the Office of the State Treasurer. |
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| 60 | 60 | | |
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| 61 | 61 | | (2) The depository is established to serve as the custodian, guardian, and administrator of certain bullion and specie that may be transferred to or otherwise acquired by the State of Mississippi, or an agency, department, institution, instrumentality, or political subdivision of the State of Mississippi, or any agency, department, or institution of a political subdivision of the state. |
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| 62 | 62 | | |
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| 63 | 63 | | SECTION 3. (1) The depository is administered as a division of the Office of the State Treasurer and under the direction and supervision of a bullion depository administrator appointed by the State Treasurer with the advice and consent of the Governor, Lieutenant Governor, and Senate. |
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| 64 | 64 | | |
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| 65 | 65 | | (2) The bullion depository administrator shall: |
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| 66 | 66 | | |
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| 67 | 67 | | (a) Administer, supervise, and direct the operations and affairs of the depository and depository agents; and |
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| 68 | 68 | | |
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| 69 | 69 | | (b) Liaise with the State Treasurer and other divisions of the Office of the State Treasurer to ensure that each transaction with the depository that involves state money, that involves an agency, department, institution, instrumentality, or political subdivision of the State of Mississippi, or any agency, department, or institution of a political subdivision of the state, or that involves a private person is planned, administered, and executed in a manner to achieve the purposes of this act. |
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| 70 | 70 | | |
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| 71 | 71 | | (3) The administrator may appoint, subject to the approval of the State Treasurer, a deputy administrator or other subordinate officer as necessary and appropriate to the efficient administration of the depository. |
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| 72 | 72 | | |
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| 73 | 73 | | SECTION 4. (1) The following are not available for legislative appropriation: |
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| 74 | 74 | | |
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| 75 | 75 | | (a) A deposit to the depository; |
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| 76 | 76 | | |
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| 77 | 77 | | (b) Bullion or specie held by or on behalf of the depository or a depository agent; |
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| 78 | 78 | | |
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| 79 | 79 | | (c) Bullion or specie in transit to or from the depository or a depository agent; and |
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| 80 | 80 | | |
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| 81 | 81 | | (d) A receivable or other amount owed to the depository in settlement of a transaction in bullion or specie. |
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| 82 | 82 | | |
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| 83 | 83 | | (2) Bullion, specie, and other assets described by subsection (1) of this section are subject to redemption, liquidation, or transfer exclusively to discharge an obligation of the depository to depository account holders, depository agents, bullion banks, financial institutions, or other intermediaries in accordance with this act, and any rules or regulations adopted under this act. |
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| 84 | 84 | | |
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| 85 | 85 | | (3) Revenue that the depository earns from fees, charges, or other payments received in the course of depository operations shall be transferred to the State General Fund. |
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| 86 | 86 | | |
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| 87 | 87 | | SECTION 5. (1) The depository may receive a deposit of bullion or specie from or on behalf of a person acting in the person's own right, as trustee, or in another fiduciary capacity, in accordance with any rules or regulations adopted by the State Treasurer, as appropriate, to: |
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| 88 | 88 | | |
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| 89 | 89 | | (a) Ensure compliance with law; and |
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| 90 | 90 | | |
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| 91 | 91 | | (b) Protect the interests of: |
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| 92 | 92 | | |
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| 93 | 93 | | (i) The depository; |
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| 94 | 94 | | |
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| 95 | 95 | | (ii) Depository account holders; |
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| 96 | 96 | | |
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| 97 | 97 | | (iii) The State of Mississippi, and any agency, department, institution, instrumentality, or political subdivision of the State of Mississippi, or any agency, department, or institution of a political subdivision of the state; and |
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| 98 | 98 | | |
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| 99 | 99 | | (iv) The public at large. |
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| 100 | 100 | | |
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| 101 | 101 | | (2) The depository shall record the amount of precious metals a person deposits, regardless of form, in units of troy ounces pure, and the records must also specify the type and quantity of each precious metal deposited. |
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| 102 | 102 | | |
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| 103 | 103 | | (3) The State Treasurer, by rule or regulation, shall adopt standards by which the quantities of precious metals deposited are credited to a depositor's depository account by reference to the particular form in which the metals were deposited, classified by mint, denomination, weight, assay mark, or other indicator, as applicable. The standards must conform to applicable national and international standards of weights and measures. |
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| 104 | 104 | | |
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| 105 | 105 | | (4) The State Treasurer, by rule or regulation, may, if he or she determines that to do so is in the public interest, restrict the forms in which deposits of precious metals may be made to those forms that conveniently lend themselves to measurement and accounting in units of troy ounces and standardized fractions of troy ounces. |
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| 106 | 106 | | |
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| 107 | 107 | | (5) The depository shall adjust each depository account balance to reflect additions to or withdrawals or deliveries from the account. |
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| 108 | 108 | | |
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| 109 | 109 | | SECTION 6. (1) The depository shall deliver any precious metal held by or on behalf of the depository in bullion, specie, or a combination of bullion and specie, on the order of a depository account holder in a quantity of that precious metal as is available in the depository account holder's depository account. |
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| 110 | 110 | | |
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| 111 | 111 | | (2) The depository shall make a delivery described by subsection (1) of this section on demand by the presentment of a suitable check, draft, or digital electronic instruction to the depository or a depository agent. The State Treasurer, by rule or regulation, shall adopt the forms, standards, and processes through which an order for delivery on demand may be made, presented, and honored. |
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| 112 | 112 | | |
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| 113 | 113 | | (3) The depository shall make a delivery at the depository's settlement facility designated by the State Treasurer, shipping to an address specified by the account holder or, at the depository's discretion, at a facility of a depository agent at which presentment is made, not later than five (5) business days after the date of presentment. |
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| 114 | 114 | | |
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| 115 | 115 | | SECTION 7. (1) In accordance with any rules or regulations adopted under this act, a depository account holder may transfer any portion of the balance of the holder's depository account by check, draft, or digital electronic instruction to another depository account holder or to a person who at the time the transfer is initiated is not a depository account holder. |
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| 116 | 116 | | |
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| 117 | 117 | | (2) The depository shall adjust the depository account balances of the depository accounts to reflect a transfer transaction between depository account holders on presentment of the check, draft, or other instruction by reducing the payor's depository account balance and increasing the depository account balance of the payee accordingly. |
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| 118 | 118 | | |
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| 119 | 119 | | (3) If a depository account holder transfers to a payee who is not a depository account holder any portion of the balance of the holder's depository account, the depository shall allow the payee to establish a depository account by presentment of the payor's check, draft, or instruction to the depository or to a depository agent. The depository shall credit a newly established account on behalf of the payee and shall debit the payor's account accordingly. |
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| 120 | 120 | | |
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| 121 | 121 | | SECTION 8. (1) To establish a depository account, a depositor must contract with the depository for a depository account. The contract must specify: |
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| 122 | 122 | | |
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| 123 | 123 | | (a) The terms applicable to the account, including any special terms; and |
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| 124 | 124 | | |
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| 125 | 125 | | (b) The conditions on which withdrawals or deliveries with respect to the account may be made. |
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| 126 | 126 | | |
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| 127 | 127 | | (2) The execution of a contract for a depository account described by this section may be made, as prescribed by any rules or regulations adopted under this act, by electronic or digital transmission. |
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| 128 | 128 | | |
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| 129 | 129 | | (3) The depository or a depository agent shall hold the contract for a depository account in the records pertaining to the account. |
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| 130 | 130 | | |
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| 131 | 131 | | (4) A contract for a depository account executed by a depositor and the depository is considered a contract in writing for all purposes, and may be evidenced by one or more agreements, deposit receipts, signature cards, amendment notices, or other documentation as provided by law. |
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| 132 | 132 | | |
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| 133 | 133 | | (5) The depository and the depository account holder may amend a contract for a depository account by agreement, or the depository may amend the deposit contract by mailing a written notice of the amendment to the account holder, separately or as an enclosure with or part of the account holder's statement of account or passbook. In the case of amendment by notice from the depository, the notice must include the text and effective date of the amendment. The effective date may not be earlier than the 30th day after the date the notice is mailed, except as otherwise provided under this act. |
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| 134 | 134 | | |
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| 135 | 135 | | SECTION 9. (1) A cause of action for denial of deposit liability on a depository account contract without a maturity date does not accrue until the depository has denied liability and given notice of the denial to the depository account holder. |
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| 136 | 136 | | |
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| 137 | 137 | | (2) The depository's act of furnishing an account statement or passbook, whether in physical, digital, or electronic form, constitutes a denial of liability and the giving of such notice as to any amount not shown on the statement or passbook. |
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| 138 | 138 | | |
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| 139 | 139 | | (3) The depository's sovereign immunity from suit is waived for an action brought by a depositor for the denial of deposit liability. |
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| 140 | 140 | | |
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| 141 | 141 | | (4) The depository's liability for a denial of deposit liability is limited to the amount on deposit for which liability was denied. A depositor may not recover consequential damages, exemplary damages, pre- or post-judgment interest, costs, or attorney's fees. |
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| 142 | 142 | | |
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| 143 | 143 | | (5) A cause of action authorized by this section must be brought in a court of competent jurisdiction before the expiration of one (1) year after the date it accrues, or such cause of action is barred. |
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| 144 | 144 | | |
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| 145 | 145 | | SECTION 10. The State Treasurer, by rule or regulation, may establish fees, service charges, and penalties to be charged a depository account holder for a service or activity regarding a depository account, including a fee for an overdraft, an insufficient fund check or draft, or a stop payment order. |
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| 146 | 146 | | |
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| 147 | 147 | | SECTION 11. Unless the depository acknowledges in writing a pledge of a depository account, the depository may treat the holder of record of the account as the owner of the account for all purposes and without regard to a notice to the contrary. |
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| 148 | 148 | | |
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| 149 | 149 | | SECTION 12. (1) A depository account may be transferred on the books of the depository only on presentation to the depository of: |
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| 150 | 150 | | |
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| 151 | 151 | | (a) Evidence of transfer satisfactory to the depository; and |
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| 152 | 152 | | |
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| 153 | 153 | | (b) An application for the transfer submitted by the person to whom the depository account is to be transferred. |
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| 154 | 154 | | |
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| 155 | 155 | | (2) A person to whom a depository account is to be transferred must accept the transferred account subject to the terms of the deposit contract, this act, and any rules or regulations adopted under this act. |
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| 156 | 156 | | |
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| 157 | 157 | | SECTION 13. The depository shall not pay on a depository account: |
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| 158 | 158 | | |
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| 159 | 159 | | (a) Interest; |
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| 160 | 160 | | |
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| 161 | 161 | | (b) An amount in the nature of interest; or |
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| 162 | 162 | | |
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| 163 | 163 | | (c) A fee or other payment for the use or forbearance of use of money, bullion, specie, or precious metals deposited to a depository account. |
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| 164 | 164 | | |
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| 165 | 165 | | SECTION 14. (1) Without the need of any further agreement or pledge, the depository has a lien on each depository account owned by a depository account holder to secure any fees, charges, or other obligations owed or that may become owed to the depository in connection with any of the depository account holder's depository accounts as provided by the terms of the depository account holder's applicable depository account contract. |
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| 166 | 166 | | |
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| 167 | 167 | | (2) On default in the payment or in the satisfaction of a depository account holder's obligation, the depository, without notice to or consent of the depository account holder, may transfer on the depository's books all or part of the balance of a depository account holder's depository account to the extent necessary to pay or satisfy the obligation, as determined by reference to the exchange rates applicable at the time of the transfer. |
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| 168 | 168 | | |
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| 169 | 169 | | (3) The depository by written instrument may waive wholly or partly the depository's lien on a depository account. |
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| 170 | 170 | | |
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| 171 | 171 | | (4) Subject to a lien created as provided by this section, the depository shall recognize the lawful pledge to a third party by a depository account holder of the depository account holder's rights, interests, and entitlements in and to a depository account as an intangible asset. On the satisfaction of other requirements of law in respect of the perfection and enforcement of a pledge of that type, the depository shall take all steps reasonably necessary and appropriate to effectuate on the depository's books any transfer of a depository account or of all or part of a depository account balance to the account of the secured party on the successful enforcement of the pledge. |
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| 172 | 172 | | |
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| 173 | 173 | | SECTION 15. (1) The following persons may invest the person's money in a depository account by purchasing precious metals and depositing the precious metals with the depository or a depository agent: |
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| 174 | 174 | | |
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| 175 | 175 | | (a) An individual or fiduciary, including an administrator, executor, custodian, guardian, or trustee; |
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| 176 | 176 | | |
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| 177 | 177 | | (b) An agency, department, institution, instrumentality, or political subdivision of the State of Mississippi, or any agency, department, or institution of a political subdivision of the state; |
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| 178 | 178 | | |
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| 179 | 179 | | (c) A business or nonprofit corporation; |
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| 180 | 180 | | |
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| 181 | 181 | | (d) A charitable or educational corporation or association; or |
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| 182 | 182 | | |
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| 183 | 183 | | (e) A financial institution, including a bank, savings and loan association, or credit union. |
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| 184 | 184 | | |
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| 185 | 185 | | (2) An investment by a school district in a depository account may be made instead of an investment as provided in Title 37, Mississippi Code of 1972, and the depository may be used by a district instead of a depository bank for the purposes of Title 37, Mississippi Code of 1972. |
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| 186 | 186 | | |
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| 187 | 187 | | SECTION 16. The applicable provisions of Title 91, Mississippi Code of 1972, govern a depository account. |
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| 188 | 188 | | |
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| 189 | 189 | | SECTION 17. (1) Unless a term of the depository account provides otherwise, a person on whose signature precious metals may be withdrawn from a depository account that is jointly held in the names of two or more persons may, by a signed pledge, pledge and transfer to the depository or to a third party all or part of the account. |
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| 190 | 190 | | |
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| 191 | 191 | | (2) A pledge made as described by subsection (1) of this section does not sever or terminate the joint and survivorship ownership of the account, to the extent applicable to the account before the pledge. |
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| 192 | 192 | | |
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| 193 | 193 | | SECTION 18. (1) The depository or a depository agent may accept a depository account in the name of a fiduciary, including an administrator, executor, custodian, guardian, or trustee, for a named beneficiary. |
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| 194 | 194 | | |
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| 195 | 195 | | (2) A fiduciary may open, add to, or withdraw precious metals from an account described by subsection (1) of this section. |
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| 196 | 196 | | |
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| 197 | 197 | | (3) Except as otherwise provided by law, a payment or delivery to a fiduciary or an acquittance signed by the fiduciary to whom a payment or delivery is made is a discharge of the depository for the payment or delivery. |
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| 198 | 198 | | |
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| 199 | 199 | | (4) After a person who holds a depository account in a fiduciary capacity dies, the depository may pay or deliver to the beneficiary of the account the quantity of precious metals represented by the balance in the depository account, plus other rights relating to the depository account, wholly or partly, if the depository has no written notice or order of the probate court of: |
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| 200 | 200 | | |
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| 201 | 201 | | (a) A revocation or termination of the fiduciary relationship; or |
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| 202 | 202 | | |
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| 203 | 203 | | (b) Any other disposition of the beneficial estate. |
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| 204 | 204 | | |
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| 205 | 205 | | (5) The depository has no further liability for a payment made or right delivered under subsection (4) of this section. |
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| 206 | 206 | | |
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| 207 | 207 | | SECTION 19. (1) If the depository opens a depository account for a person claiming to be the trustee for another person, and the depository has no other notice of the existence or terms of the trust other than a written claim against the account: |
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| 208 | 208 | | |
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| 209 | 209 | | (a) The person claiming to be the trustee, on the person's signature, may withdraw precious metals from the account; and |
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| 210 | 210 | | |
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| 211 | 211 | | (b) If the person claiming to be the trustee dies, the depository may pay or deliver the quantity of precious metals represented by the balance in the account to the person for whom the account was opened. |
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| 212 | 212 | | |
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| 213 | 213 | | (2) The depository has no further liability for a payment or delivery made as provided by subsection (1) of this section. |
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| 214 | 214 | | |
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| 215 | 215 | | SECTION 20. (1) The depository shall recognize the authority of a power of attorney authorized in writing by a depository account holder to manage or withdraw precious metals from the depository account holder's depository account until the depository receives written or actual notice of the revocation of that authority. |
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| 216 | 216 | | |
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| 217 | 217 | | (2) For purposes of this section, written notice of the death or adjudication of incompetency of a depository account holder is considered to be written notice of revocation of the authority of the account holder's power of attorney. |
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| 218 | 218 | | |
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| 219 | 219 | | SECTION 21. The depository shall enter into transactions and relationships with bullion banks, depositories, dealers, central banks, sovereign wealth funds, financial institutions, international nongovernmental organizations, and other persons, located inside or outside of this state or inside or outside of the United States, as the State Treasurer determines to be prudent and suitable to facilitate the operations of the depository and to further the purposes of this act. |
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| 220 | 220 | | |
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| 221 | 221 | | SECTION 22. (1) The depository shall not take any of the following actions, and any attempt by the depository to take any of the following actions is void ab initio and of no force or effect: |
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| 222 | 222 | | |
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| 223 | 223 | | (a) Entering into a precious metals leasing, sale-leaseback, forward transaction, swap transaction, future transaction, index transaction, or option on or other derivative of any of those, whether in the nature of a cap transaction, floor transaction, collar transaction, repurchase transaction, reverse repurchase transaction, buy-and-sell-back transaction, securities lending transaction, or other financial instrument or interest intended to or having the effect of hedging or leveraging the depository's holdings of precious metals, including any option with respect to any of these transactions, or any combination of these transactions, except that the limitation provided by this subdivision does not apply to a transaction entered into to limit the depository's exposure to post-signature price risks associated with executory agreements to purchase or sell precious metals in the ordinary course of depository operations and does not apply to policies of insurance purchased to insure against ordinary casualty risks such as theft, damage or destruction, loss during shipment, or similar risks; |
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| 224 | 224 | | |
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| 225 | 225 | | (b) Crediting the depository account balances of a depository account holder, or disposing of any precious metals, if to do so would cause the aggregate depository account balances with respect to any precious metal represented by all depository accounts to exceed the aggregate quantities of such precious metal held by or for the benefit of the depository and the depository's depository agents; |
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| 226 | 226 | | |
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| 227 | 227 | | (c) Entering into or maintaining a deposit, trust, or similar relationship for the custody of precious metals by a third party outside this state, directly or indirectly, for the account or benefit of the depository if the State Treasurer, by rule or regulation, establishes that: |
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| 228 | 228 | | |
|---|
| 229 | 229 | | (i) The custody or intermediary arrangements in question do not meet the State Treasurer's standards of safety, security, and liquidity; or |
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| 230 | 230 | | |
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| 231 | 231 | | (ii) Except in those cases where such relationship may be incidental to the performance of or preparation for purchase and sale transactions with counterparties located outside of this state, suitable alternate arrangements for physical custody of the precious metals inside this state have been established and are available; |
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| 232 | 232 | | |
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| 233 | 233 | | (d) Extending credit to a person, including credit secured by a depository account or other assets, except an extension of credit incidental to the performance of the functions and responsibilities otherwise provided by this act; or |
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| 234 | 234 | | |
|---|
| 235 | 235 | | (e) Engaging in a business or activity that, if conducted by a private person, would be subject to regulation in this state as a banking or savings and loan function. |
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| 236 | 236 | | |
|---|
| 237 | 237 | | SECTION 23. (1) A purported confiscation, requisition, seizure, or other attempt to control the ownership, disposition, or proceeds of a withdrawal, transfer, liquidation, or settlement of a depository account, including the precious metals represented by the balance of a depository account, if effected by a governmental or quasi-governmental authority other than an authority of this state or by a financial institution or other person acting on behalf of or pursuant to a directive or authorization issued by a governmental or quasi-governmental authority other than an authority of this state, in the course of a generalized declaration of illegality or emergency relating to the ownership, possession, or disposition of one or more precious metals, contracts, or other rights to the precious metals or contracts or derivatives of the ownership, possession, disposition, contracts, or other rights, is void ab initio and of no force or effect. |
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| 238 | 238 | | |
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| 239 | 239 | | (2) The depository in the case of receiving notice of a purported confiscation, requisition, seizure, or other attempt to control the ownership, disposition, or proceeds of a withdrawal, transfer, liquidation, or settlement of a depository account, including the precious metals represented by the balance of a depository account, effected by a governmental or quasi-governmental authority other than an authority of this state or by a financial institution or other person acting on behalf of or pursuant to a directive or authorization issued by a governmental or quasi-governmental authority other than an authority of this state, in the course of a generalized declaration of illegality or emergency relating to the ownership, possession, or disposition of one or more precious metals, contracts, or other rights to the precious metals or contracts or derivatives of the ownership, possession, disposition, contracts, or other rights, may not recognize the governmental or quasi-governmental authority, financial institution, or other person acting as the lawful successor of the registered holder of a depository account in question. |
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| 240 | 240 | | |
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| 241 | 241 | | (3) On receipt of notice of any transaction described by subsection (1) of this section, with respect to all or any portion of the balance of a depository account, the depository shall suspend withdrawal privileges associated with the balances of the depository account until suitable substitute arrangements may be effected in accordance with any rules or regulations of the State Treasurer to enable the registered account holder to take delivery of the precious metals represented by the account balances in question. A voluntary transfer of a depository account balance or of a depository account among depository account holders may continue to take place unaffected by the suspension, and the depository shall recognize to the full extent authorized by this act, and any rules or regulations adopted under this act. |
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| 242 | 242 | | |
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| 243 | 243 | | SECTION 24. The State Treasurer, by rule or regulation, shall establish the references by which the official exchange rate for pricing precious metals transactions in terms of United States dollars or other currency must be established at the time of a depository transaction. The State Treasurer shall establish procedures and facilities through which the rates are made discoverable at all reasonable times by system participants, both on a real-time basis and retrospectively. |
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| 244 | 244 | | |
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| 245 | 245 | | SECTION 25. The State Treasurer, by rule or regulation, shall establish procedures and requirements for the depository and depository agents designed to minimize the burden to system participants of accounting for and reporting taxable gains and losses arising out of depository transactions as denominated in United States dollars or another currency. |
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| 246 | 246 | | |
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| 247 | 247 | | SECTION 26. The State Treasurer shall submit to the Governor and to the Legislature a report on the status, condition, operations, and prospects for the depository and depository participation not later than September 30 of each year. |
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| 248 | 248 | | |
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| 249 | 249 | | SECTION 27. The depository shall use private, independently managed firms and institutions licensed as depository agents as intermediaries to conduct retail transactions in bullion and specie on behalf of the depository with current and prospective depository account holders. |
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| 250 | 250 | | |
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| 251 | 251 | | SECTION 28. The State Treasurer, by rule or regulation, shall require a depository agent to maintain suitable systems and processes for electronic information sharing and communication with the State Treasurer and the depository to ensure that all transactions effected on behalf of the depository are reported to and integrated into the depository's records not later than 11:59:59 p.m. on the date of each transaction. |
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| 252 | 252 | | |
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| 253 | 253 | | SECTION 29. A depository agent shall submit monthly, quarterly, and annual reports of all depository transactions not later than the 15th day of the month following the expiration of the period with respect to which such report is submitted. The report must contain information and be in the form and format as required by the State Treasurer. |
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| 254 | 254 | | |
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| 255 | 255 | | SECTION 30. A depository agent license holder shall prepare written reports and statements as follows: |
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| 256 | 256 | | |
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| 257 | 257 | | (a) The renewal report, including an audited unconsolidated financial statement that is dated as of the last day of the license holder's fiscal year that ended in the immediately preceding calendar year; |
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| 258 | 258 | | |
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| 259 | 259 | | (b) A quarterly interim financial statement and report regarding the permissible investments required to be maintained under applicable rules that reflect the license holder's financial condition and permissible investments as of the last day of the calendar quarter to which the statement and report relate and that are prepared not later than the 45th day after the last day of the calendar quarter; and |
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| 260 | 260 | | |
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| 261 | 261 | | (c) Any other report required by the Department of Banking and Consumer Finance, or reasonably requested by the Commissioner of Banking and Consumer Finance to determine compliance with this act. |
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| 262 | 262 | | |
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| 263 | 263 | | SECTION 31. (1) Notwithstanding any other provision of this chapter, a money service that constitutes both a depository agent service and a money transmission service, or both a depository agent service and a currency exchange service, for purposes of this act constitutes a depository agent service only. |
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| 264 | 264 | | |
|---|
| 265 | 265 | | (2) A depository agent service described by subsection (1) of this section is not subject to a provision of this act applicable uniquely to money transmission services or currency exchange services. |
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| 266 | 266 | | |
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| 267 | 267 | | (3) A person who renders a service that constitutes a depository agent service, including a depository agent service described by subsection (1) of this section, and renders another service that constitutes money transmission or currency exchange service only, is subject to the requirements of this act applicable to each type of service rendered. |
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| 268 | 268 | | |
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| 269 | 269 | | SECTION 32. (1) A person may not engage in the business of rendering depository agent services or advertise, solicit, or hold itself out as a person that engages in the business of depository agent services unless the person is: |
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| 270 | 270 | | |
|---|
| 271 | 271 | | (a) Licensed under this act, and has received the requisite certifications from the comptroller of its facilities, systems, processes, and procedures as required by this act, or any applicable rules or regulations adopted; or |
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| 272 | 272 | | |
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| 273 | 273 | | (b) Excluded from licensing requirements under the Mississippi Money Transmitters Act. |
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| 274 | 274 | | |
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| 275 | 275 | | (2) For purposes of this act: |
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| 276 | 276 | | |
|---|
| 277 | 277 | | (a) A person engages in the business of depository agent services if the person renders a depository agent service, regardless of whether: |
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| 278 | 278 | | |
|---|
| 279 | 279 | | (i) Compensation is sought or received for the service, directly or indirectly; and |
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| 280 | 280 | | |
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| 281 | 281 | | (ii) The service is incidental to any other business in which the person is primarily engaged; and |
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| 282 | 282 | | |
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| 283 | 283 | | (b) A person solicits, advertises, or holds the person out as a person that engages in the business of depository agent services if the person represents that the person will conduct depository agent services. |
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| 284 | 284 | | |
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| 285 | 285 | | (4) Notwithstanding subsection (3) of this section, a person does not engage in the business of depository agent services by engaging in a transaction for the person's own depository account or for the account of another person acting as a fiduciary that would constitute depository agent services if conducted for another person. |
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| 286 | 286 | | |
|---|
| 287 | 287 | | (5) A depository agent license holder may engage in depository agent services business at one or more locations in this state owned directly or indirectly by the license holder under a single license. |
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| 288 | 288 | | |
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| 289 | 289 | | SECTION 33. In addition to the general qualifications for licensure set forth in the Mississippi Money Transmitters Act, an applicant for a depository agent license must demonstrate to the satisfaction of the Commissioner of Banking and Consumer Finance that the: |
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| 290 | 290 | | |
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| 291 | 291 | | (a) Applicant's financial condition will enable the applicant to safely and soundly engage in the business of depository agent services; and |
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| 292 | 292 | | |
|---|
| 293 | 293 | | (b) Applicant does not engage in any activity or practice that adversely affects the applicant's safety and soundness. |
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| 294 | 294 | | |
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| 295 | 295 | | SECTION 34. (1) An applicant for a depository agent license must submit an application in accordance with the Mississippi Money Transmitters Act. |
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| 296 | 296 | | |
|---|
| 297 | 297 | | (2) At the time an application for a depository agent license is submitted, an applicant must file with the Department of Banking and Consumer Finance: |
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| 298 | 298 | | |
|---|
| 299 | 299 | | (a) An application fee in the amount established by the department; |
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| 300 | 300 | | |
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| 301 | 301 | | (b) Audited financial statements that are satisfactory to the Commissioner of Banking and Consumer Finance for purposes of determining whether the applicant has the minimum net worth required under applicable rules and is likely to maintain the required minimum net worth if a license is issued; and |
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| 302 | 302 | | |
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| 303 | 303 | | (c) Security in the amount of Five Hundred Thousand Dollars ($500,000.00) that meets the requirements of any applicable rules or regulations, and an undertaking or agreement that the applicant will increase or supplement the security to equal the aggregate security required by the commissioner before the issuance of the license and the start of operations. |
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| 304 | 304 | | |
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| 305 | 305 | | SECTION 35. The Department of Banking and Consumer Finance shall investigate the applicant and act on the application in accordance with the Mississippi Money Transmitters Act. |
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| 306 | 306 | | |
|---|
| 307 | 307 | | SECTION 36. (1) The Commissioner of Banking and Consumer Finance may issue a temporary depository agent license to a person that is engaging in depository agent services, but has not obtained a license under this act, if the person: |
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| 308 | 308 | | |
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| 309 | 309 | | (a) Certifies in writing that the person qualifies for the license and will submit a completed license application not later than the sixtieth day after the date the temporary license is issued; |
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| 310 | 310 | | |
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| 311 | 311 | | (b) Submits a recent financial statement acceptable to the commissioner that reflects the minimum net worth required under applicable regulations; |
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| 312 | 312 | | |
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| 313 | 313 | | (c) Provides security that meets the requirements specified by the commissioner, but not less than Five Hundred Thousand Dollars ($500,000.00); |
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| 314 | 314 | | |
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| 315 | 315 | | (d) Agrees in writing that, until a permanent license is issued, the person will engage only in activities being conducted at existing locations; and |
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| 316 | 316 | | |
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| 317 | 317 | | (e) Pays the application fee and a nonrefundable temporary license fee in the amount established by the Department of Banking and Consumer Finance. |
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| 318 | 318 | | |
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| 319 | 319 | | (2) The effective period for a temporary depository agent license may not exceed ninety (90) days after the date the license is issued. The commissioner may extend the effective period for not more than thirty (30) days if necessary to complete the processing of a timely filed application for which approval is likely. |
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| 320 | 320 | | |
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| 321 | 321 | | SECTION 37. A depository agent license holder is liable for the delivery to or for the account of the depository or each depositor, as applicable, of all bullion, specie, and money payable or deliverable in connection with the transactions in which the license holder engages on behalf of the depository. |
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| 322 | 322 | | |
|---|
| 323 | 323 | | SECTION 38. (1) A depository agent license holder shall hold in trust all cash, bullion, specie, and other assets received in the ordinary course of its business until the time the delivery obligation is discharged. A trust resulting from the depository agent license holder's actions is in favor of the persons to whom such delivery obligations are owed. |
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| 324 | 324 | | |
|---|
| 325 | 325 | | (2) If a depository agent license holder commingles any money or other property received for delivery with money or other property owned or controlled by the depository agent license holder, all commingled money and other property are impressed with a trust as provided by this section in an amount equal to the amount of money or property received for delivery, less the amount of fees paid for the delivery. |
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| 326 | 326 | | |
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| 327 | 327 | | (3) If the commissioner revokes a depository agent license, all money and other property held in trust by the depository agent license holder is assigned to the commissioner for the benefit of the persons to whom the related delivery obligations are owed. |
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| 328 | 328 | | |
|---|
| 329 | 329 | | (4) Money or other property of a depository agent license holder impressed with a trust under this section may not be considered an asset or property of the license holder in the event of bankruptcy, receivership, or a claim against the license holder unrelated to the license holder's obligations under this act. |
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| 330 | 330 | | |
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| 331 | 331 | | SECTION 39. (1) A depository agent license holder's name and mailing address or telephone number must be provided to the purchaser in connection with each depository agent services transaction conducted by the depository agent license holder. |
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| 332 | 332 | | |
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| 333 | 333 | | (2) A depository agent license holder receiving currency or an instrument payable in currency for transmission must comply with the Mississippi Money Transmitters Act. |
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| 334 | 334 | | |
|---|
| 335 | 335 | | SECTION 40. Section 75-15-3, Mississippi Code of 1972, is brought forward as follows: |
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| 336 | 336 | | |
|---|
| 337 | 337 | | 75-15-3. For the purposes of this chapter: |
|---|
| 338 | 338 | | |
|---|
| 339 | 339 | | (a) "Check" means any check, draft, money order, personal money order or other instrument, including but not limited to stored value cards, for the transmission or payment of money. The format of a check may be either paper, electronic, plastic or any combination thereof. |
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| 340 | 340 | | |
|---|
| 341 | 341 | | (b) "Commissioner" means the Commissioner of Banking and Consumer Finance of the State of Mississippi. |
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| 342 | 342 | | |
|---|
| 343 | 343 | | (c) "Deliver" means to deliver a check to the first person who in payment for same makes or purports to make a remittance of or against the face amount thereof, whether or not the deliverer also charges a fee in addition to the face amount, and whether or not the deliverer signs the check. |
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| 344 | 344 | | |
|---|
| 345 | 345 | | (d) "Executive officer" means the licensee's president, chairman of the executive committee, senior officer responsible for the licensee's business, chief financial officer and any other person who performs similar functions. |
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| 346 | 346 | | |
|---|
| 347 | 347 | | (e) "Licensee" means a person duly licensed by the commissioner under this chapter. |
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| 348 | 348 | | |
|---|
| 349 | 349 | | (f) "Monetary value" means a medium of exchange, whether or not redeemable in money. |
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| 350 | 350 | | |
|---|
| 351 | 351 | | (g) "Money transmission" means to engage in the business of the sale or issuance of checks or of receiving money or monetary value for transmission to a location within or outside the United States by any and all means, including but not limited to wire, facsimile or electronic transfer. |
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| 352 | 352 | | |
|---|
| 353 | 353 | | (h) "Outstanding check" means any check issued or sold in Mississippi by or for the licensee that has been reported as sold but not yet paid by or for the licensee. |
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| 354 | 354 | | |
|---|
| 355 | 355 | | (i) "Person" means any individual, partnership, association, joint-stock association, trust or corporation, but does not include the United States government or the government of this state. |
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| 356 | 356 | | |
|---|
| 357 | 357 | | (j) "Personal money order" means any instrument for the transmission or payment of money in relation to which the purchaser or remitter appoints or purports to appoint the seller thereof as his agent for the receipt, transmission or handling of money, whether the instrument is signed by the seller or by the purchaser or remitter or some other person. |
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| 358 | 358 | | |
|---|
| 359 | 359 | | (k) "Records" or "documents" means any item in hard copy or produced in a format of storage commonly described as electronic, imaged, magnetic, microphotographic or otherwise, and any reproduction so made shall have the same force and effect as the original thereof and be admitted in evidence equally with the original. |
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| 360 | 360 | | |
|---|
| 361 | 361 | | (l) "Sell" means to sell, to issue or to deliver a check. |
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| 362 | 362 | | |
|---|
| 363 | 363 | | (m) "Stored value" means monetary value that is evidenced by an electronic record. |
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| 364 | 364 | | |
|---|
| 365 | 365 | | SECTION 41. Section 75-15-5, Mississippi Code of 1972, is brought forward as follows: |
|---|
| 366 | 366 | | |
|---|
| 367 | 367 | | 75-15-5. No person, except those specified in Section 75-15-7, shall engage in the business of money transmission, as a service or for a fee or other consideration, without having first obtained a license under this chapter. |
|---|
| 368 | 368 | | |
|---|
| 369 | 369 | | SECTION 42. Section 75-15-7, Mississippi Code of 1972, is brought forward as follows: |
|---|
| 370 | 370 | | |
|---|
| 371 | 371 | | 75-15-7. Nothing in this chapter shall apply to the sale or issuance or delivering of checks by: |
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| 372 | 372 | | |
|---|
| 373 | 373 | | (a) Any financial institution whose deposits are insured by any agency of the United States government or any trust company authorized to do business in this state; |
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| 374 | 374 | | |
|---|
| 375 | 375 | | (b) The government of the United States or any department or agent thereof; |
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| 376 | 376 | | |
|---|
| 377 | 377 | | (c) The State of Mississippi or any municipal corporation, county or other political subdivision of this state; |
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| 378 | 378 | | |
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| 379 | 379 | | (d) Agents of a licensee, as provided for in Section 75-15-17, provided that this exemption shall apply only to the agent's acts on behalf of the licensee and this exemption shall not exempt the agent from the provisions of this chapter where he conducts money transmissions for his own account; |
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| 380 | 380 | | |
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| 381 | 381 | | (e) Attorneys-at-law, as to checks issued in the regular course of the practice of law; |
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| 382 | 382 | | |
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| 383 | 383 | | (f) Persons not carrying on the trade or business of money transmission, this exemption is intended to include persons who conduct money transmissions only as an incidental act to another trade or business regularly carried on by them and persons who only occasionally and infrequently conduct money transmissions for another person; or |
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| 384 | 384 | | |
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| 385 | 385 | | (g) The Nationwide Mortgage Licensing System and Registry for mortgage brokers, mortgage lenders and mortgage loan originators. |
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| 386 | 386 | | |
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| 387 | 387 | | SECTION 43. Section 75-15-9, Mississippi Code of 1972, is brought forward as follows: |
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| 388 | 388 | | |
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| 389 | 389 | | 75-15-9. Each application for a license to engage in the business of money transmission shall be made in writing and under oath to the commissioner in such form as he may prescribe. The application shall state the full name and business address of: |
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| 390 | 390 | | |
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| 391 | 391 | | (a) The proprietor, if the applicant is an individual; |
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| 392 | 392 | | |
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| 393 | 393 | | (b) Every member, if the applicant is a partnership or association; |
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| 394 | 394 | | |
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| 395 | 395 | | (c) The corporation and each executive officer and director thereof, if the applicant is a corporation; |
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| 396 | 396 | | |
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| 397 | 397 | | (d) Every trustee and officer if the applicant is a trust; |
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| 398 | 398 | | |
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| 399 | 399 | | (e) The applicant shall have a net worth of at least Twenty-five Thousand Dollars ($25,000.00) plus Fifteen Thousand Dollars ($15,000.00) for each location in excess of one (1) at which the applicant proposes to conduct money transmissions in this state, computed according to generally accepted accounting principles, but in no event shall the net worth be required to be in excess of Two Hundred Fifty Thousand Dollars ($250,000.00); |
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| 400 | 400 | | |
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| 401 | 401 | | (f) The financial responsibility, financial condition, business experience and character and general fitness of the applicant shall be such as reasonably to warrant the belief that applicant's business will be conducted honestly, carefully and efficiently; |
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| 402 | 402 | | |
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| 403 | 403 | | (g) Each application for a license shall be accompanied by an investigation fee of Fifty Dollars ($50.00) and license fee in the amount required by Section 75-15-15. All fees collected by the commissioner under the provisions of this chapter shall be deposited into the Consumer Finance Fund of the Department of Banking and Consumer Finance; |
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| 404 | 404 | | |
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| 405 | 405 | | (h) An applicant shall not have been convicted of a felony in any jurisdiction or a misdemeanor of fraud, theft, forgery, bribery, embezzlement, or making a fraudulent or false statement in any jurisdiction. |
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| 406 | 406 | | |
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| 407 | 407 | | SECTION 44. Section 75-15-11, Mississippi Code of 1972, is brought forward as follows: |
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| 408 | 408 | | |
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| 409 | 409 | | 75-15-11. Each application for a license shall be accompanied by: |
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| 410 | 410 | | |
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| 411 | 411 | | (a) Certified financial statements, reasonably satisfactory to the commissioner, showing that the applicant has a net worth of at least Twenty-five Thousand Dollars ($25,000.00) plus Fifteen Thousand Dollars ($15,000.00) for each location in excess of one (1) at which the applicant proposes to conduct money transmissions in this state, computed according to generally accepted accounting principles, but in no event shall the net worth be required to be in excess of Two Hundred Fifty Thousand Dollars ($250,000.00). |
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| 412 | 412 | | |
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| 413 | 413 | | (b) A surety bond issued by a bonding company or insurance company authorized to do business in this state, in the principal sum of Twenty-five Thousand Dollars ($25,000.00) or in an amount equal to outstanding money transmissions in Mississippi, whichever is greater, but in no event shall the bond be required to be in excess of Five Hundred Thousand Dollars ($500,000.00). However, the commissioner may increase the required amount of the bond upon the basis of the impaired financial condition of a licensee as evidenced by a reduction in net worth, financial losses or other relevant criteria. The bond shall be in form satisfactory to the commissioner and shall run to the state for the use and benefit of the Department of Banking and Consumer Finance and any claimants against the applicant or his agents to secure the faithful performance of the obligations of the applicant and his agents with respect to the receipt, handling, transmission and payment of money in connection with money transmissions in Mississippi. The aggregate liability of the surety in no event shall exceed the principal sum of the bond. The surety on the bond shall have the right to cancel the bond upon giving sixty (60) days' notice in writing to the commissioner and thereafter shall be relieved of liability for any breach of condition occurring after the effective date of the cancellation. Any claimants against the applicant or his agents may themselves bring suit directly on the bond, or the Attorney General may bring suit thereon in behalf of those claimants, either in one (1) action or successive actions. |
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| 414 | 414 | | |
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| 415 | 415 | | (c) In lieu of the corporate surety bond, the applicant may deposit with the State Treasurer bonds or other obligations of the United States or guaranteed by the United States or bonds or other obligations of this state or of any municipal corporation, county, or other political subdivision or agency of this state, or certificates of deposit of national or state banks doing business in Mississippi, having an aggregate market value at least equal to that of the corporate surety bond otherwise required. Those bonds or obligations or certificates of deposit shall be deposited with the State Treasurer to secure the same obligations as would a corporate surety bond, but the depositor shall be entitled to receive all interest and dividends thereon and shall have the right to substitute other bonds or obligations or certificates of deposit for those deposited, with the approval of the commissioner, and shall be required so to do on order of the commissioner made for good cause shown. The State Treasurer shall provide for custody of the bonds or obligations or certificates of deposits by a qualified trust company or bank located in the State of Mississippi or by any Federal Reserve Bank. The compensation, if any, of the custodian for acting as such under this section shall be paid by the depositing licensee. |
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| 416 | 416 | | |
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| 417 | 417 | | (d) Proof of registration as a money service business per 31 CFR Section 103.41, if applicable. |
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| 418 | 418 | | |
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| 419 | 419 | | (e) A set of fingerprints from any local law enforcement agency for each owner of a sole proprietorship, partners in a partnership or principal owners of a limited liability company that own at least ten percent (10%) of the voting shares of the company, shareholders owning ten percent (10%) or more of the outstanding shares of the corporation, except publically traded corporations and their subsidiaries, and any other executive officer with significant oversight duties of the business. In order to determine the applicant's suitability for license, the commissioner shall forward the fingerprints to the Department of Public Safety for a state criminal history records check, and the fingerprints shall be forwarded by the Department of Public Safety to the FBI for a national criminal history records check. The department shall not issue a license if it finds that the applicant, or any person who is an owner, partner, director or executive officer of the applicant, has been convicted of: (i) a felony in any jurisdiction; or (ii) a crime that, if committed within the state, would constitute a felony under the laws of this state; or (iii) a misdemeanor of fraud, theft, forgery, bribery, embezzlement or making a fraudulent or false statement in any jurisdiction. For the purposes of this chapter, a person shall be deemed to have been convicted of a crime if the person has pleaded guilty to a crime before a court or federal magistrate, or plea of nolo contendere, or has been found guilty of a crime by the decision or judgment of a court or federal magistrate or by the verdict of a jury, irrespective of the pronouncement of sentence or the suspension of a sentence, unless the person convicted of the crime has received a pardon from the President of the United States or the Governor or other pardoning authority in the jurisdiction where the conviction was obtained. |
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| 420 | 420 | | |
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| 421 | 421 | | SECTION 45. Section 75-15-12, Mississippi Code of 1972, is brought forward as follows: |
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| 422 | 422 | | |
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| 423 | 423 | | 75-15-12. (1) In addition to the bond required in Section 75-15-11, a licensee must possess permissible investments having an aggregate market value, calculated in accordance with generally accepted accounting principles, of not less than the aggregate amount of all outstanding checks issued or sold or money received for transmission by the licensee in the United States. This requirement may be waived by the commissioner if the dollar volume of a licensee's outstanding checks does not exceed the bond or other security devices posted by the licensee in accordance with Section 75-15-11. |
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| 424 | 424 | | |
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| 425 | 425 | | (2) Permissible investments, even if commingled with other assets of the licensee, shall be deemed by operation of law to be held in trust for the benefit of the purchasers and holders of the licensee's outstanding checks and money received for transmission and may not be considered an asset or property of the licensee in the event of bankruptcy, receivership or a claim against the licensee unrelated to any of the licensee's obligations under this chapter. |
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| 426 | 426 | | |
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| 427 | 427 | | (3) Permissible investments mean: |
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| 428 | 428 | | |
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| 429 | 429 | | (a) Cash; |
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| 430 | 430 | | |
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| 431 | 431 | | (b) Certificates of deposit or other debt obligations of a financial institution, either domestic or foreign; |
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| 432 | 432 | | |
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| 433 | 433 | | (c) Bills of exchange or time drafts drawn on and accepted by federally insured financial depository institutions; |
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| 434 | 434 | | |
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| 435 | 435 | | (d) Any investment bearing a rating of one (1) of the three (3) highest grades as defined by a nationally recognized organization that rates such securities; |
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| 436 | 436 | | |
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| 437 | 437 | | (e) Investment securities that are obligations of the United States, its agencies or instrumentalities, or obligations that are guaranteed fully as to principal and interest of the United States, or any obligations of any state, municipality or any political subdivision thereof; |
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| 438 | 438 | | |
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| 439 | 439 | | (f) Shares in a money market mutual fund, interest-bearing bills or notes or bonds, debentures or stock traded on any national securities exchange or on a national over-the-counter market, or mutual funds primarily composed of those securities or a fund composed of one or more permissible investments as set forth in this section; |
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| 440 | 440 | | |
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| 441 | 441 | | (g) Any demand borrowing agreement or agreements made to a corporation or a subsidiary of a corporation whose capital stock is listed on a national exchange; |
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| 442 | 442 | | |
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| 443 | 443 | | (h) Receivables that are due to a licensee from its agents, which are not past due or doubtful of collection; or |
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| 444 | 444 | | |
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| 445 | 445 | | (i) Any other investments approved by the commissioner. |
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| 446 | 446 | | |
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| 447 | 447 | | (4) The commissioner may limit or disallow for purposes of determining compliance with this section an investment, surety bond, letter of credit or other security otherwise permitted by this section if the commissioner determines it to be unsatisfactory for investment purposes or to pose a significant supervisory concern. |
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| 448 | 448 | | |
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| 449 | 449 | | SECTION 46. Section 75-15-19, Mississippi Code of 1972, is brought forward as follows: |
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| 450 | 450 | | |
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| 451 | 451 | | 75-15-19. (1) (a) Each licensee shall file with the commissioner within fifteen (15) days of the last business day of each month a report of the total amount of outstanding money transmissions in Mississippi. The principal sum of the surety bond or deposit required in Section 75-15-11 shall be adjusted, if appropriate, to reflect any changes in outstanding money transmissions. Licensees who maintain a surety bond in the principal sum of at least Five Hundred Thousand Dollars ($500,000.00) or a securities deposit having an aggregate market value of at least equal to Five Hundred Thousand Dollars ($500,000.00) shall be required to report the total amount of outstanding money transmissions in Mississippi on a quarterly basis. |
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| 452 | 452 | | |
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| 453 | 453 | | (b) Each licensee shall file an annual financial statement with the commissioner, audited by an independent certified public accountant or an independent registered accountant, within five (5) months after the close of the licensee's fiscal year. The financial statement shall include a balance sheet, a profit and loss statement, and a statement of retained earnings of the licensee and the licensee's agents resulting from the business of money transmission. |
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| 454 | 454 | | |
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| 455 | 455 | | (2) The commissioner may conduct or cause to be conducted an annual examination or audit of the books and records of any licensee at any time or times he deems proper, the cost of the examination or audit to be borne by the licensee. The refusal of access to the books and records shall be cause for the revocation of its license. The commissioner may charge the licensee an examination fee in an amount not less than Three Hundred Dollars ($300.00) nor more than Six Hundred Dollars ($600.00) for each licensed office, plus any actual expenses incurred while examining the licensee's records or books that are located outside the State of Mississippi. |
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| 456 | 456 | | |
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| 457 | 457 | | (3) Each licensee shall maintain the following books and records for a period of five (5) years and the books and records shall be available to the commissioner for inspection: |
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| 458 | 458 | | |
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| 459 | 459 | | (a) A record of each money transmission sold; |
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| 460 | 460 | | |
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| 461 | 461 | | (b) A general ledger, posted at least monthly, containing all assets, liabilities, capital, income and expense accounts; |
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| 462 | 462 | | |
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| 463 | 463 | | (c) Bank statements and bank reconciliation records; |
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| 464 | 464 | | |
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| 465 | 465 | | (d) Records of outstanding money transmissions; |
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| 466 | 466 | | |
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| 467 | 467 | | (e) Records of each money transmission paid within the five-year period; |
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| 468 | 468 | | |
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| 469 | 469 | | (f) A list of the names and addresses of all authorized agents; and |
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| 470 | 470 | | |
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| 471 | 471 | | (g) Any other records the commissioner may reasonably require by rule or regulation. |
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| 472 | 472 | | |
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| 473 | 473 | | The records required under this section may be maintained in photographic, electronic or other similar form. |
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| 474 | 474 | | |
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| 475 | 475 | | (4) Each licensee must maintain a written Bank Secrecy Act/Anti-Money Laundering Program that complies with 31 CFR Section 103.125, if applicable. |
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| 476 | 476 | | |
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| 477 | 477 | | (5) The commissioner may conduct a joint examination with representatives of other departments or agencies of another state or with the federal government. The commissioner may accept an examination report of another state or of the federal government or a report prepared by a certified public accountant instead of conducting an examination. A joint examination or an acceptance of an examination report does not preclude the commissioner from conducting his own examination. The report of a joint examination or an examination report accepted by the commissioner under this section is an official report of the commissioner for all purposes. |
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| 478 | 478 | | |
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| 479 | 479 | | (6) The department may adopt the necessary administrative regulations, not inconsistent with state law, for the enforcement of this chapter. |
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| 480 | 480 | | |
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| 481 | 481 | | SECTION 47. Section 75-15-23, Mississippi Code of 1972, is brought forward as follows: |
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| 482 | 482 | | |
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| 483 | 483 | | 75-15-23. Each licensee shall be liable for the payment of all money transmissions and for all checks that the licensee sells, in whatever form and whether directly or through an agent, as the maker or drawer thereof according to the negotiable instrument laws of this state, and shall be responsible only for those acts of the agent done on behalf of the licensee. Every check sold by a licensee directly or through an agent shall bear the name of the licensee clearly imprinted thereon. During the period of time that a person is an appointed agent for a licensee, the agent shall not directly or indirectly conduct his own money transmission business and the agent shall not be, continue to be, or become an officer, director, stockholder, employee, or agent of any other licensee under this chapter. When a person ceases to be an agent of a licensee, he shall immediately cease displaying his agent's appointment certificate, as provided under Section 75-15-17 of this chapter and shall immediately surrender same to the licensee. |
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| 484 | 484 | | |
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| 485 | 485 | | SECTION 48. Section 75-15-25, Mississippi Code of 1972, is brought forward as follows: |
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| 486 | 486 | | |
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| 487 | 487 | | 75-15-25. Whenever the bond or securities deposit required under Section 75-15-11 is less than Five Hundred Thousand Dollars ($500,000.00), the licensee may not at any time have a total amount in outstanding money transmissions or checks in Mississippi, in excess of the bond or securities deposit required of him under Section 75-15-11, and the licensee shall, in accordance with rules and regulations promulgated by the commissioner under this chapter, submit a written report to the commissioner on the last business day of each month regarding his money transmissions outstanding in Mississippi, whether issued by himself or through agents, provided that this limitation shall be the principal sum of the bond or the market value of the securities deposit required of the licensee under Section 75-15-11, and the sum of this limitation shall not be increased by any bond or securities deposit increase required by the commissioner under Section 75-15-29 or by deposit of any revocation order, suspension bond or securities deposit under Section 75-15-27. |
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| 488 | 488 | | |
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| 489 | 489 | | SECTION 49. Section 75-15-29, Mississippi Code of 1972, is brought forward as follows: |
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| 490 | 490 | | |
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| 491 | 491 | | 75-15-29. Any provision in this chapter to the contrary notwithstanding, the commissioner may at any time, if in his sole opinion the protection of the public so requires, increase the principal sum of the bond or the aggregate market value of the deposit required of any applicant or licensee by Section 75-15-11 but in no case shall the principal sum of the bond or the aggregate market value of the deposit required by Section 75-15-11 exceed Five Hundred Thousand Dollars ($500,000.00) and provided further, that in any situation, where a revocation order has been issued and the licensee involved has posted the additional bond required under Section 75-15-27, for suspension thereof, pending final determination, the commissioner may for the same reasons require the principal sum of the additional, suspension bond to be increased but in no case shall the principal sum thereof exceed Two Hundred Fifty Thousand Dollars ($250,000.00), and provided further that if the licensee originally deposited with his application under Section 75-15-11 a corporate surety bond, the additional increase provided in this section must be by another corporate surety bond or an increase of the first one, written by the same corporate surety that wrote the first one and may not be a deposit of securities or if the licensee originally deposited securities, the additional increase shall also be of securities and not a corporate surety bond. |
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| 492 | 492 | | |
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| 493 | 493 | | SECTION 50. This act shall take effect and be in force from and after July 1, 2025. |
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