Chapter 246 |
2019 -- S 0753 SUBSTITUTE A AS AMENDED Enacted 07/15/2019 |
A N A C T |
RELATING TO FINANCIAL INSTITUTIONS -- LICENSED ACTIVITIES--CURRENCY TRANSMISSIONS |
Introduced By: Senators DiPalma, Lombardo, Conley, Gallo, and Valverde |
Date Introduced: April 04, 2019 |
It is enacted by the General Assembly as follows: |
SECTION 1. Sections 19-14-1, 19-14-2, 19-14-4, 19-14-5, 19-14-6 and 19-14-26 of the |
General Laws in Chapter 19-14 entitled "Licensed Activities" are hereby amended to read as |
follows: |
19-14-1. Definitions. |
Unless otherwise specified, the following terms shall have the following meanings |
throughout chapters 14, 14.1, 14.2, 14.3, 14.4, 14.6, 14.8, 14.10, and 14.11 of this title: |
(1) "Bona fide employee" shall mean an employee of a licensee who works under the |
oversight and supervision of the licensee. |
(2) "Check" means any check, draft, money order, personal money order, or other |
instrument for the transmission or payment of money. For the purposes of check cashing, |
travelers checks or foreign denomination instruments shall not be considered checks. "Check |
cashing" means providing currency for checks. |
(3) "Check casher" means a person or entity who or that, for compensation, engages, in |
whole or in part, in the business of cashing checks. |
(4) "Currency transmission" means engaging in the business of any of the following: |
(i) Sale or issuance of payment instruments or stored value primarily for personal, family, |
or household purposes; or |
(ii) Receiving money or monetary value for transmission or holding funds incidental to |
transmission within the United States or to locations abroad by any and all means, including |
payment instrument, stored value, wire, facsimile, or electronic transfer, primarily for personal, |
family, or household purposes. This includes maintaining control of virtual currency or |
transactions in virtual currency on behalf of others. |
(4)(5) "Deferred-deposit transaction" means any transaction, such as those commonly |
known as "payday loans,", "payday advances,", or "deferred-presentment loans,", in which a cash |
advance is made to a customer in exchange for the customer's personal check or in exchange for |
the customer's authorization to debit the customer's deposit account and where the parties agree |
either that the check will not be cashed or deposited, or that the customer's deposit account will |
not be debited until a designated future date. |
(5)(6)(7) "Deliver" means to deliver a check to the first person who, in payment for the |
check, makes, or purports to make, a remittance of, or against, the face amount of the check, |
whether or not the deliverer also charges a fee in addition to the face amount and whether or not |
the deliverer signs the check. |
(6) "Electronic money transfer" means receiving money for transmission within the |
United States or to locations abroad by any means including, but not limited to, wire, facsimile, or |
other electronic transfer system. |
(7)(8) "Insurance premium finance agreement" means an agreement by which an insured, |
or prospective insured, promises to pay to an insurance premium finance company the amount |
advanced, or to be advanced, under the agreement to an insurer or to an insurance producer, in |
payment of a premium, or premiums, on an insurance contract, or contracts, together with interest |
and a service charge, as authorized and limited by this title. |
(8)(9) "Insurance premium finance company" means a person or entity engaged in the |
business of making insurance premium finance agreements or acquiring insurance premium |
finance agreements from other insurance premium finance companies. |
(9)(10)(i) "Lender" means any person who makes or funds a loan within this state with |
the person's own funds, regardless of whether the person is the nominal mortgagee or creditor on |
the instrument evidencing the loan; |
(ii) A loan is made or funded within this state if any of the following conditions exist: |
(A) The loan is secured by real property located in this state; |
(B) An application for a loan is taken by an employee, agent, or representative of the |
lender within this state; |
(C) The loan closes within this state; |
(D) The loan solicitation is done by an individual with a physical presence in this state; or |
(E) The lender maintains an office in this state. |
(iii) The term "lender" shall also include any person engaged in a transaction whereby the |
person makes or funds a loan within this state using the proceeds of an advance under a line of |
credit over which proceeds the person has dominion and control and for the repayment of which |
the person is unconditionally liable. This transaction is not a table-funding transaction. A person |
is deemed to have dominion and control over the proceeds of an advance under a line of credit |
used to fund a loan regardless of whether: |
(A) The person may, contemporaneously with, or shortly following, the funding of the |
loan, assign or deliver to the line of credit lender one or more loans funded by the proceeds of an |
advance to the person under the line of credit; |
(B) The proceeds of an advance are delivered directly to the settlement agent by the line- |
of-credit lender, unless the settlement agent is the agent of the line-of-credit lender; |
(C) One or more loans funded by the proceeds of an advance under the line of credit is |
purchased by the line-of-credit lender; or |
(D) Under the circumstances, as set forth in regulations adopted by the director, or the |
director's designee, pursuant to this chapter. |
(10)(11) "Licensee" means any person licensed under this chapter. |
(11)(12) "Loan" means any advance of money or credit including, but not limited to: |
(i) Loans secured by mortgages; |
(ii) Insurance premium finance agreements; |
(iii) The purchase or acquisition of retail installment contracts or advances to the holders |
of those contracts; |
(iv) Educational loans; |
(v) Any other advance of money; or |
(vi) Any transaction, such as those commonly known as "payday loans,", "payday |
advances,", or "deferred-presentment loans,", in which a cash advance is made to a customer in |
exchange for the customer's personal check, or in exchange for the customer's authorization to |
debit the customer's deposit account, and where the parties agree either, that the check will not be |
cashed or deposited, or that customer's deposit account will not be debited, until a designated |
future date. |
(12)(13) "Loan broker" means any person or entity who or that, for compensation or gain, |
or in the expectation of compensation or gain, either directly or indirectly, solicits, processes, |
negotiates, places, or sells a loan within this state for others in the primary market, or offers to do |
so. A loan broker shall also mean any person who is the nominal mortgagee or creditor in a table- |
funding transaction. A loan is brokered within this state if any of the following conditions exist: |
(i) The loan is secured by real property located in this state; |
(ii) An application for a loan is taken or received by an employee, agent, or representative |
of the loan broker within this state; |
(iii) The loan closes within this state; |
(iv) The loan solicitation is done by an individual with a physical presence in this state; or |
(v) The loan broker maintains an office in this state. |
(13)(14) "Loan-closing services" means providing title services, including title searches, |
title examinations, abstract preparation, insurability determinations, and the issuance of title |
commitments and title insurance policies, conducting loan closings, and preparation of loan- |
closing documents when performed by, or under the supervision of, a licensed attorney, licensed |
title agency, or licensed title insurance company. |
(14)(15) "Loan solicitation" shall mean an effectuation, procurement, delivery and offer, |
and advertisement of a loan. Loan solicitation also includes providing or accepting loan |
applications and assisting persons in completing loan applications and/or advising, conferring, or |
informing anyone regarding the benefits, terms and/or conditions of a loan product or service. |
Loan solicitation does not include loan processing or loan underwriting as defined in this section. |
Loan solicitation does not include telemarketing that is defined, for purposes of this section, to |
mean contacting a person by telephone with the intention of collecting such person's name, |
address, and telephone number for the sole purpose of allowing a mortgage loan originator to |
fulfill a loan inquiry. |
(15)(16) "Loan underwriting" shall mean a loan process that involves the analysis of risk |
with respect to the decision whether to make a loan to a loan applicant based on credit, |
employment, assets, and other factors, including evaluating a loan applicant against a lender's |
various lending criteria for creditworthiness, making a determination for the lender as to whether |
the applicant meets the lender's pre-established credit standards, and/or making a |
recommendation regarding loan approval. |
(16)(17) "Monetary value" means a medium of exchange, whether or not redeemable in |
fiat currency. |
(16)(17)(18) "Mortgage loan" means a loan secured in whole, or in part, by real property |
located in this state. |
(17)(18)(19) "Mortgage loan originator" has the same meaning set forth in § 19-14.10- |
3(6). |
(18)(19)(20) "Nationwide Multi-state licensing system Licensing System Multistate |
Licensing System" means a system involving more than one or more states state, the District of |
Columbia, or the Commonwealth of Puerto Rico and which that is established to facilitate the |
sharing of regulatory information and the licensing, application, reporting, and payment |
processes, by electronic or other means, for mortgage lenders and loan brokers and other |
licensees required to be licensed under this chapter. |
(19)(20)(21) "Natural person employee" shall mean any natural person performing |
services as a bona fide employee for a person or entity licensed under § 19-14-1 et seq., in return |
for a salary, wage, or other consideration, where such salary, wage, or consideration is reported |
by the licensee on a federal form W-2 payroll record. The term does not include any natural |
person or business entity performing services for a person licensed under the provisions of Rhode |
Island general laws in return for a salary, wage, or other consideration, where such salary, wage, |
or consideration is reported by the licensee on a federal form 1099. |
(20)(21)(22) "Negative equity" means the difference between the value of an asset and |
the outstanding portion of the loan taken out to pay for the asset, when the latter exceeds the |
former amount. |
(21)(22)(23) "Negotiates" shall mean, with respect to a loan, to confer directly with, or |
offer advice directly to, a loan applicant or prospective loan applicant for a loan product or |
service concerning any of the substantive benefits, terms, or conditions of the loan product or |
service. |
(22)(23)(24) "Nonprofit organization" means a corporation qualifying as a 26 U.S.C. § |
501(c)(3) nonprofit organization, in the operation of which no member, director, officer, partner, |
employee, agent, or other affiliated person profits financially other than receiving reasonable |
salaries if applicable. |
(23)(24)(25) "Operating subsidiary" shall mean a majority-owned subsidiary of a |
financial institution or banking institution that engages only in activities permitted by the parent |
financial institution or banking institution. |
(24)(25)(26) "Oversight and supervision of the licensee" shall mean that the licensee |
provides training to the employee, sets the employee's hours of work, and provides the employee |
with the equipment and physical premises required to perform the employee's duties. |
(25)(26)(27) "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 as his or her 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. |
(26)(27)(28) "Primary market" means the market in which loans are made to borrowers |
by lenders, whether or not through a loan broker or other conduit. |
(27)(28)(29) "Principal owner" means any person or entity who or that owns, controls, |
votes, or has a beneficial interest in, directly or indirectly, ten percent (10%) or more of the |
outstanding capital stock and/or equity interest of a licensee. |
(28)(29)(30) "Processes" shall mean, with respect to a loan, any of a series of acts or |
functions, including the preparation of a loan application and supporting documents, performed |
by a person that leads to, or results in, the acceptance, approval, denial, and/or withdrawal of a |
loan application, including, without limitation, the rendering of services, including loan |
underwriting, obtaining verifications, credit reports or appraisals, communicating with the |
applicant and/or the lender or loan broker, and/or other loan processing and origination services, |
for consideration by a lender or loan broker. Loan processing does not include the following: |
(i) Providing loan closing services; |
(ii) Rendering of credit reports by an authorized credit reporting agency; and |
(iii) Rendering of appraisal services. |
(29)(30)(31) "Provisional employee" means a natural person who, pursuant to a written |
agreement between the natural person and a wholly owned subsidiary of a financial holding |
company, as defined in the Bank Holding Company Act of 1956 (12 U.S.C. § 1841 et seq.), as |
amended, a bank-holding company, savings-bank-holding company, or thrift-holding company, is |
an exclusive agent for the subsidiary with respect to mortgage loan originations and the |
subsidiary: (a) Holds a valid loan broker's license; and (b) Enters into a written agreement with |
the director, or the director's designee, to include: |
(i) An "undertaking of accountability,", in a form prescribed by the director, or the |
director's designee, for all of the subsidiary's exclusive agents to include full-and-direct financial |
and regulatory responsibility for the mortgage loan originator activities of each exclusive agent as |
if said exclusive agent were an employee of the subsidiary; |
(ii) A business plan, to be approved by the director, or the director's designee, for the |
education of the exclusive agents, the handling of consumer complaints related to the exclusive |
agents, and the supervision of the mortgage loan origination activities of the exclusive agents; and |
(iii) A restriction of the exclusive agents' mortgage loan originators' activities to loans to |
be made only by the subsidiary's affiliated bank. |
(30)(31)(32) "Sell" means to sell, to issue, or to deliver a check. |
(31)(32)(33) "Servicing" means receiving a scheduled, periodic payment from a |
borrower, pursuant to the terms of a loan, including amounts for escrow accounts, and making the |
payments to the owner of the loan or other third party of principal and interest and other |
payments with respect to the amounts received from the borrower as may be required pursuant to |
the terms of the servicing loan documents or servicing contract. In the case of a home equity |
conversion mortgage or a reverse mortgage, servicing includes making payment to the borrower. |
(32)(33)(34) "Simple interest" means interest computed on the principal balance |
outstanding immediately prior to a payment for one plus the actual number of days between |
payments made on a loan over the life of a loan. |
(33)(34)(35) "Small loan" means a loan of less than five thousand dollars ($5,000), not |
secured by real estate, made pursuant to the provisions of chapter 14.2 of this title. |
(34)(35)(36) "Small-loan lender" means a lender engaged in the business of making |
small loans within this state. |
(36)(37) "Stored value" means monetary value representing a claim against the issuer that |
is stored on an electronic or digital medium and is evidenced by an electronic or digital record, |
and that is intended and accepted for use as a means of redemption for money or monetary value |
or payment for goods or services. The term does not include stored value that is redeemable by |
the issuer exclusively in goods or services; stored value that is redeemable exclusively in goods |
or services limited to transactions involving a defined merchant or location or set of locations, |
such as a specific retailer or retail chain, college campus, or program points, miles, or other units |
issued in connection with a customer affinity or rewards program, even if there is a secondary |
market for the stored value. |
(35)(37)(38) "Table-funding transaction" means a transaction in which there is a |
contemporaneous advance of funds by a lender and an assignment by the mortgagee or creditor of |
the loan to the lender. |
(36)(38)(39) "Third-party loan servicer" means a person or entity who or that, directly or |
indirectly, engages in the business of servicing a loan secured by residential real estate located in |
Rhode Island, for a personal, family, or household purpose, owed or due, or asserted to be owed |
or due, another, or a person or entity that owns the servicing rights to a loan secured by residential |
real estate located in Rhode Island whether or not that owner services the loan themselves or |
contracts with another person or entity for the servicing. |
(39)(40) "Virtual currency": |
(i) Means a digital representation of value that: |
(A) Is used as a medium of exchange, unit of account, or store of value; and |
(B) Is not legal tender, whether or not denominated in legal tender; and |
(ii) Does not include: |
(A) A transaction in which a merchant grants, as part of an affinity or rewards program, |
value that cannot be taken from or exchanged with the merchant for legal tender, bank credit, or |
virtual currency; |
(B) A digital representation of value issued by or on behalf of a publisher and used solely |
within an online game, game platform, or family of games sold by the same publisher or offered |
on the same game platform; |
(C) Native digital token used in a proprietary blockchain service platform; or |
(D) A gift certificate; store gift card; general-use prepaid card; or loyalty, award, or |
promotional gift card, as these terms are defined in federal Regulation E, title 12 C.F.R. |
1005.20(a), without giving effect to any exception as specified in title 31 C.F.R. 1010.100 (kkk) |
or any card, code or device, or other device that can add funds to those products. |
(37)(40)(41) "Writing" means hard-copy writing or electronic writing that meets the |
requirements of § 42-127.1-2(7). |
19-14-2. Licenses required. |
(a) No person shall engage within this state in the business of: (1) Making or funding |
loans or acting as a lender or small loan lender; (2) Brokering loans or acting as a loan broker; (3) |
Selling checks for a fee or other consideration Providing currency transmission for a fee or other |
consideration; (4) Cashing checks for a fee or other consideration, which includes any premium |
charged for the sale of goods in excess of the cash price of the goods; (5) Providing electronic |
money transfers for a fee or other consideration; (6)(5) Providing debt-management services; |
(7)(6) Performing the duties of a mortgage-loan originator; (8)(7) Servicing a loan, directly or |
indirectly, as a third-party loan servicer without first obtaining a license or registration from the |
director or the director's designee. The licensing requirement for any person providing debt- |
management plans shall apply to all persons, without regard for state of incorporation or a |
physical presence in this state, who initiate or service debt-management plans for residents of this |
state. Special exemptions from licensing for each activity are contained in other chapters in this |
title. |
(b) No lender or loan-broker licensee shall permit an employee to act as a mortgage loan |
originator without first verifying that such the originator is licensed under this chapter. No |
individual may act as a mortgage-loan originator without being licensed, or act as a mortgage- |
loan originator for more than one person. The license of a mortgage-loan originator is not |
effective during any period when such the mortgage-loan originator is not associated with a |
lender or loan-broker licensee. |
(c) Each loan negotiated, solicited, placed, found, or made without a license as required |
in subsection (a) shall constitute a separate violation for purposes of this chapter. |
(d) No person engaged in the business of making or brokering loans in this state, whether |
licensed in accordance with the provisions of this chapter or exempt from licensing, shall accept |
applications, or referral of applicants from, or pay a fee to, any lender, loan broker, or mortgage- |
loan originator who is required to be licensed or registered under said sections but is not licensed |
to act as such by the director, or the director's designee. |
(e) No person, except those exempt pursuant to § 19-14.3-1, shall engage in the business |
of currency transmission in this state without a license as provided in this chapter. |
(f) A currency transmission licensee may conduct its business in this state at one or more |
locations, directly or indirectly owned, or through one or more authorized delegates, or both, |
pursuant to the license granted under this chapter. |
(g) A person is considered to be engaged in the business of currency transmission in this |
state if that person enters into a transaction with a person physically located in or resident in |
Rhode Island at the time the transaction is initiated. |
19-14-4. Annual fee. |
(a) Each licensee shall pay an annual license fee as follows: |
(1) Each small-loan lender license and each branch certificate, the sum of five hundred |
fifty dollars ($550); |
(2) Each loan-broker license and each branch certificate, the sum of five hundred fifty |
dollars ($550); |
(3) Each lender license and each branch certificate, the sum of one thousand one hundred |
dollars ($1,100); |
(4) Each sale of checks currency transmission license, the sum of three hundred sixty |
dollars ($360) one thousand dollars ($1,000); |
(5) Each check cashing license, the sum of three hundred sixty dollars ($360); |
(6) Each electronic money transfer license, the sum of three hundred sixty dollars ($360); |
(7) Each registration to provide debt-management services, the sum of two hundred |
dollars ($200); |
(8) Each mortgage-loan originator license, the sum of one hundred dollars ($100); and |
(9) Each third-party loan-servicer license and each branch certificate, the sum of one |
thousand one hundred dollars ($1,100). |
(b) Any licensee who shall not pay the annual fee by December 31 of each year shall be |
subject to a daily penalty of twenty-five dollars ($25) per day, subject to a maximum of seven |
hundred fifty dollars ($750). The penalty shall be paid to the director to, and for the use of, the |
state. The penalty may be waived for good cause by the director, or the director's designee, upon |
written request. |
19-14-5. Minimum capital. |
Each licensee, licensed pursuant to an application for license filed after June 30, 1995, |
shall maintain the following minimum-net worth to be evidenced in accordance with regulations |
promulgated by the director, or the director's designee. |
(1) Small-loan lenders, the sum of twenty-five thousand dollars ($25,000); |
(2) Loan brokers, the sum of ten thousand dollars ($10,000); |
(3) Lenders, the sum of one hundred thousand dollars ($100,000); |
(4) Sale of checks Currency transmission licensees, the sum of fifty thousand dollars |
($50,000). If a licensee limits its actions to virtual currency, the licensee may include in its |
calculation of net worth virtual currency, measured by the average value of the virtual currency in |
U.S. Dollar equivalent over the prior six (6) months; and |
(5) Third-party loan servicers, the sum of one hundred thousand dollars ($100,000). |
19-14-6. Bond of applicant. |
(a) An applicant for any license shall file with the director, or the director's designee, a |
bond to be approved by him or her in which the applicant shall be the obligor. |
(b) The amount of the bond shall be as follows: |
(1) Small-loan lenders, the sum of ten thousand dollars ($10,000); |
(2) Loan brokers, the sum of twenty thousand dollars ($20,000); |
(3) Lenders, the sum of fifty thousand dollars ($50,000); |
(4) Sale of checks and electronic money transfer Currency transmission licensees, the |
sum of fifty thousand dollars ($50,000) subject to a maximum of one hundred and fifty thousand |
dollars ($150,000) when aggregated with agent locations; |
(5) Check-cashing licensees who accept checks for collection with deferred payment, the |
sum of fifty thousand dollars ($50,000) subject to a maximum of one hundred and fifty thousand |
dollars ($150,000) when aggregated with agent locations; |
(6) Foreign-exchange licensees, the sum of ten thousand dollars ($10,000); |
(7) The amounts listed above apply to licensees with zero (0) to three (3) branch or agent |
locations. Licensees with four (4) to seven (7) branches shall post a bond, as indicated above, and |
an additional bond in the sum of ten thousand dollars ($10,000). Licensees with eight (8) or more |
branches shall post a bond, as indicated above, and an additional bond in the sum of twenty-five |
thousand dollars ($25,000); |
(8)(6)(8) Each debt-management services registrant, the amount provided in § 19-14.8- |
13; or |
(9)(7)(9) Each third-party loan servicer, the sum of fifty thousand dollars ($50,000); or |
(8)(10) If a currency transmission licensee shows that a surety bond is not generally |
available in this state at a commercially reasonable cost, the department may accept an alternative |
form of security. |
(c) The bond shall run to the state for the use of the state and of any person who may |
have cause of action against the obligor of the bond under the provisions of this title. The bond |
shall be perpetual and shall be conditioned upon the obligor faithfully conforming to, and abiding |
by, the provisions of this title and of all rules and regulations lawfully made, and the obligor will |
pay to the state and to any person any and all money that may become due or owing to the state or |
to the person from the obligor under, and by virtue of, the provisions of this title. |
(d) The provisions of subsection (b)(6) shall not apply to any foreign-exchange business |
holding a valid, electronic money-transfer license issued pursuant to § 19-14-1 et seq., that has |
filed with the division of banking the bond required by subsections (b)(4) and (b)(7). |
(e) The bond shall remain in force and effect until the surety is released from liability by |
the director, or the director's designee, or until the bond is cancelled by the surety. The surety |
may cancel the bond and be released from further liability under the bond upon receipt by the |
director, or the director's designee, of written notice in a manner satisfactory to the director, |
including, but not limited to, for documentation purpose of the cancellation of the bond at least |
thirty (30) days in advance of the cancellation of the bond. The cancellation shall not affect any |
liability incurred or accrued under the bond before the termination of the thirty-day (30) period. |
Upon receipt of any notice of cancellation, the director shall provide written notice to the |
licensee. |
(f) Upon receipt of any notice of cancellation, the director may provide written notice to |
the licensee requiring reinstatement or replacement of the bond. Unless the bond is reinstated by |
the surety, or a satisfactory replacement bond is filed with the director prior to the cancellation of |
the original bond, the license shall be suspended. The licensee will be provided notice of the |
suspension and may request a hearing within thirty (30) days. If the licensee does not request a |
hearing, the director, or director's designee, shall issue an order revoking the license for failure to |
comply with this section. |
19-14-26. Penalty for violations. |
Any person and the several members, officers, directors, agents, and employees of any |
person who violate or participate (a) If a person other than a licensee engages in activity for |
which licensure is required by this title with or on behalf of a resident in violation of this chapter, |
the department may assess a civil penalty against the person in an amount not to exceed five |
thousand dollars ($5,000) for each day of violation and/or may order that the person cease and |
desist from all activities requiring licensure. |
(b) If a licensee materially violates or participates in the violation of any of the applicable |
provisions of this title, or any regulation promulgated under this title, is guilty of a misdemeanor |
and upon conviction shall be punished by a fine the department may assess a civil penalty of not |
more than one thousand dollars ($1,000) for each violation or in the case of identifiable measured |
transactions per transaction, or by imprisonment not exceeding one year, or both. Each violation |
constitutes a separate offense. Complaints under the provisions of this chapter may be made by |
the director, or the director's designee, and shall not be required to give surety for costs. The |
attorney general shall prosecute all complaints criminal activities under this chapter. |
(c) A civil penalty under this section continues to accrue until the earlier of the following: |
(1) The date the violation ceases; or |
(2) A date specified by the department. |
(d) In addition to the remedies set forth in subsections (a) and (b) of this section, upon |
proof of a material violation by a licensee, the department may take any of the following actions: |
(1) Suspend or revoke a license or registration under this chapter; |
(2) Order a person to cease and desist from doing activity for which a license or registrant |
is required with or on behalf of a resident; |
(3) Request the court to appoint a receiver for the assets of a licensee or registrant; |
(4) Request the court to issue temporary, preliminary, or permanent injunctive relief |
against a licensee or registrant; |
(5) Recover on the bond or security posted by the licensee or registrant; or |
(6) Impose necessary or appropriate conditions on the conduct of business activity with |
or on behalf of a resident. |
(e) All actions of the department under this section shall be taken in accordance with the |
requirements of chapter 35 of title 42, (the administrative procedures act). |
SECTION 2. The title of Chapter 19-14.3 of the General Laws entitled "Sale of Checks |
and Electronic Money Transfers" is hereby amended to read as follows: |
CHAPTER 19-14.3 |
Sale of Checks and Electronic Money Transfers |
CHAPTER 19-14.3 |
CURRENCY TRANSMISSIONS |
SECTION 3. Section 19-14.3-1 of the General Laws in Chapter 19-14.3 entitled "Sale of |
Checks and Electronic Money Transfers" is hereby amended to read as follows: |
19-14.3-1. Exemption from licensing. |
No license to sell checks or engage in the business of currency transmission electronic |
money transfers shall be required of any: |
(1) Regulated institution, bank, or credit union organized under the laws of the United |
States, or subject to written notice with a designated Rhode Island agent for service of process in |
the form prescribed by the director, or the director's designee, of any other state within the United |
States if the laws of the other state in which such the bank or credit union is organized authorizes |
under conditions not substantially more restrictive than those imposed by the laws of this state, as |
determined by the director, or the director's designee, a financial institution or credit union to |
engage in the business of selling checks or electronic money transfers currency transmission in |
the other state; no bank or credit union duly organized under the laws of any other state within the |
United States may receive deposits, pay checks, or lend money from any location within this state |
unless such the bank or credit union has received approval from the director, or the director's |
designee, for the establishment of an interstate branch office pursuant to chapter 7 of title 19 this |
title; |
(2) Natural person employee who is employed by a licensee when acting on the licensee's |
behalf; or |
(3) Agents or authorized delegates any licensee shall designate or appoint. No sale of |
check or electronic money transfer currency transmission licensee shall be required to obtain a |
branch office license pursuant to § 19-14-12, or shall be subject to the provisions of § 19-14-24, |
or shall be required to obtain a license pursuant to chapter 14.4 of this title for check-cashing |
services incidental to the sale of checks and electronic money transfers and the person charges not |
more than fifty cents ($.50) per check cashed. Agents or authorized delegates, in their capacity as |
agents of the licensee, are subject to the supervision and regulation by the director |
notwithstanding exemption from licensure. |
(4) This chapter shall not apply to activity by: |
(i) The United States, a state, political subdivision of a state, agency or instrumentality of |
federal, state, or local government, or a foreign government or a subdivision, department, agency |
or instrumentality of a foreign government; |
(ii) A person whose participation in a payment system is limited to providing processing, |
clearing, or performing settlement services solely for transactions between or among persons that |
who are exempt from the licensing or registration requirements of this chapter; |
(iii) A person engaged in the business of dealing in foreign exchange to the extent the |
person's activity meets the definition in 31 C.F.R. 1010.605(f)(1)(iv), as may be amended from |
time to time; |
(iv) A person that who: |
(A) Contributes only connectivity software or computing power to support the stability |
and security of the underlying network; |
(B) Provides only data storage or security services for a business engaged in virtual |
currency business activity and does not otherwise engage in virtual currency business activity on |
behalf of another person; |
(C) Provides only to a person otherwise exempt from this chapter virtual currency as one |
or more enterprise solutions used solely among each other and has no agreement or relationship |
with a resident that is an end-user of virtual currency; or |
(D) Transmission or communications services providers that provide only the means of |
transmission or communications.; |
(v) A person using virtual currency, including creating, investing, buying, or selling, or |
obtaining virtual currency as payment for the purchase or sale of goods or services, solely: |
(A) On its own behalf; |
(B) For personal, family, or household purposes; or |
(C) For academic purposes; |
(vi) An attorney to the extent of providing escrow services to a resident; |
(vii) A title insurance company to the extent of providing escrow services to a resident; |
(viii) A securities intermediary, as defined in § 6A-8-102, or a commodity intermediary, |
as defined § 6A-9-102, that: |
(A) Does not engage in the ordinary course of business in virtual currency business |
activity with or on behalf of a resident in addition to maintaining securities accounts or |
commodities accounts and is regulated as a securities intermediary or commodity intermediary |
under federal law, the law of this state other than this chapter, or the law of another state; and |
(B) Affords resident protections comparable to those set forth in § 19-14.3-3.6; |
(ix) A secured party defined in § 6A-9-102(a) or creditor with a judicial lien or lien |
arising by operation of law on collateral that is virtual currency, if the virtual currency business |
activity of the creditor is limited to enforcement of the security interest in compliance with |
chapter 9 of title 6A or a lien in compliance with the law applicable to the lien; |
(x) A virtual currency control-services vendor; or |
(xi) A person that: |
(A) Does not receive compensation from or on behalf of a resident or from sales of data |
pertaining to a resident for: |
(I) Providing virtual currency products or services; or |
(II) Conducting virtual currency business activity; or |
(B) Is engaged in testing products or services with the person's own funds. |
(5) The department may determine that a person or class of persons, given facts particular |
to the person or class, should be exempt from this chapter, whether the person or class is covered |
by requirements imposed under federal law on a money-service business. |
SECTION 4. Chapter 19-14.3 of the General Laws entitled "Sale of Checks and |
Electronic Money Transfers" is hereby amended by adding thereto the following sections: |
19-14.3-1.1. Definitions. |
In addition to the definitions provided in § 19-14-1 the following definitions are |
applicable to this chapter: |
(1) "Control" means: |
(i) When used in reference to a transaction or relationship involving virtual currency, the |
power to execute unilaterally or prevent indefinitely a virtual currency transaction; and |
(ii) When used in reference to a person, the direct or indirect power to direct the |
management, operations, or policies of the person through legal or beneficial ownership of |
twenty-five percent (25%) or more of the voting power in the person or under a contract, |
arrangement, or understanding. |
(2) "Department" means the department of business regulation, division of banking;. |
(3) "Exchange," used as a verb, means to assume control of virtual currency from or on |
behalf of a resident, at least momentarily, to sell, trade, or convert: |
(i) Virtual currency for legal tender, bank credit, or one or more forms of virtual |
currency; or |
(ii) Legal tender or bank credit for one or more forms of virtual currency. |
(4) "Legal tender" means a medium of exchange or unit of value, including the coin or |
paper money of the United States, issued by the United States or by another government. |
(5) "Licensee" means a person licensed under this chapter. |
(6) "Monetary value" means a medium of exchange, whether or not redeemable in |
money. |
(7) "Reciprocity agreement" means an arrangement between the department and the |
appropriate licensing agency of another state which that permits a licensee operating under a |
license granted by the other state to engage in currency transmission business activity with or on |
behalf of a resident. |
(8) "Record" means information that is inscribed on a tangible medium or that is stored in |
an electronic or other medium and is retrievable in perceivable form. |
(9) "Registry" means the Nationwide Multistate Licensing System. |
(10) "Resident": |
(i) Means a person that: |
(A) Is domiciled in this state; |
(B) Is physically located in this state for more than one hundred eighty-three (183) days |
of the previous three hundred sixty-five (365) days; or |
(C) Has a place of business in this state; and |
(ii) Includes a legal representative of a person that satisfies subsection (10)(i) of this |
section. |
(11) "Responsible individual" means an individual who has managerial authority with |
respect to a licensee's currency transmission business activity with or on behalf of a resident. |
(12) "Sign" means, with present intent to authenticate or adopt a record: |
(i) To execute or adopt a tangible symbol; or |
(ii) To attach to or logically associate with the record an electronic symbol, sound, or |
process. |
(13) "State" means a state of the United States, the District of Columbia, Puerto Rico, the |
United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of |
the United States. |
(14) "Store," except in the phrase "store of value," means to maintain control of virtual |
currency on behalf of a resident by a person other than the resident. "Storage" and "storing" have |
corresponding meanings. |
(15) "Transfer" means to assume control of virtual currency from or on behalf of a |
resident and to: |
(i) Credit the virtual currency to the account of another person; |
(ii) Move the virtual currency from one account of a resident to another account of the |
same resident; or |
(iii) Relinquish control of virtual currency to another person. |
(16) "U.S. Dollar equivalent of virtual currency" means the equivalent value of a |
particular virtual currency in United States dollars shown on a virtual currency exchange based in |
the United States for a particular date or period specified in this chapter. |
(17) "Virtual currency business activity" means: |
(i) Exchanging, transferring, or storing virtual currency whether directly or through an |
agreement with a virtual currency control-services vendor; |
(ii) Holding electronic precious metals or electronic certificates representing interests in |
precious metals on behalf of another person or issuing shares or electronic certificates |
representing interests in precious metals; or |
(iii) Exchanging one or more digital representations of value used within one or more |
online games, game platforms, or family of games for: |
(A) Virtual currency offered by or on behalf of the same publisher from which the |
original digital representation of value was received; or |
(B) Legal tender or bank credit outside the online game, game platform, or family of |
games offered by or on behalf of the same publisher from which the original digital |
representation of value was received. |
(18) "Virtual currency control-services vendor" means a person that who has control of |
virtual currency solely under an agreement with a person that who, on behalf of another person, |
assumes control of virtual currency. |
19-14.3-1.2. License by reciprocity. |
(a) A person licensed by another state to engage in currency transmission business |
activity in that state may engage in currency transmission business activity with or on behalf of a |
resident to the same extent as a licensee if: |
(1) The department determines that the state in which the person is licensed has in force |
laws regulating currency transmission business activity which that are substantially similar to, or |
more protective of rights of users than, this chapter and enters into a reciprocity agreement with |
the other state that the state will allow reciprocal licensing of persons licensed under this chapter. |
(2) An application under this section is filed with the registry and the applicant shall |
notify the department in a record that the applicant has submitted the application to the registry |
and shall submit to the department: |
(i) A certification of license history from the agency responsible for issuing a license in |
each state in which the applicant has been licensed to conduct currency transmission business |
activity; |
(ii) A nonrefundable reciprocal licensing application fee in the amount required by § 19- |
14-6; |
(iii) All other information requested by the department in the application for licensure on |
the registry. |
19-14.3-1.3. Cooperation and data-sharing authority. |
(a) The department may cooperate, coordinate, jointly examine, consult, and share |
records and other information with the appropriate regulatory agency of another state, a self- |
regulatory organization, federal or state regulator of banking or non-depository providers, or a |
regulator of a jurisdiction outside the United States, concerning the affairs and conduct of a |
licensee in this state. |
(b) The department shall: |
(1) Establish or participate in, with another state that enacts a law substantially similar to |
this chapter, a central depository for filings required by law of this state other than this chapter; |
(2) Cooperate in developing and implementing uniform forms for applications and |
renewal reports and the conduct of joint administrative proceedings and civil actions; |
(3) Formulate joint rules, forms, statements of policy, and guidance and interpretative |
opinions and releases; and |
(4) Develop common systems and procedures. |
(c) In deciding whether and how to cooperate, coordinate, jointly examine, consult, or |
share records and other information under subsection (a) of this section, the department shall |
consider: |
(1) Maximizing effectiveness and uniformity of regulation, examination, implementation, |
and enforcement for the benefit of residents and licensees and registrants; and |
(2) Minimizing burdens on licensees and registrants without adversely affecting |
protection for residents. |
19-14.3-3.5. Required disclosures for virtual currency. |
(a) A licensee engaging in virtual currency business activities shall provide to a resident |
who uses the licensee's virtual currency products or service the disclosures required by subsection |
(b) of this section and any additional disclosure the department by rule determines reasonably |
necessary for the protection of residents. The department may determine by rule any additional |
disclosures and/or the time and form required for disclosure. A disclosure required by this section |
must be made separately from any other information provided by the licensee and in a clear and |
conspicuous manner in a record the resident may keep. A licensee may propose for the |
department's approval alternate disclosures as more appropriate for its virtual currency business |
activity with or on behalf of residents. |
(b) Before establishing a relationship with a resident, a licensee shall disclose, to the |
extent applicable to the virtual currency business activity the licensee will undertake with the |
resident: |
(1) A schedule of fees and charges the licensee may assess, the manner by which fees and |
charges will be calculated if they are not set in advance and disclosed, and the timing of the fees |
and charges; |
(2) Whether the product or service provided by the licensee is covered by: |
(i) A form of insurance or is otherwise guaranteed against loss by an agency of the United |
States: |
(A) Up to the full U.S. Dollar equivalent of virtual currency placed under the control of |
or purchased from the licensee as of the date of the placement or purchase, including the |
maximum amount provided by insurance under the Federal Deposit Insurance Corporation or |
otherwise available from the Securities Investor Protection Corporation; or |
(B) If not provided at the full U.S. Dollar equivalent of virtual currency placed under the |
control of or purchased from the licensee, the maximum amount of coverage for each resident |
expressed in the U.S. Dollar equivalent of the virtual currency; or |
(ii) Private insurance against theft or loss, including cyber theft or theft by other means; |
(3) The irrevocability of a transfer or exchange and any exception to irrevocability; |
(4) A description of: |
(i) Liability for an unauthorized, mistaken, or accidental transfer or exchange; |
(ii) The resident's responsibility to provide notice to the licensee of the transfer or |
exchange; |
(iii) The basis for any recovery by the resident from the licensee; |
(iv) General error-resolution rights applicable to the transfer or exchange; and |
(v) The method for the resident to update the resident's contact information with the |
licensee; |
(5) That the date or time when the transfer or exchange is made and the resident's account |
is debited may differ from the date or time when the resident initiates the instruction to make the |
transfer or exchange; |
(6) Whether the resident has a right to stop a pre-authorized payment or revoke |
authorization for a transfer and the procedure to initiate a stop-payment order or revoke |
authorization for a subsequent transfer; |
(7) The resident's right to receive a receipt, trade ticket, or other evidence of the transfer |
or exchange; |
(8) The resident's right to at least thirty (30) days' prior notice of a change in the |
licensee's fee schedule, other terms and conditions of operating its virtual currency business |
activity with the resident and the policies applicable to the resident's account; and |
(9) That virtual currency is not legal tender. |
(c) Except as otherwise provided in subsection (d) of this section, at the conclusion of a |
virtual currency transaction with or on behalf of a resident, a licensee shall provide the resident a |
confirmation in a record which that contains: |
(1) The name and contact information of the licensee, including information the resident |
may need to ask a question or file a complaint; |
(2) The type, value, date, precise time, and amount of the transaction; and |
(3) The fee charged for the transaction, including any charge for conversion of virtual |
currency to legal tender, bank credit, or other virtual currency. |
(d) If a licensee discloses that it will provide a daily confirmation in the initial disclosure |
under subsection (c) of this section, the licensee may elect to provide a single, daily confirmation |
for all transactions with or on behalf of a resident on that day instead of a per-transaction |
confirmation. |
19-14.3-3.6. Property interests and entitlements to virtual currency. |
(a) A licensee that has control of virtual currency for one or more persons shall maintain |
in its control an amount of each type of virtual currency sufficient to satisfy the aggregate |
entitlements of the persons to the type of virtual currency. |
(b) If a licensee violates subsection (a) of this section, the property interests of the |
persons in the virtual currency are pro rata property interests in the type of virtual currency to |
which the persons are entitled, without regard to the time the persons became entitled to the |
virtual currency or the licensee obtained control of the virtual currency. |
(c) The virtual currency referred to in this section is: |
(1) Held for the persons entitled to the virtual currency; |
(2) Not property of the licensee; and |
(3) Not subject to the claims of creditors of the licensee. |
19-14.3-3.7. Mandated compliance programs and monitoring. |
(a) An applicant, before submitting an application, shall create and, during licensure, |
maintain in a record, policies and procedures for: |
(1) An information-security and operational-security program; |
(2) A business-continuity program; |
(3) A disaster-recovery program; |
(4) An anti-fraud program; |
(5) An anti-money-laundering program; and |
(6) A program to ensure compliance with the Bank Secrecy Act and the USA Patriot Act. |
(b) A licensee's information-security and operational-security policy must include |
reasonable and appropriate administrative, physical, and technical safeguards to protect the |
confidentiality, integrity, and availability of any non-public personal information or currency |
transmission it receives, maintains, or transmits. |
(c) A licensee is not required to file with the department a copy of a report it makes to a |
federal authority unless the department specifically requires filing. |
(d) After the policies and procedures required under this section are created by the |
licensee and approved by the department, the licensee shall engage a responsible individual with |
adequate authority and experience to monitor each policy and procedure, recommend changes as |
desirable, and enforce it. |
(e) A licensee may: |
(1) Request advice from the department as to compliance with this section; and |
(2) With the department's approval, outsource functions, other than compliance, required |
under this section. |
(f) Failure of a particular policy or procedure adopted under this section to meet its goals |
in a particular instance is not a ground for liability of the licensee if the policy or procedure was |
created, implemented, and monitored properly. Repeated failures of a policy or procedure are |
evidence that the policy or procedure was not created or implemented properly. |
19-14.3-3.8. Prohibited acts and practices. |
(a) No person required to be licensed under this chapter shall: |
(1) Fail to remit all money or monetary value received for transmission pursuant to this |
chapter, or give instructions committing equivalent money or monetary value to the person |
designated by the sender within ten (10) days after receipt by the licensee unless otherwise |
directed by the sender except in cases relating to the prevention and detection of fraud or money |
laundering, compliance with applicable sanctions, regimes and other related compliance |
obligations; |
(2) Fail to immediately notify the director in writing if the licensee dishonors or fails to |
satisfy any currency transmission transaction within the ten (10) days following receipt for any |
reason other than direction by the sender except in cases relating to the prevention and detection |
of fraud or money laundering, compliance with applicable sanctions, regimes and other related |
compliance obligations; |
(3) Engage in the business of currency transmission in the state under any name other |
than that which it is organized or otherwise authorized to do business in the state; |
(4) Fail to comply with the Federal Bank Secrecy Act, 31 U.S.C. 5311 et seq., and 31 |
C.F.R. Part 1022, including maintenance of an active registration with the United States |
Department of Treasury Financial Crimes Enforcement Network; |
(5) Fail to comply with the Federal Electronic Funds Fund Transfer Act, 15 U.S.C. 1693 |
et seq., and Regulation E, 12 C.F.R. 1005 et seq.; |
(6) Fail to safeguard identifying information obtained in the course of currency |
transmission and otherwise comply with the requirements set forth in chapter 52 of title 6; |
(7) Fail to comply with applicable state and federal laws and regulations related to the |
business of currency transmission; |
(8) Use or cause to be published or disseminated any advertising communication which |
that contains any false, misleading, or deceptive statement or representation; or |
(9) Engage in unfair, deceptive, or fraudulent practices. |
SECTION 5. Title 6 of the General Laws entitled "COMMERCIAL LAW - GENERAL |
REGULATORY PROVISIONS" is hereby amended by adding thereto the following chapter: |
CHAPTER 56 |
UNIFORM SUPPLEMENTAL COMMERCIAL LAW FOR THE UNIFORM REGULATION |
OF VIRTUAL-CURRENCY BUSINESSES ACT |
6-56-1. Short title. |
This chapter shall be known and may be cited as the "Uniform Supplemental Commercial |
Law for the Uniform Regulation of Virtual-Currency Businesses Act." |
6-56-2. Definitions. |
(a) As used in this chapter: |
(1) “Article 8” means Article 8 of the Uniform Commercial Code, as amended, in |
substantially the form approved by the American Law Institute and the National Conference of |
Commissioners on Uniform State Laws. |
(2) “Control” has the meaning provided in § 19-14.3-1.1(1). |
(3) “Hague Securities Convention” means the Convention on the Law Applicable to |
Certain Rights in Respect of Securities Held with an Intermediary, concluded 5 July, 2006. |
(4) “Uniform Commercial Code jurisdiction” means a state that has enacted Article 8. |
(5) “Uniform Regulation of Virtual-Currency Businesses Act” means chapter 14.3 of title |
19 of the Rhode Island general laws. |
(6) “User” means a person for which a licensee has control of virtual currency. |
(b) Other definitions applying to this chapter and the sections of the Uniform Regulation |
of Virtual-Currency Businesses Act in which they appear are as follows: |
(1) “Licensee” as set forth in § 19-14.3-1.1. |
(2) “Record” as set forth in § 19-14.3-1.1. |
(3) “Resident” as set forth in § 19-14.3-1.1. |
(4) “Sign” as set forth in § 19-14.3-1.1. |
(5) “State” as set forth in § 19-14.3-1.1. |
(6) “Virtual currency” as set forth in § 19-14-1. |
(c) Other definitions applying to this chapter and the sections of Article 8 in which they |
appear are as follows: |
(1) “Entitlement holder” as set forth in § 8-102(a). |
(2) “Financial asset” as set forth in § 8-102(a). |
(3) “Securities intermediary” as set forth in § 8-102(a). |
(4) “Security” as set forth in § 8-102(a). |
(5) “Securities account” as set forth in § 8-501. |
(d) The definition of “agreement” applying to this chapter appears in § 1-201(b)(3) of |
Article 1 of the Uniform Commercial Code, as amended, in substantially the form approved by |
the American Law Institute and the National Conference of Commissioners on Uniform State |
Laws. |
6-56-3. Scope. |
This chapter applies to: |
(1) A person or transaction governed by the Uniform Regulation of Virtual-Currency |
Businesses Act; and |
(2) A user that is not a resident if the user or transaction with the user would be governed |
by the Uniform Regulation of Virtual-Currency Businesses Act if the user were a resident. |
6-56-4. Incorporation of Article 8. |
(a) The relationship between a licensee or registrant and a user shall be evidenced by an |
agreement in a record signed by the licensee or registrant and by the user. The agreement: |
(1) Shall specify the jurisdiction whose law governs the agreement; |
(2) If governed by the law of a jurisdiction that is not a Uniform Commercial Code |
jurisdiction, the agreement shall: |
(i) Specify a Uniform Commercial Code jurisdiction as the securities intermediary’s |
jurisdiction for the purpose of Article 8; and |
(ii) State that the law in force in the Uniform Commercial Code jurisdiction under |
subsection (2)(i) of this section applies to all issues specified in Article 2(1) of the Hague |
Securities Convention; |
(3) Shall state that: |
(i) The licensee is a securities intermediary; |
(ii) The control of virtual currency by the licensee for the benefit of the user creates a |
securities account of which the user is the entitlement holder; |
(iii) The parties agree that the virtual currency is to be treated as a financial asset credited |
or held for credit to the securities account of the user; and |
(iv) The licensee will not grant a security interest in virtual currency which the licensee |
or registrant is obligated to maintain under § 8-504(a) of Article 8; |
(4) May not provide a standard for the licensee to comply with its duties under Part 5 of |
Article 8 of the Uniform Commercial Code which is less protective of the user than the standard |
that would apply under Part 5 of Article 8 of the Uniform Commercial Code in the absence of an |
agreement concerning the standard; and |
(5) May not provide that: |
(i) The securities intermediary’s jurisdiction for the purpose of Article 8 is a jurisdiction |
that is not a Uniform Commercial Code jurisdiction; or |
(ii) The law in force in a jurisdiction that is not a Uniform Commercial Code jurisdiction |
applies to all issues specified in Article 2(1) of The Hague Securities Convention. |
(b) To the extent that there is no agreement that complies with subsection (a) of this |
section, the relationship between a licensee or registrant and a user is determined as if the licensee |
or registrant and the user have an agreement that complies with subsection (a) of this section and |
specifies that the law of this state governs the agreement. |
(c) The effect of this section may not be varied by agreement. |
6-56-5. Qualifying office under Hague Securities Convention. |
(a) A licensee shall maintain in a state an office that complies with the second sentence of |
Article 4(1) of The Hague Securities Convention. |
(b) The effect of this section may not be varied by agreement. |
6-56-6. Effect of failure to comply with this chapter. |
Failure to comply with this chapter is a violation of the Uniform Regulation of Virtual- |
Currency Businesses Act. |
6-56-7. No inference as to characterization under other statute or rule. |
Treatment of virtual currency as a financial asset credited to a securities account under |
this chapter and Article 8 of the Uniform Commercial Code does not determine the |
characterization or treatment of the virtual currency under any other statute or rule. |
6-56-8. Supplementary law. |
Unless displaced by the particular provisions of this chapter, the principles of law and |
equity supplement this chapter. |
6-56-9. Uniformity of application and construction. |
In applying and construing this uniform act, consideration must be given to the need to |
promote uniformity of the law with respect to its subject matter among states that enact it. |
6-56-10. Relation to Electronic Signatures in Global and National Commerce Act. |
This chapter modifies, limits, or supersedes the Electronic Signatures in Global and |
National Commerce Act, 15 U.S.C. Section 7001, et seq., but does not modify, limit, or supersede |
Section 101(c) of that act, 15 U.S.C. Section 7001(c), or authorize electronic delivery of any of |
the notices described in Section 103(b) of that act, 15 U.S.C. Section 7003(b)). |
6-56-11. Severability. |
If any provision of this chapter or its application to any person or circumstance is held |
invalid, the invalidity does not affect other provisions or application of this chapter which can be |
given effect without the invalid provision or application, and to this end the provisions of this |
chapter are severable. |
SECTION 6. This act shall take effect on January 1, 2020. |
======== |
LC002230/SUB A |
======== |