The Vermont Statutes Online

Title 8 : Banking and Insurance

Chapter 079 : Money Services

Subchapter 001 : GENERAL PROVISIONS

• § 2504. Exemptions

  This chapter does not apply to:

  (1) An operator of a payment system to the extent that it provides processing, clearing, or settlement services, between or among persons exempted by this section or licensees, in connection with wire transfers, credit card transactions, debit card transactions, stored-value transactions, automated clearing house transfers, or similar funds transfers.

  (2) A person appointed as an agent of a payee to collect and process a payment from a payor to the payee for goods or services, other than money transmission itself, provided to the payor by the payee, provided that:

  (A) there exists a written agreement between the payee and the agent directing the agent to collect and process payments from payors on the payee’s behalf;

  (B) the payee holds the agent out to the public as accepting payments for goods or services on the payee’s behalf; and

  (C) payment for the goods and services is treated as received by the payee upon receipt by the agent so that the payor’s obligation is extinguished and there is no risk of loss to the payor if the agent fails to remit the funds to the payee.

  (3) A person that acts as an intermediary by processing payments between an entity that has directly incurred an outstanding money transmission obligation to a sender, and the sender’s designated recipient, provided that the entity:

  (A) is properly licensed or exempt from licensing requirements under this chapter;

  (B) provides a receipt, electronic record, or other written confirmation to the sender identifying the entity as the provider of money transmission in the transaction; and

  (C) bears sole responsibility to satisfy the outstanding money transmission obligation to the sender, including the obligation to make the sender whole in connection with any failure to transmit the funds to the sender’s designated recipient.

  (4) The United States or a department, agency, or instrumentality thereof, or its agent.

  (5) Money transmission by the U.S. Postal Service or by an agent of the U.S. Postal Service.

  (6) A state, county, city, or any other governmental agency or governmental subdivision or instrumentality of a state, or its agent.

  (7) A financial institution as defined in subdivision 11101(32) of this title, or a credit union, provided their deposits are federally insured.

  (8) A financial institution holding company as defined in subdivision 11101(33) of this title; an office of an international banking corporation; a foreign bank that establishes a federal branch pursuant to the International Bank Act, 12 U.S.C. § 3102, as may be amended; a corporation organized pursuant to the Bank Services Company Act, 12 U.S.C. §§ 1862–1867, as may be amended; a corporation organized under the Edge Act, 12 U.S.C. §§ 611– 633, as may be amended; an independent trust company organized under chapter 77 of this title; or a special purpose financial institution that is organized under the laws of this State.

  (9) Electronic funds transfer of governmental benefits for a federal, state, county, or governmental agency by a contractor on behalf of the United States or a department, agency, or instrumentality thereof, or on behalf of a state or governmental subdivision, agency, or instrumentality thereof.

  (10) A board of trade designated as a contract market under the federal Commodity Exchange Act, 7 U.S.C. §§ 1–25, as may be amended, or a person that, in the ordinary course of business, provides clearance and settlement services for a board of trade to the extent of its operation as or for such a board.

  (11) A registered futures commission merchant under the federal commodities laws to the extent of its operation as such a merchant.

  (12) A person registered as a securities broker-dealer under federal or state securities laws to the extent of its operation as such a broker-dealer.

  (13) An individual employed by a licensee, authorized delegate, or any person exempted from the licensing requirements of this chapter when acting within the scope of employment and under the supervision of the licensee, authorized delegate, or exempted person as an employee and not as an independent contractor.

  (14) A person expressly appointed as a third-party service provider to or agent of an entity exempt under subdivision (7) of this section, solely to the extent that:

  (A) such service provider or agent is engaging in money transmission on behalf of and pursuant to a written agreement with the exempt entity that sets forth the specific functions that the service provider or agent is to perform; and

  (B) the exempt entity assumes all risk of loss and all legal responsibility for satisfying the outstanding money transmission obligations owed to purchasers and holders of the outstanding money transmission obligations upon receipt of the purchaser’s or holder’s money or monetary value by the service provider or agent.

  (15) The sale or issuance of stored value by a public or nonprofit school to its students and employees.

  (16) A debt adjuster licensed pursuant to chapter 133 of this title when engaged in the business of debt adjustment.

  (17) A person exempt by rule or order if the Commissioner finds such exemption to be in the public interest and that the regulation of such person is not necessary for the purposes of this chapter. (Added 2023, No. 110 (Adj. Sess.), § 39, eff. July 1, 2024.)