Skip to navigation Skip to content Skip to subnav
Searching 2019-2020 Session

The Vermont Statutes Online

The statutes were updated in November, 2018, and contain all actions of the
2018 legislative session.

Title 8 : Banking and Insurance

Chapter 079 : MONEY SERVICES

Subchapter 002 : MONEY TRANSMISSION LICENSES

(Cite as: 8 V.S.A. § 2506)
  • § 2506. Application for license

    (a) As used in this section, "material litigation" means any litigation that according to generally accepted accounting principles is deemed significant to an applicant's or a licensee's financial health, and would be required to be disclosed in the applicant's or licensee's annual audited financial statements, report to shareholders, or similar records.

    (b) A person applying for a license under this subchapter shall do so under oath and in a form and in a medium prescribed by the Commissioner. The application shall state or contain:

    (1) the legal name and residential and business addresses of the applicant and any fictitious or trade name used by the applicant in conducting its business;

    (2) a list of any criminal convictions of the applicant and any material litigation in which the applicant has been involved in the 10-year period next preceding the submission of the application;

    (3) a description of any money services previously provided by the applicant and the money services that the applicant seeks to provide in this State;

    (4) a list of the applicant's proposed authorized delegates, and the locations in this State where the applicant and its authorized delegates propose to engage in money transmission or provide other money services;

    (5) a list of other states in which the applicant is licensed to engage in money transmission or provide other money services and information concerning any bankruptcy or receivership proceedings affecting the licensee, and any license revocations, suspensions, or any criminal or disciplinary action taken against the applicant in other states;

    (6) a sample form of contract for authorized delegates, if applicable, and a sample form of payment instrument or instrument upon which stored value is recorded if applicable;

    (7) the name and address of any financial institution through which the applicant's payment instruments and stored-value obligations will be paid;

    (8) a description of the source of money and credit to be used by the applicant to provide money services; and

    (9) any other information the Commissioner requires with respect to the applicant.

    (c) If an applicant is a corporation, limited liability company, partnership, or other entity, the applicant shall also provide:

    (1) the date of the applicant's incorporation or formation, and state or country of incorporation or formation;

    (2) if applicable, a certificate of good standing from the state or country in which the applicant is incorporated or formed;

    (3) a brief description of the structure or organization of the applicant, including any parent or subsidiary of the applicant, and whether any parent or subsidiary is publicly traded;

    (4) the legal name, any fictitious or trade name, all business and residential addresses, and the employment, in the 10-year period next preceding the submission of the application of each executive officer, manager, director of, or person that has control of, the applicant;

    (5) a list of any criminal convictions, material litigation, or disciplinary actions in which any executive officer, manager, director of, or individual in control of, the applicant has been involved in the 10-year period next preceding the submission of the application;

    (6) a copy of the applicant's audited financial statements for the most recent fiscal year and, if available, for the two-year period next preceding the submission of the application;

    (7) a copy of the applicant's unconsolidated financial statements for the current year, whether audited or not, and, if available, for the two-year period next preceding the submission of the application;

    (8) if the applicant is publicly traded, a copy of the most recent 10-K report filed with the U.S. Securities and Exchange Commission;

    (9) if the applicant is a wholly owned subsidiary:

    (A) a copy of audited financial statements for the parent corporation for the most recent fiscal year; and

    (B) of a corporation publicly traded in the United States, a copy of the parent corporation's most recent 10-K report filed with the U.S. Securities and Exchange Commission, or if the applicant is a wholly owned subsidiary of a corporation publicly traded outside the United States, a copy of similar documentation filed with the regulator of the parent corporation's domicile outside the United States;

    (10) if the applicant is a corporation, the name and address of the applicant's registered agent in this State; and

    (11) any other information the Commissioner requires with respect to the applicant.

    (d) At the time of making application, the applicant shall pay to the Department a nonrefundable application fee of $1,000.00, a license fee of $500.00 for the applicant, and a license fee of $25.00 for each authorized delegate location. The license fee shall be refunded if the application is denied.

    (e) In connection with an application for a license, the applicant and each executive officer, manager, director, and person that has control of the applicant shall furnish to the Nationwide Mortgage Licensing System and Registry information concerning the applicant's identity, including:

    (1) fingerprints for submission to the Federal Bureau of Investigation and to any other governmental agency or entity authorized to receive such information for a state, national, and international criminal history background check and authorization for the Commissioner to obtain a criminal history background check;

    (2) personal history and experience in a form prescribed by the Nationwide Mortgage Licensing System and Registry, including the submission of authorization for the Nationwide Mortgage Licensing System and Registry and the Commissioner to obtain:

    (A) an independent credit report and credit score from a consumer reporting agency described in subsection 603(p) of the Fair Credit Reporting Act, 15 U.S.C. 1681a(p), for the purpose of evaluating the applicant's financial responsibility at the time of application and additional credit reports and credit scores to confirm the licensee's continued compliance with the financial responsibility requirements of this chapter; and

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

    (3) any other information required by the Nationwide Mortgage Licensing System and Registry or the Commissioner.

    (f) The Commissioner may waive one or more requirements of subsections (b) and (c) of this section, or permit an applicant to submit substituted information in lieu of the required information. (Added 2001, No. 55, § 1, eff. Jan. 1, 2002; amended 2009, No. 134 (Adj. Sess.), § 20; 2011, No. 78 (Adj. Sess.), § 15, eff. April 2, 2012.)