KRS 286.9-010: Definitions for subtitle.

As used in this subtitle, unless the context requires otherwise:

(1) "Affiliate" means a person who directly or indirectly through one (1) or more

intermediaries controls or is controlled by, or is under common control with, a

licensee;

(2) "Applicant" mea ns a person filing an application or renewal application for a

license in accordance with this subtitle;

(3) "Archive" means to copy data to a long -term storage mechanism apart from the

database;

(4) "Cashing" means providing currency for a payment instrument;

(5) "Check" means any check, draft, money order, personal money order, travelers'

check, or other demand instrument for the transmission or payment of money;

(6) "Check cashing license" means a license issued pursuant to this subtitle by the

commissioner to conduct the business of cashing checks in this Commonwealth;

(7) "Closed" or "close" means that one (1) of the following has occurred in connection

with a deferred deposit service transaction concerning the customer's payment

instrument:

(a) The pay ment instrument is redeemed by the customer by payment to the

licensee of the face amount of the payment instrument in cash;

(b) The payment instrument is exchanged by the licensee for a cashier's check or

cash from the customer's financial institution;

(c) The payment instrument is deposited, or submitted as an electronic check

pursuant to federal law and with specific customer aut horization to do so, by

the licensee, and the licensee has evidence that the person has satisfied the

obligation;

(d) The payment instrument is collected by the licensee or its agent through any

civil remedy available under the laws of this state; or

(e) Any other reason that the commissioner may deem to be proper under this

subtitle;

(8) "Consideration" means any premium or fee charged of any kind for the sale of

goods or services in excess of the cash price of the goods or services;

(9) "Control" means:

(a) Ownership of, or the power to vote, directly or indirectly, twenty -five percent

(25%) or more of a class of voting securities or voting interests of a licensee

or applicant, or the person in control of a licensee or applicant;

(b) The power to elect a m ajority of executive officers, managers, directors,

trustees, or other persons exercising managerial authority over a licensee or

applicant, or the person in control of a licensee or applicant; or

(c) The power to exercise, directly or indirectly, a contro lling influence over the

management or policies of a licensee or applicant, or the person in control of a

licensee or applicant;

(10) "Customer" means a person who inquires into the availability of or applies for a

deferred presentment service transaction or a person who enters into a deferred

presentment service transaction;

(11) "Customer transaction data" means all data reported to the database pertinent to a

particular customer transaction, including the date of the transaction, identification

of the li censee and location, the sum of money involved, the time payment is

deferred, fees charged, any alleged violations of this subtitle, and any identifying

customer information;

(12) "Database" means the database described in KRS 286.9-140;

(13) "Database provider" means one (1) of the following:

(a) A third-party provider selected by the commissioner in accordance with KRS

286.9-140 to operate the statewide database described in that section; or

(b) The commissioner, if the commissioner has not selected a third-party provider

in accordance with KRS 286.9-140;

(14) "Deferred deposit service business" means a person who engages in deferred

deposit transactions;

(15) "Deferred deposit service business license" means a license issued in accordance

with this subtit le by the commissioner to conduct check cashing and deferred

deposit service business in this Commonwealth;

(16) "Deferred deposit transaction" or "deferred presentment service transaction" means,

for consideration, accepting a payment instrument, and hold ing the payment

instrument for a period of time prior to deposit or presentment in accordance with

an agreement with or any representation made to the customer whether express or

implied;

(17) "Delete" means to erase data by overwriting the data;

(18) "Identifying customer information" means the name of the customer, his or her

Social Security number, driver license number, or other state -issued identification

number, address, any account numbers or information specific to a payment

instrument provided by a customer to a licensee, a bank, savings bank, savings and

loan association, or credit union, and any other nonpublic, personal financial

information of a customer entered into the database or that comes into the

possession of the database provider through customer or licensee inquiry or report;

(19) "Licensee" means a person who has been issued either a check cashing license or a

deferred deposit service business license by the commissioner in accordance with

this subtitle to conduct check cashing or defer red deposit service business in the

Commonwealth;

(20) "Maturity date" means the date on which a payment instrument is authorized to be

redeemed or presented for payment; and

(21) "Payment instrument" means a check, draft, money order, or traveler's check, for

the transmission or payment of money sold or issued to one (1) or more persons,

whether or not such instrument is negotiable.