N.Y. Banking Law § 640: Definitions

§ 640. Definitions. In this article, unless the context or subject

matter otherwise requires:

1. "Person" means an individual, partnership, corporation,

association, joint stock association, trust or other group, however

organized.

2. "Licensee" means any person duly licensed by the superintendent

pursuant to this article.

3. "Check" means any check, draft, travelers check, money order or

other instrument for the transmission or payment of money.

4. "purchaser", "holder", "New York instrument" and "New York

traveler's check" shall have the respective meanings ascribed to such

terms by section six hundred fifty-three of this chapter.

5. "Payment instrument" means any check, draft, money order, or other

instrument or order for the transmission or payment of money, whether or

not such instrument or order is negotiable, and sold to one or more

persons. "Payment instrument" does not include a traveler's check, any

instrument which is redeemable by the issuer in merchandise or services,

a letter of credit or a permissible investment as defined in this

section.

6. "Outstanding payment instruments" means unpaid payment instruments

sold anywhere in the United States and whose sale has been reported to a

licensee.

7. "Traveler's check" means an instrument, regardless of its form,

specifically identified on the instrument as a traveler's check and

issued in either written form, with a provision for a specimen signature

of the purchaser to be completed at the time of purchase and a

counter-signature of the purchaser to be completed at the time of its

negotiation, or in electronic form with a provision for the electronic

equivalent of the specimen signature and counter signature. An

instrument shall not be identified as a traveler's check if it fails to

comply, as the case may be, with either the written or electronic

signature requirements of this subdivision.

8. "Outstanding traveler's checks" means unpaid traveler's checks sold

anywhere in the United States and whose sale has been reported to a

licensee.

9. "Permissible investments" means:

(i) cash;

(ii) certificates of deposit or other debt instruments of a commercial

bank;

(iii) bills of exchange or time drafts drawn on and accepted by a

commercial bank, otherwise known as bankers acceptances, which are

eligible for purchase by member banks of the federal reserve system;

(iv) commercial paper of prime quality as defined by a nationally

recognized organization which rates such securities;

* (v) interest-bearing bills, notes, bonds, debentures or other

obligations issued or guaranteed by the United States or any state or

other local governmental entity or any agent or instrumentality thereof,

bearing a rating of one of the three highest grades by a nationally

recognized investment service organization that has been engaged

regularly in rating state and municipal issues for a period of not less

than five years;

* NB Effective until notification of the superintendent of financial

services

* (v) interest-bearing bills, notes, bonds, debentures or other

obligations issued or guaranteed by the United States or any state or

other local governmental entity or any agent or instrumentality thereof,

which meet the standards of creditworthiness established by regulation

by the superintendent;

* NB Effective upon notification of the superintendent of financial

services

* (vi) interest-bearing bills, notes, bonds, debentures or preferred

stock traded on any national securities exchange or on a national

over-the-counter market or bearing a rating of one of the three highest

grades by a nationally recognized investment service organization that

has been engaged regularly in rating corporate debt or equity issues for

a period of not less than five years; and

* NB Effective until notification of the superintendent of financial

services

* (vi) interest-bearing bills, notes, bonds, debentures or preferred

stock traded on any national securities exchange or on a national

over-the-counter market or which meet the standards of creditworthiness

established by regulation by the superintendent; and

* NB Effective upon notification of the superintendent of financial

services

(vii) such other investments or assets if and as approved by the

superintendent.

Except for cash and certificates of deposit of a commercial bank, any

particular investment within the classes of investments authorized by

this section is subject to disqualification for one or more licensees

for the purpose of this article, if unsatisfactory for any reason in the

opinion of the superintendent. Notwithstanding the foregoing provisions

of this section, the superintendent shall have the power to limit, with

respect to any particular licensee or all licensees, the extent to which

any class of investments authorized by this section, except for cash and

certificates of deposit of a commercial bank, may be considered a

permissible investment.

10. "Agent" means any person designated or appointed by the licensee

pursuant to a written agency contract to engage in money transmission

activities at locations other than a duly authorized office of the

licensee as provided in section six hundred forty-eight of this article.

Except for a licensee, any person acting as agent engaging in money

transmission activities absent such a written agency contract shall be

deemed to be in violation of section six hundred forty-one of this

article and may be subject to criminal prosecution pursuant to section

six hundred fifty of this article. Such term shall not be deemed to

include any banking corporation incorporated or licensed under this

chapter or under the laws of the United States or any other state or any

casher of checks licensed under this chapter.