{"data":{"id":"us-ky/krs-286.11-003","jurisdiction":"us-ky","citation":"KRS 286.11-003","heading":"Definitions for subtitle.","body":"As used in this subtitle, unless the context requires otherwise:\n(1) \"Affiliate\" means any person who directly or indirectly through one (1) or more\nintermediaries controls, is controlled by, or is under common control with, another\nperson;\n(2) \"Agent\" mea ns a person authorized by written agreement and designated by the\nlicensee to act on behalf of a licensee under the provisions of this subtitle;\n(3) \"Applicant\" means a person filing an application or renewal application for a license\nunder this subtitle;\n(4) \"Control\" means:\n(a) Ownership of, or the power to vote, directly or indirectly, twenty -five percent\n(25%) or more of a class of voting securities or voting interests of a licensee\nor applicant, or person in control of a licensee or applicant;\n(b) The power to elect a majority of executive officers, managers, directors,\ntrustees, or other persons exercising managerial authority of a licensee or\napplicant, or person in control of a licensee or applicant; or\n(c) The power to exercise, directly or indirect ly, a controlling influence over the\nmanagement or policies of a licensee or applicant, or person in control of a\nlicensee or applicant;\n(5) \"Controlling person\" means any person in control of a licensee;\n(6) \"Director\" means a member of a licensee's or ap plicant's board of directors if the\napplicant or licensee is a corporation, or manager if the applicant or licensee is a\nlimited liability company, or a partner if the applicant or licensee is a partnership;\n(7) \"Electronic instrument\" means a card or other tangible object for the transmission or\npayment of money, including a stored value card or device, which contains a\nmicroprocessor chip, magnetic stripe, or other means for storage of information,\nthat is prefunded and for which the value is decremented upon each use, but does\nnot include a card or other tangible object that is redeemable by the issuer in the\nissuer's goods and services;\n(8) \"Commissioner\" means the commissioner of the Department of Financial\nInstitutions;\n(9) \"Executive officer\" means th e president, chairperson of the executive committee,\nresponsible individual, chief financial officer, and any other person who performs\nsimilar functions;\n(10) \"Financial institution\" means any person doing business under the laws of any state\nor commonwealth or the United States relating to banks, bank holding companies,\nsavings banks, savings and loan associations, trust companies, or credit unions;\n(11) \"Insolvent\" means that appearing upon examination of any licensee or its agent that\nits liabilities exceeds its assets or it cannot meet its obligations in the usual and\nordinary course of business for any reason;\n(12) \"Key shareholder\" means any person, or grou p of persons acting in concert, who is\nthe owner of twenty percent (20%) or more of any voting class of an applicant's or\nlicensee's stock;\n(13) \"Licensee\" means a person licensed under this subtitle;\n(14) \"Material litigation\" means litigation that accord ing to generally accepted\naccounting principles is significant to an applicant's or a licensee's financial health,\nand would be required to be disclosed in the applicant's or licensee's annual audited\nfinancial statements, report to shareholders, or simila r records, including any\nadjudication against an applicant or licensee by a federal or state administrative or\nregulatory agency relating to a violation of the Bank Secrecy Act, 31 U.S.C. secs.\n5311-5332 and 31 C.F.R. pt. 103, regardless of whether the app licant or licensee\nhas admitted liability or fault;\n(15) \"Monetary value\" means a medium of exchange whether or not redeemable in\nmoney;\n(16) \"Money\" means a medium of exchange that is authorized or adopted by the United\nStates or a foreign government or o ther recognized medium of exchange, including\na monetary unit of account established by an intergovernmental organization or by\nagreement between two (2) governments;\n(17) \"Money transmission\" means engaging in the business of receiving money or\nmonetary v alue to transmit, deliver, or instruct to be transmitted or delivered,\nmoney or monetary value to another location inside or outside the United States by\nany and all means, including but not limited to wire, facsimile, electronic transfer,\nor issuing stored value;\n(18) \"Money transmitter\" means a person that is engaged in money transmission;\n(19) \"Net worth\" means the excess of assets over liabilities as determined by generally\naccepted accounting principles;\n(20) \"Department\" means the Kentucky Department of Financial Institutions;\n(21) \"Outstanding payment instrument\" means any payment instrument issued by the\nlicensee which has been sold or issued in the United States directly by the licensee\nor any payment instrument issued by the licensee which has been  sold by an agent\nof the licensee in the United States, which has been reported to the licensee as\nhaving been sold, and which has not yet been paid by or for the issuer;\n(22) (a) \"Payment instrument\" means:\n1. A check, draft, money order, traveler's check , or other written or\nelectronic instrument or order for the transmission or payment of money,\nsold or issued to one (1) or more persons, whether or not such\ninstrument is negotiable; or\n2. The purchase or the deposit of funds for the purchase of a check, draft,\nmoney order, traveler's check, or other written or electronic instrument;\n(b) \"Payment instrument\" does not include any credit card voucher, letter of\ncredit, or instrument that is redeemable by the issuer in goods or services;\n(23) \"Person\" means any individual, corporation, business trust, estate, trust, partnership,\nlimited liability company, association, organization, joint venture, government and\nany subdivision, agency or instrumentality thereof, or any other legal or commercial\nentity;\n(24) \"Record\" means information that is inscribed on a tangible medium, or that is stored\nin an electronic or other medium, and is retrievable in perceivable form;\n(25) \"Remit\" means either to make direct payment of the funds to the licensee or its\nrepresentatives authorized to receive those funds, or to deposit the funds in a bank,\ncredit union, or savings and loan association, or other similar financial institution in\nan account specified by the licensee;\n(26) \"Responsible individual\" means an individual who is employed by a licensee and\nhas principal managerial authority over the provision of money transmission by the\nlicensee in this state;\n(27) \"State\" means a state or commonwealth of the United States, the District of\nColumbia, Puerto Rico, the United States Virgin Islands, or any territory or insular\npossession that is subject to the jurisdiction of the United States;\n(28) \"Stored value\" means monetary value that is evidenced by an electronic record; and\n(29) \"Unsafe or unsound practice\" means a practice or c onduct by a person licensed to\nprovide money transmission, or an agent of such a person, which creates the\nlikelihood of material loss, insolvency, or dissipation of the licensee's assets, or\notherwise materially prejudices the financial condition of the l icensee or the\ninterests of its customers.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=14945","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:15Z","sha256":"961171e18cb951b6bca9df958e4ab5e241986bfe52b202ef5cc6d624819d2b4c","source_id":"us-ky","stale":false,"prev":"us-ky/krs-286.11-001","next":"us-ky/krs-286.11-005"},"notice":"GroundRules: Original legal text. Not legal advice."}