The Arizona Revised Statutes have been updated to include the revised sections from the 55th Legislature, 2nd Regular Session. Please note that the next update of this compilation will not take place until after the conclusion of the 56th Legislature, 1st Regular Session, which convenes in January 2023.
This online version of the Arizona Revised Statutes is primarily maintained for legislative drafting purposes and reflects the version of law that is effective on January 1st of the year following the most recent legislative session. The official version of the Arizona Revised Statutes is published by Thomson Reuters.
In this article, unless the context otherwise requires:
1. "Acting in concert" means persons knowingly acting together with a common goal of jointly acquiring control of a licensee whether or not pursuant to an express agreement.
2. "Authorized delegate" means a person that a licensee designates to engage in money transmission on behalf of the licensee.
3. "Average daily money transmission liability" means the amount of the licensee's outstanding money transmission obligations at the end of each day in quarters ending March 31, June 30, September 30 and December 31, added together and divided by the total number of days in each quarter.
4. "Closed loop stored value" means stored value that is redeemable by the issuer only for goods or services provided by the issuer or its affiliate or franchisees of the issuer or its affiliate, except to the extent required by applicable law to be redeemable in cash for its cash value.
5. "Control" means:
(a) The power to vote, directly or indirectly, at least twenty-five percent of the outstanding voting shares or voting interests of a licensee or person in control of a licensee.
(b) The power to elect or appoint a majority of key individuals or executive officers, managers, directors, trustees or other persons exercising managerial authority of a person in control of a licensee.
(c) The power to exercise, directly or indirectly, a controlling influence over the management or policies of a licensee or person in control of a licensee.
6. "Eligible rating" means a credit rating of any of the three highest rating categories provided by an eligible rating service and each category may include rating category modifiers such as "plus" or "minus" for Standard and Poor's or the equivalent for any other eligible rating service.
7. "Eligible rating service" means any nationally recognized statistical rating organization as defined by the United States securities and exchange commission and any other organization designated by the director.
8. "Federally insured depository financial institution" means a bank, credit union, savings and loan association, trust company, savings association, savings bank, industrial bank or industrial loan company organized under the laws of the United States or any state of the United States, when the bank, credit union, savings and loan association, trust company, savings association, savings bank, industrial bank or industrial loan company has federally insured deposits.
9. "Individual" means a natural person.
10. "In this state":
(a) Means at a physical location within this state if a transaction is requested in person.
(b) Includes any of the following if a person requests a transaction electronically or by telephone:
(i) The location of the person's residential address if the person is an individual.
(ii) A person's principal place of business or other physical address location within this state if the person is a business entity.
(iii) Any address within this state that is associated with an account based on records that the money transmission provider has or information that the person provides.
11. "Key individual" means any individual ultimately responsible for establishing or directing policies and procedures of the licensee, such as an executive officer, manager, director or trustee.
12. "Licensee" means a person licensed under this article.
13. "Material litigation" means litigation that, according to United States generally accepted accounting principles, is significant to a person's financial health and would be required to be disclosed in the person's annual audited financial statements, report to shareholders or similar records.
14. "Monetary value" means a medium of exchange, whether or not redeemable in money.
(a) Means a medium of exchange that is authorized or adopted by the United States or a foreign government.
(b) Includes a monetary unit of account established by an intergovernmental organization or by agreement between two or more governments.
16. "Money services business accredited state" means a state agency that is accredited by a conference of state bank supervisors and money transmitter regulators association for money transmission licensing and supervision.
17. "Money transmission":
(a) Means any of the following:
(i) Selling or issuing payment instruments to a person located in this state.
(ii) Selling or issuing stored value to a person located in this state.
(iii) Receiving money for transmission from a person located in this state.
(b) Does not include providing solely online telecommunications services or network access.
18. "Multistate licensing process" means a procedure among state regulators relating to the coordinated processing of applications for money transmission licenses, applications for the acquisition of control of a licensee, control determinations or notice and information requirements for a change of key individuals.
19. "NMLS" means the nationwide multistate licensing system and registry that is developed by a conference of state bank supervisors and the American association of residential mortgage regulators and that is owned and operated by a state regulatory registry for the licensing and registration of persons in financial services industries.
20. "Outstanding money transmission obligation" means either of the following:
(a) Any payment instrument or stored value issued or sold by the licensee to a person located in the United States or reported as sold by an authorized delegate of the licensee to a person that is located in the United States that has not yet been paid or refunded by or for the licensee or escheated in accordance with applicable abandoned property laws.
(b) Any money received for transmission by the licensee or an authorized delegate in the United States from a person located in the United States that has not been received by the payee or refunded to the sender or escheated in accordance with applicable abandoned property laws.
21. "Passive investor" means a person that:
(a) Does not have the power to elect a majority of key individuals or executive officers, managers, directors, trustees or other persons exercising managerial authority of a person in control of a licensee.
(b) Is not employed by and does not have any managerial duties of the licensee or person in control of a licensee.
(c) Does not have the power to exercise, directly or indirectly, a controlling influence over the management or policies of a licensee or person in control of a licensee.
(d) Does either of the following:
(i) Attests to subdivisions (a), (b) and (c) of this paragraph in a form and in a medium prescribed by the director.
(ii) Commits to the passivity characteristics of subdivisions (a), (b) and (c) of this paragraph in a written document.
22. "Payment instrument":
(a) Means a written or electronic check, draft, money order, traveler's check or other written or electronic instrument for the transmission or payment of money or monetary value, whether or not negotiable.
(b) Does not include stored value or any instrument that is either:
(i) Redeemable by the issuer only for goods or services provided by the issuer or its affiliate or franchisees of the issuer or its affiliate, except to the extent required by applicable law to be redeemable in cash for its cash value.
(ii) Not sold to the public but issued and distributed as part of a loyalty, rewards or promotional program.
23. "Person" means any individual, general partnership, limited partnership, limited liability company, corporation, trust, association, joint stock corporation or other corporate entity identified by the director.
24. "Receiving money for transmission" or "money received for transmission" means receiving money or monetary value in the United States for transmission within or outside the United States by electronic or other means.
25. "Stored value":
(a) Means monetary value representing a claim against the issuer that is evidenced by an electronic or digital record and that is intended and accepted for use as a means of redemption for money or monetary value or payment for goods or services.
(b) Includes prepaid access as defined in 31 Code of Federal Regulations section 1010.100.
(c) Does not include a payment instrument or closed loop stored value or stored value not sold to the public but issued and distributed as part of a loyalty, rewards or promotional program.
26. "Tangible net worth" means the aggregate assets of a licensee excluding all intangible assets, minus liabilities, as determined in accordance with United States generally accepted accounting principles.