CHAPTER 404

BANKS, SAVINGS SOCIETIES AND TRUST COMPANIES

RELATING TO MONEY FORWARDERS

AN ACT TO AMEND CHAPTER 66 OF THE REVISED CODE OF DELAWARE, 1935, AS AMENDED, ENTITLED "BANKS, SAVINGS SOCIETIES, AND TRUST COMPANIES" BY ADDING A NEW ARTICLE TO SAID CHAPTER TO BE DESIGNATED ARTICLE 12 WITH REFERENCE TO MONEY FORWARDERS BY REGULATING THE BUSINESS OF SUCH MONEY FORWARDERS AND PRESCRIBING THE DUTIES AND AUTHORITY OF THE STATE BANK COMMISSION WITH RESPECT THERETO.

Be it enacted by the Senate and House of Representatives of the State of Delaware in General Assembly met:

Section 1. That Chapter 66 of the Revised Code of Delaware, 1935, as amended, be and the same is hereby further amended by adding at the end of said Chapter 66 a new Article to be designated Article 12, the Sections of said Article to be numbered 2408J. Sec. 151J. to 2408N. Sec. 151N. inclusive as follows :

MONEY FORWARDERS

ARTICLE 12

2408J. Sec. 151J. APPLICATION TO ENGAGE IN BUSINESS:--No person, firm or corporation shall engage in this State in the business of receiving money for forwarding or transmission, either as principal or agent, until his application to so engage in business shall be approved by the State Bank Commissioner. Within thirty days after any refusal by the State Bank Commissioner to approve an application for license, the person aggrieved may apply for a review thereof by an application to the Superior Court, in accordance with the practice of said Court. The Superior Court shall determine de novo, and in a summary

manner, all questions both of fact and law, touching upon the legality and reasonableness of the determination of the Commissioner, and shall render such judgment as shall be lawful and just.

2408K. Sec. 151K. FEE; BOND TO STATE:--Each person, firm or corporation so engaged, hereinafter called "money forwarder," shall annually, pay to the State Bank Commissioner a fee of Twenty-five Dollars (V5.00).

Any examination of the affairs of such money fonVarder made by the State Bank Commissioner or a representative of the banking department shall be at the expense of such money forwarder.

Each money forwarder shall, before engaging in business as such, file with the State Bank Commissioner a surety bond or stocks, bonds or other securities to the amount of Ten Thousand Dollars ($10,000.00) to guarantee the faithful performance of the money forwarding business and to secure any loss to customers, which surety bond or securities shall be approved by the State Bank Commissioner.

Should any person, co-partnership, association or corporation to whom such license shall have been granted cease, for any reason or cause, to do business in this State, such a surety bond or stocks, bonds or other securities deposited with the Commissioner shall be returned to such licensee provided, however, that retention may be made of the portion of such deposits until the State Bank Commissioner shall have been satisfied, by such evidence as he shall deem sufficient, that all obligations to customers have been fully paid and discharged.

2408L. Sec. 151L. RECEIPT OF MONEY:--Each money forwarder, either as principal or agent, shall forward any money received for transmission or for deposit in any bank abroad, within five days after the receipt thereof, to the person or bank designated to receive the same, and shall immediately give to the person delivering such money for transmission or deposit a receipt in his name for such money, with the name and address of the money forwarder printed thereon. Such receipt shall state

1. the date when such money was received,

2. the amount thereof,

3. its equivalent in the currency of the country to which it is to be forwarded,

4. the name and address of the payee, and

5. the date not later than which it is to be transmitted.

In any action to recover money delivered to such money forwarder for transmission, the burden of proving the transmission to and the receipt of such money by the person to whom it was directed to be paid shall be upon such money forwarder.

2408M. Sec. 151M. EXCEPTIONS:--The provisions of this Article shall not apply to:

1. Private bankers, state banks and trust companies or national banking associations located in this State;

2. Telegraph and cable companies engaged in the business of transmitting money or of issuing travelers' checks or letters of credit payable in any part of the world, in the transaction of such business;

3. Any express company having a contract or contracts with a railway or railways covering express transportation, and any agent directly employed by and responsible to such express company, in the transaction of such business;

2408N. Sec. 151N. CONSTRUCTION OF ARTICLE:--This Article shall not be construed to permit any corporation, domestic or foreign, to transact in this State the business of a State Bank and Trust Company, savings bank, industrial bank, private bank or building, or savings and loan association.

Approved July 1, 1949