(a) A person may not engage in the business of money transmission or advertise, solicit, or hold itself out as providing money transmission unless the person is licensed under this chapter.

(b) Subsection (a) of this section does not apply to the following:

(1) A person that is an authorized delegate of a person licensed under this chapter acting within the scope of authority conferred by a written contract with the licensee.

(2) A person that is exempt under § 2305 of this title and does not engage in money transmission outside the scope of such exemption.

(c) A license issued under this chapter is not transferable or assignable.

5 Del. C. 1953, §  2303;  58 Del. Laws, c. 421;  85 Del. Laws, c. 338, § 2; 

(a) This chapter does not apply to any of the following:

(1) An operator of a payment system to the extent that it provides processing, clearing, or settlement services, between or among persons exempted by this section or licensees, in connection with wire transfers, credit card transactions, debit card transactions, stored-value transactions, automated clearing house transfers, or similar funds transfers.

(2) A person appointed as an agent of a payee to collect and process a payment from a payor to the payee for goods or services, other than money transmission itself, provided to the payor by the payee, provided that all of the following requirements are satisfied:

a. There exists a written agreement between the payee and the agent directing the agent to collect and process payments from payors on the payee’s behalf.

b. The payee holds the agent out to the public as accepting payments for goods or services on the payee’s behalf.

c. Payment for the goods and services is treated as received by the payee upon receipt by the agent so that the payor’s obligation is extinguished and there is no risk of loss to the payor if the agent fails to remit the funds to the payee.

(3) A person that acts as an intermediary by processing payments between an entity that has directly incurred an outstanding money transmission obligation to a sender, and the sender’s designated recipient, provided that the entity does all of the following:

a. Is properly licensed or exempt from licensing requirements under this chapter.

b. Provides a receipt, electronic record, or other written confirmation to the sender identifying the entity as the provider of money transmission in the transaction.

c. Bears sole responsibility to satisfy the outstanding money transmission obligation to the sender, including the obligation to make the sender whole in connection with any failure to transmit the funds to the sender’s designated recipient.

(4) The United States or a department, agency, or instrumentality thereof, or its agent.

(5) Money transmission by the United States Postal Service or by an agent of the United States Postal Service.

(6) A state, county, city, or any other governmental agency or governmental subdivision or instrumentality of a state, or its agent.

(7) A federally insured depository financial institution, bank holding company, office of an international banking corporation, foreign bank that establishes a federal branch pursuant to the International Bank Act, 12 U.S.C. § 3102, as amended or recodified from time to time, corporation organized pursuant to the Bank Service Corporation Act, 12 U.S.C. §§ 1861 through 1867, as amended or recodified from time to time, or corporation organized under the Edge Act, 12 U.S.C. §§ 611 through 633, as amended or recodified from time to time.

(8) Electronic funds transfer of governmental benefits for a federal, state, county, or governmental agency by a contractor on behalf of the United States or a department, agency, or instrumentality thereof, or on behalf of a state or governmental subdivision, agency, or instrumentality thereof.

(9) A board of trade designated as a contract market under the federal Commodity Exchange Act, 7 U.S.C. §§ 1 through 25, as amended or recodified from time to time, or a person that, in the ordinary course of business, provides clearance and settlement services for a board of trade to the extent of its operation as or for such a board.

(10) A registered futures commission merchant under the federal commodities laws to the extent of its operation as such a merchant.

(11) A person registered as a securities broker-dealer, broker-dealer agent, investment adviser, or investment adviser representative under federal or state securities laws to the extent of its operation as such a broker-dealer, broker-dealer agent, investment adviser, or investment adviser representative.

(12) An individual employed by a licensee, authorized delegate, or any person exempted from the licensing requirements of the chapter when acting within the scope of employment and under the supervision of the licensee, authorized delegate, or exempted person as an employee and not as an independent contractor.

(13) A person expressly appointed as a third-party service provider to or agent of an entity exempt under paragraph (a)(7) of this section, solely to the extent that all of the following conditions are satisfied:

a. The service provider or agent is engaging in money transmission on behalf of and pursuant to a written agreement with the exempt entity that sets forth the specific functions that the service provider or agent is to perform.

b. The exempt entity assumes all risk of loss and all legal responsibility for satisfying the outstanding money transmission obligations owed to purchasers and holders of the outstanding money transmission obligations upon receipt of the purchaser’s or holder’s money or monetary value by the service provider or agent.

(14) A person exempt by regulation or if the Commissioner finds such exemption to be in the public interest and that the regulation of such person is not necessary for the purposes of this chapter.

(b) The Commissioner may require that any person claiming to be exempt from licensing pursuant to this section provide information and documentation to the Commissioner demonstrating that it qualifies for any claimed exemption.

5 Del. C. 1953, §  2304;  58 Del. Laws, c. 421;  69 Del. Laws, c. 58, §  1;  70 Del. Laws, c. 327, §  47;  71 Del. Laws, c. 19, §  72;  76 Del. Laws, c. 86, §  1;  85 Del. Laws, c. 338, § 2; 

(a) An application for a license must be in writing on a form the Commissioner prescribes. The application must include all of the following:

(1) The legal name and every address where the applicant will conduct business.

(2) If the applicant is a partnership, association, corporation, or other form of business organization, the name and address of each member, director, and principal officer.

(3) A description of the applicant’s activities in detail and for the periods the Commissioner requires.

(4) Other information the Commissioner requires.

(b) At the time of application, or during an investigation of the application, the Commissioner may require any of the following individuals provide a complete set of fingerprints for a criminal background investigation:

(1) The applicant or the applicant’s spouse.

(2) A principal of the applicant.

(3) An individual who is a person in control of the applicant.

(4) A proposed key individual.

(5) Any other individual associated with the applicant and the proposed licensed activities.

(c) The applicant shall provide the fingerprints to the Commissioner or a designee of the Commissioner for the background investigation.

(d) At the time of application, the applicant shall pay to the Commissioner a nonrefundable investigation fee of $172.50.

5 Del. C. 1953, §§  2306, 2307;  67 Del. Laws, c. 260, §  1;  58 Del. Laws, c. 421;  82 Del. Laws, c. 78, § 3;  85 Del. Laws, c. 338, § 2; 

(a) Upon receipt of an application for an original license that contains all required items, the Commissioner shall promptly notify the applicant in writing of the date on which the application is deemed complete.

(b) A determination by the Commissioner that an application is complete and accepted for processing means only that the application appears to include all required items and addresses all required matters. The determination does not constitute an assessment of the substance of the application or the sufficiency of the information provided.

(c) Upon determining an application is complete, the Commissioner shall investigate the applicant’s financial condition and responsibility, financial and business experience, character, and general fitness. The Commissioner may conduct an on-site investigation of the applicant at the applicant’s expense. The Commissioner shall issue a license if all of the following conditions are satisfied:

(1) The applicant has complied with § 2306 of this title.

(2) The applicant’s financial condition and responsibility, financial and business experience, competence, character, and general fitness of the applicant; and the competence, experience, character, and general fitness of the key individuals and persons in control of the applicant indicate that it is in the interest of the public to permit the applicant to engage in money transmission.

(d) If an applicant is subject to a multistate licensing process, the Commissioner may accept the investigation results of a lead investigative state for the purpose of subsection (c) of this section if the lead investigative state has sufficient staffing, expertise, and minimum standards.

(e) If an application is denied, the Commissioner shall issue a formal written notice of denial within 30 days of the decision. The notice must include a written order setting forth the facts upon which the denial is based and advising the applicant of the right to request a hearing in accordance with Chapter 101 of Title 29.

(f) An initial license term begins on the date the application is approved and expires on December 31 of that year. If an initial license is issued between November 1 and December 31, the license shall remain valid until December 31 of the following year.

(g) Upon approval of an application and the applicant’s payment of an annual license fee of $230, plus $4.60 for each authorized delegate location in this State in excess of 1, the Commissioner shall issue a license to the applicant.

5 Del. C. 1953, §  2308;  58 Del. Laws, c. 421;  70 Del. Laws, c. 186, §  1;  72 Del. Laws, c. 15, §  37;  80 Del. Laws, c. 225, § 5;  84 Del. Laws, c. 42, § 73;  85 Del. Laws, c. 338, § 2; 

(a) A licensee shall maintain at all times a tangible net worth of the greater of $100,000 or 3% of total assets for the first $100 million, 2% of additional assets for $100 million to $1 billion, and 0.5% of additional assets for over $1 billion.

(b) A licensee shall demonstrate tangible net worth through its most recent audited or unaudited financial statements.

(c) Except as otherwise provided in subsections (a) and (b) of this section, the Commissioner may, for good cause shown, exempt these requirements in whole or in part.

5 Del. C. 1953, §  2305;  58 Del. Laws, c. 421;  85 Del. Laws, c. 338, § 2; 

(a) A licensee shall file with the Commissioner an original corporate surety bond in a form satisfactory to the Commissioner. The bond must be issued by a corporation authorized to transact business in this State. The Commissioner shall determine the principal sum of the bond, which must be between $100,000 and $500,000. In determining the bond amount, the Commissioner must consider all of the following:

(1) The amount of the licensee’s average daily money transmission liability in this State.

(2) The licensee’s tangible net worth.

(3) The licensee’s total assets.

(4) Any other factor the Commissioner deems relevant and appropriate.

(b) A licensee that maintains a bond in the maximum amount provided for in subsection (a) of this section is not required to calculate average daily money transmission liability.

(c) The Commissioner may not accept a bond unless it meets all of the following requirements:

(1) The aggregate value of the bond must be equal to or greater than the amount provided in subsection (a) of this section.

(2) The term of the bond must be commensurate with the license period or continuous.

(3) The expiration date of the bond may not be earlier than midnight of the date on which the license expires.

(4) The bond runs to this State for the benefit of the Office of the State Bank Commissioner and for the benefit of any consumer injured by a wrongful act, omission, default, fraud, or misrepresentation by a licensee in the course of its activity.

(d) Compensation under the bond is for actual losses and is not payable for claims made by a business creditor, third-party service provider, agent, or person employed by the licensee.

(e) An insurer shall pay a surety claim to the Office of the State Bank Commissioner within 90 days after receipt of the claim. A claim paid after 90 days is subject to daily interest at the legal rate under § 2301 of Title 6. The aggregate liability of the surety on the bond, excluding interest, may not exceed the amount of the bond.

(f) If a licensee changes its surety company or the bond is amended, the licensee shall immediately provide the Commissioner with the amended original copy of the surety bond. Cancellation of an existing bond by a surety is ineffective unless written notice of its intention to cancel is filed with the Commissioner at least 30 days before the date upon which cancellation takes effect.

(g) The Commissioner may require potential claimants to provide documentation and affirmations as the Commissioner determines are necessary. If the Commissioner determines that multiple consumers have been injured by a licensee, the Commissioner may publish a notice to identify all relevant claims.

(h) When a surety company receives a claim against the bond of a licensee, the surety company must immediately notify the Commissioner. The surety company may not pay any claim unless and until it receives notice to do so from the Commissioner.

(i) The Commissioner shall submit a claim to the insurer within 2 years of the date of the cancellation or date of termination of the surety bond.

5 Del. C. 1953, §  2309;  58 Del. Laws, c. 421;  71 Del. Laws, c. 19, §  73;  85 Del. Laws, c. 338, § 2; 

(a) A license under this chapter must be renewed annually. The annual renewal fee is $230 plus $4.60 for each location in this State of the offices of the applicant’s authorized delegates, in excess of 1, subject to the following:

(1) The fee must be paid no more than 60 days before the license expires.

(2) A renewal term is for a period of 1 year, beginning on January 1 and expiring on December 31 of the same year.

(b) A licensee shall submit a renewal application with the renewal fee, in a form and in a medium prescribed by the Commissioner. The renewal application must state or contain a description of each material change in information submitted by the licensee in its original license application which has not been reported to the Commissioner.

(c) The Commissioner may treat a renewal application as a new application if the Commissioner does not receive the application at least 30 days before the license expires.

(d) The Commissioner may grant an extension of a renewal date if the Commissioner finds good cause.

(e) The Commissioner may deny a license renewal if the licensee fails to comply with a supervisory directive.

(f) The Commissioner may use NMLS to process license renewals.

5 Del. C. 1953, §  2310;  58 Del. Laws, c. 421;  67 Del. Laws, c. 260, §  1;  68 Del. Laws, c. 9, §  6;  70 Del. Laws, c. 6, §§  10-12;  70 Del. Laws, c. 186, §  1;  70 Del. Laws, c. 327, §  42;  85 Del. Laws, c. 338, § 2; 

(a) If a licensee no longer meets the requirements for a license under this chapter, the Commissioner may suspend or revoke the license.

(b) An applicant shall, at all times, meet the licensing requirements of this chapter.

5 Del. C. 1953, §  2315;  58 Del. Laws, c. 421;  73 Del. Laws, c. 24, §  11;  77 Del. Laws, c. 126, §  5;  85 Del. Laws, c. 338, § 2; 

(a) The Commissioner may participate in an automated system involving 1 or more other states to facilitate the application and licensing processes of this chapter.

(b) If the Commissioner joins a system under subsection (a) of this section, the Commissioner may establish additional requirements by regulation as needed.

(c) The administrator of a system under subsection (a) of this section may do all of the following on behalf of the Commissioner:

(1) Collect from an applicant or licensee subject to the system a payment due to the Commissioner under this chapter.

(2) Collect information and maintain records in an electronic or other format relating to an applicant or licensee.

(3) Submit fingerprints and other information required for a criminal history background check to the Federal Bureau of Investigation or other law-enforcement agency.

(d) Information maintained on a system under subsection (a) of this section regarding an applicant or licensee may be shared with any other state participating in that system for the purpose of licensing, regulating, or supervising the applicant or licensee under a statute similar to this chapter, if that state could have obtained the information directly from the applicant or licensee under its own law.

(e) The Commissioner shall ensure that the system maintains appropriate confidentiality, privacy, data security, and security breach notification policies that comply with Delaware law.

82 Del. Laws, c. 78, § 4;  85 Del. Laws, c. 338, § 2; 

(a) If a provision of this chapter is inconsistent with a federal law governing money transmission, the federal law preempts this chapter to the extent of the inconsistency.

(b) If an inconsistency exists under subsection (a) of this section, the Commissioner may provide interpretive guidance to do all of the following:

(1) Identify the inconsistency.

(2) Identify the appropriate means of compliance with state or federal law.

85 Del. Laws, c. 338, § 2;