Hawaii Revised Statutes
489D. Money Transmitters Act
489D-4 Definitions.

§489D-4 Definitions. For purposes of this chapter:
"Acting in concert" means individuals knowingly acting together with a common goal of jointly acquiring control of a licensee whether or not pursuant to an express agreement.
"Applicant" means a person filing an application for a license under this chapter.
"Authorized delegate" means an entity designated by the licensee under this chapter to sell or issue payment instruments or engage in the business of transmitting money on behalf of a licensee.
"Commissioner" means the commissioner of financial institutions.
"Control" means:
(1) Ownership of, or the power to vote, twenty-five per cent or more of the outstanding voting securities or voting interests of a licensee or person in control. For purposes of determining the percentage of a licensee controlled by any person, there shall be aggregated with the person in control's interest, the interest of any other person controlled by the person, including any spouse, parent, child, sibling, and any other person who shares the person's home;
(2) The power to elect or appoint a majority of key individuals of a licensee; and
(3) 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.
"Division" means the division of financial institutions within the department of commerce and consumer affairs.
"Electronic instrument" means a card or other tangible object for the transmission or payment of money, including a stored value card or device, which contains a microprocessor chip, magnetic stripe, or other means for the storage of information, that is prefunded and for which the value is decremented upon each use, but does not include a card or other tangible object that is redeemable by the issuer in goods or services.
"Executive officer" means a president, chairperson of an executive committee, senior officer responsible for the licensee's business, chief financial officer, or any other person who performs similar functions related to the licensee.
"Individual" means a natural person.
"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.
"License" means a license under this chapter.
"Licensee" means a person licensed under this chapter.
"Material litigation" means any litigation that, according to generally accepted accounting principles, is deemed significant to an applicant's or licensee's financial health and would be required to be referenced in the applicant's or licensee's annual audited financial statements, report to shareholders, or similar documents.
"Monetary value" means a medium of exchange, whether or not redeemable in money.
"Money transmission" means to engage in the business of:
(1) Selling or issuing payment instruments; or
(2) Receiving money or monetary value for transmission to a location within or outside the United States by any and all means, including wire, facsimile, or electronic transfer.
Money transmission does not apply to courier services.
"NMLS" means a multi-state licensing system developed and maintained by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators for the state licensing and registration of state-licensed financial services providers.
"Outstanding payment obligation" means:
(1) Any payment instrument issued by the licensee that has been sold in the United States:
(A) Directly by the licensee; or
(B) By an authorized delegate of the licensee in the United States, which has been reported to the licensee as having been sold,
and that has not yet been paid by or for the licensee; and
(2) All other outstanding money transmission obligations of the licensee issued in the United States.
"Passive investor" means a person who:
(1) Does not have the power to elect a majority of key individuals;
(2) Is not employed by and does not have any managerial duties of the licensee or person in control of a licensee;
(3) 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; and
(4) Either:
(A) Attests to paragraphs (1), (2), and (3) in a form prescribed by the commissioner; or
(B) Commits to the passivity characteristics of paragraphs (1), (2), and (3) in a written document.
"Payment instrument" means any electronic or written check, draft, money order, traveler's check, or other electronic instrument or written instrument or order for the transmission or payment of money, sold or issued to one or more persons, whether or not the instrument is negotiable. The term "payment instrument" does not include any credit card voucher, any letter of credit, or any instrument that is redeemable by the issuer in goods or services.
"Permissible investments" means:
(1) Cash;
(2) Certificates of deposit or other debt obligations of a financial institution, either domestic or foreign;
(3) Bills of exchange or time drafts drawn on and accepted by a commercial bank, known as bankers' acceptances, that are eligible for purchase by member banks of the Federal Reserve System;
(4) Any investment bearing a rating of one of the three highest grades as defined by a nationally recognized organization that rates securities;
(5) Investment securities that are obligations of the United States, its agencies, or its instrumentalities, obligations that are guaranteed fully as to principal and interest by the United States, or any obligations of any state, municipality, or any political subdivision thereof;
(6) Shares in a money market mutual fund, interest-bearing bills, notes, or bonds, debentures or stock traded on any national securities exchange or on a national over-the-counter market, mutual funds primarily composed of these securities, or a fund composed of one or more permissible investments as set forth in paragraphs (1) to (5);
(7) Any demand borrowing agreement or agreements made with a corporation or a subsidiary of a corporation whose capital stock is listed on a national exchange;
(8) Receivables that are due to a licensee from its authorized delegates pursuant to a contract under section 489D-21, that are not past due or doubtful of collection; or
(9) Any other investments or security device approved by the commissioner.
"Person" means any individual, partnership, limited liability company, association, joint-stock association, trust, corporation, or other entity, however organized.
"Principal" means any person, or group of persons acting in concert, who exercises control over or has a twenty-five per cent ownership interest or more in an applicant or licensee under this chapter. "Principal" also includes a manager and key individual.
"Remit" means:
(1) To make direct payment of the funds to the licensee or its representatives authorized to receive those funds; or
(2) To deposit the funds in a bank, credit union, savings and loan association, savings bank, financial services loan company, or other similar financial institution in an account specified by the licensee.
"Stored value" means monetary value that is evidenced by an electronic record. [L 2006, c 153, pt of §1; am L 2008, c 19, §77 and c 195, § §2, 3; am L 2013, c 167, §2; am L 2017, c 45, §1; am L 2021, c 108, §4]