TITLE 10. FINANCE AND FINANCIAL INSTITUTIONS

STATE CORPORATION COMMISSION

Proposed Regulation

Title of Regulation: 10VAC5-120. Money Order Sellers and Money Transmitters (amending 10VAC5-120-10 through 10VAC5-120-100; adding 10VAC5-120-15, 10VAC5-120-85).

Statutory Authority: §§ 6.2-1913 and 12.1-13 of the Code of Virginia.

Public Hearing Information: A public hearing will be held upon request.

Public Comment Deadline: May 22, 2026.

Agency Contact: Dustin Physioc, Commissioner of Financial Institutions, Bureau of Financial Institutions, State Corporation Commission, P.O. Box 640, Richmond, VA 23218, telephone (804) 786-0831, fax (804) 371-9416, or email dustin.physioc@scc.virginia.gov.

Summary:

Chapter 214 of the 2025 Acts of Assembly repeals Chapter 19 (§ 6.2-1900 et seq.) of Title 6.2 of the Code of Virginia and replaces it with Chapter 19.1 (§ 6.2-1922 et seq.) and requires the State Corporation Commission to adopt regulations to effect the purposes of Chapter 19.1. The proposed amendments update Money Order Sellers and Money Transmitters (10VAC5-120) to conform to Chapter 19.1, including (i) updating definitions; (ii) specifying certain license application requirements and clarifying the scope of the exemptions in § 6.2-1923 of the Code of Virginia; (iii) prescribing how applicants and licensees must demonstrate that they have the tangible net worth required by Chapter 19.1; (iv) updating cross-references; and (v) implementing and clarifying various other provisions of Chapter 19.1. As part of the proposed amendments, the commission also delegates to the Commissioner of Financial Institutions the commission's authority to exercise its powers and to act for it under a variety of specified statutes in Chapter 19.1.

AT RICHMOND, APRIL 3, 2026

COMMONWEALTH OF VIRGINIA, ex rel.

STATE CORPORATION COMMISSION

CASE NO. BFI-2026-00008

Ex Parte: In the matter of Amending the

Rules Governing Money Order Sellers

and Money Transmitters

ORDER ESTABLISHING PROCEEDING

Section 12.1-13 of the Code of Virginia (Code) provides, in relevant part, that "[i]n the administration and enforcement of all laws within its jurisdiction, the [State Corporation Commission (Commission)] shall have the power to promulgate rules and regulations[.]" Section 6.2-1913 of the Code provides that the Commission may adopt such regulations as it deems appropriate to effect the purposes of Chapter 19 (§ 6.2-1900 et seq.) of Title 6.2 of the Code (Chapter 19). The regulations issued by the Commission pursuant to Chapter 19 are set forth in Chapter 120 of Title 10 of the Virginia Administrative Code (Chapter 120).¹

The Bureau of Financial Institutions (Bureau) has submitted to the Commission proposed amendments to Chapter 120 (Amended Rules). The proposed Amended Rules are prompted by Chapter 214 of the 2025 Virginia Acts of Assembly (Chapter 214), which will repeal Chapter 19 and replace it with a new Chapter 19.1 of Title 6.2 of the Code (Chapter 19.1) on July 1, 2026. The fourth enactment clause of Chapter 214 establishes that the Commission's regulations under Chapter 19 will continue in effect under Chapter 19.1 to the extent that they do not conflict with Chapter 214, and that such regulations shall be deemed to be regulations adopted under Chapter 19.1. Section 6.2-1925 of Chapter 19.1 states that the Commission shall adopt such regulations as it deems appropriate to effect the purposes of Chapter 19.1, and the proposed Amended Rules are needed in order to conform Chapter 120 to Chapter 19.1 and implement various provisions of Chapter 19.1 once it becomes effective.

The Bureau has recommended to the Commission that the proposed Amended Rules be considered for adoption with an effective date of July 1, 2026, in order to coincide with when Chapter 19.1 will take effect.

NOW THE COMMISSION, upon consideration of this matter, is of the opinion and finds that a proceeding should be established to consider amending Chapter 120. To initiate this proceeding, the Bureau has prepared the proposed Amended Rules, which are appended to this Order Establishing Proceeding (Order). The Commission finds that notice of the proposed Amended Rules should be given to the public, and that interested persons should be provided an opportunity to file written comments on, propose modifications or supplements to, or request a hearing on the proposed Amended Rules, with a proposed effective date of July 1, 2026.

Accordingly, IT IS ORDERED THAT:

(1) This case is docketed and assigned Case No. BFI-2026-00008.

(2) All comments and other documents and pleadings filed in this matter shall be submitted electronically to the extent authorized by Rule 5VAC5-20-150, Copies and format, of the Commission's Rules of Practice and Procedure (Rules of Practice).² Confidential and Extraordinarily Sensitive Information shall not be submitted electronically and shall comply with Rule 5VAC5-20-170, Confidential information, of the Rules of Practice. Any person seeking to hand deliver and physically file or submit any pleading or other document shall contact the Clerk's Office Document Control Center at (804) 371-9838 to arrange the delivery.

(3) On or before May 22, 2026, any interested person may comment on, propose modifications or supplements to, or request a hearing on the proposed Amended Rules by following the instructions on the Commission's website:

scc.virginia.gov/case-information/submit-public-comments. Those unable, as a practical matter, to submit such documents electronically may file such comments by U.S. mail to the Clerk of the State Corporation Commission, c/o Document Control Center, P.O. Box 2118, Richmond, Virginia 23218-2118. All documents shall refer to Case No. BFI-2026-00008. Any request for a hearing shall state why a hearing is necessary and why the issues raised in the request for a hearing cannot be adequately addressed in written comments.

(4) The Bureau shall file its response to any comments filed pursuant to Ordering Paragraph (3) on or before June 18, 2026.

(5) If a sufficient request for a hearing is not received, the Commission may consider the matter and enter an order based upon the comments, documents, or other pleadings filed in this proceeding.

(6) The Bureau shall provide notice of this Order to all licensees under Chapter 19 and to any other interested persons as the Bureau may designate.

(7) The Commission's Office of General Counsel shall provide a copy of this Order, together with the proposed Amended Rules, to the Virginia Registrar of Regulations for publication in the Virginia Register of Regulations.

(8) Interested persons may download unofficial copies of the Order and the proposed Amended Rules from the Commission's website: scc.virginia.gov/pages/case-information.

(9) This matter is continued.

A COPY hereof shall be sent by the Clerk of the Commission to: John E. Farmer, Jr., Senior Assistant Attorney General, at jfarmer@oag.state.va.us, Office of Attorney General, Division of Consumer Counsel, 202 North 9th Street, Richmond, Virginia 23219-3424; and to the Commission's Office of General Counsel and Commissioner of Financial Institutions.

Chapter 120

Money Order Sellers and Money Transmitters

10VAC5-120-10. Definitions.

The following words and terms when used in Chapter 19.1 or in this chapter shall have the following meanings unless the context clearly indicates otherwise:

"Authorized delegate," "control," "group of persons acting in concert," "key individual," "licensee," "monetary value," "money," "money order transmission," and "NMLS," "outstanding money transmission obligations," "person," "receiving money for transmission," and "tangible net worth" shall have the meanings ascribed to them in § 6.2-1900 § 6.2-1922 of the Code of Virginia.

"Bureau," "commission," and "commissioner" shall have the meanings ascribed to them in § 6.2-100 of the Code of Virginia.

"Chapter 19" means Chapter 19 (§ 6.2-1900 et seq.) of Title 6.2 of the Code of Virginia.

"Chapter 19.1" means Chapter 19.1 (§ 6.2-1922 et seq.) of Title 6.2 of the Code of Virginia.

"Generally accepted accounting principles" for purposes of Chapter 19 and this chapter means standard accounting guidelines as established and administered by the American Institute of Certified Public Accountants (AICPA) and the United States Financial Accounting Standards Board (FASB).

"Merchant or service provider" means a person engaged in the business of selling goods or services, but excluding a person licensed or required to be licensed under Chapter 19.

"Money transmission" for purposes of Chapter 19 and this chapter shall have the meaning ascribed to it in § 6.2-1900 of the Code of Virginia. However, the term shall not include the actions of an agent who collects funds on behalf of a merchant or service provider, provided that (i) the agent has been explicitly designated in a written agreement as an agent of the merchant or service provider; (ii) any funds collected by the agent shall be deemed for all purposes to be received by the merchant or service provider, regardless of whether the agent actually remits such funds to the merchant or service provider; (iii) the agent provides the Virginia resident with a dated receipt indicating that payment to the agent constitutes payment to the merchant or service provider; and (iv) there is no risk of loss to the Virginia resident if the agent fails to remit such resident's funds to the merchant or service provider. This definition shall not be construed to prohibit the merchant or service provider from seeking indemnification from its agent for any direct losses incurred due to the agent's failure to remit funds in accordance with its agreement.

"Nationwide Multistate Licensing System and Registry" and "registry" shall have the meanings ascribed to them in § 6.2-1900 of the Code of Virginia.

"Senior officer" for purposes of Chapter 19 means an individual who has significant management responsibility within an organization or otherwise has the authority to influence or control the conduct of the organization's affairs, including its compliance with applicable laws and regulations.

"Parents," for purposes of § 6.2-1931 A 12 of the Code of Virginia, means any persons that control an applicant.

"Subsidiaries," for purposes of § 6.2-1931 A 12 of the Code of Virginia, means any persons that are controlled by an applicant. For purposes of this definition, "controlled" shall be construed in accordance with the definition of "control" in § 6.2-1922 of the Code of Virginia.

10VAC5-120-15. Licensing and applications.

A. Applications for a license under Chapter 19.1 shall be made through the NMLS in accordance with instructions provided by the commissioner. The commissioner may provide these instructions through the NMLS, on the commission's website or by any other means the commissioner deems appropriate.

B. Pursuant to § 6.2-1931 A 15 of the Code of Virginia, an application for a license shall include a copy of the applicant's audited financial statements for the most recent fiscal year and for the two-year period preceding the submission of the application. An applicant that has not yet completed a full fiscal year shall submit with its license application an audited financial statement that is less than a year old as of the date that the application is filed with the bureau.

C. The unaudited financial statements required by § 6.2-1931 A 16 of the Code of Virginia shall be certified by a key individual.

D. The exemptions in § 6.2-1923 of the Code of Virginia that are available to certain persons to the extent specified shall not be construed to extend to persons in the course of providing additional services or engaging in other activities that are subject to Chapter 19.1 unless the services or activities are covered by a different exemption.

10VAC5-120-20. Surety bond standards Tangible net worth.

A. Every licensee Tangible net worth shall be bonded in a principal amount determined by the Commissioner of Financial Institutions. The bond amount shall be equal to demonstrated at initial application through the licensee's Virginia average monthly money order sales during the preceding two calendar quarters, or its Virginia average monthly money transmission volume during such periods, or both, as applicable, rounded to the next highest multiple of $10,000, but not exceeding $500,000. The commissioner, however, may increase the amount of bond required to a maximum of $1 million upon the basis of the impaired financial condition of a licensee, as evidenced by net worth reduction, applicant's most recent audited and certified unaudited financial losses, or other relevant criteria statements filed in accordance with § 6.2-1931 A 15 and A 16 of the Code of Virginia and 10VAC5-120-15 B and C.

B. The amount of bond required of a new A licensee shall be based upon the applicant's financial demonstrate tangible net worth through its audited financial statements filed pursuant to § 6.2-1939 of the Code of Virginia and reports of condition, capitalization, projected Virginia monthly money order sales and money transmission volume, experience, (i.e., call reports) filed pursuant to § 6.2-1938 of the Code of Virginia and other factors deemed pertinent 10VAC5-120-40 A.

C. The minimum bond required shall be $25,000.

D. The form of the bond will be prescribed and provided by the commissioner. The required bond shall be submitted prior to the issuance of a license and shall be maintained continuously thereafter as long as the licensee or former licensee has money orders outstanding or unfulfilled money transmission agreements.

10VAC5-120-30. Alternative to surety bond Surety bonds and alternative security devices.

A. The form of the surety bond under § 6.2-1951 of the Code of Virginia shall be prescribed and provided by the commissioner. The bond shall be submitted prior to the issuance of a license and shall be maintained continuously thereafter as long as the licensee or former licensee has outstanding money transmission obligations.

B. The written notice of cancellation required by § 6.2-1951 F of the Code of Virginia shall be submitted to the commissioner through the NMLS.

C. As an alternative to the a surety bond required under 10VAC5-120-20 § 6.2-1951 of the Code of Virginia, in whole or in part, a licensee or applicant for a license may be permitted to substitute the deposit of certain property with a bank, trust company, or savings institution authorized to conduct business in the Commonwealth of Virginia. Such deposited property, other than cash, shall be valued at the lower of face or market value for the purposes of this regulation chapter.

B. D. The deposited property may consist only of cash, or securities issued or guaranteed by the United States or any agency or instrumentality thereof of the United States, or securities issued by the Commonwealth of Virginia or any political subdivision thereof of the Commonwealth. The commissioner shall determine the amount of property deposit to be required of a licensee in accordance with the factors and limitations set forth in 10VAC5-120-20.

C. E. The property deposit shall be made upon the commissioner's authorization, and pursuant to a written agreement using a form prescribed by the commissioner. The agreement shall provide, among other things, that the commissioner shall have the authority to permit or require the substitution or liquidation of property held under the agreement, and that interest and dividends attributable to the property will be paid to the licensee making the deposit.

D. F. If a licensee ceases money order sales and money transmission in the Commonwealth of Virginia activity and surrenders its license is no longer licensed under Chapter 19.1, the commissioner shall have authority to permit reduction or elimination of the surety bond or property deposit to the extent that the former licensee's obligations arising from its licensed business are reduced or eliminated, and shall have authority to permit the substitution of other means of security for the property deposit security device as permitted by § 6.2-1951 of the Code of Virginia and this section.

10VAC5-120-35. Nationwide Multistate Licensing System and Registry.

A. Applications for a license under Chapter 19 shall be made through the registry in accordance with instructions provided by the commissioner. The commissioner may provide these instructions through the registry, on the commission's Internet website, or by any other means the commissioner deems appropriate.

B. Every licensee holding a license under Chapter 19 prior to July 1, 2019, shall register with the registry and file through the registry a transition request for its license under Chapter 19 no later than September 1, 2019.

C. A. Every licensee shall maintain current information in its records with the registry NMLS. Except as otherwise required by Chapter 19 19.1 or this chapter, a licensee shall update its information as soon as is practicable, but in no event later than 10 business days from when a change takes effect.

D. B. A license issued under Chapter 19 19.1 shall expire on December 31 of each calendar year unless it is renewed by a licensee on or after November 1 of the same year. However, licenses that are granted between November 1 and December 31 shall not expire until the end of the following calendar year. A license shall be renewed upon the commissioner finding that the licensee has satisfied the requirements set forth in subsection F of § 6.2-1905 § 6.2-1934 B of the Code of Virginia.

C. Pursuant to § 6.2-1934 C of the Code of Virginia, the commission may grant an extension of the expiration date of all licenses under Chapter 19.1 in the event of a natural disaster or such other unanticipated events or circumstances beyond the control of licensees that would prevent the licensee from renewing the license by December 31.

10VAC5-120-40. Reporting and filing requirements.

A. Pursuant to subsection D of § 6.2-1905 §§ 6.2-1938 and 6.2-1940 of the Code of Virginia, every licensee shall file quarterly reports of condition (i.e., call reports) and authorized delegate reports through the registry NMLS as well as such other information pertaining to the licensee's financial condition as may be required by the registry NMLS. Reports shall be in such form, contain such information, and be submitted with such frequency and by such dates as the registry may require. Compliance with this subsection shall satisfy the requirement in subsection B of § 6.2-1917 of the Code of Virginia that a licensee file its quarterly financial statements with the commissioner.

B. Within one business day after a licensee becomes aware has reason to know of the occurrence of any of the following events, the licensee shall file a written report with the commissioner describing the event:

1. Bankruptcy, reorganization, or receivership proceedings are filed The filing of a petition by or against the licensee under the United States Bankruptcy Code (11 USC § 101 et seq.) for bankruptcy or reorganization, the filing of a petition by or against the licensee for receivership, the commencement of any other judicial or administrative proceeding for the licensee's dissolution or reorganization, or an action by a creditor against the licensee who is not a beneficiary of a statutory trust established in accordance with § 6.2-1952 C of the Code of Virginia.

2. Any local, state, or federal governmental authority institutes revocation, suspension, or other formal administrative, regulatory, or enforcement proceedings against the licensee.

3. Any local, state, or federal governmental authority (i) revokes or suspends the licensee's money order seller license, money transmitter license, or other license for a similar business; (ii) takes formal administrative, regulatory, or enforcement action against the licensee relating to its money order sales, money transmission, or similar business; or (iii) takes any other action against the licensee relating to its money order sales, money transmission, or similar business where the total amount of restitution or other payment from the licensee exceeds $20,000. A licensee shall not be required to provide the commissioner with information about such event to the extent that such disclosure is prohibited by the laws of another state.

4. Based on allegations by any local, state, or federal governmental authority that the licensee violated any law or regulation applicable to the conduct of its licensed money order sales, money transmission, or similar business, the licensee enters into, or otherwise agrees to the entry of, a settlement or consent order, decree, or agreement with or by such governmental authority.

5. The licensee surrenders its money order seller license, money transmitter license, or other license for a similar business in another state in lieu of threatened or pending license revocation; license suspension; or other administrative, regulatory, or enforcement action.

6. The licensee is denied a money order seller license, money transmitter license, or other license for a similar business in another state.

7. The licensee or any of its members, partners, directors, officers, principals, employees, or authorized delegates is indicted or convicted of a felony.

C. A licensee shall file a report with the commissioner within three business days after the licensee has reason to know of an indictment, charge, or conviction of any of the following persons for a felony: (i) the licensee, (ii) a key individual or person in control of the licensee, (iii) an authorized delegate of the licensee, or (iv) an employee of the licensee.

C. D. The reports required by this section shall contain such information as the commissioner may require. The commissioner may require such additional reports as he the commissioner deems necessary.

D. Every licensee shall file the audited financial statements required by subsection D of § 6.2-1905 of the Code of Virginia within 105 days of the end of its fiscal year. For example, if a licensee's fiscal year ends on March 31, its audited financial statements must be filed by July 14 of the same year. If a licensee is unable to file its audited financial statements within 105 days of the end of its fiscal year, the licensee may request an extension, which may be granted by the commissioner for good cause shown. A licensee's audited financial statements shall cover the prior 12-month fiscal period and be prepared in accordance with generally accepted accounting principles.

E. The authorized delegate information required by subsection B of § 6.2-1917 Pursuant to § 6.2-1939 of the Code of Virginia shall be submitted to, the commissioner through the registry's agent reporting functionality may, for good cause shown, grant a licensee's request for an extension of up to 60 days to file its audited financial statements. Such request shall be made in writing, specify the reason for the request, and be submitted directly to the bureau.

F. Pursuant to § 6.2-1940 of the Code of Virginia, every licensee shall submit through the NMLS agent reporting functionality such information pertaining to its authorized delegates as the NMLS may require.

F. G. Any reports, notifications, or filings required by Chapter 19 19.1 or this chapter may be submitted to the commissioner through the registry NMLS, provided that the registry NMLS is capable of receiving such reports, notifications, or filings.

10VAC5-120-50. Assessment schedule Annual fees and expenses for the examination and supervision of money order sellers and money transmitters.

Pursuant to subsection B of § 6.2-1905 § 6.2-1924 B of the Code of Virginia, the commission sets the following schedule for the each licensee shall pay an annual assessment fee to be paid by persons licensed under Chapter 19. The assessment defrays defray the costs of the examination and supervision of licensees by the bureau.

The annual assessment fee shall be $0.000047 per dollar of (i) money orders sold and money transmitted by a licensee pursuant to Chapter 19 and (ii) a licensee's money transmission activity pursuant to Chapter 19.1. The assessment shall be based on the dollar volume of business conducted by a licensee, either directly or through its authorized delegates, during the calendar year preceding the year of the assessment as reported by each licensee in (i) the quarterly reports of condition (i.e., call reports) filed through the registry or (ii) such other written reports as the commissioner may require pursuant to subsection D of § 6.2-1905 of the Code of Virginia NMLS. If a licensee fails to fully report its volume information for the prior calendar year by the assessment date, a provisional fee subject to adjustment when the information is reported, shall be assessed.

The amount calculated using the schedule in pursuant to this section shall be rounded down to the nearest whole dollar.

Fees shall be assessed on or before August 1 for the current calendar year. The assessment shall be paid by licensees on or before September 1.

Fees prescribed and assessed pursuant to this schedule section are apart from and do not include the following: (i) (a) the annual license renewal fee of $750 authorized by subsection A of § 6.2-1905 § 6.2-1934 A of the Code of Virginia and (ii) (b) the reimbursement for expenses costs authorized by subsection C of § 6.2-1905 §§ 6.2-1926 C and 6.2-1933 C of the Code of Virginia. When it becomes necessary to examine or investigate the affairs, business, premises, or records of a licensee or any of its authorized delegates at a location outside the Commonwealth, the licensee shall be liable for and shall pay to the commission within 30 days of the presentation of an itemized statement the actual travel and reasonable living expenses incurred on account of its examination or investigation, or shall pay a reasonable per diem rate approved by the commission.

10VAC5-120-60. Responding to requests from the Bureau of Financial Institutions; providing false, misleading, or deceptive information.

A. When the bureau requests a written response, books, records, documentation, or other information from a licensee or its authorized delegate in connection with the bureau's investigation, enforcement, or examination of compliance with applicable laws and regulations, the licensee or authorized delegate shall deliver a written response as well as any requested books, records, documentation, or information within the time period specified in the bureau's request. If no time period is specified, a written response as well as any requested books, records, documentation, or information shall be delivered by the licensee or its authorized delegate to the bureau not later than 30 days from the date of such request. In determining the specified time period for responding to the bureau and when considering a request for an extension of time to respond, the bureau shall take into consideration the volume and complexity of the requested written response, books, records, documentation, or information and such other factors as the bureau determines to be relevant under the circumstances. Requests made by the bureau pursuant to this subsection are deemed to be in furtherance of the bureau's commission's investigation and examination authority provided for in § 6.2-1910 § 6.2-1926 of the Code of Virginia.

B. A licensee shall not provide any false, misleading, or deceptive information to the bureau.

C. If the bureau requests information from an applicant to complete a deficient application filed under § 6.2-1903 § 6.2-1931 or 6.2-1914 6.2-1936 of the Code of Virginia, and the information is not received within 60 days of the request, the application shall be deemed abandoned unless a request for an extension of time is received and approved by the bureau prior to the expiration of the 60-day period.

10VAC5-120-70. Acquisitions; additional Additional business requirements and restrictions; operating rules.

A. Any person submitting an application to acquire, directly or indirectly, 25% or more of the voting shares of a corporation or 25% or more of the ownership of any other person licensed to conduct business under Chapter 19 shall pay a nonrefundable application fee of $500 money remitted by an authorized delegate pursuant to § 6.2-1944 D 4 of the Code of Virginia shall be (i) paid directly to a licensee or the licensee's representative authorized to receive money or (ii) deposited in a bank account specified by the licensee, which shall be solely owned and controlled by and held in the name of the licensee.

B. A licensee shall not permit an authorized delegate to use a subdelegate or otherwise designate or appoint a subdelegate another person to sell money orders or engage in money transmission business on behalf of the licensee.

C. A licensee shall comply with Chapter 19 19.1, this chapter, and all other state and federal laws and regulations applicable to the conduct of its business. For purposes of Chapter 19 19.1 and this chapter, the acts and omissions of a licensee's authorized delegates shall be deemed acts and omissions of such licensee.

D. In addition to the records specified in subsection B of § 6.2-1916 § 6.2-1943 A of the Code of Virginia, a licensee shall maintain in its principal place of business such other books, accounts, and records as the commissioner may reasonably require in order to determine whether such licensee is complying with the provisions of Chapter 19 19.1, this chapter, and other laws and regulations applicable to the conduct of its business.

E. If a licensee, authorized delegate, or former licensee disposes of records containing a consumer's personal financial information or copies of a consumer's identification documents, such records and copies shall be shredded, incinerated, or otherwise disposed of in a secure manner. A licensee, authorized delegate, or former licensee may arrange for service from a business record destruction vendor.

F. A licensee or former licensee shall provide the following information to the bureau within 10 days after such person's license is has expired or been surrendered or revoked or the licensed business is otherwise closed: (i) the names, addresses, telephone numbers, fax numbers, and email addresses of a designated contact person and the person who consumers may contact regarding outstanding money orders or money transmission transactions obligations; (ii) the location of the licensee's or former licensee's money order and money transmission records; and (iii) any additional information that the bureau may reasonably require. A licensee or former licensee shall maintain current information with the bureau until the licensee or former licensee has no outstanding money orders and money transmission transactions obligations.

G. A person shall remain subject to the provisions of Chapter 19 19.1 and this chapter applicable to licensees in connection with all money orders sold and money or monetary value received for transmission while licensed under pursuant to Chapter 19 or Chapter 19.1 notwithstanding the occurrence of any of the following events:

1. The person's license is has expired or been surrendered or revoked; or

2. The person ceases selling money orders or transmitting money or monetary value transmission activity.

H. A licensee shall not provide any information to a Virginia resident person located in the Commonwealth that is false, misleading, or deceptive.

I. A licensee shall not engage in any activity that directly or indirectly results in an evasion of the provisions of Chapter 19 19.1 or this chapter.

J. A licensee shall continuously maintain the requirements and standards for licensure prescribed in § 6.2-1906 § 6.2-1933 of the Code of Virginia.

K. Pursuant to § 6.2-1945 A of the Code of Virginia, a licensee shall enter into an agreement with each sender that specifies the date the funds will be available to the recipient. The agreement shall be in writing and a copy shall be furnished to the sender on or before the execution of the transaction.

L. The expiration, surrender, or revocation of a license under Chapter 19.1 shall not affect any pre-existing legal right or obligation of the licensee.

M. Pursuant to § 6.2-1947 B of the Code of Virginia, a licensee or a licensee's authorized delegate shall provide each sender with a receipt upon receiving money for transmission.

10VAC5-120-80. Permissible investments.

A. Permissible investments maintained by a licensee pursuant to § 6.2-1918 § 6.2-1952 of the Code of Virginia shall be unencumbered and held solely in the name of the licensee.

B. In addition to the investments specified in § 6.2-1919 § 6.2-1953 of the Code of Virginia, the following investments shall be considered permissible under § 6.2-1918 § 6.2-1952 of the Code of Virginia: any debit card-funded or credit card-funded transmission receivables that are (i) payable to a licensee from owed by any bank, savings institution, or credit union that is chartered under the laws of the United States or any state thereof; (ii) comprised of funds that have been tendered by residents of the United States for money transmission transactions; and (iii) no more than seven days old.

C. The receivables specified in § 6.2-1919 A 5 § 6.2-1953 B 1 of the Code of Virginia shall be limited to funds that have been collected by a licensee's authorized delegates directly from residents of the United States for money transmission transactions.

D. For purposes of § 6.2-1953 A 4 a (1) of the Code of Virginia, the following shall be deemed United States federal or state authorities having regulatory authority over banks, credit unions, and trust companies:

1. Office of the Comptroller of the Currency.

2. Federal Reserve Board.

3. Federal Deposit Insurance Corporation.

4. National Credit Union Administration.

5. State regulatory agencies that supervise banks, credit unions, or trust companies.

E. For purposes of § 6.2-1953 B 4 of the Code of Virginia, a licensee is required to have received a satisfactory or better rating in its most recent examination conducted (i) directly by the bureau or (ii) by an agency of another state if the examination report is accepted by the bureau pursuant to a multistate agreement.

10VAC5-120-85. Acquisitions of control.

A. A person or group of persons acting in concert that have obtained commission approval to acquire control of a licensee pursuant to § 6.2-1936 H of the Code of Virginia shall notify the commissioner within 15 days after the acquisition of control.

B. For purposes of § 6.2-1936 K 6 of the Code of Virginia, a public offering of securities of a licensee or a person in control of a licensee refers to a person or group of persons acting in concert who acquire such securities in a public offering.

C. A person shall be deemed to satisfy § 6.2-1936 M 1 of the Code of Virginia if the person has (i) never had a professional license revoked or suspended or (ii) not controlled a licensee that has had a professional license revoked or suspended while the person was in control of the licensee in the previous five years.

D. The notice required by § 6.2-1936 M 5 of the Code of Virginia shall be provided by a licensee or person in control of a licensee, and the notice shall be furnished at least 30 days in advance of the acquisition of control. The commissioner shall have the power and authority to make all findings and disapprove the notice if the commissioner has reason to believe that the criteria in § 6.2-1936 M of the Code of Virginia have not been met.

10VAC5-120-90. Enforcement.

A. Failure to comply with any provision of Chapter 19 19.1 or this chapter may result in civil penalties, license suspension or revocation, the entry of a cease and desist order, or other appropriate enforcement action.

B. Pursuant to § 6.2-1920 § 6.2-1955 of the Code of Virginia, a person required to be licensed under Chapter 19 19.1 shall be subject to a civil penalty of up to $2,500 for every violation of Chapter 19 19.1, this chapter, or other law or regulation applicable to the conduct of the person's business. Furthermore, if a person violates any provision of Chapter 19 19.1, this chapter, or other law or regulation applicable to the conduct of the person's business in connection with multiple money order sales or money transmission transactions, the person shall be subject to a separate civil penalty for each money order sale or money transmission transaction. For example, if a person sells conducts five money orders transmission transactions and the person violates two provisions of this chapter in connection with each of the five money order sales transmission transactions, there would be a total of 10 violations and the person would be subject to a maximum civil penalty of $25,000.

10VAC5-120-100. Commission authority.

The A. Except as otherwise provided in § 6.2-1927 B of the Code of Virginia, the commission may, at its discretion, waive or grant exceptions to any provision of this chapter for good cause shown.

B. In addition to the powers and duties delegated elsewhere in this chapter and in 10VAC5-10-10, the commission delegates to the commissioner the authority to exercise its powers and to act for it under the following provisions of Chapter 19.1:

1. Section 6.2-1924 A of the Code of Virginia.

2. Section 6.2-1927 A 2 of the Code of Virginia.

3. Section 6.2-1936 M 2, N, and O of the Code of Virginia.

4. Section 6.2-1937 B and E of the Code of Virginia.

5. Section 6.2-1938 A of the Code of Virginia.

6. Section 6.2-1939 C of the Code of Virginia.

7. Section 6.2-1951 E of the Code of Virginia.

In exercising the powers and performing the duties hereby delegated to the commissioner, the commissioner shall have the power and authority to make all findings and determinations permitted or required by law.