Iowa Code § 533C.102
Definitions
Redline — January 1, 2012 → current.View current text →
Current — January 1, 2026
As of January 1, 2012
In this chapter:
In this chapter:
1. “Applicant” means a person that files an application for a license under this chapter.
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 a licensee designates to provide money services on behalf of the licensee.
2. “Authorized delegate” means a person a licensee designates to provide money transmission on behalf of the licensee.
3. “Bank” means an institution organized under federal or state law which does any of the following:
a. Accepts demand deposits or deposits that the depositor may use for payment to third parties and engages in the business of making commercial loans.
b. Engages in credit card operations and maintains only one office that accepts deposits, does not accept demand deposits or deposits that the depositor may use for payments to third parties, does not accept a savings or time deposit less than one hundred thousand dollars, and does not engage in the business of making commercial loans.
4. “Compensation” means any fee, commission, or other benefit.
5. “Conducting the business” means engaging in activities of a licensee or money transmitter more than ten times in any calendar year for compensation.
3. “Average daily money transmission liability” means the amount of the licensee’s outstanding money transmission obligations in this state at the end of each day in a given period of time, added together, and divided by the total number of days in the given period of time. For purposes of calculating average daily money transmission liability under this chapter for any required licensee, the given period of time shall be the quarters ending March 31, June 30, September 30, and December 31.
4. “Bank Secrecy Act” means the federal Bank Secrecy Act, 31 U.S.C. §5311 et seq., and its implementing regulations, as amended.
5. “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.
6. “Control” means any of the following:
6. “Control” means any of the following:
a. Ownership of, or the power to vote, directly or indirectly, at least twenty-five percent of a class of voting securities or voting interests of a licensee or person in control of a licensee.
a. The power to vote, directly or indirectly, at least twenty-five percent of outstanding voting securities or voting interests of a licensee or person in control of a licensee.
b. Power to elect a majority of executive officers, managers, directors, trustees, or other persons exercising managerial authority of a licensee or person in control of a licensee.
b. The power to elect or appoint a majority of key individuals, executive officers, managers, directors, trustees, or other persons exercising managerial authority of a licensee or 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.
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.
7. “Credit union” means a cooperative, nonprofit association incorporated under chapter 533 or the Federal Credit Union Act, 12 U.S.C. § 1751 et seq., that is insured by the national credit union administration and includes an office of a credit union.
8. “Currency exchange” means receipt of compensation from the exchange of money of one government for money of another government.
9. “Executive officer” means a president, chairperson of the executive committee, chief financial officer, responsible individual, or other individual who performs similar functions.
7. “Eligible rating” means a credit rating of any of the three highest rating categories provided by an eligible rating service, whereby each category may include rating category modifiers such as “plus” or “minus” for Standard and Poor’s 500 stock market index, or the equivalent for any other eligible rating service. A long-term credit rating is deemed eligible if the rating is equal to “A-” or higher by Standard and Poor’s 500 stock market index, or the equivalent from any other eligible rating service. A short-term credit rating is deemed eligible if the rating is equal to or higher than “A-2” or “SP-2” by Standard and Poor’s 500 stock market index, or the equivalent from any other eligible rating service. In the event that the ratings differ among eligible rating services, the highest rating shall apply when determining whether a security bears an eligible rating.
8. “Eligible rating service” means any nationally recognized statistical rating organization as defined by the federal securities and exchange commission, and any other organization designated by the superintendent by rule or order.
9. “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, when such entity has federally insured deposits.
10. “In the United States” means a person in any state, territory, or possession of the United States, District of Columbia, Commonwealth of Puerto Rico, or U.S. military installation that is located in a foreign country.
11. “In this state” means at a physical location within Iowa for an in-person transaction request.
12. “Individual” means a natural person.
13. “Key individual” means an individual ultimately responsible for establishing or directing policies and procedures of the licensee, including an executive officer, manager, director, or trustee.
14. “Licensee” means a person licensed under this chapter.
11. “Location” means a place of business at which activity conducted by a licensee or money transmitter occurs.
15. “Material litigation” means litigation that, according to generally accepted accounting principles in the United States, is significant to a person’s financial health and would be required to be disclosed in the person’s audited financial statements, report to shareholders, or similar records.
16. “Monetary value” means a medium of exchange, whether or not redeemable in money.
17. “Money” means a medium of exchange authorized or adopted by the United States or a foreign government. The term includes a monetary unit of account established by an intergovernmental organization or by agreement between two or more governments.
14. “Money services” means money transmission or currency exchange.
18. “Money services businesses accredited state” or “MSB accredited state” means a state agency that is accredited by the conference of state bank supervisors and the money transmitter regulators association for money transmission licensing and supervision.
19. a. “Money transmission” means and includes any of the following:
a. Selling payment instruments to one or more persons or issuing payment instruments which are sold to one or more persons.
b. Conducting the business of receiving money or monetary value for transmission.
c. Conducting the business of receiving money for obligors for the purpose of paying obligors’ bills, invoices, or accounts.
(1) Selling or issuing payment instruments to a person located in this state.
(2) Selling or issuing stored value to a person located in this state.
(3) Receiving money for transmission from a person located in this state.
b. “Money transmission” does not include the provision solely of online or telecommunications services or network access.
20. “Multistate licensing process” means any agreement entered into by and among state regulators relating to 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.
21. “Nationwide multistate licensing system” or “NMLS” means the nationwide multistate licensing system and registry developed by the conference of state bank supervisors and the American association of residential mortgage regulators and owned and operated by the state regulatory registry, LLC, or any successor or affiliated entity, for the licensing and registration of persons in financial services industries.
22. “Outstanding money transmission obligations” means any 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.
23. “Passive investor” means a person that can attest in a medium prescribed by the superintendent or commits in writing to any of the following:
a. The person 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. The person is not employed by and does not have any managerial duties of the licensee or person in control of a licensee.
c. The person 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.
24. “Payment instrument” 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 that instrument is negotiable. “Payment instrument” does not include stored value or any instrument that is redeemable by the issuer only for goods or services provided by the issuer or its affiliate, except to the extent required by applicable law to be redeemable in cash for its cash value, or not sold to the public but issued and distributed as part of a loyalty, rewards, or promotional program.
25. “Payroll processing services” means receiving money for transmission pursuant to a contract with a person to deliver wages or salaries, make payments of payroll taxes to states and federal agencies, make payments relating to employee benefit plans, or make distributions of other authorized deductions from wages or salaries. The term “payroll processing services” does not include an employer performing payroll processing services on its own behalf or on behalf of its affiliate, or a professional employer organization subject to regulation under other applicable state law.
26. “Person” means an individual, general partnership, limited partnership, limited liability company, association, joint stock corporation, trust, corporation, or any other corporate entity identified by the superintendent.
19. “Proceeds” means property acquired or derived directly or indirectly from, produced through, realized through, or caused by an act or omission and includes any property of any kind.
20. “Property” means anything of value, and includes any interest in property, including any benefit, privilege, claim, or right with respect to anything of value, whether real or personal, tangible or intangible, without reduction for expenses incurred for acquisition, maintenance, production, or any other purpose.
21. “Record” means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.
22. “Responsible individual” means an individual who is employed by a licensee and has principal managerial authority over the provision of money services by the licensee in this state.
23. “State” means a state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States.
24. “Stored-value” means a monetary value that is evidenced by an electronic record.
27. “Receipt” means a paper receipt, electronic record, or other written confirmation.
28. “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.
29. “Remit” means to make direct payments of money to a licensee or its representative authorized to receive money or to deposit money in a bank in an account specified by the licensee.
30. “Stored-value” means monetary value representing a claim against the issuer 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. “Stored-value” includes but is not limited to prepaid access as defined by 31 C.F.R. §1010.100, as amended. “Stored-value” 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.
31. “Superintendent” means the superintendent of banking for the state of Iowa.
26. “Transaction” includes a purchase, sale, trade, loan, pledge, investment, gift, transfer, transmission, delivery, deposit, withdrawal, payment, transfer between accounts, exchange of currency, extension of credit, purchase or sale of any monetary instrument or stored-value, use of a safe deposit box, or any other acquisition or disposition of property by whatever means effected.
27. “Unsafe or unsound practice” means a practice or conduct by a person licensed to engage in money transmission or an authorized delegate of such a person which creates the likelihood of material loss, insolvency, or dissipation of the licensee’s assets, or otherwise materially prejudices the interests of its customers.
Referred to in
32. “Tangible net worth” means the aggregate assets of a licensee excluding all intangible assets, less liabilities, as determined in accordance with generally accepted accounting principles in the United States.
2024 amendment to subsection 2 applies retroactively to July 1, 2023; 2024 Acts, ch 1030, §15
Official source: Iowa Legislature. Reproduced from public-domain Iowa statutes; confirm against the official source for the current text. Not legal advice.