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Can you summarize 7 GACO Chapter 1, Article 4?
Financial Institutions > Sale of Payment Instruments
Short Summary
This legal document, part of the Georgia Code on Banking and Finance, governs the sale of payment instruments, specifically checks or money orders. It provides definitions for various terms used in the article and includes historical amendments. The regulation applies to licensees, authorized agents, payment instrument holders, payment instrument issuers, money transmitters, and sellers of payment instruments. Closed-loop transactions are exempted from the regulation. The document also provides exemptions from licensing requirements for various entities. It outlines the requirements and procedures for obtaining a license for the sale of payment instruments in Georgia. It also establishes the requirements and obligations for conducting business through authorized agents. The document pertains to the investigation of applicants for licensure and the requirement of background checks on employees and other individuals involved in financial institutions engaged in the sale of payment instruments in Georgia. It also addresses the submission of timely reports of condition to the Nationwide Multistate Licensing System and Registry by licensees. The document requires the clear labeling of the unique identifier of any licensee on advertisements and other required documents. It establishes the expiration and renewal requirements for licenses issued under this article. The document also outlines the obligations and notification requirements for licensees under the Sale of Payment Instruments. It governs the requirement of obtaining written approval from the department for any person seeking to become an ultimate equitable owner or executive officer of a licensee. It establishes the requirements for record keeping, investigations, and examinations in the sale of payment instruments. The document prohibits certain activities and establishes liability for non-compliance. It governs the suspension or revocation of licenses and the failure to issue licenses. It also addresses the licensing requirements for applicants or licensees in default of educational loans and child support obligations. The document pertains to the issuance of cease and desist orders by the department. It establishes the liability of licensees for payment instruments issued in the conduct of their business. It specifies the penalties for violations of the provisions of this article. The document also clarifies that it does not limit any statutory or common law rights or the state’s authority to punish violations of the law.
Whom does it apply to?
Entities engaged in the sale of payment instruments, including licensees, authorized agents, payment instrument holders, payment instrument issuers, money transmitters, and sellers of payment instruments
What does it govern?
The sale of payment instruments, specifically checks or money orders
What are exemptions?
Closed-loop transactions are exempted from the regulation. Exemptions from licensing requirements include state or federally chartered banks, trust companies, credit unions, savings and loan associations, savings banks with federally insured deposits, authorized agents of a licensee, the United States Postal Service, state or federal governmental departments, agencies, authorities, or instrumentalities and their authorized agents, foreign banks establishing a federal branch, wholly owned subsidiaries of state or federally chartered banks, trust companies, credit unions, savings and loan associations, savings banks with federally insured deposits, registered futures commission merchants, persons providing clearance or settlement services, operators of payment systems, persons registered as securities broker-dealers, and individuals employed by a licensee or exempted person
What are the Penalties?
No specific penalties are mentioned in this document
Jurisdiction
Georgia