Anonymous / April 18, 2013 at 4:45 AM DT

establ

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Anonymous / March 18, 2013 at 10:49 PM DT

e and—


(A) is operated without an appropriate money transmitting license in a State where such operation is punishable as a misdemeanor or a felony under State law, whether or not the defendant knew that the operation was required to be licensed or that the operation was so punishable;


(B) fails to comply with the money transmitting business registration requirements under section 5330 of title 31, United States Code, or regulations prescribed under such section; or


(C) otherwise involves the transportation or transmission of funds that are known to the defendant to have been derived from a criminal offense or are intended to be used to promote or support unlawful activity;


(2) the term “money transmitting” includes transferring funds on behalf of the public by any and all means including but not limited to transfers within this country or to locations abroad by wire, check, draft, facsimile, or courier; and


(3) the term “State” means any State of the United States, the District of Columbia, the Northern Mariana Islands, and any commonwealth, territory, or possession of the United States.

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Anonymous / February 18, 2013 at 2:47 AM ST

§ 8.01-258. Venue not jurisdictional.

Venue of Title 8, Chapter 5 of VA Code

Aaron Greenspan / October 16, 2012 at 4:40 AM DT

in no event shall tangible shareholders' equity be less than five hundred thousand dollars ($500,000)

Money transmitters must have tangible net worth of at least $500,000 to hold $1 of another person's money, even though they don't make loans. What this really means is that there are no new money transmitters.

Aaron Greenspan / October 16, 2012 at 4:38 AM DT

in an amount determined to be adequate by the commissioner from time to time

Deputy Commissioner Robert Venchiarutti stated in Think Computer Corporation's mandatory pre-filing interview that he required anywhere from $1 million to $80 million in capital as "adequate" funding because according to his experience all financial startups were guaranteed to be unprofitable for three years. When asked later by California Senate Banking and Finance Committee Staff Director Eileen Newhall what the actual requirement was, she was told $1.5 million.

Aaron Greenspan / October 16, 2012 at 4:35 AM DT

(a) The commissioner may conduct an examination of the applicant and the applicant shall pay the reasonable cost of the examination.

Deputy Commissioner Robert Venchiarutti threatened to use this power as a weapon by causing there to be excessive "reasonable" examination costs when Think Computer Corporation attempted to apply for a money transmission license. Since "reasonable" is not defined, this can make or break the difference between a startup receiving a license or not. This is one of many places with the Money Transmission Act runs into problems with due process and unbridled discretion.

Aaron Greenspan / October 16, 2012 at 4:25 AM DT

(d) A licensee that sells or issues payment instruments or stored value shall maintain securities on deposit or a bond of a surety company in an amount of no less than five hundred thousand dollars ($500,000) or 50 percent of the average daily outstanding payment instrument and stored value obligations in California, whichever is greater; provided that such amount shall not be more than two million dollars ($2,000,000).


(e) A licensee that engages in receiving money for transmission shall maintain securities on deposit or a bond of a surety company in an amount greater than the average daily outstanding obligations for money received for transmission in California, provided that such amount shall not be less than two hundred fifty thousand dollars ($250,000) nor more than seven million dollars ($7,000,000).


(f) The amount of securities on deposit or a bond of a surety company required to be maintained by subdivisions (d) and (e) are cumulative.

The Money Transmission Act's surety bond requirements scale up to $9 million maximum when you combine the $2 million figure of section (d) with the $7 million figure of section (e), which is basically what section (f) says. Relative to other state money transmission laws this is a pretty high figure, but even $9 million would barely make a dent in a high-profile money transmitter failing, e.g. PayPal. Consumers would only get back pennies on the dollar.

Aaron Greenspan / October 16, 2012 at 4:20 AM DT

Receiving money for transmission

This incredibly vague definition of money transmission encompasses the routine business activities of nearly every private university, law firm, payroll company, escrow service, realtor, and construction company in California. Several startups are affected as well. Almost none of these companies have licenses.

Aaron Greenspan / September 8, 2012 at 7:09 PM DT

If the Administrator finds that

We only test chemicals that the Administrator thinks we should, meaning that all chemicals are presumed safe until proven otherwise. See http://www.nytimes.com/2012/09/09/magazine/arlene-blums-crusade-against-household-toxins.html.

Aaron Greenspan / June 20, 2012 at 4:39 PM DT

exceeds authorized access

According to the Ninth Circuit, "'exceeds authorized access' in the CFAA is limited to violations of restrictions on access to information, and not restrictions on its use."