No person, as a service or for a fee or other consideration, shall
engage in the business of selling, issuing or otherwise dispensing checks or
receiving money as agent for obligors for the purpose of paying such obligors’
bills, invoices or accounts without first obtaining a license from the
Commission pursuant to the provisions of this chapter.
Please read these instructions
carefully before preparing your application.
Applications for licensure must
be completed on Form SA and must be
submitted with all appropriate documents listed below. Incomplete applications will not be
considered for licensing until all outstanding items have been submitted and
Please type or print clearly when
completing the application. Legible
photocopies with original signatures are acceptable. All forms are to be completed. Type N/A or Not Applicable where
appropriate. You may use a separate page
when completing the application and form space is insufficient. However, information on inserted pages must
be properly referenced by letter and number.
Full names and address must be
provided, including zip codes and telephone numbers. This includes all trade names under
which the applicant proposes to operate. Additionally, a list detailing all branch offices located in the State
of Alabama must be provided.
All licenses pursuant to the Sale
of Checks Act expire as of April 1. Therefore, the appropriate renewal fees and Form SR must be
submitted on or before April 1 to renew.
All documents must contain original signatures.
SUBMITTING YOUR APPLICATION
Once the application is
completed, you should mail it, along with the appropriate fees, to the
Alabama Securities Commission
401 Adams Ave, Suite 280
Montgomery, AL 36104
Faxed applications are not
accepted. Copies of all documents
submitted should be retained for your records.
APPLICATION PROCESS, Code of Alabama, 1975, Section
I. Money Transmitters: All applicants which engage in the business of selling, issuing or
otherwise dispensing checks or transferring money (i.e. money orders) and are
requesting licensing pursuant to the Sale of Checks Act,
shall provide items #1-7 enumerated below.
II.< Debt Management Programs:
Those applicants receiving money from obligors for the purpose of paying such
obligors’ bills or account (i.e. debt management programs) shall submit items
#1-7 and, in addition must also submit the items enumerated in A-J listed
FEES – Code of Alabama, 1975
Investigation and license fees
must be submitted along with the initial application. Checks should be made
payable to the Alabama Securities Commission.
Non-refundable Investigative Fee,
one time initial fee $250.00
License/Application Fee $250.00
Branch Office Fee, $5.00 per office in this State up to a maximum
Maximum License Fee $500.00
Maximum first time application fee (includes investigative fee) $750.00
BOND REQUIREMENT – Code of Alabama,
1975, Section 8-7-7, Form SB
or Form SD
All applicants filing pursuant to
the Sale of Checks Act must provide a surety bond in the amount of $10,000.00
for the principal office plus an additional principal sum of $5,000.00 for each
additional location, office or agency of the applicant in this state at which
the business is to be conducted. In no
event shall the bond exceed $50,000.00.
However, in lieu of filing a
surety bond, an applicant may deposit with the state treasurer bonds or other
satisfactory obligations. The principal
amount of this deposit must be at least equal to or greater than the amount
otherwise required on the surety bond. Form SD is used for this purpose.
CERTIFIED FINANCIAL STATEMENTS – Code
1975, Section 8-7-7
Each applicant shall submit
certified financial statements reasonably satisfactory to the commission
showing that the applicant’s net worth exceeds $5,000.00.
SALE OF CHECKS RENEWALS
of checks licenses terminate effective April 1 unless renewed. Registrants must remit the appropriate fees
($250 + $5.00 per branch/office in Alabama) and Form SR. All locations in Alabama must be disclosed and the form must
contain original signatures. Additionally, any changes in the initial application must be provided.
FILING REQUIREMENTS FOR
SALE OF CHECKS
(Code of Alabama, 1975
Chapter 7 and Commission
SALE OF CHECKS INITIAL FILING REQUIREMENTS
(Application for license pursuant to the Sale of Checks Act)
- A complete list of all
offices, locations or agencies of the applicant in which the business is to be
conducted in the State of Alabama.
- All first time applicants must pay a $250.00
License Fee: $250.00 for principal office and $5.00 for each additional location in
this State up to a total fee of $500.00.
Maximum first time licensing fee:
$750.00 (includes one time $250.00
- Surety Bond: FORM SB (Surety Bond Form) or
FORM SD (Deposit in Lieu of Surety Bond)
Surety Bond in the amount of $10,000.00 for the principal office and $5,000.00
for each additional location in this State. Maximum bond required $50,000.00)
- Most recent audited financial statements (not older
than 12 months and including audit management letters or auditor opinion)
reflecting net worth in excess of $5,000.00.
- A complete list of Alabama activities (including a complete
list of all Alabama clients and the time periods in which you operated)
under the Sale of Checks Act operating as DEBT
MANAGEMENT PROGRAMS shall submit all the aforementioned documents (items
1-7) as well as the following documents:
- Most Recent IRS
Form 990 (if operated as not-for-profit)
- Most Recent Tax Return (for profit
- A complete list of all officers, owners,
employees, agents, solicitors, consultants and any other entity which you pay
- Copies of all advertising materials (including, but not
limited to, all written material, e-mail solicitations, phone scripts, web
- Copies of Complaint Files (including memorandum
relating to all verbal and written complaints, the status of such complaints,
and the resolution, if any, of such complaints).
- Copies of contracts with service providers (including
consultants, solicitors, and other third party providers)
- A copy of any contract used to enroll participants
- All other agreements and disclosures to clients or
- The standards for acceptance of a debtor into a DMP.
- The contract should contain provisions relating to the
Prohibition against the commingling of funds;
Conflict of interest policies;
Payment provisions for debtors;
A provision for a payment cycle of not longer than 30
Monthly statements to be delivered to debtor;
All fees stated clearly;
Duration of program to completion (not to exceed 60
Disclosures relating to any money derived from other
sources based on services provided to customers/clients.