{Code of Alabama 1975, § 8-7-3} |
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. GENERAL 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 fees paid. 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 following address: 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 8-7-5 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 below. FEES – Code of Alabama, 1975 Sections 8-7-6, 8-7-9 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 of $250.00 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 of Alabama, 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 All sale 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 Rule 830-X-7) SALE OF CHECKS INITIAL FILING REQUIREMENTS
Maximum first time licensing fee: $750.00 (includes one time $250.00 investigative fee) Applicants 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:
1. Prohibition against the commingling of funds; 2. Escrow provisions; 3. Conflict of interest policies; 4. Payment provisions for debtors; 5. A provision for a payment cycle of not longer than 30 days; 6. Monthly statements to be delivered to debtor; 7. All fees stated clearly; 8. Duration of program to completion (not to exceed 60 months); 9. Disclosures relating to any money derived from other sources based on services provided to customers/clients. |
