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RULE §33.3How Do I Claim an Exclusion from Licensing because I Am an Agent for a Federally Insured Financial Institution or a Foreign Bank Branch or Agency?

(a) This section applies if you:

  (1) provide marketing, sales or other services related to money transmission either directly or through your own agents or subagents;

  (2) provide these services only as agent for a federally insured financial institution described in Finance Code, §151.003(3), or a foreign bank branch or agency described in Finance Code, §151.003(4); and

  (3) want to be excluded from licensing under Finance Code, §151.003(5), the agent exclusion.

(b) To provide services related to money transmission under the agent exclusion, you must first obtain the Department's written determination that the statutory conditions for the exclusion are satisfied. You must submit to the Department:

  (1) a general description of your business plan;

  (2) an executed agreement or other signed documents between you and the federally insured financial institution or foreign bank branch or agency in which the financial institution:

    (A) assumes all legal responsibility in the State of Texas for satisfying the money services obligations owed to Texas purchasers of the money transmission services upon receipt of the purchaser's money or monetary value by you or your agents or subagents;

    (B) assumes all risk of loss that a purchaser may suffer as a result of the failure of you or one of your agents or subagents to transmit the purchaser's funds to the entity; and

    (C) appoints you as its agent for purposes of money transmission, sets out the limits of your authority, and includes your agreement to act only within the scope of that authority; and

  (3) any other information the Department reasonably requests to determine if you qualify for the exclusion.

(c) The Department will review your submission and advise you whether you satisfy the requirements of Finance Code, §151.003(5), and are excluded under that subsection from the licensing requirements of Finance Code, Chapter 151.

Source Note: The provisions of this §33.3 adopted to be effective January 5, 2006, 30 TexReg 8855; amended to be effective July 8, 2010, 35 TexReg 5805

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