HB 86 — Virtual Currency Changes.

GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2017 H 21 HOUSE BILL 86 Senate Commerce and Insurance Committee Substitute Adopted 6/12/18 Short Title:

VirtualAmend CurrencyBanking Changes.Commission Membership.

Representatives Hardister, Jordan, K.

Hall, and Goodman (Primary Sponsors).

For a complete list of sponsors, refer to the North Carolina General Assembly web site.

Banking February 13, 2017 A BILL TO BE ENTITLED AN ACT TO MAKEAMEND CLARIFYINGTHE CHANGESMEMBERSHIP TOOF PERMISSIBLE INVESTMENTS AND STATUTORY TRUST UNDER THE MONEYBANKING TRANSMITTERSCOMMISSION. ACT.

53-208.4253C-1-4(58) reads as rewritten:

"§"(58) 53-208.42.Public member.

Definitions.– A member of the Commission who is not a practical banker or banker, a consumer finance licensee licensee, or a person licensed under Article 19B of Chapter 53 of the General Statutes and who is not at the time of appointment to the Commission, nor was within the five years preceding the appointment, an employee of a North Carolina financial institution." SECTION 2.

For purposes of this Article, the following definitions apply:

… (2) Authorized delegate.

– An entity designated by the licensee under the provisions of this Article to engage in the business of money transmission on behalf of a licensee from a branch office in this State.

… (17) Permissibleinvestments.–Oneormoreofthefollowing,butonlytotheextent that they are maintained in an account located in the United States:

a.

Cash.

b.

Certificates of deposit or other debt obligations of a depository institution, either domestic or foreign.

c.

Bills of exchange or time drafts drawn on and accepted by a commercialbank,otherwiseknownas bankers'acceptances, whichare eligible for purchase bymember banks of the Federal Reserve System.

d.

Any investment bearing a rating of one of the three highest grades as defined by a nationally recognized organization that rates securities.

e.

Investment securities that are obligations of the United States, its agencies, or instrumentalities or obligations that are guaranteed fully as to principal and interest of the United States or any obligations of any state, municipality, or any political subdivision thereof.

f.

Shares in a money market mutual fund, interest bearing bills or notes or bonds, debentures, or preferred stock traded on any national securitiesexchange oron anational overthecountermarket, ormutual funds primarily composed of such securities or a fund composed of one or more permissible investments as set forth herein.

g.

Any demand borrowing agreement or agreements made to a corporation or a subsidiary of a corporation whose capital stock is listed on a national exchange.

h.

Value of receivables due to the licensee that are no more than 90 30 days past due or otherwise doubtful of collection.

*H86-v-2* General Assembly Of North Carolina Session 2017 i.

Virtual currency owned by the licensee, but only to the extent of outstanding transmission obligations received by the licensee in like kind virtual currency.

j.

Any other investments or security device approved by the Commissioner.

…." SECTION 2.

53-208.4853C-2-1(a) reads as rewritten:

"§"(a) 53-208.48.The Commission consists of 15 members, including the State Treasurer, who shall serve as an ex officio member;

Permissible12 investmentsmembers andappointed statutoryby trust.the Governor;

(a)and Eachtwo Exceptmembers asappointed otherwiseby providedthe inGeneral thisAssembly section, each licensee under thisG.S. Article shall possess at all times unencumbered permissible investments having an aggregate market value, calculated in accordance with generally accepted accounting principles, of not less than the aggregate face amount of all outstanding transmission obligations.

This120-121, requirementone mayof whom shall be waivedappointed byupon the Commissionerrecommendation ifof the dollarPresident volumePro Tempore of athe licensee'sSenate outstandingand transmissionone obligationsof doeswhom notshall exceedbe theappointed bondupon orthe otherrecommendation securityof devicesthe postedSpeaker byof the licenseeHouse pursuantof toRepresentatives. G.S.

The Governor shall appoint three practical bankers, one consumer finance licensee, one person licensed under Article 19B of Chapter 53 208.47.of the General Statutes, and eight seven public members to the Commission.