§ 533c-803

533C.803 Maintenance of permissible investments. 1. A licensee shall maintain at all times permissible investments that have a market value computed in accordance with United States generally accepted accounting principles of notless than the aggregate amount of all of its outstanding money transmission obligations. 2. Except for permissible investments enumerated in section 533C.804, subsection 1, the superintendent, with respect to any licensee, may by rule or order limit the extent to whicha specific investment maintained by a licensee within a class of permissible investments maybe considered a permissible investment, if the specific investment represents undue risk tocustomers, not reflected in the market value of investments. 3. Permissible investments, even if commingled with other assets of the licensee, are held in trust for the benefit of the purchasers and holders of the licensee’s outstandingmoney transmission obligations in the event of insolvency, the filing of a petition by oragainst the licensee under the federal bankruptcy code, 11 U.S.C. §101 – 110, as amended,for bankruptcy or reorganization, the filing of a petition by or against the licensee forreceivership,

on by oragainst the licensee under the federal bankruptcy code, 11 U.S.C. §101 – 110, as amended,for bankruptcy or reorganization, the filing of a petition by or against the licensee forreceivership, the commencement of any other judicial or administrative proceeding for itsdissolution or reorganization, or in the event of an action by a creditor against the licenseewho is not a beneficiary of this statutory trust. No permissible investments impressed with a trust pursuant to this section shall be subject to attachment, levy of execution, orsequestration by order of any court, except for a beneficiary of this statutory trust. 4. Upon the establishment of a statutory trust in accordance with subsection 3, or when any funds are drawn on a letter of credit pursuant to section 533C.804, subsection1, paragraph 'm', the superintendent shall notify the applicable regulator of each state inwhich the licensee is licensed to engage in money transmission, if any, of the establishmentof the trust or the funds drawn on the letter of credit, as applicable. Notice shall be deemedsatisfied if performed pursuant to a multistate agreement or through NMLS.

n, if any, of the establishmentof the trust or the funds drawn on the letter of credit, as applicable. Notice shall be deemedsatisfied if performed pursuant to a multistate agreement or through NMLS. Funds drawnon a letter of credit, and any other permissible investments held in trust for the benefit ofthe purchasers and holders of the licensee’s outstanding money transmission obligations,are deemed held in trust for the benefit of such purchasers and holders on a pro rata andequitable basis in accordance with statutes pursuant to which permissible investmentsare required to be held in this state, and other states, as applicable. Any statutory trustestablished hereunder shall be terminated upon extinguishment of all of the licensee’soutstanding money transmission obligations. 5. The superintendent by rule or by order may allow other types of investments that the superintendent determines are of sufficient liquidity and quality to be a permissibleinvestment. The superintendent is authorized to participate in efforts with other state regulators to determine that other types of investments are of sufficient liquidity and qualityto be a permissible investment.

superintendent is authorized to participate in efforts with other state regulators to determine that other types of investments are of sufficient liquidity and qualityto be a permissible investment. 2003 Acts, ch 96, §35, 42; 2023 Acts, ch 83, §34Referred to in §533C.307, 533C.401, 533C.804Section stricken and rewritten Sat Dec 23 01:37:09 2023 Iowa Code 2024, Section 533C.803 (17, 1)