1. (1) The following investments are permissible under section 11-110-1003:

   1. (a) Cash, including demand deposits, savings deposits, and money in such accounts held for the benefit of the licensee's customers in a federally insured depository financial institution, and cash equivalents, including ACH items in transit to the licensee and ACH items or international wires in transit to a payee, cash in transit via armored car, cash in smart safes, cash in licensee-owned locations, debit card or credit card-funded transmission receivables owed by a bank, or money market mutual funds rated AAA by S&P Global Ratings or the equivalent from any eligible rating service;
   2. (b) Certificates of deposit or senior debt obligations of an insured depository institution, as defined in section 3 of the Federal Deposit Insurance Act, 12 U.S.C. sec. 1813, as amended, or as defined under the Federal Credit Union Act, 12 U.S.C. sec. 1781, as amended;
   3. (c) An obligation of the United States or a commission, agency, or instrumentality of the United States; an obligation that is guaranteed fully as to principal and interest by the United States; or an obligation of a state or a governmental subdivision, agency, or instrumentality of a state; or
   4. (d) The full drawable amount of an irrevocable standby letter of credit for which the stated beneficiary is the banking board that stipulates that the beneficiary need only draw a sight draft under the letter of credit and present it to obtain money up to the letter of credit amount within seven days after presentation of the items required by subsection (2)(c) of this section.

2. (2)

   1. (a) The letter of credit described in subsection (1)(d) of this section must:

      1. (I) Be issued by:

         1. (A) A federally insured depository financial institution;
         2. (B) A foreign bank that is authorized under federal law to maintain a federal agency or federal branch office in a state or states; or
         3. (C) A foreign bank that bears an eligible rating, or whose parent company bears an eligible rating; that is regulated, supervised, and examined by federal or state authorities having regulatory authority over banks, credit unions, and trust companies; and that is authorized under state law to maintain a branch in a state;
      2. (II) Be irrevocable, be unconditional, and indicate that the letter of credit is not subject to any condition or qualifications outside of the letter of credit;
      3. (III) Not contain reference to any other agreements, documents, or entities or otherwise provide for any security interest in the licensee; and
      4. (IV) Contain an issue date and expiration date, and expressly provide for automatic extension, without a written amendment, for an additional period of one year after the present and each future expiration date, unless the issuer of the letter of credit notifies the banking board in writing by certified or registered mail or courier mail or other receipted means, at least sixty days prior to any expiration date, that the irrevocable letter of credit will not be extended.
   2. (b) In the event of a notice of expiration or nonextension of a letter of credit issued under subsection (2)(a)(IV) of this section, the licensee is required to demonstrate to the satisfaction of the banking board, at least fifteen days prior to expiration, that the licensee maintains and will maintain permissible investments in accordance with section 11-110-1003 (1) upon the expiration of the letter of credit. If the licensee is not able to do so, the board may draw on the letter of credit in an amount up to the amount necessary to meet the licensee's requirements to maintain permissible investments in accordance with section 11-110-1003 (1). A draw on the letter of credit by the board shall be offset against the licensee's outstanding money transmission obligations. The drawn money shall be held in trust by the board or the board's designated agent, to the extent authorized by law, as agent for the benefit of the purchasers and holders of the licensee's outstanding money transmission obligations.

   3. (c) The letter of credit must provide that the issuer of the letter of credit will honor, at sight, a presentation made by the beneficiary to the issuer of the following documents on or prior to the expiration date of the letter of credit:

      1. (I) The original letter of credit, including any amendments; and

      2. (II) A written statement from the beneficiary stating that any of the following events have occurred:

         1. (A) The filing of a petition by or against the licensee under the United States bankruptcy code, 11 U.S.C. secs. 101 to 110, as amended, for bankruptcy or reorganization;
         2. (B) The filing of a petition by or against the licensee for receivership or the commencement of any other judicial or administrative proceeding for its dissolution or reorganization;
         3. (C) The seizure of assets of a licensee by a banking board pursuant to an emergency order issued in accordance with applicable law, on the basis of an action, violation, or condition that has caused or is likely to cause the insolvency of the licensee; or
         4. (D) The beneficiary has received notice of expiration or nonextension of a letter of credit, and the licensee failed to demonstrate to the satisfaction of the beneficiary that the licensee will maintain permissible investments in accordance with section 11-110-1003 (1) upon the expiration or nonextension of the letter of credit.
   4. (d) The banking board may designate an agent to serve on the board's behalf as beneficiary to a letter of credit so long as the agent and letter of credit meet requirements established by the board. The board's agent may serve as agent for multiple licensing authorities for a single irrevocable letter of credit if the proceeds of the drawable amount for the purposes of subsection (1)(d) of this section are assigned to the board.
   5. (e) The banking board is authorized and encouraged to participate in multistate licensing processes designed to facilitate the issuance and administration of letters of credit, including but not limited to services provided by NMLS and the State Regulatory Registry, LLC.

3. (3) Unless permitted by the banking board by rule or by order to exceed the limits as set forth in this subsection (3), the following investments are permissible under section 11-110-1003, to the extent specified:

   1. (a)

      1. (I) Except as provided in subsection (3)(a)(II) of this section, receivables that are payable to a licensee from the licensee's authorized delegates in the ordinary course of business that are less than seven days old, up to fifty percent of the aggregate value of the licensee's total permissible investments.
      2. (II) Of the receivables permissible under subsection (3)(a)(I) of this section, receivables that are payable to a licensee from a single authorized delegate in the ordinary course of business must not exceed ten percent of the aggregate value of the licensee's total permissible investments.

   2. (b) The following investments, up to twenty percent per category and combined up to fifty percent of the aggregate value of the licensee's total permissible investments:

      1. (I) A short-term investment of up to six months bearing an eligible rating;
      2. (II) Commercial paper bearing an eligible rating;
      3. (III) A bill, note, bond, or debenture bearing an eligible rating;
      4. (IV) United States tri-party repurchase agreements, collateralized at one hundred percent or more, with United States government or agency securities, municipal bonds, or other securities bearing an eligible rating;
      5. (V) Money market mutual funds rated less than AAA and equal to or higher than A- by SP Global Ratings or the equivalent from any other eligible rating service; and
      6. (VI) A mutual fund or other investment fund composed solely and exclusively of one or more permissible investments listed in subsections (1)(a) to (1)(c) of this section; and

   3. (c) Cash, including demand deposits, savings deposits, and cash in such accounts held for the benefit of the licensee's customers at foreign depository institutions, up to ten percent of the aggregate value of the licensee's total permissible investments if the licensee has received a satisfactory rating in the licensee's most recent examination and if the foreign depository institution:

      1. (I) Has an eligible rating;
      2. (II) Is registered under the federal Foreign Account Tax Compliance Act, Pub.L. 111-47;
      3. (III) Is not located in any country subject to sanctions from the office of foreign assets control; and
      4. (IV) Is not located in a high-risk or noncooperative jurisdiction as designated by the international Financial Action Task Force.

Source: L. 2025: Entire article R&RE, (HB 25-1201), ch. 91, p. 406, § 1, effective August 6.