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§ 105. Persons authorized to engage in business of receiving deposits and money for transmissio...

Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 7 P.S. Banks and BankingEffective: December 24, 2012

Purdon's Pennsylvania Statutes and Consolidated Statutes
Title 7 P.S. Banks and Banking (Refs & Annos)
Banking Code of 1965 (Refs & Annos)
Chapter 1. General Provisions (Refs & Annos)
Effective: December 24, 2012
7 P.S. § 105
§ 105. Persons authorized to engage in business of receiving deposits and money for transmission
(a) Restriction of authorized persons--No person may lawfully engage in this Commonwealth in the business of receiving money for deposit or transmission, or lawfully establish in this Commonwealth a place of business for such purpose, except a bank, a bank and trust company, an interstate bank, a savings bank, a private bank, a savings association to the extent provided in the Savings Association Code of 1967,1 a regional thrift institution to the extent provided in section 1172 of this act or section 114 of the Savings Association Code of 19673 and a person duly authorized by Federal law to engage in the business of receiving money for deposit or transmission. A bank, a bank and trust company, an interstate bank and a savings bank that receives money for deposit shall insure such deposits with the Federal Deposit Insurance Corporation or any other Federal agency authorized by law to insure deposits.
(b) Exceptions--None of the following shall be deemed to be engaged in the business of receiving money for deposit or transmission within the meaning of subsection (a) of this section:
(i) a club or hotel to the extent it receives money from members or guests for temporary safekeeping,
(ii) an express, steamship or telegraph company to the extent it receives money for transmission,
(iii) an attorney-at-law, real estate agent, fiscal agent or attorney-in-fact to the extent he receives and transmits money solely as an incident of his general business or profession,
(iv) a broker who is licensed under the laws of this Commonwealth to the extent he engages in such activities solely as an incident of the conduct of the brokerage business, or
(v) a person licensed under the act of September 2, 1965 (P.L. 490, No. 249),4 referred to as the Money Transmission Business Licensing Law, to the extent such person engages in the transmission of money by means of a transmittal instrument for a fee or other consideration.
(b.1) Offices of foreign organizations--An organization engaged in the banking business under the laws of a foreign nation where it is domiciled may be authorized to engage in the business of receiving money for deposit or transmission and to establish an office for that purpose in this Commonwealth by written permission of the department, subject to the provisions of this subsection.
In determining whether to grant such permission, the department shall consider the extent of reciprocity for banks from the United States to own interests in or operate banking businesses in the foreign nation which is the domicile of such organization and may deny such permission in the absence of substantial reciprocity. Any permission shall be subject to an agreement by the foreign banking organization which may include provisions as to the amount of its capital and surplus allocated to its business in this Commonwealth, a deposit of assets or other provisions to assure the safe and sound conduct of the business of the organization in this Commonwealth and the protection of its depositors and creditors, maintenance of books and records, examinations by and reports to the department, acceptance by the organization of the rules and regulations promulgated by the department governing the operations of such organizations in Pennsylvania, including appointment of a registered agent for service of process, requirements for periodic renewal of the permission to operate and such other terms and conditions as the department may in its discretion deem necessary for the proper conduct of business in Pennsylvania.
(c) Penalties--A violation of subsection (a) of this section shall be subject to the penalty provisions of this act.

Credits

1965, Nov. 30, P.L. 847, No. 356, § 105. Amended 1969, Aug. 7, P.L. 227, § 1; 1977, July 25, P.L. 101, No. 37, § 2, imd. effective; 1986, Dec. 18, P.L. 1702, No. 205, § 2, effective in 60 days; 1995, July 6, P.L. 271, No. 39, § 3, imd. effective; 2012, Oct. 24, P.L. 1336, No. 170, § 2, effective in 60 days [Dec. 24, 2012].

Footnotes

7 P.S. § 6020-1 et seq.
7 P.S. § 117.
7 P.S. § 6020-14.
7 P.S. § 6101 et seq.
7 P.S. § 105, PA ST 7 P.S. § 105
Current through 2021 Regular Session Act 90. Some statute sections may be more current, see credits for details.
End of Document