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Order Exempting NASAA From Licensure Under The Vermont Money Services Act

Order
Thursday, May 11, 2017
Docket No. 17-013-B
File attachments: 
http://www.dfr.vermont.gov/sites/default/files/Docket_17_013_B_NASAA%20Order.pdf

STATE OF VERMONT

DEPARTMENT OF FINANCIAL REGULATION

 

IN THE MATTER OF: )

) DOCKET NO. 17-013-B

NORTH AMERICAN SECURITIES )

ADMINISTRATORS ASSOCIATION )

)

ORDER EXEMPTING NASAA FROM LICENSURE UNDER THE VERMONT MONEY SERVICES ACT

WHEREAS, the Commissioner of the Vermont Department of Financial Regulation, pursuant to 8 V.S.A. chapters 1 and 79 (the Vermont Money Services Act), is charged with administering and enforcing Vermont law as it pertains to money transmitters in the State of Vermont; and

WHEREAS, the Vermont Money Services Act, defines money transmission as receiving money or monetary value for transmission to a location within or outside of the United States; and

WHEREAS, the North American Securities Administrators Association (NASAA) is a non-profit organization, whose membership is comprised entirely of securities regulators, including securities administrators in Vermont and all other states, the District of Columbia, Canada, Mexico, Puerto Rico, and the U.S. Virgin Islands; and

WHEREAS, NASAA, as a representative of the states, serves to promote federal and state uniformity and coordination in securities regulation and pursuant to this goal owns and operates the Electronic Filing Depository (“EFD”), the internet accessible database that enables issuers of securities to electronically submit uniform regulatory filings and the associated fees to all members; and

WHEREAS, NASAA has requested confirmation from the Vermont Department of Financial Regulation that the services it provides are not subject to licensure under the Vermont Money Services Act; and

WHEREAS, the Commissioner, pursuant to 8 V.S.A. §2501(b), may issue an order exempting any person from licensure as a money transmitter when such person is performing services for the benefit of the United States or for the benefit of any state; and

WHEREAS, NASAA, through EFD, facilitates the transmission of regulatory filings and collects filing fees from issuers on behalf of the member states, including Vermont, pursuant to a contractual agreement with each member state; and

WHEREAS, the Vermont Securities Division requires that regulatory filings and fees be submitted via EFD; and

WHEREAS, NASAA performs a valuable service for Vermont .by operating the EFD and has provided such services via the EFD for a number of years in a professional and effective manner; and

WHEREAS, the Commissioner finds, based upon the above, that NASAA does engage in money transmission, but that NASAA’s money transmission activities are performed for the benefit of its member states, including Vermont, and NASAA should be exempted from licensure as a money transmitter in Vermont pursuant to 8 V.S.A. §2501(b).

NOW THEREFORE, IT IS HEREBY ORDERED THAT:

NASAA is exempt from licensure as a money transmitter because NASAA is performing money transmission services for the benefit of the State of Vermont, subject to the conditions that:

a. NASAA shall operate under the terms of a contractual agreement with Vermont regarding the EFD and its money transmission activities; and

b. NASAA shall notify the Commissioner of any material changes to the operation of EFD or to any other practices, policies or procedures pertaining to money transmission activities.

 

BY ORDER OF THE COMMISSIONER

Entered at Montpelier, Vermont, this ___11th_____ day of May, 2017.

______________________________________________________

Michael S. Pieciak, Commissioner

Vermont Department of Financial Regulation

Guidance for Implementing Regulation B-2016-01

Bulletin
Tuesday, April 4, 2017
Banking Bulletin #45

VERMONT DEPARTMENT OF FINANCIAL REGULATION 

DIVISION OF BANKING

Banking Bulletin #45  

Guidance for Implementing Regulation B-2016-01

The Department of Financial Regulation (“DFR”) adopted Regulation B-2016-01 Vermont Disclosure Form – Amount to be Financed in a Motor Vehicle Retail Installment Contract, effective April 1, 2017.  DFR, after consulting with the Department of Motor Vehicles (“DMV”), issues this Bulletin to provide guidance to the DMV Field Investigators, who review dealer transactions.  This guidance is also beneficial to the Dealers who complete the forms involved.

Regulation B-2016-01 modifies terms on the Vermont Disclosure Form that correlate to terms on two DMV forms completed by Dealers in sales transactions.  DFR and DMV have reviewed the revised terms to determine how they relate to the terms on the DMV forms.  This addresses the relationship of the “Cash Price” and the “Vehicle Price,” which are DFR terms, and the “Cash Price and the Purchase Price, which appear on the DMV Forms.1

Regulation B-2016-01 intends to allow Dealers the same flexibility in the calculation of the Cash Price that currently exists under federal law.  Accordingly, the Cash Price may now include Optional Items” which are defined in the Regulation as(1) service contracts; (2) services related to the sale; (3) purchase and use tax; and (4) fees for license, title and registration.    

Prior to Regulation B-2016-01, the Cash Price was used in the negative equity calculation on the Vermont Disclosure Form, however, the revisions to the Cash Price calculation allows for amounts that, if used in the negative equity calculation, would not adequately reflect the negative equity in a transaction.  To address this, the revised Vermont Disclosure Form (effective April 1, 2017), uses the Vehicle Price in the negative equity calculation.  The Vehicle Price is the Cash Price minus any of the Optional Items that are included in the Cash Price at the discretion of the dealer.   

Therefore, the relationship between Cash Price, Vehicle Price and Purchase Price on the applicable forms is as follows:

  • The Cash Price on the Vermont Disclosure Form (TA-VD-126 - commonly called “Negative Equity Disclosuremust match the Cash Price on the Department of Motor Vehicle Dealer’s Vehicle (Inventory) Record (TA-VD-125); and

  • The Vehicle Price on the Vermont Disclosure Form must match the Purchase Price on the Dealer Report of Sale – Temporary Registration (TA-VD-127) and the Registration/Tax/Tile Application (VD-119).

If the Dealer does not include Optional Items in the Cash Price, the Cash Price will equal the Vehicle Price and the Purchase Price.  If the Dealer chooses to include Optional Items in the Cash Price, the Dealer should review 9 V.S.A. § 2355(f)(1) which requires that certain Optional Items be disclosed on the retail installment contract.  

 

 

____________________________________________

Michael S. Pieciak, CommissionerDate:  April 4, 2017

Department of Financial Regulation

 

 

 

Vermont Disclosure Form - Amount to Be Financed in a Motor Vehicle Retail Installment Contract (Effective April 1, 2017)

Regulation
Saturday, April 1, 2017
B-2016-01
File attachments: 
http://www.dfr.vermont.gov/sites/default/files/B-2016-01.pdf

 

REGULATION B-2016-01

 

Vermont Disclosure Form - Amount to Be Financed in a Motor Vehicle Retail Installment Contract

 

Section 1. Authority and Scope

1.1 This regulation is promulgated pursuant to the authority granted by 8 V.S.A. § 15 and 9 V.S.A. § 2355(f)(l )(J).

1.2 This regulation shall apply to all motor vehicle retail installment transactions governed by Title 9 V.S.A. Chapter 59.

 

Section 2. Purpose

2.1 The Vermont Disclosure Form ("Disclosure Form") required by 9 V.S.A. 2355 (f)(l)(J), must include the "amount financed on the motor vehicle retail installment contract as a percentage of the cash price of the vehicle." The purpose of the Disclosure Form is to inform consumers of the impact of adding negative equity to a motor vehicle retail installment contract. However, this Disclosure Form is required in connection with every motor vehicle retail installment contract regardless of whether or not the transaction involves negative equity.

2.2 The purpose of this regulation is to modify the current version of the Vermont Disclosure Form to clarify the meaning and calculation of the "Cash Price" and the "cash price of the vehicle" (or "Vehicle Price") for purposes of the Disclosure Form.

2.3 The Federal Truth in Lending Act, implemented by Regulation Z, defines "Cash Price" to be "the price at which a creditor, in the ordinary course of business, offers to sell for cash property or service that is the subject of the transaction. At the creditor's option, the term may include the price of accessories; services related to the sale; service contracts; and taxes and fees for license, title, and registration." 12 CFR Part 1026.2(a)(9).

A motor vehicle dealer may calculate the Cash Price on the motor vehicle retail installment contract in a manner consistent with Regulation Z. However, to fulfill the purpose of the Vermont Disclosure Form, Optional Items that may be included in the Cash Price under Regulation Z must be deducted in order to ensure that the amount financed as a percentage of the Vehicle Price is calculated on a consistent basis.

Therefore, when calculating the amount financed on the motor vehicle retail installment contract as a percentage of the Vehicle Price for purposes of the Disclosure Form, the "Cash Price" as it appears on the motor vehicle retail installment contract must be adjusted by subtracting any optional costs of services related to the sale; service contracts; and taxes and fees for license, title, and registration. By removing the Optional Items that creditors are allowed to include in the Cash Price under Regulation Z, the Vehicle Price on the Disclosure Form accurately reflects negative equity being financed.

 

Section 3. Definitions

3. 1 "Cash Price" means the minimum price for which the motor vehicle, including accessories, subject to the retail installment contract or another motor vehicle of like kind and quality, including similar accessories, may be purchased for cash from the seller by the buyer. 9 V. S.A. § 2351(6). If the dealer charges a documentation fee, it must be included in the cash price.

3.2 "Maintenance Agreement" means a contract of limited duration that provides for scheduled maintenance only. 8 V.S.A. § 4247.

3.3 "Optional Items",means those items that may be included in the Cash Price under Regulation Z and the Truth in Lending Act. .This includes services related to the sale, service contracts, purchase and use tax, and fees for license, title and registration. Accessories may also be included in the Cash Price but are not excluded from the Vehicle Price and therefore are not included in the definition of Optional Items.

3.4 "Service Contract" means any contract or agreement to perform or indemnify for a specific duration the repair, replacement, or maintenance of property for operational or structural failure due to a defect in materials, workmanship, or normal wear and tear, with or without additional provisions for incidental payment of indemnity under limited circumstances, including towing, rental, and emergency road service. 8 V.S.A. § 4247.

3.5 "Vehicle Price" means the Cash Price minus any Optional Items included in the Cash Price under Regulation Z. Vehicle Price is equivalent to the "cash price of the vehicle" [as referenced in 9 V.S.A. § 2355(f)( l )(J)] to be used when calculating the amount financed as a percentage of the cash price of the vehicle for purposes of the Disclosure Form.

3.6 "Warranty" means a warranty made solely by the manufacturer, importer, or seller of property or services, without charge, that is not negotiated or separated from the sale of the product and is incidental to the sale of the product, and that guarantees indemnity for defective parts, mechanical or electrical breakdown, labor, or other remedial measures, such as repair or replacement of the property or repetition of services. 8 V.S.A. § 4247.

 

Section 4. Calculation of Cash Price

4.1 Multiple forms of motor vehicle retail installment contracts are in use in Vermont. Depending upon the form used or the practices and procedures of a particular dealer, the components of Cash Price may vary. Consistent with Regulation Z, Optional Items may be included in the Cash Price on the motor vehicle retail installment contract. By definition, a Warranty, if app'licable, is included in the Cash Price because the cost of a warranty is incorporated into the product pricing and cannot be separated from the sale of the product.

4.2 The Cash Price may not include any insurance, debt cancellation agreements, or similar agreements or contracts. The Cash Price must be consistent on all forms relating to any given transaction wherever the term is used. Regardless of a particular dealer's practices and procedures, the Cash Price on the retail installment contract will also be the Cash Price on the Disclosure Form and the Cash Price on the Department of Motor Vehicles Dealer's Vehicle (Inventory) Record.

4.3 When manufacturer rebates are disclosed on the motor vehicle retail installment contract but are not used to reduce the Cash Price, they must be deducted from the Cash Price on the Disclosure Form to ensure consistent negative equity calculations.

 

Section 5. Content of Disclosure

5.1 If the method of calculating the Cash Price includes Optional Items, the Disclosure Form requires that they be itemized and then deducted from the Cash Price to reach the Vehicle Price. The line labeled "Other" provides a space for additional items that are permitted in the Cash Price under federal law but must be deducted to reach the Vehicle Price, for example, in the event that a consumer purchases two types of service contracts, the "Other" line may be used so that each can be itemized.

5.2 Section 2 of the Disclosure Form discloses the amount financed as a percentage of the Vehicle Price for purposes of determining whether or not negative equity is being financed in the transaction.

 

Section 6. Form of Disclosure

6.1 The Disclosure Form shall be printed on a separate sheet of paper that is easily distinguished from all other disclosures, applications, or other documents presented to the buyer of the motor vehicle. A copy of the completed Disclosure Form must be given to the buyer(s). The Disclosure Form shall be printed in a size equal to at least 12-point type.

 

Section 7. Delivery of Disclosure

7.1 The Disclosure Form is required to be delivered with every motor vehicle retail installment contract regardless of whether or not the transaction involves negative equity.

7.2 The Disclosure Form shall be attached to and shall become part of the motor vehicle retail installment contract and must be assigned, sold, or transferred together with any assignment, sale, or transfer of the motor vehicle retail installment contract to which it was originally related.

7.3 Section 2355(f)(l)(J) of Title 9 requires a motor vehicle dealer to provide to the buyer(s) an unexecuted copy of the Disclosure Form prior to consummation of the transaction and requires that the Disclosure Form be signed by the buyer(s).

 

Section 8. Requirements of the Retail Installment Contract

8.1 The method of calculating the Cash Price may impact the retail installment contract. Optional Items that may be included in the Cash Price must be itemized on the retail installment contract as required by 9 V.S.A. § 2355. Specifically, these items include the cost of service contracts and the amount of all official fees, which the Department interprets to include the purchase and use tax. In order to reconcile these two requirements, if Optional Items are included in the Cash Price, the creditor must itemize the amounts attributed to these Optional Items on the retail installment contract in a conspicuous manner so that the borrower is aware of the Optional Items that are included in the Cash Price .

 

Section 9. Effective Date

9.1 This regulation shall take effect on April 1, 2017.

Advertising and Social Media

Bulletin
Wednesday, October 26, 2016
Banking Bulletin #44
File attachments: 
http://www.dfr.vermont.gov/sites/default/files/Banking%20Bulletin%20No%2044.pdf

 

BANKING BULLETIN NO. 44

October 26, 2016

ADVERTISING AND SOCIAL MEDIA

This bulletin provides guidance regarding advertising for any person that is licensed as a mortgage loan originator.

Background

Section 2244 of the Vermont Licensed Lenders Act, 8 V.S.A. Chapter 73, requires any person originating a residential mortgage loan or engaging in the business of lending or acting as a mortgage broker or sales finance company to clearly show the person’s unique identifier issued by the Nationwide Multistate Licensing System (NMLS ID) on all loan application forms, solicitations, or advertisements, including business cards or websites, and any other documents.

The NMLS ID is a unique number issued to a single individual or legal entity. It is not issued to a group of individuals or a family of affiliates. An individual’s NMLS ID correlates to a mortgage loan originator license.

In addition, no licensee may transact business or make loans using any other name or at any other place of business than that named on the license. 8 V.S.A. § 2228. Each license that is issued authorizes the licensee to transact business using a designated name at a designated location.

Guidance

Any advertisement, regardless of medium, that identifies an individual as a mortgage loan originator or engaged in mortgage activity must clearly display the individual’s NMLS ID in a manner no less prominent than the individual’s title or activity. Example: Jane A. Smith, Mortgage Loan Professional, NMLS ID 11223344. This guidance also applies to any other document or correspondence, including business cards and email signatures.

If an individual’s advertisement identifies the sponsoring licensee’s name, it must include the sponsoring licensee’s NMLS ID. Example: Jane A. Smith, Mortgage Loan Professional, NMLS ID 11223344, Gray Granite Mortgage Company, NMLS ID 998877.

Any name that is displayed in an advertisement must be properly licensed and appear exactly as it is stated on the license certificate. If a licensee uses a name other than its legal name, such as “The Jane Doe Team” or “John Smith & Company,” the sponsoring licensee must obtain an additional license to use the other name for each location where it intends to transact business using the other name.

Any address that is displayed in an advertisement must be a licensed location and be the same address that appears on the license certificate.

A licensee, especially a licensee that employs and sponsors mortgage loan originators, is responsible for oversight to ensure compliance with Vermont law. Appropriate oversight includes the following:

1) Establish a policy for sponsored mortgage loan originators to provide guidance for advertising and promotional activities including, but not limited to, business cards, email signatures, websites, and social media.

2) Review all advertisements before publication and monitor periodically to ensure continued compliance.

3) Provide advertising requirements to third parties that publish advertisements, i.e. Picket Fences, and design websites or provide platforms, i.e. Facebook or LinkedIn, and follow up to confirm compliance before advertisements or products are placed into production.

Automated Teller Machine Disclosures

Bulletin
Thursday, July 14, 2016
Banking Bulletin #43
File attachments: 
http://www.dfr.vermont.gov/sites/default/files/Bulletin%20%2343_ATM.pdf

 

BANKING BULLETIN NO. 43 (Replaces Banking Bulletin No. 21)

July 14, 2016

AUTOMATED TELLER MACHINE DISCLOSURES

This bulletin withdraws and replaces Banking Bulletin No. 21 issued on May 27, 1998.

Attached is a copy of Title 8 Vermont Statutes Annotated § 10302, Automated Teller Machine (ATM) which was revised May 13; 2013 [8 V.S.A. § 10302 was formerly codified at 8 V.S.A. § 510, which was signed into law on April 16, 1998]. Under the law, all ATM or other remote service unit owners ("Terminal Owners"), must provide certain disclosures at each terminal location subject to approval by the Commissioner relative to the form, content, timing and location.

Each Terminal Owner must provide a prominent and conspicuous disclosure on or at the location of each ATM or on the first screen of each ATM that can be clearly viewed by the cardholder using the terminal in as high a contrast or resolution as any other display or graphics on or near the Terminal. A title on the disclosure must notify the cardholder of an impending fee (e.g. FEE NOTICE). The contents of such disclosure, at a minimum, must include the following information:

1. Name, address and telephone number of the Terminal Owner;

2. The days, times and means by which a cardholder can contact the Terminal Owner for consumer assistance; and

3. The amount of the fees or charges which the Terminal Owner will assess to the consumer for use of the machine.

In addition, by means of a display on the screen of each terminal at a point in the transaction process that permits the cardholder to cancel the transaction prior to the completion (or by means of a sign placed on the terminal in a manner clearly visible to the cardholder if the terminal does not have a screen), the Terminal Owner must provide:

1. A clear explanation that a surcharge is being imposed in connection with the cardholder' s transaction by the Terminal Owner and not the issuer of the card, and that the surcharge is an additional fee that will be deducted from the cardholder' s account, in addition to any fee that may be imposed by the issuer of the card;

2. The amount of the surcharge that will be imposed in connection with the transaction; and

3. The method by which the cardholder may cancel the transaction to avoid imposition of the surcharge.

Each Terminal Owner is required to submit the following information to the Commissioner for approval prior to the activation of each terminal:

1. The location of the terminal;

2. Samples of all disclosures to be used in compliance with Section 10302;

3. A script of the on-screen disclosures to be used (or copy of the sign to be used if the terminal does not have a screen); and

4. Detailed description of where and how such disclosures shall be made to the cardholder.

Failure to obtain the Commissioner's approval of the disclosures prior to the activation of a terminal may lead to the imposition of sanctions. A suggested format for reporting the location of a terminal and the disclosures utilized at each location is attached.

Requirements in this Bulletin may be amended from time to time.

 

VERMONT STATUTES ANNOTATED

Title 8 § 10302. Automated teller machines

(a) The owner of an automated teller machine or other remote service unit, including a cash dispensing machine, located or employed in this State shall prominently and conspicuously disclose on or at the location of each such machine or on the first screen of each such machine the identity, address, and telephone number of the owner and the availability of consumer assistance. The owner shall also disclose on the screen of such machine or on a paper notice issued from the machine the amount of the fees or charges which the owner will assess to the consumer for the use of that machine. The amount of the fees or charges shall be disclosed before the consumer is irrevocably committed to completing the transaction. The Commissioner shall approve the form, content, timing, and location of such disclosures and any amendments thereto prior to use. The Commissioner shall act on any submission made under this section within 30 days of receipt. Ifthe Commissioner determines that any disclosures do not provide adequate consumer protection, the Commissioner may by order or by rule specify minimum disclosure standards, including the form, content, timing, and location of such disclosures. The Commissioner may impose on the owner of an automated teller machine or other remote service unit an administrative penalty of not more than $1,000.00 for each day's failure of the owner toapply to the Commissioner for approval of disclosures required under this section, for each day's failure of the owner to use disclosures approved by the Commissioner, or for each day's continuing violation of an order of the Commissioner relating to the disclosures required by this section.

(b) In addition to an automated teller machine or other remote service unit owned by a financial institution or credit union, the provisions of this section shall apply to any automated teller machine or other remote service unit not owned by a financial institution or credit union, except it shall not include a point-of-sale terminal owned or operated by a merchant who does not charge a fee for the use of the point-of-sale terminal. The activities of an automated teller

machine or other remote service unit whose owner is not a financial institution shall be limited to cash dispensing or the offer or sale of nonbanking services and products. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001; amended 2013, No. 29, § 16, eff. May 13, 2013.)



AUTOMATED TELLER MACHINE NOTIFICATION & DISCLOSURE

DATE: --------

1. OWNER OF ATM TERMINAL

Name:

Address :

 Contact: Telephone No.:                                Extension:

1. CUSTOMER SERVICE CONTACT

Name: Telephone No.:                                   Extension:

2. DISCLOSURES Attach the following:

1. Sample of all disclosures to be used in compliance with 8 V.S.A. § 10302

2. Script othe on-screen disclosure to be used (or copy of the sign to be used if the terminal does not have a screen)

3. LOCATION OF ATM/TERMINAL

Street Address :

PMAC Lending Services, Inc

Order
Thursday, June 30, 2016
Docket No. 16-013-B
File attachments: 
http://www.dfr.vermont.gov/sites/default/files/Docket%2016-013-B_PMAC.pdf

 

Docket No. 16-013-B

In Re: PMAC LENDING SERVICES, INC. NMLS # 167441

 

STIPULATION AND CONSENT AGREEMENT

Background

The Banking Division of the Vermont Department of Financial Regulation ("Department") and PMAC Lending Services, In c. ("PMAC") stipulate and agree:

1 . Pursuant to the authority contained in 8 V.S.A. §§ 10-1 3, 15 and Chapters 73 and 85, the Commissioner of the Department ("Com missioner") is charged with enforcing the banking laws of the State of Vermont.

2. PMAC Lendin g Services, Inc. ("PMAC") is a California Corporation that was issued Vermont lender license no. 6490 for a location at 15325 Fairfield Ranch Road, Suite 125, Chino Hi l ls, California 91709. PMAC was also issued Vermont loan servicer license no. 167441 -1 for a location at 1 5325 Fairfield Ranch Road, Suite 125, Chino Hills, California 91 709.

3. PM AC acknowledges and admits the jurisdiction of the Commissioner over the subject matter of this Stipulation and Consent Agreement.

4. Pursuant to 8 V.S.A. § 291 5, a violation of Chapter 85 may subject a violator to an administrative penalty of up to $10,000 for each violation.

5. Each licensee must renew its license and pay the annual renewal fee on or before December 1 of each year. 8 V.S.A. § 2209 and § 291 0.

6. To qualify for renewal, a licensed lender must continue to meet the standards for license issuance under 8 V.S.A. § 2204 and maintain with the Commissioner a bond in theamount and of the character required by 8 V.S.A. § 2203 or § 2207.

7. To qualify for renewal, a loan servicer must continue to meet the standards for license issuance under 8 V.S.A. § 2904 and main tai n wit h the Commissioner a bond in the amount and of the character required by 8 V.S.A. § 2903 or § 2907.

8. Each license must state the address at which the business is to be conducted. 8 V.S.A. § § 2206, 2906. Licensees are requi red to notify the Commissioner of a change of address so that the license reflects the operating address. 8 Y.S.A. § 2208(b).

9. Licensees must file and maintain a bond in a form and substance approved by the Commissioner. 8 V.S.A. §§ 2203, 2903. The bond must include the address(es) at which the business is to be conducted.

10. PM AC renewed both its lender license and its loan servicer license and paid the annual renewal fees on or before December 1; however, the renewal was placed on hold due to outstanding license items needed to com ply with the renewal requirements .

11 . On September 2, 201 5 PMAC submitted an advance change not ice through the Nationwide Multistate Licensing System (NM LS) to change its corporate address from 1 5325 Fairfield Ranch Road, Suite 125, Chino Hills, California 91709 to 121 05 Paramount Blvd., Downey, California 90242, effective November 2, 201 5. At that time, PM AC was notified that the address change was not approved i n Vermont because PM AC had not provided evidence of new surety bonds or surety bond riders with the updated address as required by 8 V.S.A. §§ 2203, 2903.

12. Due to PM AC's fail u re to provide a surety bond with t he updated address, a condition of licensure, the Department initiated an administrative proceeding to refuse to renew and to terminate PM AC's lender license and loan service license.

13. PM AC subsequently surrendered it Vermont lender license. PMAC wants to retain its Vermont loan servicer license.

14. The Depa rtment and PMAC expressly agree to enter into t h is Stipulation and Consent Agreement (or "Agreement") in full and complete resolution of the alleged violation.

 

Stipulation and Agreement

1 . PMAC has been made aware that the Department may proceed with the administrative action against it for the violations set forth herein and seek appropriate relief pursuant to the Department’s statutory authority.

2. PMAC has agreed to enter into this Stipulation and Consent Agreement with the Department on the term s and conditions hereinafter set forth in lieu of proceeding with a hearing.

3. PMAC waives its right to a hearing before the Com missioner or the Commissioner's designee, and all other procedures otherwise available under Vermont law, the rules of the Department, the provisions of chapter 25 of Title 3 regarding contested cases, or any right it may have to judicial review by any court by way of suit, appeal, or extraordinary remedy with respect to the term s of this Stipulation and Consent Agreement.

4. PMAC shall respond to the Com missioners directives to provide information required for licensing in the NMLS or directives for other lawful purposes.

5. PMAC shall pay an administrative penalty in the amount of Five Hundred (500) Dollars within ten (10) business days of the execution of this Stipulation and Consent Agreement.

6. PMAC acknowledges that this Stipulation and Consent Agreement constitutes a valid order du l y rendered by the Commissioner and agrees to be fully bound by it. PMAC acknowledges that this Agreement constitutes a finding by the Commissioner that PMAC has violated the provisions of Vermont law set forth above and agrees not to contest such findings. PMAC acknowledges that noncompliance with any of the terms of this Agreement shall constitute a violation of a lawful order of the Commissioner and shall subject PMAC to administrative act ion or sanctions as the Commissioner deems appropriate. PM AC further acknowledges that the Commissioner retains jurisdiction over this matter for the purpose of enforcing this Agreement.

7. PMAC acknowledges and agrees to enter into this stipulation freely and voluntarily, and that except as set forth herein, no promise was made to induce the PM AC to enter in to it. PMAC acknowledges that it understands all terms and obligations contained herein.

8. PMAC consents to the entry of this Stipulation and Consent Agreement and agrees to be fully bound by its terms and conditions. PMAC acknowledges that noncompliance with any of the terms of this Agreement may constitute a separate violation of the ban kin g laws of the State of Vermont and may subject it to sanctions.

9. The terms set forth in this Stipulation and Consent Agreement represents the complete agreement between the parties as to its subject matter.

10. The undersigned representative of PM AC affirms that he or she has taken all necessary steps to obtain the authority to bind PMAC to the obligations stated herein and has the authority to bind PMAC to the obligations stated herein.


CONSENT ORDER

 

1 . The stipulated facts, terms and provisions of this Stipulation and Consent Agreement are incorporated by reference herein.

2. Jurisdiction in this matter is established pursuant to 8 V.S.A. §§ 10-13, 15, 18, and Chapters 73 and 85 of Title 8.

3. Pursuant to the Stipulation, PMAC consents to the entry of this Consent Order and the findings set forth therein.

4. PMAC shall comply with all agreements, stipulations and undertakings as recited above.

5. Other than as specifically set forth herein, nothing contained in this Consent Order shall restrain or limit the Department in responding to and addressing any consumer complaint about PMAC fi led with the Department or shall preclude the Department from pursuing any other violation of law.

Benaissance, LLC F/K/A Coco Development, LLC

Order
Thursday, June 30, 2016
Docket No. 16-019-B
File attachments: 
http://www.dfr.vermont.gov/sites/default/files/Docket%2016-019-B.pdf

 

Docket No. 16-019-B

In re: Benaissance, LLC F/K/A COCO DEVELOPMENT, LLC

 

STIPULATION AND CONSENT AGREEMENT

The Banking Division of the Vermont Department of Financial Regulation (the "Department") and Benaissance, LLC, formally known as COCO Development, LLC ("Benaissance") hereby stipulate and agree as follows:

1. Pursuant to 8 V.S.A .Chapters 1 and 79, the Commissioner of the Vermont Department of Financial Regulation is charged with administering and enforcing Vermont law as it pertains to money transmitters inthe State of Vermont.

2. Benaissance acknowledges and admits to the jurisdiction of the Commissioner over the subject matter of this Stipulation and Consent Agreement set forth herein.

3. On or about November 16, 2015, ("Acquisition Date") Wex Health, Inc. f/k/a Evolution1, Inc., acquired Benaissance, a leading provider of integrated SaaS technologies and services for healthcare premium billing, payment and workflow management. Benaissance, LLC continues in existence and in good standing in its state of domicile, Nebraska, and in the state of Vermont.

4. On or about March 13, 2013, Benaissance entered into a contract with the State of Vermont to provide premium billing and payment processing services, including the Benaissance HBEpoint enterprise class premium billing Software as a Service application optimized for Health Benefit Exchanges.

5. The Department asserts that, prior to receiving a Vermont money transmitter license, Benaissance engaged in the business of money transmission in Vermont without the license or authorization required by 8 V.S.A. Chapter 79.

6. Based on information provided by Benaissance, the Department finds that during the period from October 2013 until December 31, 2015, Benaissance have transmitted to, from or among Vermont residents and Insurance Companies a total of approximately $174,053,785 in transactions.

7. The Department asserts that, prior to receiving a Vermont money transmitter license, from the Acquisition Date until the present, Benaissance has continued to engage in the business of money transmission in Vermont without the license or authorization required by 8 V.S.A. Chapter 79.

8. On or about April 11, 2016 Benaissance applied for a money transmitter license from the Vermont Department of Financial Regulation.

9. Benaissance on its own volition brought to the attention of the Department that Benaissance did not have a Vermont money transmitter license.

10. At all times, Benaissance has cooperated with the Department.

11. The parties wish to resolve this matter without administrative or judicial proceedings .

12. Benaissance and the Department expressly agree to enter into this Stipulation and Consent Agreement in full and complete resolution of the alleged violations described herein.

13. Benaissance agrees to pay: (a) an administrative penalty to the Department of Financial Regulation in the amount of $10,000.00; and, (b) the amount of $20,829.21 which represents the amount Benaissance would have paid the Department of Financial Regulation had Benaissance been duly licensed as a money transmitter in the State of Vermont since 2013.

14. Benaissance shall not through its affiliates or parent companies, engage in the business of money transmission in Vermont without a Vermont money transmitter license.

15. The Department of Financial Regulation will complete the licensure of Benaissance upon the execution of this agreement and payment by Benaissance of the $30,829.21 described in paragraph 14.

16. This Stipulation and Consent Agreement shall not prevent any person from pursuing any claim he or she may have against Benaissance, not shall it be understood as determining whether any such claim may or may not exist in law or equity. Nothing contained herein shall be deemed an admission by Benaissance.

17. Nothing contained in the Stipulation and Consent Agreement shall restrain or limit the Department in responding to and addressing any actual complaint filed with the Department involving Benaissance and the Department reserves the right to pursue restitution in connection with any complaint filed with the Department.

18. The Department and Benaissance are entering into this Stipulation and Consent Agreement to settle a dispute between them and both agree that this Stipulation and Consent Agreement does not constitute an adjudication of a violation of statute or regulation.

19. Benaissance hereby waives its statutory right to notice and a hearing before the Commissioner of the Department, or her designated appointee.

20. Benaissance acknowledges and agrees that this stipulation is entered into freely and voluntarily and that except as set forth herein, no promise was made to induce Benaissance to enter into it. Benaissance acknowledges its understanding of and agrees to all terms, condition, and obligations contained in the Stipulation and Consent Agreement.

21. Benaissance and the Department knowingly and voluntarily waive any rights they may have to judicial review by any court or whether or not Benaissance and or Benaissance engaged in unauthorized money transmission in Vermont by way of suit, appeal,or extraordinary relief resulting from entry of enforcement of this Stipulation and Consent Agreement.

22. The undersigned representative of Benaissance affirms that he or she has taken all necessary actions to obtain the authority to bind Benaissance and Benaissance to the obligations stated herein and has the authority to bind Web Health and Benaissance to the obligation state herein.

PayPal, Inc., as successor to Venmo, LLC

Order
Tuesday, May 31, 2016
Docket No. 16-016-B
File attachments: 
http://www.dfr.vermont.gov/sites/default/files/Docket%2016-016-B.pdf

 

Docket No. 16-016-B

In re: PayPal, Inc., as successor to Venmo, LLC NMLS # 910457

 

STIPULATION AND CONSENT AGREEMENT

The Banking Division of the Vermont Department of Financial Regulation (the “Department”) and PayPal, Inc. (“PayPal”), as successor to Venmo, LLC (“Venmo”), hereby stipulate and agree as follows:

1. Pursuant to 8 V.S.A. Chapters 1 and 79, the Commissioner of the Vermont Department of Financial Regulation is charged with administering and enforcing Vermont law as it pertains to money transmitters in the State of Vermont.

2. PayPal, in its capacity as successor to Venmo (“Respondent”) acknowledges and admits the jurisdiction of the Commissioner over the subject matter of this Stipulation and Consent Agreement set forth herein.

3. Venmo is a mobile payment service that lets users transfer money to each other. Venmo users sign up using their mobile app or on the Venmo website and can link their bank accounts, debit cards, or credit cards to their Venmo account.

4. Prior to December 30, 2015, Venmo was a Delaware limited liability corporation with its principal place of business at 95 Morton St., Floor 5, New York, NY 10014, and a wholly owned subsidiary of PayPal. On December 30, 2015, Venmo’s separate corporate existence was dissolved and Venmo was merged into PayPal. Venmo now is offered and exists only as a service of PayPal, with money transmission provided by PayPal, pursuant to PayPal’s licenses.

5. Prior to its dissolution and merger into PayPal, Venmo received a Vermont money transmitter license in November 2015. It surrendered its Vermont license following the merger and dissolution.

6. The Department asserts that, prior to receiving a Vermont money transmitter license, Venmo engaged in the business of money transmission in Vermont without the license or authorization required by 8 V.S.A. Chapter 79.

7. Based on information provided by Venmo, the Department finds that prior to obtaining a license in Vermont, in the aggregate, Venmo transmitted to, from or among Vermont residents a total of $22,266,089 on 231,109 transactions, receiving $34,034 in fees.

8. The Department alleges that Venmo violated Vermont’s money transmitter laws by engaging in money transmission without a license. Venmo asserts that it was acting as an authorized delegate of a Vermont transmitter licensee. However, given that Venmo did not have a physical presence in Vermont, and that having a physical presence in Vermont is a requirement to be an authorized delegate, the Department asserts that Venmo could not have been acting as an authorized delegate under Vermont law. Venmo neither admits nor denies the Department’s allegation that Venmo violated Vermont’s money transmitter laws by engaging in money transmission without a license or authorization under Title 8, Chapter 79.

9. At all times, Respondent has cooperated with the Department.

10. The parties wish to resolve this matter without administrative or judicial proceedings.

11. Respondent and the Department expressly agree to enter into this Stipulation and Consent Agreement in full and complete resolution of the alleged violations described herein.

12. Respondent agrees to pay: (a) an administrative penalty to the Department of Financial Regulation in the amount of $30,000.00; and (b) a $5,000.00 payment to the VT DFR- Financial Services Education & Training Special Fund. Respondent’s payment of these amounts shall be deemed a settlement with, and release of Respondent and Respondent’s officers, directors, and employees by the Department with respect to the Department’s allegations and contentions set forth above.

13. Respondent shall not, either directly or through its affiliates, engage in the business of money transmission in Vermont without a Vermont money transmitter license.

14. This Stipulation and Consent Agreement shall not prevent any person from pursuing any claim he or she may have against Respondent, nor shall it be understood as determining whether any such claim may or may not exist in law or equity. Nothing contained herein shall be deemed an admission by Respondent.

15. Nothing contained in this Stipulation and Consent Agreement shall restrain or limit the Department in responding to and addressing any actual complaint filed with the Department involving Respondent and the Department reserves the right to pursue restitution in connection with any complaint filed with the Department.

16. The Department and Respondent are entering into this Stipulation and Consent Agreement to settle a dispute between them and both agree that this Stipulation and Consent Agreement does not constitute an adjudication of a violation of statute or regulation.

17. Respondent hereby waives its statutory right to notice and a hearing before the Commissioner of the Department, or her designated appointee.

18. Respondent acknowledges and agrees that this stipulation is entered into freely and voluntarily and that except as set forth herein, no promise was made to induce the Respondent to enter into it. Respondent acknowledges its understanding of and agrees to all terms, conditions, and obligations contained in this Stipulation and Consent Agreement.

19. Venmo and Department knowingly and voluntarily waive any rights they may have to judicial review by any court of whether or not Venmo LLC engaged in unauthorized money transmission in Vermont by way of suit, appeal, or extraordinary relief resulting from entry or enforcement of this Stipulation and Consent Agreement.

20. The undersigned representatives of Respondent affirms that he or she has taken all necessary steps to obtain the authority to bind Respondent to the obligations stated herein and has the authority to bind Respondent to the obligations stated herein.

 

ORDER

NOW THEREFORE, IT IS HEREBY ORDERED THAT:

21. Respondent shall comply with all agreements, stipulations, and undertakings as recited above.

22. Respondent shall make the payments described in paragraph 12 on or before May 23, 2016.

Prosper Marketplace, Inc and Prosper Funding, LLC

Order
Monday, May 23, 2016
Docket No. 16-010-B
File attachments: 
http://www.dfr.vermont.gov/sites/default/files/16-010-B.pdf

 

Docket No. 16-010-B

In The Matter Of: PROSPER MARKETPLACE, INC., (NMLS # 111473 PROSPER FUNDING, LLC, (NMLS # 1398502)

STIPULATION AND CONSENT AGREEMENT

 

Background

The Commissioner is charged with administering and enforcing the lending laws of the State of Vermont, including 8 V.S.A. Chapter 73 and applicable Regulations which govern the conduct of licensed lenders. 8 V.S.A. §§ 11 and 12.

1. Prosper Marketplace, Inc. ("PMI") is a Delaware corporation with an address of record at 221 Main Street 3rd Floor, San Francisco, CA 94105-1 91 1. Prosper Funding LLC ("PFL") is a Delaware limited liability company with an address of record at 221 Main Street, Suite 300, San Francisco, CA 94105-1911. PFL is a wholly owned subsidiary of PM I and as of February 1 , 2013, the successor in interest to many of PMI's assets, including the Prosper marketplace platform and the Prosper website. For purposes of this Order, the term "Prosper" means both PMI and PFL.

2. PMI held a Vermont lender license from October 20, 2006 to June 1 1, 2009 at which point PMI voluntarily surrendered its Vermont lender license.

3. In September 2015, both PMI and PFL applied for a Vermont lender license. The Department issued Vermont lender license no. 6816 to PMI on November 12, 201 5 and Vermont lender license no. 6822 to PFL on December 2, 2015.

4. Prosper operates a web-based marketplace designed to connect people who want to borrow money with people who have money to invest.

5. Prosper solicits loans through various targeted advertising methods designed to encourage borrowers to utilize the online marketplace.

6. Upon discovering that Prosper was soliciting loans in Vermont, the Department notified Prosper that a lender license was required to solicit loans in Vermont and directed themto cease solicitation activities.

7. Prosper agreed to cease any further loan solicitation activity in Vermont and to apply for and obtain a Vermont lender license prior to resuming solicitation activity in Vermont.

8. Prosper subsequently applied for and obtained a lender license.

9. The parties wish to resolve the Department's allegation of unlicensed activity that occurred prior to the issuance of the license without administrative or judicial proceedings.

10. Prosper and the Department expressly agree to enter into this Stipulation and Consent Agreement (or "Agreement") in full and complete resolution of the alleged violations.

 

Stipulation and Agreement

Prosper and the Department hereby stipulate and agree as follows:

11. Although Prosper neither admits nor denies the Department's allegations, Prosper does not dispute that it previously directed advertisements to Vermont residents.

12. Prosper agrees to pay: (a) an administrative penalty to the "Department of Financial Regulation" in the amount of $55,000; and (b) a payment to the "VT DFR - Financial Services Education & Training Special Fund" in the amount of $5,000, which payments shall be made on or before June 3, 2016.

13. Prosper shall maintain a Vermont lender license so long as it engages in loan solicitation in Vermont.

14. In the event that Prosper withdraws from Vermont, Prosper will not direct any advertising to Vermont residents; will block Vermont residents from accessing a loan through any Prosper website; and will include Vermont in its list of states where Prosper is not available to Borrowers on its website where it identifies such states.

15. In the event Prosper fails to make the payments described in paragraph 12 on or before June 3, 2016, the Commissioner may, upon request from the Banking Division' of the Department, issue an Order suspending, revoking, or terminating any or all of Prosper's licenses and imposing additional administrative penalties. The Department's failure to exercise this option shall not constitute a waiver of the right to exercise such option at any other time i n connection with other matters not addressed by this Stipulation and Consent or in connection with a breach of this Stipulation and Consent Agreement.

16. The Department shall retain continuing jurisdiction in this matter until Prosper has complied with the terms and conditions of this Stipulation and Consent Agreement.

17. This Stipulation and Consent Agreement shall not prevent any person from pursuing any claim he or she may have against Prosper, nor shall it be understood as determ ining whether any such claim may or may not exist in law or equity and is not intended to have res judicata effect as to third parties.

18. Nothing contained in this Stipulation and Consent Agreement shall restrain or limit the Department in responding to and addressing any actual complaint filed with the Department involving Prosper and the Department reserves the right to pursue restitution in connection with any complaint filed with the Department.

19. Prosper knowingly and voluntarily waives any right it may have to judicial review by any court of the Order issued in connection with this Stipulation and Consent Agreement by way of suit, appeal, or extraordinary relief resulting from entry or enforcement of this Stipulation and Consent Agreement. Prosper reserves its rights to contest liability and defend itself against claims from any other person, and in all other contexts, from claims of the Department, including any alleged breach of this Stipulation and Consent Agreement.

20. Prosper acknowledges and agrees that the Stipulation and Consent Agreement is entered into freely and voluntarily and that no promise was made, nor was any coercion used, to induce Prosper to enter into the Agreement. Prosper acknowledges that it understands all terms and obligations contained herein.

21. Prosper consents to the entry of this Stipulation and Consent Agreement and agrees to be fully bound by its terms and conditions. Prosper acknowledges that noncompliance with any of the terms of this Agreement may constitute a separate violation of the laws of the State of Vermont and may subject it to sanctions.

22. The undersigned representative of Prosper affirms that he or she has taken all necessary steps to obtain the authority to bind Prosper to the obligations stated herein and has the authority to bind Prosper to the obligations stated herein.
 

CONSENT ORDER

NOW THEREFORE, IT IS HEREBY ORDERED THAT:

1. Prosper shall comply with all agreements, stipulations, and undertakings as recited in the Stipulation and Consent Agreement.

2. Prosper shall make the payments described in paragraph 12 of the Stipulation and Consent Agreement, which payments shall be made on or before June 3, 2016.

3. In the event Prosper fails to make the payments described above on or before June 3, 2016, the Commissioner may, upon request from the Banking Division of the Department, issue an Order suspending, revoking, or terminating any or all of Prosper's licenses and may impose additional administrative penalties. The Department's failure to exercise this option shall not constitute a waiver of the right to exercise such option at any other time in connection with other matters not addressed by the Stipulation and Consent Agreement or in connection with a breach of the Stipulation and Consent Agreement.

4. Prosper will maintain a Vermont lender license to solicit loans in Vermont or, i n the event Prosper withdraws from the state, Prosper will not direct any advertising to Vermont residents; will block Vermont residents from accessing a loan through any Prosper website; and will include Vermont in its list of states where Prosper is not available to Borrowers on its website where it identifies such states.

5. This Consent Agreement shall not prevent any person from pursuing any claim he or she may have against Prosper, nor shall it be understood as determining whether any such claim may or may not exist in law or equity and is not intended to have res judicata effect as to third parties.

6. Nothing contained in this Order shall restrain the Department from responding to and addressing any complaint involving Prosper filed with the Department or shall preclude the Department from pursuing any other violation of law.

7. This Order shall not be construed as an adjudication of any violation of any Vermont law or federal law, except as specifically set forth herein.

MH Pillars, Inc d.b.a Payza

Order
Wednesday, June 11, 2014
Docket No. 14-028-B
File attachments: 
http://www.dfr.vermont.gov/sites/default/files/Payza_Stip%20%26%20Consent_signed_June%202014.pdf

 

Docket No. 14-028-B

In Re: MH Pillars, Inc. d.b.a. Payza

 

STIPULATION AND CONSENT AGREEMENT

Background

1. Pursuant to 8 V.S.A. Chapters 1 and 79, the Commissioner of the Vermont Department of Financial Regulation is charged with administering and enforcing Vermont law as it pertains to money services in the State of Vermont.

2. MH Pillars Inc. d.b.a. Payza ("Payza") is aNew York corporation with its principal office at 8255 Mountain Sights, Suite 100, Montreal, Quebec, Canada and a registered office at1221 Avenue of the Americas, 42nd Floor, New York, New York 10020.

3. The Department has alleged that between Apri11, 2012 and June 3, 2013 Payza engaged in a money services business in Vermont without a license in violation of 8 V.S.A. Chapter 79, the Vermont Money Services Act.

4. Under Chapter 79 a person may not engage in money transmission without either: (a) obtaining a money transmission license under subchapter 2 of Chapter 79; or (b) being an authorized delegate of a person licensed under subchapter 2 of Chapter 79. 8 V.S.A. §2502 (a). The Department contends that Payza did not satisfy either of these requirements.

5. 8 V.S.A. §2500 (2) defines an "authorized delegate" as "a person located in this State that a licensee designates to provide money services on behalf of the licensee." "Money services" are defined by 8 V.S.A. §2500 (10) as "money transmission, check cashing, or currency exchange.'' Since Payza is not located in Vermont, the Department contends that Payza cannot be an authorized delegate of a licensee and that Payza would need a money transmitter license in its own name in order to provide money transmission services to Vermont residents. According to the Department's records, Payza was not licensed as a money transmitter in the State of Vermont. All Vermont accounts related to Payza operating as an authorized delegate have been closed.

6. Payza neither admits nor denies the Department's allegations. To the extent any violation may exist, and no such finding is made herein, Payza denies any intentional wrongdoing and believes it has valid defenses to the Department's allegations. Payza further contends that it has a good faith basis to believe that it was operating as a duly appointed authorized delegate of Obopay, Inc. ("Obopay"), a Vermont licensed money transmitter, to the extent it may have engaged in money services activities in the State of Vermont. Payza further contends that there are additional mitigating circumstances, including those relating to Obopay' s contractual obligation to ensure compliance with the Vermont Money Services Act. Payza is entering into this Stipulation and Consent Agreement to settle a dispute with the Department.

7. The Department contends that there is a substantial factual basis for the Department's allegations and entering into this Stipulation and Consent Agreement is not a concession by the Department that its allegations are not well-founded.

8. Payza has informed the Department that approximately $4,000,000 of Payza account holder funds were transferred to a bank account owned by Obopay, Inc. for the benefit of Payza account holders. The parties believe that the $4,000,000 account has been seized by the Department of Homeland Security or other federal authorities. Payza has represented to the Department that all Payza account funds owned by Vermont residents are part of the $4,000,000 account seized by federal authorities. According to the U.S. Department of Justice website, consumers with questions or concerns about their Obopay or Payza account may call the U.S. Department of Justice at 202-252-1903 and leave their name and contact information.

9. The parties wish to resolve this matter without the expense and uncertainty of administrative or judicial proceedings.

10. Payza and the Department expressly agree to enter into this Stipulation and Consent Agreement in full and complete resolution of the alleged violations described herein.

Stipulation and Agreement

Payza and the Department stipulate and agree as follows:

11. Payza agrees to pay to the Department an administrative penalty in the amount of $25,000.00 (the "Administrative Penalty"). Payza shall pay the Administrative Penalty to the Department in 5 monthly installments of $5,000 each, with the first payment due upon the execution of this Agreement and with subsequent payments due and payable thereafter on or before July 10, August 10, September 10, and October 10, 2014. Notwithstanding the foregoing, Payza may pay the entire outstanding amount of the Administrative Penalty in full at any time prior to October 10, 2014. Payment of the Administrative Penalty shall be deemed a settlement with, and release of Payza and Payza's officers, directors, and employees by the Department with respect to the Department's factual allegations and contentions set forth above.

12. In the event Payza: (a) fails to make any payment when due; or (b) voluntarily or involuntarily declares bankruptcy or files a petition in bankruptcy, at the option of the Department the entire Administrative Penalty shall be immediately due and payable in full without any further demand or notice. It is further agreed that upon an event of default, Payza shall timely stipulate to an entry of judgment by the Washington County Superior Court in favor of the Department for any unpaid amounts due under the Administrative Penalty described in paragraph 11 above. The Department's failure to exercise this option shall not constitute a waiver of the right to exercise such option at any other time.

13. Payza has ceased all money services activities in Vermont for which a money transmitter license would be required under Vermont law.

14. Payza shall not engage in money services activities in Vermont without an appropriate Vermont money transmitter license.

15. The Department shall retain continuing jurisdiction in this matter until Payza has complied with the terms and conditions of this Stipulation and Consent Agreement.

16. This Stipulation and Consent Agreement shall not prevent any legitimate Payza account holder from pursuing any claim he or she may have against Payza.

17. Nothing contained in this Stipulation and Consent Agreement shall restrain or limit the Department in responding to and addressing any actual complaint filed with the Department involving Payza and the Department reserves the right to pursue restitution in connection with any complaint filed with the Department.

18. Payza knowingly and voluntarily waives any right it may have to judicial review by any court of these matters by way of suit, appeal, or extraordinary relief resulting from entry or enforcement of this Stipulation and Consent Agreement.

ORDER

NOW THEREFORE, IT IS HEREBY ORDERED THAT:

19. Payza shall comply with all agreements, stipulations, and undertakings as recited above.

20. Payza shall make the payments described in paragraph 11.

21. Nothing contained in this Order shall restrain the Department from responding to and addressing any complaint involving Payza filed with the Department nor shall it preclude the Department from pursuing any other violation of law.

22. This Order shall not be construed as an adjudication of any violation of any Vermont law or federal law, except as specifically set forth herein.

25. Payza and the Department each shall be responsible for their own costs and attorneys' fees.

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