N.J. Admin. Code § 3:24-5.5

Current through Register Vol. 56, No. 21, November 4, 2024

Section 3:24-5.5 - Deposits

(a) All checks, drafts and money orders shall be deposited no later than the next business day in a financial institution located in this State which has been identified to the Department or located outside this State, if the out-of-State financial institution is approved by the Commissioner as set forth in this section. Use of a bank's night deposit facility, if any, is permitted. In order for an out-of-State financial institution to qualify for approval by the Commissioner, it shall:

1. Be insured by the Federal Deposit Insurance Corporation;

2. Provide a letter from its primary regulator confirming that the financial institution is adequately capitalized and managed; and

3. Not make or facilitate, directly or indirectly, payday loans, title loans or refund anticipation loans through the check casher or otherwise in this State, and shall provide a certification to the Department to that effect.

(b) When the number of payroll checks cashed amount to 50 or more, the licensee may present such package of checks to the drawee bank or the maker of the checks and receive in exchange a single draft, provided full details of the transaction are recorded. Separate tapes of these transactions shall be maintained as set forth in 3:24-5.2.

(c) All checks, drafts, money orders cashed on any one day and deposited on the same day or next business day shall be deposited under a separate deposit total and not commingled with any other day's business.

(d) A violation of this section shall occur if a licensee instead of depositing all checks, drafts and money orders as required:

1. Cashes all or any of them at another check casher;

2. Exchanges all or any of them for another check or checks; or

3. Negotiates all or any of them in any manner or for any purpose other than that provided in this section.

(e) If an out-of-State financial institution approved by the Commissioner fails to maintain the standards specified in (a) above or if the institution is placed under a supervisory order from its primary regulator or operates in a manner inconsistent with safe and sound financial practices, the Commissioner may take such action as he or she deems appropriate and necessary to protect the licensee and the public. The action may include revoking the approval conferred by the Commissioner on the institution pursuant to (a) above and requiring any check casher utilizing that institution to submit and comply with a plan for moving its business account(s) to a different institution within a reasonable timeframe established by the Department. If a check casher utilizing such an institution fails to supply such a plan or fails to comply with a plan submitted, the Department may suspend, revoke or refuse to renew the license of the check casher pursuant to 17:15A-48(a)1.

N.J. Admin. Code § 3:24-5.5

Amended by R.2006 d.329, effective 9/18/2006.
See: 37 N.J.R. 2917(a), 38 N.J.R. 3773(a).
Rewrote the introductory paragraph of (a); added (a)1 through (a)3; and added (e).