Section 23-55-701 - Maintenance of permissible investments(a) A licensee shall maintain at all times permissible investments that have a market value computed in accordance with generally accepted accounting principles or international financial reporting standards of not less than the aggregate amount of all of its outstanding money transmission obligations.(b) A licensee transmitting virtual currency shall hold like-kind virtual currency of the same volume as that held by the licensee but which is obligated to consumers in lieu of the permissible investments required in subsection (a).(c) A licensee conducting activities as described in subsections (a) and (b) shall maintain applicable levels and types of permissible investments as described in subsections (a) and (b).(d) Except for permissible investments enumerated in § 23-55-702(a), the commissioner, with respect to any licensee, may by rule or order limit the extent to which a specific investment maintained by a licensee within a class of permissible investments may be considered a permissible investment if the specific investment represents undue risk to customers that is not reflected in the market value of investments.(e)(1) 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 outstanding money transmission obligations in the event of:(B) the filing of a petition by or against the licensee under the United States Bankruptcy Code, 11 U.S.C. § 101 et seq., as it existed on January 1, 2023, for bankruptcy or reorganization;(C) the filing of a petition by or against the licensee for receivership;(D) the commencement of any other judicial or administrative proceeding for the licensee's dissolution or reorganization; or(E) an action by a creditor against the licensee who is not a beneficiary of the statutory trust under this subsection.(2) Permissible investments impressed with a trust under this section shall not be subject to attachment, levy of execution, or sequestration by order of any court, except for a beneficiary of the statutory trusts under this section.(f)(1) Upon the establishment of a statutory trust under subsection (e) or if any funds are drawn on a letter of credit under § 23-55-702(a)(5), then the commissioner shall notify the applicable regulator of each state in which the licensee is licensed to engage in money transmission, if any, of the establishment of the statutory trust or the funds drawn on the letter of credit, as applicable.(2) Notice shall be deemed satisfied if performed under a multistate agreement or through the Nationwide Multistate Licensing System and Registry.(3) Funds drawn on a letter of credit, and any other permissible investments held in trust for the benefit of the purchasers and holders of the licensee's outstanding money transmission obligations, are deemed held in trust for the benefit of the purchasers and holders on a pro rata and equitable basis according to statutes under which permissible investments are required to be held in this state, and other states, as applicable.(4) Any statutory trust established under this subchapter shall be terminated upon extinguishment of all of the licensee's outstanding money transmission obligations.(g)(1) The commissioner by rule or by order may allow other types of investments that the commissioner determines are of sufficient liquidity and quality to be a permissible investment.(2) The commissioner may participate in efforts with other state regulators to determine that other types of investments are of sufficient liquidity and quality to be a permissible investment.Amended by Act 2023, No. 442,§ 10, eff. 8/1/2023.Amended by Act 2021, No. 532,§ 21, eff. 7/28/2021.Amended by Act 2019, No. 111,§ 8, eff. 7/24/2019.Amended by Act 2013, No. 531,§ 8, eff. 8/16/2013.Acts 2007, No. 1595, § 1.