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51-17.1 Currency Exchange Businesses

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CHAPTER 51-17.1CURRENCY EXCHANGE BUSINESSES51-17.1-01. Currency exchange - Penalty.1.A nonbanking institution may engage in the business of a currency exchange if:a.The institution does not contract with another person to manage the currency<br>exchange business; however, this does not prohibit the business from<br>employing individuals to operate a currency exchange business;b.The institution displays in a prominent manner on the premises of the business<br>the fees charged to exchange currency;c.The maximum fees charged to exchange currency are limited to any direct cost<br>of verification fees and:(1)The greater of five percent of the face amount or five dollars, for cashing<br>a draft, personal check, payroll check, traveler's check, or money order;<br>and(2)The greater of three percent of the face amount or five dollars, for<br>cashing a state public assistance check or a federal social security<br>check;d.The institution does not accept money or currency for deposit or act as bailee<br>or agent of persons to hold money or currency in escrow for others for any<br>purpose; ande.The institution does not exchange currency on the premises of a charitable<br>gaming site.2.For purposes of this section, &quot;currency exchange&quot; means cashing a check, draft,<br>money order, or traveler's check or issuing a money order or traveler's check as an<br>agent for another, for a fee. The term does not include providing these services<br>incidental to a primary business if there is not a charge for cashing a check or draft.3.This section does not authorize a business to make any type of loan, including a<br>deferred presentment service transaction, payday loan, cash advance, payday cash<br>advance, or motor vehicle title loan.4.A nonbanking institution may not accept a postdated check in a currency exchange<br>transaction.5.A person violating this section is guilty of a class B misdemeanor.Page No. 1Document Outlinechapter 51-17.1 currency exchange businesses