84-4

November 13, 1984

Re: ________
Dear Mr. ________:
This follows our telephone conversation of November 13, 1984 and responds to your previous letters.
In your letter, you request our opinion as to whether ________ and ________, an insured bank, are subject to the provisions of Division 16 of the Financial Code, Financial Code Section 33000 et seq. Financial Code Section 33100 provides that certain persons and transactions are exempted from Division 16 of the Financial Code. Financial Code Section 33100(a)(1) provides an exemption for “Any insured bank, when selling any payment instrument issued by it.” and (a)(4) exempts “Any federal credit union, when selling any payment instrument issued by it.” Additionally, Financial Code Section 33100(b) also exempts “Any California agent of any person referred to in subdivision (a), when selling any payment instrument which is issued by such person and which such person is permitted to sell under the paragraph of subdivision (a) applicable to such person.”
If, in your case, the money orders which are in dispute were issued by ________ or ________ or by a California agent of either of those entities then those entities were exempt from the provisions of Financial Code Section 33000 et seq.
You also request our opinion as to whether Financial Code Section 33700 would apply to ________ or ________. Financial Code Section 33700 requires a written contract between a licensee and its agent to contain certain provisions. This section would only apply to ________ or ________ if either entity was an agent for a licensee. For example, if ________ was acting as agent for XYZ Money Order Company. If either ________ or ________ were the issuer, then Financial Code Section 33700 would not apply because ________ and ________ are exempted from Division 16 of the Financial Code.
We hope this information will be of assistance to you. Please accept my apology for the delay in responding to your request.
Very truly yours,
LOUIS CARTER
Superintendent of Banks
by
ALIDA R. BUCHANAN
Counsel
ARB:ldc