                                 CODE OF VIRGINIA

(EFFECTIVE JULY 1, 2026) PERMISSIBLE INVESTMENTS (§ 6.2-1953)

A. The following investments are permissible under § 6.2-1952:

   1. Cash, including demand deposits, savings deposits, and funds in such
   accounts held for the benefit of the licensee&#8217;s customers in a federally
   insured depository financial institution, and cash equivalents including ACH
   items in transit to the licensee and ACH items or international wires in
   transit to a payee, cash in transit via armored car, cash in smart safes, cash
   in licensee-owned locations, debit card-funded or credit card-funded
   transmission receivables owed by any bank, or money market mutual funds rated
   &#8220;AAA&#8221; by S&amp;P, or the equivalent from any eligible rating
   service.

   2. Certificates of deposit or senior debt obligations of an insured depository
   institution, as defined in the Federal Deposit Insurance Act (12 U.S.C. &#xA7;
   1811 et seq.) or as defined under the Federal Credit Union Act (12 U.S.C.
   &#xA7; 1751 et seq.).

   3. An obligation of the United States or a commission, agency, or
   instrumentality thereof; an obligation that is guaranteed fully as to
   principal and interest by the United States; or an obligation of a state or a
   governmental subdivision, agency, or instrumentality thereof.

   4. The full drawable amount of an irrevocable standby letter of credit for
   which the stated beneficiary is the Commission that stipulates that the
   beneficiary need only draw a sight draft under the letter of credit and
   present it to obtain funds up to the letter of credit amount within seven days
   of presentation of the items required by subdivision c.
   				a. Such letter of credit shall:

      1. Be issued by a federally insured depository financial institution, a
      foreign bank that is authorized under federal law to maintain a federal
      agency or federal branch office in a state or states, or a foreign bank that
      is authorized under state law to maintain a branch in a state that:

         a. Bears an eligible rating or whose parent company bears an eligible
         rating; and

         b. Is regulated, supervised, and examined by United States federal or
         state authorities having regulatory authority over banks, credit unions,
         and trust companies;

      2. Be irrevocable, unconditional, and indicate that it is not subject to any
      condition or qualifications outside of the letter of credit;

      3. Not reference any other agreements, documents, or entities, or otherwise
      provide for any security interest in the licensee; and

      4. Contain an issue date and expiration date, and expressly provide for
      automatic extension, without a written amendment, for an additional period
      of one year from the initial expiration date and each successive expiration
      date, unless the issuer of the letter of credit notifies the Commission in
      writing by certified or registered mail or courier mail or other receipted
      means at least 60 days prior to any expiration date that the irrevocable
      letter of credit will not be extended.
      					b. In the event of any notice of expiration or nonextension of a letter
      of credit issued under subdivision a (4), the licensee shall be required to
      demonstrate to the satisfaction of the Commission, at least 15 days prior to
      expiration, that the licensee will maintain permissible investments in
      accordance with subsection A of &#xA7; 6.2-1952 upon the expiration of the
      letter of credit. If the licensee is not able to do so, the Commission may
      draw on the letter of credit in an amount up to the amount necessary for the
      licensee to comply with subsection A of &#xA7; 6.2-1952. Any such draw shall
      be offset against the licensee&#8217;s outstanding money transmission
      obligations. The drawn funds shall be held in trust by the Commission or the
      Commission&#8217;s designated agent, to the extent authorized by law, as
      agent for the benefit of the purchasers and holders of the licensee&#8217;s
      outstanding money transmission obligations.
      					c. The letter of credit shall provide that the issuer of the letter of
      credit will honor, at sight, a presentation made by the beneficiary to the
      issuer of the following documents on or prior to the expiration date of the
      letter of credit:

      1. The original letter of credit including any amendments; and

      2. A written statement from the beneficiary stating that any of the
      following events have occurred:

         a. The filing of a petition by or against the licensee under the United
         States Bankruptcy Code (11 U.S.C. &#xA7; 101 et seq.) for bankruptcy or
         reorganization;

         b. The filing of a petition by or against the licensee for receivership,
         or the commencement of any other judicial or administrative proceeding for
         its dissolution or reorganization;

         c. The seizure of assets of a licensee by any state pursuant to an
         emergency order issued in accordance with applicable law, on the basis of
         an action, violation, or condition that has caused or is likely to cause
         the insolvency of the licensee; or

         d. The beneficiary has received notice of expiration or nonextension of a
         letter of credit and the licensee failed to demonstrate to the
         satisfaction of the beneficiary that the licensee will maintain
         permissible investments in accordance with subsection A of &#xA7; 6.2-1952
         upon the expiration or nonextension of the letter of credit.
         						d. The Commission may designate an agent to serve on the
         Commission&#8217;s behalf as beneficiary to a letter of credit so long as
         the agent and letter of credit meet any requirements established by the
         Commission. The Commission&#8217;s agent may serve as agent for multiple
         licensing authorities for a single irrevocable letter of credit if the
         proceeds of the drawable amount for the purposes of this subdivision A 4
         are assigned to the Commission.
         						e. The Commission may participate in multistate processes designed
         to facilitate the issuance and administration of letters of credit,
         including the use of services provided by the NMLS and State Regulatory
         Registry LLC.

   5. The amount of the surety bond that exceeds the amount required by &#xA7;
   6.2-1951.

B. Unless permitted by the Commission by regulation or by order to exceed the
limit as set forth herein, the following investments are permissible under §
6.2-1952 to the extent specified:

   1. Receivables that are payable to a licensee from its authorized delegates in
   the ordinary course of business that are less than seven calendar days old, up
   to 50 percent of the aggregate value of the licensee&#8217;s total permissible
   investments.

   2. Of the receivables permissible under subdivision 1, receivables that are
   payable to a licensee from a single authorized delegate in the ordinary course
   of business shall not exceed 10 percent of the aggregate value of the
   licensee&#8217;s total permissible investments.

   3. The following investments are permissible up to 20 percent per category and
   combined up to 50 percent of the aggregate value of the licensee&#8217;s total
   permissible investments:
   				a. A short-term, up to six months, investment bearing an eligible rating;
   				b. Commercial paper bearing an eligible rating;
   				c. A bill, note, bond, or debenture bearing an eligible rating;
   				d. United States tri-party repurchase agreements collateralized at 100
   percent or more with United States government or agency securities, municipal
   bonds, or other securities bearing an eligible rating;
   				e. Money market mutual funds rated less than &#8220;AAA&#8221; and equal
   to or higher than &#8220;A-&#8221; by S&amp;P, or the equivalent from any
   other eligible rating service; and
   				f. A mutual fund or other investment fund composed solely and exclusively
   of one or more permissible investments listed in subdivisions A 1, 2, and 3.

   4. Cash, including demand deposits, savings deposits, and funds in such
   accounts held for the benefit of the licensee&#8217;s customers, at foreign
   depository institutions are permissible up to 10 percent of the aggregate
   value of the licensee&#8217;s total permissible investments if the licensee
   has received a satisfactory rating in its most recent examination and the
   foreign depository institution:
   				a. Has an eligible rating;
   				b. Is registered under the Foreign Account Tax Compliance Act;
   				c. Is not located in any country subject to sanctions from the Office of
   Foreign Asset Control; and
   				d. Is not located in a high-risk or noncooperative jurisdiction as
   designated by the Financial Action Task Force.

HISTORY: 2025, c. 214.