This section outlines financial requirements for licensees involved in money transmission or payment instrument sales. Licensees must hold enough eligible securities to cover all outstanding obligations in the U.S. If a licensee's financial condition is poor, the commissioner can require it to hold more securities or obtain financial guarantees. Eligible securities are considered held in trust for beneficiaries and are protected from creditors if the licensee faces bankruptcy. Outstanding payment instruments and stored value remain a liability until they are settled. Licensees must keep records of money received until customer confirmation or refund.

This law defines what qualifies as an 'eligible security' for financial purposes, categorizing them into U.S. currency eligible securities and foreign currency eligible securities. U.S. currency eligible securities include cash, deposits in insured banks, bonds, notes guaranteed by U.S. or state governments, bankers' acceptances, commercial papers with eligible ratings, and shares in money market funds. Also, it details certain account receivables, letters of credit, and other securities as declared by the commissioner.

Foreign currency eligible securities include cash and approved deposits in foreign banks that meet specific criteria, such as having an eligible rating and not being in a sanctioned or high-risk jurisdiction. It also specifies how to determine the 'value' of these securities, prioritizing either net carrying value or market value, depending on the security type.

This section outlines which eligible securities are excluded when calculating the total value of securities a licensee owns under Section 2082. Basically, it sets limits on the value of securities that can be considered from any one issuer, stipulating that any value over 10% from a single person or their affiliates is excluded. Similarly, specific types of securities are capped at varying percentages of the licensee's total eligible securities, with percentages ranging from 10% to 50%.

Exclusions also include higher value percentages if authorized by a commissioner. Special exceptions apply to money market funds backed by the U.S. government or top-rated by credit agencies. On the other hand, cash, insured deposits, and U.S. government-backed bonds are explicitly exempted from these exclusions. Additionally, the commissioner can exempt certain securities from these limits if deemed financially sound.

This section details the conditions under which a financial licensee is considered to own an eligible security. To qualify, the licensee must own the security solely in its own right, without any liens or pledges, and must be able to freely transfer it. However, even if a security is held by a nominee or pledged to the U.S. government or any state, the licensee may still be deemed the owner, as long as other ownership conditions are met.

This law gives the commissioner the power to declare certain securities ineligible if they are not liquid or high-quality enough. The commissioner can make this determination through a regulation or order.

This law allows the commissioner to decide if certain financial assets, which aren't initially considered eligible for investments, meet the standards of liquidity and quality to be declared eligible. The commissioner can make this declaration through specific regulations or orders.

This section says that if the commissioner, who oversees financial regulations, determines that a certain rating from a recognized securities rating service shows that a class of securities is of high enough quality, the commissioner can officially recognize that rating as an 'eligible rating.' This applies to that specific class of securities, making it eligible for certain benefits or considerations under the regulations.

This law section explains that the commissioner can officially recognize a credit rating agency as an eligible securities rating service if it meets certain criteria. First, the agency must have been in the business of rating securities for at least three years. Second, it needs to be competent and nationally recognized for its expertise in rating securities. Third, the agency must publish its ratings across the nation. Once these conditions are met, the commissioner can declare the agency as an eligible service through regulations or orders.