MoneyGram 2009 Annual Report Download - page 677

(WestCorp and SE Corp) have also indicated that they are contemplating sending notices to its members regarding the safety and soundness of Holdco.
29. Since January 1, 2008, MoneyGram Payment Systems, Inc. ("MPSI") has received a variety of requests from state regulators for additional information
about MPSI's operations and investments, as well as requests for information relating to the pending change in control and the new investors. In
addition, MPSI has prepared new license applications that will soon be filed with the regulators in the required states. MPSI has also implemented, at
the request of several states, monthly reporting of permissible investments/eligible securities to those states that have such requirements. Specific
requests from states for information include the following:
California — The regulator has requested MPSI to provide weekly cash liquidity reports. The regulator has also requested information regarding
outstanding payment obligations, eligible securities, official check customers, official check activity, cash flow statements, a summary of the Tsavorite
Special Purpose Entity, agent past-due receivables, financial statements, and investment portfolio reports. MPSI has provided all of this information to
the regulator.
Connecticut — The regulator has requested information regarding MPSI's outstanding payment obligations, permissible investments, and losses from
the sale of securities in MPSI's investment portfolio. MPSI has provided all of this information to the regulator.
Hawaii — The regulator requested monthly permissible investments reports. In addition, at the time of license renewal, the regulator requested MPSI
increase the amount of its surety bond from $1,000 to $500,000. MPSI has complied with the regulator's requests.
Kentucky — The regulator requested MPSI to convey to the proposed investors the regulator's request for financial statements from the appropriate
entities which will serve as the new investors. MPSI has passed along this request to Buckley Kolar LLP which is assembling the license applications
on behalf of the investors.
Ohio — The regulator requested a detailed investment report that identifies every security in the MPSI portfolio by CUSIP number, and a one-page
report that summarizes the portfolio by category. MPSI has provided this information to the regulator.
30. MoneyGram Payment Systems, Inc. is currently in the process of renegotiating its contract with Thomas Cook. Thomas Cook has indicated that it
would consider signing with Western Union if the Transaction is not signed in the next several days.
31. Standard Bank of South Africa has inquired about the possibility of a prefund. Holdco does not yet know the contemplated amount and no agreement
has been reached on this issue.
32. RBC Centura has verbally informed Holdco that it desires a change to remittance processes, and requested a funding account be created at its bank to
hold same day funds for Official Check business. Holdco and RBC are negotiating a mutually-agreeable change.
33. Holdco received letters dated March 7, 2008, and March 11, 2008, from NYSE Regulation
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