Chapter 412 — Chapter 412

[ARTICLE 14. MISCELLANEOUS PROVISIONS] [§412:14-100 Automated teller machine fees.] An owner or operator of an automated teller machine may assess a transaction fee on any person for use of that machine who uses a card or other access device for an account that is located within …

ARTICLE 2. DIVISION OF FINANCIAL INSTITUTIONS PART I. ADMINISTRATION §412:2-100 Commissioner of financial institutions; division of financial institutions. (a) The director of commerce and consumer affairs, with the approval of the governor, shall appoint the commissioner of fina…

§412:2-101 Deputy commissioner, acting commissioner. The deputy commissioner shall have such duties as are assigned by the commissioner from time to time, and shall serve as acting commissioner whenever the commissioner is out of the State or is otherwise incapable of performing …

§412:2-102 Examiners and other personnel. The commissioner may hire as many examiners, professional employees and clerical personnel as the business of the division of financial institutions may require. The commissioner may also appoint an examiner knowledgeable in international…

§412:2-103 Disqualifications. No person shall be an examiner who is a director of or owner of any interest, or shares of stock, in any company that may be examined pursuant to this chapter. [L 1993, c 350, pt of §1]

§412:2-104 Confidentiality of information possessed by commissioner. (a) The commissioner and all employees, contractors, attorneys retained or employed by the State, and appointees of the division of financial institutions shall not divulge or furnish any information in their po…

§412:2-105 Fees. (a) The commissioner shall charge any financial institution examined by the commissioner or the commissioner's staff, an amount for travel, per diem, mileage, and other reasonable expenses incurred in connection with the examination. (b) The commissioner shall bi…

§412:2-105.1 REPEALED. L 2013, c 172, §28.

§412:2-105.2 Hawaii financial institutions; assessments; fees; penalty. (a) Beginning January 1, 2014, every Hawaii financial institution shall be assessed a yearly fee in accordance with the following: provided that the yearly fee assessed for financial institutions with total a…

§412:2-106 Public or private hearings. (a) All hearings before the commissioner shall be subject to chapter 91 and the rules adopted pursuant thereto, unless it is expressly provided otherwise in this chapter. (b) All actions of and proceedings before the commissioner under parts…

§412:2-107 Rules. The commissioner may adopt, amend or repeal rules pursuant to chapter 91 to effectuate the purpose of all laws within the jurisdiction of the division. [L 1993, c 350, pt of §1]

§412:2-108 Alternative mortgage loans rules. The commissioner may by rule permit financial institutions to make loans secured by mortgages that do not meet the loan-to-value ratio, payment terms, compounding of interest, or other requirements contained under this chapter, chapter…

§412:2-109 Compliance resolution fund; financial institution examiners. (a) Any law to the contrary notwithstanding, fees and fines collected by the commissioner of financial institutions shall be deposited into the compliance resolution fund established pursuant to section 26-9(…

PART II. EXAMINATIONS §412:2-200 Examinations. (a) The commissioner shall examine each Hawaii financial institution at least once every twenty-four months, or more frequently as the commissioner may determine. (b) The purpose of every examination shall be to ensure that such Hawa…

§412:2-201 Use of federal examinations. The commissioner may accept, adopt, or use in lieu of an examination prescribed by section 412:2-200 all or any part of the results of an examination conducted by a federal regulatory agency of a Hawaii financial institution for the same pe…

PART III. ENFORCEMENT ACTIONS §412:2-300 Enforcement actions. In enforcing the provisions of this chapter, the commissioner is authorized to use the powers in this part without limitation to direct the discontinuance of any violation of law, or any unsafe or unsound practice that…

§412:2-301 Joint enforcement with federal regulatory agency. The commissioner may enter into any agreement and take any action with the appropriate federal regulatory agency to enforce jointly all federal and state laws applicable to the Hawaii financial institution. [L 1993, c 3…

§412:2-302 Cease and desist orders; grounds for issuance. (a) Whenever it appears to the commissioner that any person has engaged or is about to engage in any act or practice constituting a violation of any: the commissioner may, in the commissioner's discretion, issue a temporar…

§412:2-303 Permanent cease and desist orders; procedure; hearing; enforcement. (a) The notice of charges and proposed permanent cease and desist order shall be in writing and shall be served upon the institution-affiliated party or the Hawaii financial institution at its principa…

§412:2-304 Temporary cease and desist orders; effective date; hearing; enforcement. (a) To act with the utmost speed, the commissioner may issue a temporary cease and desist order upon a determination that one or more of the grounds specified in section 412:2-302 are present; pro…

§412:2-305 Consent cease and desist orders. Any affected party may waive its rights to a hearing on any notice of charges by stipulating and consenting to: Any cease and desist order issued by consent shall be effective as of the date specified therein and shall remain effective …

§412:2-306 Removal or prohibition of institution-affiliated party; grounds. (a) The commissioner may order the removal of any institution-affiliated party from office or employment with a Hawaii financial institution and the prohibition of the party's affiliation or participation…

§412:2-307 Removal or prohibition of institution-affiliated party; procedure; hearing; enforcement. (a) The notice of charges and the proposed order of removal or prohibition shall be in writing and served upon the institution-affiliated party and the affiliated Hawaii financial …

§412:2-308 Order of immediate suspension; procedure; effective date; hearing; enforcement. (a) In order to act with the utmost speed, the commissioner may issue an order immediately suspending an institution-affiliated party upon a determination that: The order shall be accompani…

§412:2-309 Consent order of removal or prohibition. Any institution-affiliated party may waive its rights to a hearing on any notice of charges by stipulating and consenting to the issuance of a permanent removal or prohibition order or by stipulating and consenting to the conver…

§412:2-310 Removal, prohibition, or suspension; effect of order. No institution-affiliated party whose removal, prohibition, or suspension has been ordered shall thereafter participate in any manner in the conduct of the affairs of the affiliated Hawaii financial institution or a…

§412:2-311 Suspension or revocation of charter or license. (a) The commissioner may revoke or suspend any charter or license issued hereunder if the commissioner finds that: (b) In issuing a suspension or revocation order, whether by consent or as a result of a chapter 91 hearing…

§412:2-312 Suspension or revocation; procedure; hearing; enforcement. (a) The notice of charges and the proposed order of suspension or revocation shall be in writing and served upon the Hawaii financial institution at its principal office in this State. The notice of charges sha…

§412:2-313 Consent suspension and revocation order. Any Hawaii financial institution may waive its right to a hearing on any notice of charges by stipulating and consenting to the issuance of an order suspending or revoking a license or charter. Any final suspension or revocation…

§412:2-314 Action to correct capital and surplus impairment. (a) Whenever it appears to the commissioner that the capital and surplus of a Hawaii financial institution is impaired, the commissioner shall notify the financial institution in writing to correct the impairment within…

§412:2-315 National or state emergencies. (a) The emergency powers granted in this section may be invoked for the purpose of protecting the general public during any national or state emergency by assuring that Hawaii financial institutions subject to regulation by the commission…

PART IV. CONSERVATORS AND RECEIVERS §412:2-400 Grounds for appointment of conservator or receiver. A conservator or receiver may be appointed to take possession and control of a Hawaii financial institution if such financial institution:

§412:2-401 Appointment of conservator or receiver; judicial review. (a) The commissioner may, without notice or prior hearing, appoint a conservator or receiver for a Hawaii financial institution by a written order setting forth the grounds for such appointment and any other cond…

§412:2-402 Additional grounds for appointment. The commissioner may also appoint a conservator or receiver to take over the possession and control of any Hawaii financial institution: An appointment pursuant to this section shall not be subject to judicial review. [L 1993, c 350,…

§412:2-403 Who may serve as conservator or receiver. The commissioner, deputy commissioner, federal insurer of the Hawaii financial institution's deposits or accounts or other qualified person may serve as a conservator or receiver. Except for the commissioner, deputy commissione…

§412:2-404 Federal insurer as conservator or receiver; subrogation. (a) A federal insurer of the Hawaii financial institution's deposits or accounts who serves as a conservator or receiver shall acquire both legal and equitable title to all assets, rights or claims and to all rea…

§412:2-405 Removal or replacement of conservator or receiver. The commissioner may remove or replace a conservator or receiver other than a federal insurer effective upon notice thereof, and with or without cause. Such removal or replacement shall not subject either the commissio…

§412:2-406 Compensation and expenses of conservator or receiver. All expenses of any conservatorship or receivership shall be paid out of the assets of the Hawaii financial institution and shall be a lien on the assets, which shall be prior to any other lien provided by this chap…

§412:2-407 Stay of judicial proceedings. All non-criminal judicial proceedings to which the Hawaii financial institution in conservatorship or receivership, is a party at the time of the appointment of a conservator or receiver, including without limitation any action, hearing, j…

§412:2-408 Duties and powers of conservator. (a) A conservator of a Hawaii financial institution shall observe the provisions of this part except to the extent preempted by applicable federal law. (b) Upon assuming office, the conservator may:

§412:2-409 Conservator's segregation of deposits. (a) In the commissioner's discretion, the commissioner may order or permit a conservator to accept deposits, notwithstanding the insolvency of the Hawaii financial institution; provided, that such deposits so received shall not be…

§412:2-410 Supervised reorganization. (a) The commissioner and, with the commissioner's written approval, any conservator appointed pursuant to this part, may reorganize a Hawaii financial institution in conservatorship, provided that: (b) If the foregoing requirements have been …

§412:2-411 Termination of conservatorship. The commissioner may terminate a conservatorship of a Hawaii financial institution whenever in the commissioner's judgment such action would be prudent and in the public interest. A conservatorship may also be terminated by order of the …

§412:2-412 Duties and powers of receiver. (a) A receiver of a Hawaii financial institution shall observe the provisions of this part, except to the extent preempted by applicable federal law. (b) Upon assuming office, the receiver may:

§412:2-413 No interest on deposits of an institution in receivership. Accrual of interest on any interest-bearing deposits in a Hawaii financial institution shall cease on the date of the appointment of a receiver. [L 1993, c 350, pt of §1]

§412:2-414 Optional court supervision. Upon petition of [the] receiver or the commissioner at any time, the circuit court shall supervise the receivership and such proceedings shall have priority over all other matters pending before the court and shall in every other way be expe…

§412:2-415 Notice of receivership; filing of claims. (a) Upon commencement of the receivership, the receiver shall promptly give notice of the fact and purpose of the receivership in a form prescribed by the commissioner and directing depositors and creditors to file any claims t…

§412:2-416 Liquidation by receiver; priority of claims. (a) The receiver shall collect and sell or otherwise dispose of all assets of the Hawaii financial institution. For such purposes, the receiver's authority includes but is not limited to the right to sue and be sued in the n…

§412:2-417 Final accounting and discharge. When all the assets of the Hawaii financial institution have been collected and all available funds have been paid as provided in this part the receiver shall file with the commissioner or the court a request for the approval of a final …

§412:2-418 Transfer of assets in contemplation of insolvency void. All transfers, assignments, and payments by any Hawaii financial institution made after or in contemplation of the institution's insolvency shall be void if done with the intent to evade this chapter or to accord …