Chapter 412 — Chapter 412

§412:3-208 REPEALED. L 2006, c 228, §48.

§412:3-210 REPEALED. L 2006, c 228, §49.

§412:3-212 Final application for charter or license. (a) After completing its organization of the Hawaii financial institution, the applicant in organization may file with the commissioner an application for a charter or license to engage in the business of a Hawaii financial ins…

PART III. ORGANIZATION OF NONDEPOSITORY FINANCIAL SERVICES LOAN COMPANIES §412:3-300 Applicability of part. The provisions of this part shall govern the organization of nondepository financial services loan companies in this State. [L 1993, c 350, pt of §1]

PART IV. MANAGEMENT OF STOCK FINANCIAL INSTITUTIONS §412:3-400 Applicability of part. This part shall govern the management of all Hawaii financial institutions that are stock financial institutions. [L 1993, c 350, pt of §1]

§412:3-401 Applicability of Hawaii Business Corporation Act. (a) Except to the extent that the provisions of this chapter are inconsistent, all provisions of chapter 414 shall apply to a corporation engaging in business as a Hawaii financial institution under this chapter. In cas…

PART V. PLACES OF BUSINESS §412:3-500 Prohibition of business at unauthorized locations. Except as expressly authorized by this chapter or by federal law, no financial institution shall conduct any business in this State except at places of business or in the manner authorized in…

§412:3-502 Foreign financial institution. No foreign financial institution shall receive deposits, lend money, or pay checks, negotiate orders of withdrawal or share drafts from any principal office, branch, agency, automated teller machine, or other location in this State, unles…

§412:3-506 Opening or relocating a support facility. A Hawaii financial institution that opens or relocates a support facility shall within thirty days thereafter submit a letter to the commissioner containing the following information:

§412:3-507 Closing branch or agency; temporary closures and relocations. (a) A Hawaii financial institution shall give the commissioner prior notice of its intent to close any branch or agency at least thirty days prior to the closing. The notice shall specify: This notice may be…

§412:3-508 Closing a support facility. A Hawaii financial institution shall provide notice to the commissioner of its closure of a support facility within thirty days of the closing. The notice shall contain the location of the support facility closed and the date of closing. [L …

PART VI. CONVERSIONS, MERGERS, CONSOLIDATIONS, ACQUISITIONS, ASSUMPTIONS, AND VOLUNTARY DISSOLUTIONS §412:3-600 Applicability of this part. This part applies to:

§412:3-601 No conversions, mergers, consolidations, acquisitions, assumptions, voluntary cessations of business, or voluntary dissolutions except pursuant to this part. Except as modified by the commissioner's powers under parts III, IV, and V of article 2, no Hawaii financial in…

§412:3-602 Definitions. As used in this part: "Participating institution" means one or all of the financial institutions (or, where applicable, financial institution holding companies) participating in a merger or consolidation pursuant to this part. "Resulting institution" means…

§412:3-605 Notice to credit union member. Wherever the approval of a transaction is required by this part by the members of a credit union, notice of a meeting of its members, which may be an annual or a special meeting, shall be given to each member entitled to vote. The notice …

§412:3-608 Conversion to another type of financial institution. (a) A financial institution of any type, whether federal or State, may convert to a Hawaii financial institution of any other type if the institution and its holding company or holding companies, if any, shall have c…

§412:3-617 Voluntary cessation of business; dissolution. (a) Except for a credit union, a solvent Hawaii financial institution whose capital is not impaired and which has not received a notice of charges and proposed suspension or revocation order pursuant to section 412:2-312 ma…

ARTICLE 4. DEPOSITS IN FINANCIAL INSTITUTIONS GENERALLY §412:4-100 Law applicable. (a) Sections 412:4-101, 412:4-102, 412:4-104, and 412:4-113 shall apply to all Hawaii financial institutions that are authorized by this chapter to solicit, accept, and hold deposits. The remaining…

§412:4-102 Deposit account statements. A Hawaii financial institution shall provide at least one of the holders of each deposit account with a statement in writing or by electronic means at least quarterly showing deposits, withdrawals, interest earned and the opening and closing…

§412:4-107 Accounts of minors. A financial institution may open an account and accept deposits therein in the name of a minor in the same manner as for an adult and the deposit shall be held for the exclusive right and benefit of the minor, free from the control of any other pers…

§412:4-108 No notice of incapacity. If a financial institution has not received written notice and is not on actual notice that a deposit account holder has been adjudicated an incapacitated person by a court of competent jurisdiction under applicable law, it may make payments or…

§412:4-109 Checks drawn or transfers or withdrawals made by authorized persons. Whenever a deposit account holder has authorized another person, whether as an agent, attorney-in-fact, officer, or in any other capacity, to draw checks on or make or order transfers or withdrawals f…

§412:4-110 Checks drawn or transfers or withdrawals made by intoxicated persons. It shall be lawful for any financial institution to refuse to pay any check, draft, order of transfer or withdrawal, or order drawn upon it when the officers or employees of the financial institution…

ARTICLE 5. BANKS PART I. GENERAL PROVISIONS §412:5-100 Definition. In this article the term "bank" means a corporation which has authority to operate as a bank under this chapter. [L 1993, c 350, pt of §1]

§412:5-101 Necessity for bank charter. Except as expressly permitted by federal law or this chapter, no person shall engage in any activity for which a charter to operate as a bank is required by this chapter, including without limitation the solicitation, acceptance, and holding…

PART II. POWERS OF BANKS §412:5-200 General powers. (a) Except as expressly prohibited or limited by this chapter, a bank shall have the power to solicit, accept and hold deposits, engage in other activities which are usual or incidental to the business of banking, and shall have…

§412:5-202 Membership in federal banks. Any bank may become a member of a federal reserve bank organized under authority of the Federal Reserve Act or of a federal home loan bank organized under the Federal Home Loan Bank Act, or any successor or similar system of federal banks e…

§412:5-203 Operating subsidiaries. (a) "Operating subsidiary" means a corporation other than a corporation referred to in section 412:5-305(g)(2) to (8) of which more than fifty per cent of the voting securities is held directly or indirectly by a bank. (b) An operating subsidiar…

§412:5-204 Acceptances of drafts and bills of exchange. (a) A bank may accept drafts or bills of exchange drawn upon it without limitation in the character of acceptances it may make in financing credit transactions; provided that a bank's own eligible acceptances described in su…

§412:5-205 Authority to engage in trust business. (a) A bank may not engage in any activity requiring a charter as a trust company under article 8 of this chapter, including without limitation serving as trustee, personal representative, registrar or transfer agent for stocks and…

§412:5-206 International banking facilities. A bank may without prior approval of the commissioner establish an international banking facility anywhere in this State. An international banking facility is a set of international banking accounts under Regulation D of the Federal Re…

PART III. LOANS AND INVESTMENTS §412:5-300 Applicability of part. This part sets forth the requirements and restrictions for lending and investments by all banks. A bank may make loans and extensions of credit and may invest its assets as may be permitted by this part and as may …

§412:5-301 General requirements for loans. A bank shall make loans and extensions of credit that are consistent with prudent banking practices and in compliance with all applicable federal and state law. [L 1993, c 350, pt of §1]

§412:5-302 Limitations on loans and extensions of credit to one borrower. (a) No bank shall permit a person to become indebted or liable to it, either directly or indirectly on loans and extensions of credit, including any credit exposure arising out of derivative transactions en…

§412:5-303 Loans to executive officers, directors, principal shareholders and affiliates. No bank shall make any loan or extension of credit in violation of section 18(j) of the Federal Deposit Insurance Act, 12 U.S.C. §1828(j) or, if the bank is a member of the Federal Reserve S…

§412:5-304 General requirement for investments. A bank shall make investments that are consistent with prudent banking practices and in compliance with all applicable federal and state law. [L 1993, c 350, pt of §1]

§412:5-305 Permitted investments. (a) To the extent specified in this subsection, a bank may invest its own assets in: (b) A bank may invest its own assets in bonds, securities, or similar obligations issued by this State or any county of this State, through an appropriate agency…

PART IV. INTRA-PACIFIC BANKS §412:5-400 Definitions. In this chapter: "Intra-Pacific bank" is a depository institution or a banking company (1) engaged in the type of business permitted to banks chartered by this State, (2) whose home office is located in a reciprocal region, (3)…

§412:5-401 Required approval. No intra-Pacific bank or intra-Pacific bank holding company may engage in business in this State, except in one of the following three forms:

§412:5-402 Procedure to obtain approval. (a) In order to obtain prior approval of the commissioner, the applicant shall file the application required by and comply with the provisions of article 3. The application shall be accompanied by the application fee assessed pursuant to s…

§412:5-403 Examination and regulation. Every intra-Pacific bank shall be subject to examination and regulation by the commissioner, and shall pay fees and costs to the same extent as any bank chartered under the laws of this State. [L 1993, c 350, pt of §1]

§412:5-404 Termination of authority of intra-Pacific bank. The authority of any intra-Pacific bank to engage in the business of a bank in this State pursuant to this part shall automatically terminate at such time as it no longer meets the definition of an intra-Pacific bank unde…

§412:5-405 Termination of authority of intra-Pacific bank holding company. (a) A financial institution holding company ceases to be an intra-Pacific bank holding company at such time as it no longer meets the definition of an intra-Pacific bank holding company under section 412:5…

§412:5-406 Paid-in capital and surplus. Every intra-Pacific bank engaged in banking in this State shall at all times have paid-in capital and surplus of not less than the minimum amount provided by this chapter for banks which are Hawaii financial institutions. [L 1993, c 350, pt…

§412:5-407 Same powers and duties as banks. An intra-Pacific bank engaged in banking in this State shall have all powers and duties allowed by and imposed on all banks chartered by this State, including without limitation the authority to accept deposits, make loans, borrow money…

ARTICLE 5A. INTERNATIONAL BANKING CORPORATIONS PART I. GENERAL PROVISION §412:5A-100 Applicability of other provisions of this chapter. Unless otherwise expressly provided in this article, the entities covered by this article shall have none of the powers generally given to Hawai…

PART II. APPLICATION PROCEDURES AND POWERS §412:5A-200 Scope and definitions. (a) As used in this chapter an "international banking corporation" means a corporation which has authority to operate as an international banking corporation under this part and has been required to use…

§412:5A-203 Paid-in capital and surplus. Every international banking corporation shall at all times have paid-in capital and surplus in such amounts as shall be established for all international banking corporations by rule by the commissioner; provided, that:

§412:5A-204 Prohibition of business in United States. No international banking corporation shall carry on any part of its business in the United States except as shall, in the judgment of the commissioner, be incidental to its international or foreign business. [L 1993, c 350, pt…

§412:5A-205 Powers and duties. Every international banking corporation shall be authorized: