Title 22, Banks And Financial Institutions

§412:2-505 Waiver of statewide concentration limits under the Bank Holding Company Act of 1956, as amended. If the commissioner finds that waiver of the statewide concentration limits under section 3(d) of the Bank Holding Company Act of 1956, as amended, is necessary to prevent …

§412:2-506 Charter or license. In any acquisition pursuant to this part, a charter or license shall be required for:

§412:2-507 Expedited approvals. If the commissioner finds that immediate action is necessary in order to prevent the probable failure of the Hawaii financial institution, as determined by section 412:2-501, the commissioner shall have the power to issue an expedited approval auth…

§412:2-508 Provisional approval to organize. (a) The commissioner may issue a provisional approval to organize a new corporation pursuant to this chapter and chapter 414 solely for the purpose of merging with or acquiring the stock or assets and assuming the liabilities of a fail…

§412:2-509 Effect of merger or acquisition on prior business, title and obligations. Sections 412:3-610 and 412:3-615 shall apply to the businesses previously carried on by any failing financial institution, title to its property, and its liabilities with respect to any merger or…

§412:2-510 Commissioner's powers. No provision under this part shall be construed to limit, modify, or restrain any other powers otherwise granted to the commissioner or the division. The provisions of this part shall supplement and provide an alternative to the commissioner's ot…

§412:2-511 Modification of time periods. Any time periods requiring action by the commissioner as set forth in this part, or as established by rules implementing this part, may be shortened or extended when in the commissioner's discretion good cause exists. [L 1993, c 350, pt of…

PART VI. PENALTIES, ADMINISTRATIVE FINES AND PROHIBITED ACTS §412:2-600 Applicability of part. (a) The provisions of this part shall apply to all Hawaii financial institutions and to such other persons as shall, by violating any of the provisions of this part, be subject to the p…

§412:2-601 Violation of chapter. Any institution-affiliated party or any other person who wilfully violates any of the provisions of this chapter for which a penalty or administrative fine is not expressly provided in this chapter shall be guilty of a misdemeanor punishable pursu…

§412:2-602 Copying records of Hawaii financial institutions. Any institution-affiliated party who knowingly copies without authorization any of the books, papers, records or documents belonging to or in the custody of a Hawaii financial institution, either for the party's own use…

§412:2-603 Disclosures of records of Hawaii financial institutions. Any institution-affiliated party who, without authorization, knowingly discloses, except in the regular course of business, any information derived from a Hawaii financial institution's records shall be guilty of…

§412:2-604 Concealment. Any institution-affiliated party who knowingly conceals or endeavors to conceal any transaction of the Hawaii financial institution from any director, incorporator, officer, agent or employee of the institution or any official or employee of the division t…

§412:2-606 Witness; failure to testify or produce records. Any person who knowingly fails to attend and testify or answer any lawful inquiry or to produce books, papers, accounts, records, contracts, or documents, if in the person's power to do so, in obedience to the lawful subp…

[§412:2-606.5] Financial institution name fraud. (a) No person shall use the name or trademark of a financial institution, as defined in section 412:1-109, or its affiliates or subsidiaries when marketing or soliciting existing or prospective customers if the marketing materials …

§412:2-607 Deception; false statements. (a) An institution-affiliated party who does any of the following shall be guilty of a class C felony punishable pursuant to sections 706-660 and 706-640: (b) Any person who intentionally or knowingly makes, circulates, or transmits to anot…

§412:2-608 Misapplication of funds. Any institution-affiliated party who wilfully abstracts or misapplies any of the money, funds, credits, assets, or property of a Hawaii financial institution, whether owned by the financial institution or held for safekeeping or as agent, or he…

§412:2-609 Imposition of administrative fines; assessment. (a) Any Hawaii financial institution which, and any institution-affiliated party who: may be ordered by the commissioner to forfeit and pay an administrative fine of not more than $1,000 for each day during which the viol…

[§412:2-609.5] Imposition of administrative fines on persons who are not Hawaii financial institutions; assessment. (a) Any person, other than a Hawaii financial institution or an institution-affiliated party, who: may be ordered by the commissioner to pay an administrative fine …

§412:2-610 Compromise or modification of administrative fines; determining amount of fine; hearing. (a) The commissioner may compromise, modify, or suspend any administrative fine which may be assessed or which has been assessed under this chapter. The commissioner may also exemp…

§412:2-611 Action to recover administrative fines; deposit to compliance resolution fund. (a) If any Hawaii financial institution, institution-affiliated party, or other person fails to pay an assessment after any administrative fine assessed under this chapter has become final, …

ARTICLE 3. ORGANIZATION AND MANAGEMENT OF FINANCIAL INSTITUTIONS PART I. GENERAL PROVISIONS §412:3-100 Applicability of this part. This part shall apply to all Hawaii financial institutions. [L 1993, c 350, pt of §1]

§412:3-101 Name of financial institution. (a) The name of every Hawaii financial institution shall be subject to the approval of the commissioner and shall conform with the provisions of section 414-51 or any successor thereto, whether or not the Hawaii financial institution is a…

§412:3-102 Change of name. To change its name, a Hawaii financial institution shall file an application with the commissioner. The application shall be approved if the commissioner is satisfied that the new name complies with this chapter and chapter 414. Any change of name of a …

§412:3-104 Qualifications of directors. Except for nondepository financial services loan companies, the board of directors of every Hawaii financial institution shall at all times consist of at least five directors, of whom at least three shall be residents of this State at the t…

§412:3-105 Election and appointment of executive officers. The directors of a Hawaii financial institution shall elect or appoint its executive officers. The directors may also appoint and employ all other necessary officers and agents, define their duties, fix their compensation…

§412:3-106 Residency of chief executive officer. The chief executive officer of every Hawaii financial institution, except a nondepository financial services loan company, shall be a resident of this State. If at any time a person holding the office ceases to be a state resident,…

§412:3-107 Meetings of the board. Except for nondepository financial services loan companies, the board of directors of every Hawaii financial institution shall hold a regular meeting at least once every three months. [L 1993, c 350, pt of §1]

§412:3-108 Generally accepted accounting principles. Every Hawaii financial institution shall follow generally accepted accounting principles, except as otherwise prescribed by the appropriate federal regulatory agency. [L 1993, c 350, pt of §1]

§412:3-109 Charging down assets. The commissioner may require any asset on the books of a Hawaii financial institution to be charged down to such sum as represents its fair value. [L 1993, c 350, pt of §1]

§412:3-110 Holding of assets. Every Hawaii financial institution shall take the action necessary to assure the safekeeping of its assets, and to keep them separate and apart from the assets or property of others. An institution may use the services of a correspondent financial or…

§412:3-111 Maintenance of books and records. (a) Every Hawaii financial institution shall keep its books and records in a safe and secure place in this State. The commissioner may authorize such records to be maintained outside this State. (b) A nondepository financial services l…

[§412:3-111.5] Request for information by the commissioner. The commissioner, for good cause, may at any time request records, documents, information, and reports from any financial institution regulated by the division of financial institutions. [L 2006, c 228, §1]

§412:3-112 Submissions to commissioner. (a) Every Hawaii financial institution, at its own expense, shall file the following written reports with the commissioner: Each report shall be signed by an officer authorized by the institution's board of directors to sign the report, and…

§412:3-114 Duty to report illegal acts. A Hawaii financial institution shall immediately notify the commissioner in writing of any act of robbery, embezzlement, or fraud committed in connection with its affairs whenever the concerned act involves a sum in excess of $100,000. [L 1…

§412:3-114.5 Mandatory reporting of suspected financial abuse of an elder. (a) A financial institution shall report suspected financial abuse that is directed towards, targets, or is committed against an elder to the department of human services and the appropriate county police …

PART II. ORGANIZATION OF BANKS, SAVINGS BANKS, SAVINGS AND LOAN ASSOCIATIONS, TRUST COMPANIES AND DEPOSITORY FINANCIAL SERVICES LOAN COMPANIES §412:3-200 Applicability of part. The provisions of this part shall govern the organization of Hawaii financial institutions that are ban…

§412:3-201 Application for preliminary approval to organize a financial institution. (a) Three or more individuals, of whom at least three are residents of the State, or any company that seeks to become a financial institution holding company may file an application with the comm…

§412:3-202 Additional requirements for holding company. An applicant for the organization of a Hawaii financial institution that will be a subsidiary of a holding company shall furnish the commissioner with the following additional information regarding the holding company, unles…

§412:3-203 Deferral of application requirements. For good cause, the commissioner may defer specific application requirements until the filing of an application for a charter or license. [L 1993, c 350, pt of §1; am L 2006, c 228, §17]

§412:3-204 Publication of notice. (a) Once the application to organize a Hawaii financial institution is complete and has been accepted by the commissioner, the applicant shall publish a notice at least once a week for three successive weeks in a newspaper of general circulation …

§412:3-205 Informational and comment proceeding on application. (a) An informational and comment proceeding on the application shall not be mandatory and whether an informational and comment proceeding is held shall be within the commissioner's discretion, regardless of whether a…

§412:3-206 Grant of preliminary approval to organize a financial institution. (a) Following the expiration of the time for the submission of written comments or the completion of an informational and comment proceeding, the commissioner shall issue a written decision and order on…

§412:3-207 Denial of preliminary approval to organize. If the commissioner is not satisfied that the applicant meets all the criteria set forth for preliminary approval to organize, the commissioner shall issue a written decision denying the applicant's application. An applicant …

§412:3-209 Paid-in capital and surplus. (a) Every financial institution existing or organized under the laws of this State shall at all times, and every applicant in organization shall, before filing the final application for a charter or license under this part and at all times …

§412:3-211 Time limit to complete organization. (a) A proposed Hawaii financial institution shall obtain its required capital and surplus, complete its organization, and obtain a charter or license from the commissioner within one year from the date of issuance of the decision an…

§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…

§412:3-213 Denial of charter or license. If the commissioner is not satisfied that the applicant meets all the criteria set forth for approval of the charter or license, the commissioner shall issue a written decision denying the applicant's application. An applicant who is denie…

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]

§412:3-301 Application for license. (a) Any corporation or any person intending to form a corporation incorporated in this State may file an application with the commissioner for a license to engage in the business of a nondepository financial services loan company. (b) The appli…

§412:3-302 Publication of notice. (a) Once the application for a license is complete and has been accepted by the commissioner, the applicant shall publish a notice at least once in a newspaper of general circulation in each county in this State where the nondepository financial …