Title 22, Banks And Financial Institutions

§412:3-303 Informational and comment proceeding. (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 any person has r…

§412:3-304 Grant of approval. (a) An application for a license shall be approved only if the commissioner finds that: (b) If the commissioner is satisfied that the applicant has fulfilled all the requirements of law and is qualified to engage in the business of a nondepository fi…

§412:3-305 Denial of license. If the commissioner is not satisfied that the applicant meets all the criteria set forth for approval, the commissioner shall issue a written decision denying the applicant's application. An applicant who is denied approval may request a hearing befo…

§412:3-306 Paid-in capital and surplus. (a) Every nondepository financial services loan company conducting business under the laws of this State shall at all times have paid-in capital and surplus of not less than $500,000. (b) The initial paid-in capital and surplus of every non…

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…

§412:3-402 Capital stock. The following provisions shall apply to all shares of capital stock of a Hawaii stock financial institution:

§412:3-403 Dividends and other capital distributions. (a) No Hawaii stock financial institution shall declare or pay any dividends or make any other capital distribution to its shareholders except pursuant to its articles of incorporation, this section, and section 414-111; provi…

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…

§412:3-501 Authorized places of business. (a) A Hawaii financial institution may conduct business at one or more of the following places of business, to the extent authorized: (b) In addition to conducting business at a place of business described in subsection (a), a Hawaii fina…

§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…

§412:3-503 Opening or relocating principal office, branch, or agency. (a) No Hawaii financial institution may relocate its [principal] office to another location in this State, or open or relocate any branch or agency within or outside of this State without the commissioner's pri…

§412:3-504 Notice and deadline for opening or relocating principal office, branch, or agency. Every financial institution permitted under this part to open or relocate a principal office, branch, or agency shall notify the commissioner in writing that the opening or relocation ha…

§412:3-505 Opening or relocating out-of-state branch or agency. With the commissioner's prior written approval, a Hawaii financial institution may open or relocate a branch or agency that is outside of this State, including but not limited to any state, possession, or territory o…

§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 …

§412:3-509 Out-of-state branch or agency. A Hawaii financial institution maintaining a branch or agency outside of this State shall be subject to the following requirements:

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…

§412:3-603 Procedure for applications pursuant to this part. Whenever the written approval of the commissioner is required with respect to any transaction covered by this part, the following procedures shall apply:

§412:3-604 Shareholder or member vote. (a) For any transaction covered by this part that requires approval of the shareholders or members of the financial institution, the voting requirements shall be: (b) This section shall control over the required percentages for any sharehold…

§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 …

§412:3-606 Conversion from State to comparable federal financial institution. (a) A Hawaii financial institution may convert to a comparable federal financial institution if the conversion is approved at a meeting of its shareholders or members duly called and noticed and upon a …

§412:3-607 Conversion from federal to comparable Hawaii financial institution. (a) A federal financial institution whose operations are principally conducted in this State may convert to a comparable Hawaii financial institution if the institution, and its holding company or hold…

§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…

§412:3-609 Merger or consolidation of Hawaii financial institutions. (a) Any one or more financial institutions may merge into another financial institution and any two or more financial institutions other than credit unions may consolidate into a new financial institution if the…

§412:3-610 Effect of conversion, merger, or consolidation. (a) A Hawaii financial institution or federal financial institution resulting from a conversion, merger, or consolidation pursuant to this part continues the corporate entities of each converting or participating institut…

§412:3-611 Merger or consolidation of financial institution holding companies. (a) Unless the commissioner shall have given prior approval or shall have waived the requirement for approval pursuant to subsection (e), no financial institution holding company shall merge or consoli…

§412:3-612 Acquisition of control of financial institution or financial institution holding company. (a) Unless the commissioner shall have given prior approval or shall have waived the requirement for approval pursuant to subsection (g): (b) Notwithstanding subsection (a), this …

§412:3-613 Sale or acquisition of assets and transfer or assumption of liabilities. (a) No Hawaii financial institution may sell, exchange, or otherwise dispose of all or substantially all of the financial institution's assets or business, or all or substantially all of the busin…

§412:3-614 Sale or transfer of charter or license prohibited. No Hawaii financial institution may sell, transfer, or otherwise dispose of any charter, license, approval, or any other right or privilege granted under this chapter, unless the sale, transfer, or disposition is part …

§412:3-615 Nonconforming assets or business. If a Hawaii financial institution resulting from a conversion, merger, consolidation, acquisition, or assumption by law may no longer own certain types of assets once it undergoes the conversion, merger, consolidation, acquisition, or …

§412:3-616 Authority for expedited conversion, merger, consolidation, acquisition, or assumption. Upon application of all participating financial institutions in a conversion, merger, consolidation, acquisition or assumption, the commissioner may expedite any application for conv…

§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…

§412:3-618 Injunctions. If it appears to the commissioner that any person has committed or is about to commit a violation of any provision of this part or any rule or order of the commissioner under this part, the commissioner may apply to the circuit court for an order enjoining…

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…

§412:4-101 Forms of deposit. (a) Except as specifically prohibited by federal law or any provision of this chapter, and subject to section 412:8-200 with respect to trust companies, section 412:9-400 with respect to depository financial services loan companies, and section 412:9-…

§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…

§412:4-103 Statements presumed correct after one year; statute of limitations. (a) Any statement of account rendered by a financial institution to the account holder, and in the case of a multi-party account to any one holder, shall be conclusively presumed to be correct after on…

§412:4-104 Federal deposit insurance required. No bank, savings bank, savings and loan association and depository financial services loan company which is a Hawaii financial institution shall accept deposits unless such deposits are insured to the extent allowed by the Federal De…

§412:4-105 Accounts held in more than one name. Any deposit account held in the names of two or more persons may be paid, on request and according to its terms, to any one or more of the persons. A financial institution shall not be required to inquire as to the source of funds r…

§412:4-106 Fiduciary accounts. A financial institution may open accounts and accept deposits therein in the name of a person as a trustee, personal representative, guardian, conservator, agent, custodian or other fiduciary for one or more other persons. Such accounts shall be sub…

§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…

§412:4-111 Accounts of deceased nonresidents. A deposit held in a financial institution in the name of a person who dies while domiciled in another state, the District of Columbia and any territory or possession of the United States, leaving an estate in this State which exceeds …

§412:4-112 Pledging of assets. (a) No financial institution shall give a preference to any depositor by pledging the assets of the financial institution, except as otherwise authorized by this chapter; provided that any financial institution may for any purpose borrow money and p…