Title 22, Banks And Financial Institutions

[§412:4-113] Savings promotion or prize-linked savings contest. (a) Any financial institution that is a depository institution may conduct a savings promotion or prize-linked savings contest if the depository institution: (b) Deposits made by a consumer into a savings account or …

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…

§412:5-201 Powers granted under federal law. (a) In this section "federal power" means any activity, right, privilege, or immunity granted to a national banking association under any federal statute, rule, regulation, interpretation or court decision. (b) Any bank desiring to acq…

§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…

§412:5-205.5 Insurance and annuities powers. (a) With the prior written approval of the commissioner, and subject to the limitations set forth in this section and section 412:5-205.6 and to any conditions the commissioner may impose, any bank organized under the laws of the State…

§412:5-205.6 Requirements of banks engaging in insurance activities. (a) Pursuant to section 412:5-205.5 a bank may engage in insurance underwriting if the following requirements are met: (b) Pursuant to section 412:5-205.5, a bank may engage in insurance sales through an indepen…

§412:5-205.7 Securities powers. (a) With the prior written approval of the commissioner, and subject to the limitations set forth in this section and to any conditions the commissioner may impose, any bank organized under the laws of the State, at the discretion of its board of d…

§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…

§412:5-306 Deposits made by banks. A bank may deposit any of its funds with (1) a federal reserve bank or a federal home loan bank in any amount, or (2) another depository institution, provided that the net deposits in any one depository institution does not exceed twenty-five pe…

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-201 Application; fee; approval. (a) No bank may establish a corporation to engage in foreign or international banking and other foreign or international financial activities unless it has filed an application with the commissioner and received approval and authority to es…

§412:5A-202 Majority ownership by bank. A majority of the shares of the capital stock of every international banking corporation shall be owned by a bank that is a Hawaii financial institution, a national bank whose operations are principally conducted in this State, or a wholly-…

§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:

§412:5A-206 Acceptance of deposits and reserves. An international banking corporation may only accept deposits subject to the provisions of this article. Whenever an international banking corporation receives deposits in the United States, as may be authorized by this section, it…

§412:5A-207 Deposit of corporate funds. No international banking corporation shall deposit its funds with another financial institution except in a federal reserve bank, unless the other financial institution has been designated a depository by the board of directors of the inter…

§412:5A-208 Limitation on investments. An international banking corporation may not invest its funds in the United States, except to the extent permitted by this part. [L 1993, c 350, pt of §1]

§412:5A-209 Acquisition of stock in competing corporation. No international banking corporation shall purchase, own, or hold stock or certificates of ownership in any other international banking corporation or any Edge corporation or similar corporation organized under the laws o…

§412:5A-210 Acquisition of stock to save a loss. Nothing in this part shall prevent an international banking corporation from acquiring and holding stock in any corporation if the acquisition is necessary to prevent a loss upon a debt previously contracted in good faith; provided…

§412:5A-211 Prohibited corporate activities. No international banking corporation shall directly or indirectly: Any violation of this section shall subject the international banking corporation to the revocation of its approval, and to such penalties and administrative fines pres…

§412:5A-212 Improper discounting of loans. No officer, director, agent or employee of an international banking corporation shall directly or indirectly, as an individual, purchase any loan or other obligation at a discount, or make any loan using a receivable as collateral, when …

§412:5A-213 Improper fixing of commodity prices. Any director, officer, agent, or employee of any international banking corporation who knowingly uses or conspires to use the credit, funds, or power of the international banking corporation to fix or control the price of any commo…

§412:5A-214 Misrepresentation of state liability for bonds. Any person connected in any capacity with an international banking corporation who represents in any way that the State is liable for the payment of any bond or other obligation, or the interest thereon, issued or incurr…

ARTICLE 6. SAVINGS BANKS PART I. GENERAL PROVISIONS §412:6-100 Definition. In this article, "savings bank" means a corporation which has the authority to operate as a savings bank under this chapter. [L 1993, c 350, pt of §1]

§412:6-101 Necessity for savings 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 savings bank is required by this chapter, including without limitation the solicitation, accepta…

PART II. POWERS OF SAVINGS BANKS §412:6-200 General powers. (a) Except as expressly prohibited or limited by this chapter, a savings bank shall have the power to solicit, accept and hold deposits, engage in other activities which are usual or incidental to the business of a savin…

§412:6-201 Powers granted under federal law. (a) In this section "federal power" means any activity, right, privilege, or immunity granted to a federal savings bank under any federal statute, rule, regulation, interpretation or court decision. (b) Any savings bank desiring to acq…

§412:6-202 Membership in federal home loan bank. Any savings bank may become a member of a federal home loan bank organized under authority of the Federal Home Loan Bank Act, or any successor or similar system of federal home loan banks established by Congress, and may purchase a…

§412:6-203 Service corporations. (a) "Service corporation" means a corporation whose stock is owned entirely by one or more state or federally chartered savings banks or savings and loan associations. (b) Subject to the approval of the commissioner, a savings bank may form and ow…