reglab/housing_qa huggingface dataset:
HI Rev Stat § 449-4 (2021)
2021 Hawaii Revised Statutes|Title 25. Professions and Occupations|449. Escrow Depositories|449-4 Administrative penalty.

  §449-4 Administrative penalty. (a) Any person who violates any of the provisions of this chapter, shall be subject to an administrative fine of a maximum of $5,000 for each violation. The commissioner may impose an administrative fine on a licensee or person subject to this chapter if the commissioner finds on the record after notice and opportunity for hearing that the licensee or person subject to this chapter has violated or failed to comply with any requirement of this chapter or any rule prescribed by the commissioner under this chapter or order issued under the authority of this chapter.  (b) Each violation under this chapter or failure to comply with any directive or order of the commissioner shall be a separate and distinct violation.  (c) Notwithstanding section 480-13.5, any violation of this chapter that is directed toward, targets, or injures an elder may be subject to an additional civil penalty not in excess of $10,000 for each violation in addition to any other fines or penalties assessed for the violation.  (d) No licensee shall be subject to this penalty for a violation of section 449-16(b) or (c) if the violation was not intentional or resulted from a bona fide error, notwithstanding the maintenance of procedures reasonably adopted to avoid that error. Examples of bona fide errors include, but are not limited to, clerical miscalculations, computer malfunction, printing errors, and computer programming errors. [L 1967, c 144, pt of §1; HRS §449-4; am L 1986, c 331, §2; am L 1992, c 205, §5; am L 2013, c 166, §3]
HI Rev Stat § 449-5 (2021)
2021 Hawaii Revised Statutes|Title 25. Professions and Occupations|449. Escrow Depositories|449-5 License required to act as escrow depository.

  §449-5 License required to act as escrow depository. (a) No person shall act as an escrow depository in this State unless it is a corporation licensed to do so by the commissioner.  No person subject to the provisions of this chapter not licensed or exempted under this chapter shall transact any business under any name, title or descriptive term which contains the words "escrow", "escrow depository", or any other word or phrase having the same or similar meaning.   (b) No person shall act as an escrow depository from an out-of-state location for property located in this State unless licensed to act as a Hawaii escrow depository by the commissioner. [L 1967, c 144, pt of §1; HRS §449-5; am L 1969, c 39, §1; am L 1985, c 269, §50; am L 2010, c 49, §1] Cross References  Title insurers or insurers, see §431:20-106.5.
HI Rev Stat § 449-5.5 (2021)
2021 Hawaii Revised Statutes|Title 25. Professions and Occupations|449. Escrow Depositories|449-5.5 Net capital.

  §449-5.5 Net capital. The net capital of any corporation engaging in the escrow depository business under this chapter shall not be less than $100,000. The amount of the minimum net capital of $100,000 shall be maintained at all times by the licensee. [L 1973, c 174, § §1, 2; am L 1976, c 101, §1; am L 2013, c 166, §4]
HI Rev Stat § 449-6 (2021)
2021 Hawaii Revised Statutes|Title 25. Professions and Occupations|449. Escrow Depositories|449-6 Application for license.

  §449-6 Application for license. (a) Any corporation desiring to be licensed as an escrow depository shall submit an application in writing and in a form prescribed by NMLS or by the commissioner. The application shall be accompanied by a filing fee no part of which shall be refundable.  (b) The application shall contain the following:  (1) The corporate name, amount of capital, and office address of the applicant;  (2) The names of the stockholders, officers, and directors of the applicant;  (3) Evidence of the character, financial responsibility, experience, and ability of the officers and directors;  (4) The names of the proposed escrow officers and their qualifications;  (5) The history of the applicant's material litigation and criminal convictions for the five-year period prior to the date of the application;  (6) Information and authorizations necessary to conduct a criminal history record check in accordance with section 846-2.7 of each of the applicant's controlling persons, and each of the officers, directors, and principals who will be in charge of the escrow depository's activities upon licensure, accompanied by the appropriate payment of the applicable fee for each record check; and  (7) Any other information the commissioner deems necessary to participate in NMLS. [L 1967, c 144, pt of §1; HRS §449-6; am L 1985, c 269, §50; am L 1992, c 205, §6; am L 2016, c 224, §3]
HI Rev Stat § 449-7 (2021)
2021 Hawaii Revised Statutes|Title 25. Professions and Occupations|449. Escrow Depositories|449-7 Investigation and ruling.

  §449-7 Investigation and ruling. The commissioner shall make an investigation into the information furnished by the applicant and may require the applicant to furnish additional information. If the commissioner is satisfied, with or without a hearing upon the application, that the applicant has met all the criteria set forth for approval, the commissioner shall approve the application. [L 1967, c 144, pt of §1; HRS §449-7; am L 1985, c 269, §50; gen ch 1985; am L 1987, c 6, §6; am L 1992, c 205, §7]
HI Rev Stat § 449-7.4 (2021)
2021 Hawaii Revised Statutes|Title 25. Professions and Occupations|449. Escrow Depositories|449-7.4 Grant of approval.

  §449-7.4 Grant of approval. (a) Following the hearing on the application, if any, the commissioner shall issue a written decision and order. If the commissioner decides in favor of the application, the commissioner shall issue a license to act as an escrow depository pursuant to section 449-8.  (b) Approval shall be granted only if the commissioner finds that the character, financial responsibility, experience, ability, and general fitness of the officers and directors are such as to command the confidence of the community in the State and to warrant the beliefs that the officers and directors are competent to successfully manage an escrow business and the applicant will be an honest and efficient escrow depository.  (c) In granting approval, the commissioner may impose such conditions and restrictions as shall be in the public interest, including without limitation requiring an applicant to fulfill representations contained in its application and agreements made during the application process. [L 1992, c 205, pt of §1]
HI Rev Stat § 449-7.5 (2021)
2021 Hawaii Revised Statutes|Title 25. Professions and Occupations|449. Escrow Depositories|449-7.5 Licensing requirements.

  §449-7.5 Licensing requirements. (a) Every corporation desiring to be licensed as an escrow depository shall be incorporated in this State and have and maintain a principal place of business in the State for the transaction of its escrow depository business.  (b) A license issued under this chapter shall be prominently displayed in the place or places of business of the escrow depository.  (c) The escrow depository business shall be under the direct management of an officer, or an employee, designated by its board of directors as escrow officer for the corporation. The licensee shall inform the commissioner in writing of any change to the designated escrow officer for the corporation at least fifteen days prior to the change, unless the change occurs so unexpectedly that the licensee is unable to provide fifteen days' prior notice; provided that when unexpected circumstances prevent prior notice, the licensee shall provide notice within five business days after the change. Within five business days of the designation of a new escrow officer by its board of directors, the licensee shall inform the commissioner in writing of the new escrow officer for the corporation, setting forth the experience, integrity, and competency of the new designated escrow officer in handling escrow transactions, and such other information as may be required by the commissioner. [L 1973, c 140, §1; am L 1985, c 269, §50; gen ch 1985; am L 1992, c 205, §8; am L 2013, c 166, §5]
HI Rev Stat § 449-8 (2021)
2021 Hawaii Revised Statutes|Title 25. Professions and Occupations|449. Escrow Depositories|449-8 Issuance and renewal of license.

  §449-8 Issuance and renewal of license. After approval of the application, and payment of the license fee, the commissioner shall issue to the applicant a license to act as an escrow depository. The license shall be effective only upon the applicant's filing with the commissioner an escrow depository's bond and evidence that fidelity bonds and errors and omissions insurance, or cash or securities deposits permitted in lieu thereof, have been obtained, all as provided in sections 449-9, 449-11, and 449-12. The license shall be renewed annually, as of December 31, upon payment of the annual renewal fee and the finding of the commissioner, from the information contained in the annual corporate exhibit of the licensee or investigation or hearing, that the licensee continues to meet the qualifications for licensing and has continued in force the bonds and insurance or the cash or securities deposits permitted in lieu thereof. [L 1967, c 144, pt of §1; HRS §449-8; am L 1970, c 72, §1; am L 1985, c 269, §50; am L 1992, c 205, §9; am L 2016, c 224, §4]
HI Rev Stat § 449-8.5 (2021)
2021 Hawaii Revised Statutes|Title 25. Professions and Occupations|449. Escrow Depositories|449-8.5 Denial of license.

  §449-8.5 Denial of license. If the commissioner is not satisfied that an 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 before the commissioner in accordance with chapter 91. Any final decision of the commissioner denying a license may be appealed to the circuit court as provided in chapter 91. [L 1992, c 205, pt of §1]
HI Rev Stat § 449-9 (2021)
2021 Hawaii Revised Statutes|Title 25. Professions and Occupations|449. Escrow Depositories|449-9 Escrow depository's bond.

  §449-9 Escrow depository's bond. Before an escrow depository's license becomes effective, the escrow depository shall give a bond to the commissioner in the penal sum of not less than $100,000 executed by a surety insurer authorized in this State, conditioned:  (1) That the escrow depository will honestly, faithfully, and with diligence apply all funds, other consideration, or property and instruments affecting title in accordance with the instructions under which the same were deposited with it, and will promptly account for the same; and  (2) That the escrow depository will satisfy all judgments and decrees which may be recovered against it in any action or proceeding brought under this chapter.  The aggregate liability of the surety for all breaches of the conditions of the bond shall, in no event, exceed the penal sum of the bond. In lieu of the bond, an escrow depository may deposit cash, a letter of credit, or securities acceptable to the commissioner. [L 1967, c 144, pt of §1; HRS §449-9; am L 1985, c 269, §50; am L 1992, c 205, §10]
HI Rev Stat § 449-10 (2021)
2021 Hawaii Revised Statutes|Title 25. Professions and Occupations|449. Escrow Depositories|449-10 Suit on bond.

  §449-10 Suit on bond. The commissioner, or any person claiming to have sustained damage by reason of the failure of the escrow depository to comply with its bond, may bring an action on the bond to recover the damage therefrom. The commissioner may deposit with a court of competent jurisdiction all or any part of the sum of the bond. [L 1967, c 144, pt of §1; HRS §449-10; am L 1985, c 269, §50; am L 1992, c 205, §11]
HI Rev Stat § 449-11 (2021)
2021 Hawaii Revised Statutes|Title 25. Professions and Occupations|449. Escrow Depositories|449-11 Fidelity bonds; insurance or other security devices.

  §449-11 Fidelity bonds; insurance or other security devices.  [See Note below.] A licensed escrow depository shall at all times either:  (1) Maintain a fidelity bond executed by a surety insurer authorized to do business in the State in an amount not less than $100,000; provided that any bond which is subject to a deductible thereunder in excess of $10,000 per occurrence shall require the prior approval of the commissioner, who may take into consideration, among other factors, the amount of the proposed bond; or  (2) Deposit an equivalent amount of cash or other security device under such terms and conditions as are acceptable to the commissioner, upon all of its directors, officers, and employees who have access to money or negotiable securities or instruments in its possession or under its control. Notwithstanding the above provision, the escrow depository may carry bonds or deposit cash or securities above the amounts required by the commissioner. [L 1967, c 144, pt of §1; HRS §449-11; am L 1970, c 72, §2; am L 1985, c 269, §50; am L 1996, c 41, §1; am L 2001, c 184, §3; am L 2013, c 166, §7] Note  The 2013 amendment, with respect to licensees in operation on June 21, 2013, shall take effect on the date of the renewal of the security device, but not later than July 1, 2014. L 2013, c 166, §11.
HI Rev Stat § 449-12 (2021)
2021 Hawaii Revised Statutes|Title 25. Professions and Occupations|449. Escrow Depositories|449-12 Errors and omissions insurance or other security devices.

  §449-12 Errors and omissions insurance or other security devices. [See Note below.] A licensed escrow depository shall at all times either:  (1) Maintain a policy of errors and omissions insurance executed by an insurer authorized to do business in the State in an amount not less than $250,000; provided that any policy which is subject to a deductible thereunder in excess of $100,000, per occurrence, shall require the prior approval of the commissioner, who may take into consideration, among other factors, the amount of the proposed coverage; or  (2) Deposit an equivalent amount of cash or other security device under such terms and conditions as are acceptable to the commissioner. [L 1967, c 144, pt of §1; HRS §449-12; am L 1970, c 72, §3; am L 1985, c 269, §50; am L 1992, c 205, §12; am L 1996, c 41, §2; am L 2013, c 166, §8] Note  The 2013 amendment, with respect to licensees in operation on June 21, 2013, shall take effect on the date of the renewal of the security device, but not later than July 1, 2014. L 2013, c 166, §11.
HI Rev Stat § 449-13 (2021)
2021 Hawaii Revised Statutes|Title 25. Professions and Occupations|449. Escrow Depositories|449-13 Cancellation of bonds or insurance; withdrawal of deposits.

  §449-13 Cancellation of bonds or insurance; withdrawal of deposits. None of the bonds or insurance or deposits in lieu thereof required by this chapter shall be canceled or withdrawn as to future accruing liability except upon prior written notice to the commissioner: sixty days' notice for the bonds or deposits, and thirty days' notice for the insurance. The license of any licensee shall be suspended upon cancellation of any bond or insurance or upon withdrawal of any deposit in lieu thereof. [L 1967, c 144, pt of §1; HRS §449-13; am L 1969, c 67, §1; am L 1970, c 72, §4; am L 1976, c 101, §2; am L 1985, c 269, §50]
HI Rev Stat § 449-14 (2021)
2021 Hawaii Revised Statutes|Title 25. Professions and Occupations|449. Escrow Depositories|449-14 Fees.

  §449-14 Fees. (a) The following fees shall be paid by licensed escrow depositories to the commissioner and, together with any administrative penalty or other charge assessed under this chapter, shall be deposited into the compliance resolution fund established pursuant to section 26-9(o):  (1) For filing and investigation of an escrow depository's application for license, $5,000;  (2) For initial issuance of an escrow depository license, $2,000;  (3) For an application for approval to establish a branch office, $100;  (4) For an application for approval to relocate an existing office or branch, $100;  (5) For annual renewal of an escrow depository's license, $2,000;  (6) For initial issuance and annual renewal of a branch office license, $100;  (7) For reissuance of a license for the change in the business address of its office, $50; provided that a reissuance caused by changes to the address by the United States Postal Service shall not require payment of a fee;  (8) For reissuance of a license for a change in the licensee's name, $50;  (9) For an application for a proposed change in control of the licensee, $5,000; and  (10) For an application for approval to cease business as an escrow depository, $0.  (b) For all escrow depositories examined by the commissioner or the commissioner €²s staff, the commissioner:  (1) May charge an examination fee based upon the cost per hour per examiner. The hourly fee shall be $60;  (2) May charge additional amounts for travel, per diem, mileage, and other reasonable expenses incurred in connection with the examination; and  (3) Shall bill the affected escrow depository for examination fees and expenses as soon as feasible after the close of the examination or investigation. The affected escrow depository shall pay the division within thirty days following the billing. All payments shall be deposited into the compliance resolution fund established pursuant to section 26-9(o). Any dispute by the affected escrow depository relating to these billings shall be reviewed by the commissioner who may modify, waive, or suspend any billing.  (c) An escrow depository that fails to make a payment required by this section shall be subject to an administrative penalty of not more than $200 per day for each day it is in violation of this section.  (d) Any fee authorized by this section may be set or modified by the commissioner by rule adopted pursuant to chapter 91. [L 1967, c 144, pt of §1; HRS §449-14; am L 1973, c 141, §1; am L 1979, c 219, §4; am L 1985, c 269, §50; am L 1992, c 205, §13; am L 1996, c 41, §3; am L 1999, c 129, §18; am L 2001, c 184, §4; am L 2013, c 166, §9; am L 2016, c 224, §6]
HI Rev Stat § 449-16 (2021)
2021 Hawaii Revised Statutes|Title 25. Professions and Occupations|449. Escrow Depositories|449-16 Accounting for moneys, property, etc.

  §449-16 Accounting for moneys, property, etc. (a) Every licensee under this chapter shall have the responsibility of a trustee for all moneys, other consideration, or instruments received by it. No licensee shall mingle any such moneys or other property with its own moneys or other property, or with moneys or other property held by it in any other capacity. All moneys held by a licensee in escrow as herein defined shall be deposited in financial institutions, payable on demand. Under this chapter, deposits in financial institutions are limited to sweep accounts as described in this section, checking accounts, money market deposit accounts, and savings accounts with no specified maturity date. Deposits at financial institutions may be held in sweep accounts, provided that:  (1) The licensee using the sweep account shall have a net worth of not less than $1,000,000;  (2) The sweep account is a deposit account administered by a financial institution in which the moneys over a minimum balance are periodically transferred into a money market mutual fund account invested only in obligations of:  (A) The United States government;  (B) Agencies backed by the full faith and credit of the United States government; or  (C) Agencies originally established or chartered by the United States government to serve public purposes; and  periodically recredited to the sweep account; and  (3) The licensee is liable for all moneys transferred to the money market mutual fund account under the sweep account, including any loss of value.  (b) No licensee shall disburse funds from an escrow account until cash and or items sufficient to fund any disbursements from the account have been received and deposited to the account, and with respect to such items the licensee complies with the provisions of either paragraphs (1) or (2) hereof.  (1) Where an item has been received and submitted for collection, no licensee shall disburse funds from an escrow account with respect to the item until final settlement of the item has been received by the financial institution to which the item has been submitted for collection.  (2) No licensee shall disburse funds from the escrow account with respect to an item drawn on a financial institution until the licensee confirms that sufficient collected funds are on deposit in the drawer's account.  (c) A licensee may deliver any money, consideration, or instrument affecting the title to real property prior to funds becoming available for disbursement under subsection (b) if it has received the written consent of the parties to the transaction. [L 1967, c 144, pt of §1; HRS §449-16; am L 1985, c 269, §50; am L 1986, c 331, §3; am L 2001, c 184, §5] Case Notes  Fiduciary duty of escrow depository owed only to escrow parties. 4 H. App. 41, 659 P.2d 759 (1983).
HI Rev Stat § 449-16.5 (2021)
2021 Hawaii Revised Statutes|Title 25. Professions and Occupations|449. Escrow Depositories|449-16.5 Earnings on funds.

  §449-16.5 Earnings on funds. In all escrow agreements involving the purchase of real property or appurtenances thereon and in which an escrow depository acts as a fiduciary party holding the funds in escrow, any earnings on such funds during the holding thereof shall accrue to the credit of the purchaser in such transaction unless otherwise instructed in writing by the purchasers and sellers in the escrow. [L 1974, c 95, §2; am L 2001, c 184, §6] Case Notes  Interest accrues only where funds are in hands of a third party and not where payment is made to the seller. 60 H. 467, 591 P.2d 1060 (1979).
HI Rev Stat § 449-17 (2021)
2021 Hawaii Revised Statutes|Title 25. Professions and Occupations|449. Escrow Depositories|449-17 Revocation and suspension of licenses.

  §449-17 Revocation and suspension of licenses. The commissioner may revoke any license issued hereunder, or suspend the right of the licensee to use the license, for any of the following causes:  (1) Making any misrepresentation concerning any escrow transaction;  (2) Making any false promises concerning any escrow transaction of a character likely to mislead another;  (3) Pursuing a continued and flagrant course of misrepresentation, or making of false promises, through advertising or otherwise;  (4) Without first having obtained the written consent so to do of both parties involved in any escrow transaction, acting for both parties in connection with such transaction, or collecting or attempting to collect commissions or other compensation for its services from both of the parties;  (5) Failing, within a reasonable time, to account for any moneys belonging to others which may be in the possession or under the control of the licensee;  (6) Any other conduct constituting fraudulent or dishonest dealings;  (7) Violating any of the provisions of this chapter or the rules promulgated pursuant thereto;  (8) Splitting fees with or otherwise compensating others not licensed hereunder for referring business;  (9) Commingling the moneys or other property of others with its own;  (10) Engaging in an unsafe or unsound practice that is likely to cause insolvency or substantial dissipation of assets or earnings of the licensee;  (11) Failing to maintain books and records that are sufficiently complete and accurate so as to permit the commissioner to determine the financial condition of the licensee; and  (12) Ceasing, for a period of six consecutive months or more, to engage in the business for which its license was granted.  No license shall be suspended for longer than five years and no corporation whose license has been revoked shall be eligible to apply for a new license until the expiration of five years. [L 1967, c 144, pt of §1; HRS §449-17; am L 1985, c 269, §50; am L 1998, c 69, §1]
HI Rev Stat § 449-18 (2021)
2021 Hawaii Revised Statutes|Title 25. Professions and Occupations|449. Escrow Depositories|449-18 REPEALED.

  §449-18 REPEALED. L 1992, c 205, §15.