reglab/statecodes huggingface dataset:
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:2-501 Commissioner's determination of failing institution.

§412:2-501 Commissioner's determination of failing institution.
(a) Upon determining that a Hawaii financial institution is a failing financial institution, the commissioner shall serve written notice of such determination to the institution. The notice shall set forth the basis for the commissioner's determination, and shall indicate that the commissioner intends to implement the provisions of this part.
(b) If the financial institution contests the commissioner's determination, it shall petition the circuit court to enjoin the commissioner's action, not more than five days after receiving notice of the commissioner's determination that it is a failing financial institution. A hearing on the petition shall be held not more than fifteen days after the petition is filed, and in all other respects the matter shall be expedited. The hearing under this subsection shall be closed to the public.
(c) An order by the circuit court made pursuant to this section may be appealed to the intermediate appellate court, subject to chapter 602, but no stay of the order shall be granted pending such appeal.
(d) All court records, documents and files of the financial institution, the division of financial institutions, and the court, so far as they pertain to or are part of the record of the proceedings, shall be and remain confidential. The court may, after hearing the arguments from the parties in chambers, order disclosure of documents for good cause. Unless otherwise ordered, all papers filed with the court shall be sealed from the public and held in a confidential file.
(e) Nothing in this section shall preclude any action by the commissioner under any of the other powers granted to the commissioner by this chapter. [L 1993, c 350, pt of §1; am L 2004, c 202, §48; am L 2006, c 94, §1; am L 2010, c 109, §1]
Rules of Court
Appeals to appellate courts, how taken, see HRAP rule 3.
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:2-502 Solicitation of purchasers.

§412:2-502 Solicitation of purchasers.
If the court sustains the commissioner's determination that the financial institution is a failing financial institution, or if the institution has not contested the determination and the time for petitioning the court has passed, the commissioner may solicit applications to merge with the failing financial institution or with its holding company, or to purchase all or part of the assets or assume all or part of the liabilities of the failing financial institution, or to purchase the capital stock of the failing financial institution or its holding company. The solicitation may be by private letter, by personal contact, or by publication, as in the commissioner's discretion may be appropriate in order to obtain as many fair offers as possible with the least danger to the safety of the failing financial institution, its depositors and creditors, and the general public. The commissioner may disclose information concerning the failing financial institution as shall be necessary for the prospective applicants to formulate a proposal to purchase; provided that the recipients of the information shall be required to keep the information confidential. [L 1993, c 350, pt of §1; am L 1994, c 107, §4]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:2-503 Applications to purchase.

§412:2-503 Applications to purchase.
(a) If the failing financial institution is a bank, savings bank, or depository financial services loan company that is a Hawaii financial institution, or if the institution to result from the acquisition proposed in the application is to be any of the foregoing, the commissioner may accept an application under this part only from:
(1) A Hawaii financial institution;
(2) A federal financial institution whose operations are principally conducted in this State (unless the operations of any holding company of such an applicant are principally conducted elsewhere than in Hawaii);
(3) A resulting bank as defined in article 12;
(4) An out-of-state bank as defined in article 12;
(5) The holding company of any of the foregoing, if any; and
(6) A person that is not a company.
(b) No application shall be accepted which provides for a merger or consolidation of a failing financial institution or a purchase of its assets or assumption of its liabilities, or a purchase of its capital stock if, as a result of such merger, consolidation, purchase or assumption, any person would be eligible to receive deposits in this State other than through a Hawaii financial institution, a federal financial institution whose operations are principally conducted in this State, or a resulting bank as defined in article 12.
(c) An application filed under this part shall contain such information as the commissioner may require, and shall indicate:
(1) Whether the applicant proposes to merge with the failing financial institution, purchase all or part of its assets and assume all or part of its liabilities or purchase its capital stock;
(2) The consideration to be paid; and
(3) How the proposed purchase will promote the safety and soundness of the failing financial institution, protect its depositors and creditors, and otherwise be in the public interest.
(d) The commissioner may establish a reasonable deadline for the receipt of applications. [L 1993, c 350, pt of §1; am L 1995, c 33, §1; am L 1996, c 207, §4; am L 1999, c 245, §2]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:2-504 Granting of application; criteria for approval.

§412:2-504 Granting of application; criteria for approval.
In evaluating the applications filed under this part, the commissioner shall consider the following factors:
(1) Whether immediate action is necessary;
(2) The financial and managerial resources of the applicant and its holding company, if any;
(3) The probable viability of the failing financial institution after the acquisition or merger has been completed;
(4) Whether any federal agency is prepared to offer financial assistance to facilitate the acquisition or merger, and the amount of such assistance;
(5) Whether the effect of the proposed acquisition or merger may be substantially to lessen competition, or tend to create a monopoly or restraint of trade in any section of the country that includes the State or a part thereof, and whether these anti-competitive effects would be clearly outweighed in the public interest by the probable effect of the acquisition in meeting the convenience and needs of the community to be served;
(6) The convenience and needs of the public;
(7) The welfare of the depositors and creditors of the failing financial institution;
(8) The principal place of business of the applicant, the state where its operations and those of its affiliates are principally conducted, and their current business relationships with Hawaii-based businesses; and
(9) Any other factors which the commissioner may deem relevant.
The commissioner may negotiate with all or any of the applicants to modify any proposal, may accept more than one proposal if one involves only part of the assets or stock of the failing financial institution, and may condition any approval of an application upon the observance of such requirements as the commissioner deems appropriate. Nothing in this section shall require the commissioner to approve any application or accept any proposal made pursuant to this part. [L 1993, c 350, pt of §1]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:2-505 Waiver of statewide concentration limits under the Bank Holding Company Act of 1956, as amended.

§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 probable failure of the Hawaii financial institution, the commissioner shall have the power to issue a waiver of those statewide concentration limits. [L 1993, c 350, pt of §1; am L 1995, c 33, §2]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:2-506 Charter or license.

§412:2-506 Charter or license.
In any acquisition pursuant to this part, a charter or license shall be required for:
(1) Any Hawaii financial institution resulting from a consolidation of an acquirer with a failing financial institution; and
(2) Any new corporation (except a federal financial institution) formed to merge with or acquire the assets of a failing financial institution pursuant to this chapter, whether or not a provisional approval to organize has been issued to such corporation. [L 1993, c 350, pt of §1]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:2-507 Expedited approvals.

§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 authorizing the following:
(1) In the case of a Hawaii financial institution seeking to acquire the failing financial institution, expedited approval for the establishment of a branch;
(2) In the case of a new corporation or for a qualified bidder, a charter for a bank or savings bank or a license to engage in the business of a depository financial services loan company; provided that the applicant has secured provisional approval to organize as required in section 412:2-508. [L 1993, c 350, pt of §1; am L 1999, c 245, §3]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:2-508 Provisional approval to organize.

§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 failing financial institution in a transaction meeting the requirements of this part and other applicable law.
(b) Applications for a provisional approval shall be filed with the commissioner, and shall provide the information required by this chapter for preliminary approval to organize the type of financial institution that will result from the merger or acquisition under this part. The applicant shall also furnish such other information as the commissioner may require, and an application fee assessed pursuant to section 412:2-105.2.
(c) The commissioner may expedite consideration of an application filed under this section, and may grant the application for a provisional approval without any investigation or publication of notice or informational and comment proceeding; provided, that if after granting of approval, the commissioner discovers any reason why approval should not have been granted, the approval may be revoked by giving written notice of revocation to the applicant.
(d) Except as otherwise provided in this section, the provisional approval shall enable the applicant to accomplish only the merger or acquisition, or both, as shall be specified in the approval.
(e) Any provisional approval shall expire one year after it has been granted, or upon issuance of a charter or license as provided in this chapter, whichever first occurs. The commissioner may extend the expiration date of a provisional approval for good cause. If the merger or acquisition is not consummated before the expiration of the provisional approval, or any extended time granted by the commissioner the approval shall be void and of no further effect. [L 1993, c 350, pt of §1; am L 2002, c 40, §12; am L 2013, c 172, §12]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:2-509 Effect of merger or acquisition on prior business, title and obligations.

§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 acquisition consummated under this part. [L 1993, c 350, pt of §1]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:2-510 Commissioner's powers.

§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 other authority and powers under this article. [L 1993, c 350, pt of §1]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:2-511 Modification of time periods.

§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 §1]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:2-600 Applicability of part.

§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 penalties and administrative fines provided in this part. The provisions of this part shall be in addition to the prohibitions set forth elsewhere in this chapter.
(b) If a contract is made or any other act is done or omitted in good faith reliance on an interpretation of this chapter made by the supreme court of this State or in a rule duly adopted by the commissioner pursuant to chapter 91, no penalty imposed by this chapter shall apply, notwithstanding that after such contract is made, such interpretation or rule is amended, rescinded, or determined by judicial or other authority to be invalid for any reason. [L 1993, c 350, pt of §1]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:2-601 Violation of chapter.

§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 pursuant to sections 706-663 and 706-640. [L 1993, c 350, pt of §1; am L 1998, c 196, §7]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:2-602 Copying records of Hawaii financial institutions.

§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 or for the use of any other person other than in the ordinary and regular course of the party's duties, shall be guilty of a misdemeanor punishable pursuant to sections 706
-
663 and 706
-
640. [L 1993, c 350, pt of §1]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:2-603 Disclosures of records of Hawaii financial institutions.

§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 a misdemeanor punishable pursuant to sections 706-663 and 706-640. [L 1993, c 350, pt of §1]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:2-604 Concealment.

§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 to whom it should be properly disclosed shall be guilty of a misdemeanor punishable pursuant to sections 706
-
663 and 706
-
640. [L 1993, c 350, pt of §1]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:2-606 Witness; failure to testify or produce records.

§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 subpoena or lawful requirements of the commissioner, or an examiner employed by the commissioner, shall be guilty of a misdemeanor punishable pursuant to sections 706
-
663 and 706
-
640. [L 1993, c 350, pt of §1]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:2-606.5 Financial institution name fraud.

§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 are used without the written consent of the financial institution and in a manner that would lead a reasonable person to believe that the material or solicitation originated from, was endorsed by, is related to, or is the responsibility of the financial institution or its affiliates or subsidiaries.
(b) The commissioner may impose a civil penalty of up to $10,000 for each violation of this section. [L 2008, c 51, §2]
Revision Note
Enacted as an addition to article 1 of chapter 412, this section was redesignated to this article pursuant to §23G-15.
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:2-607 Deception; false statements.

§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:
(1) With intent to deceive, makes any false or misleading statement or entry or omits any statement or entry required by law or rule to be made in any book, account, report or statement of the institution; or
(2) Knowingly obstructs or endeavors to obstruct a lawful examination or investigation of the institution or any of its affairs by an official or employee of the division.
(b) Any person who intentionally or knowingly makes, circulates, or transmits to another or others any statement or rumor, written, printed, or by word of mouth, which is untrue in fact and is directly or by inference derogatory to the financial condition or affects the solvency or financial standing of any Hawaii financial institution that is a depository financial institution, or who knowingly counsels, aids, procures, or induces another to start, transmit or circulate such statement or rumor, shall be guilty of a misdemeanor punishable pursuant to sections 706-663 and 706-640.
(c) Any person who maliciously or for personal financial gain makes, circulates, or transmits to another or others any statement or rumor, written, printed, or by word of mouth, which is untrue in fact and is directly or by inference derogatory to the financial condition or affects the solvency or financial standing of any Hawaii financial institution that is a depository institution, or who maliciously or for personal financial gain counsels, aids, procures, or induces another to start, transmit or circulate any such statement or rumor, shall be guilty of a class C felony punishable pursuant to sections 706-660 and 706-640. [L 1993, c 350, pt of §1]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:2-608 Misapplication of funds.

§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 held in trust shall be guilty of a class C felony punishable pursuant to sections 706-660 and 706-640. However, if the amount abstracted or wilfully misapplied does not exceed $300, the institution-affiliated party shall be guilty of a misdemeanor punishable pursuant to sections 706-663 and 706-640. [L 1993, c 350, pt of §1]
Cross References
Suspected financial abuse of an elder, mandatory reporting, see §412:3-114.5.
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:2-609.5 Imposition of administrative fines on persons who are not Hawaii financial institutions; assessment.

§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:
(1) Commits a violation of any law or rule for which a penalty or fine is not expressly provided in this chapter;
(2) Commits a violation of any order issued by the commissioner;
(3) Commits a violation of any condition imposed in writing by the commissioner in connection with the grant of any application or other request by the person; or
(4) Commits a violation of any written agreement between the commissioner and the person;
may be ordered by the commissioner to pay an administrative fine of not more than $100,000 for each day during which the violation continues.
(b) Any administrative fine imposed under subsection (a) may be assessed and collected by the commissioner by service of written notice and order upon that person at the person's last known home or office address by means of certified mail, return receipt requested. If, with respect to any such assessment, a hearing is not requested pursuant to section 412:2-610(c) within the period of time allowed under section 412:2-610(c), the assessment shall constitute a final and unappealable order. [L 1998, c 196, §1]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:2-610 Compromise or modification of administrative fines; determining amount of fine; hearing.

§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 exempt violations of informal enforcement actions from the administrative fines and penalties set forth in this chapter.
(b) In determining the amount of any administrative fine imposed under this chapter, the commissioner shall take into account the appropriateness of the fine with respect to all of the following:
(1) The size of financial resources and good faith of the financial institution or the person charged;
(2) The gravity of the violation, practice, or breach;
(3) The history of previous violations, unsafe or unsound practices, or breaches of fiduciary duty owed to the financial institution;
(4) The extent to which a federal agency has, by imposing a fine for similar conduct, mitigated the need for imposition of a particular level of administrative fine under this chapter; and
(5) Such other matters as justice may require.
(c) The Hawaii financial institution or other person against whom any administrative fine is assessed under this chapter shall be afforded a hearing in accordance with chapter 91 if the financial institution or person submits a written request for a hearing within twenty days after the service of the notice of assessment. [L 1993, c 350, pt of §1; am L 1998, c 196, §9]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:2-611 Action to recover administrative fines; deposit to compliance resolution fund.

§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, the commissioner shall recover the amount assessed by action in circuit court, in which case the commissioner may request the court to award reasonable attorney's fees and costs.
(b) All administrative fines collected under authority of this chapter shall be deposited in the compliance resolution fund established under section 26-9(o). [L 1993, c 350, pt of §1; am L 1996, c 207, §5; am L 1998, c 196, §10; am L 1999, c 129, §10]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:3-101 Name of financial institution.

§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 corporation. If the Hawaii financial institution is incorporated, its name may, but need not, contain the word "corporation", "incorporated", or "limited", or an abbreviation of any of the words.
(b) Prior to using a trade name or a fictitious name, a Hawaii financial institution shall provide written notification to the commissioner. [L 1993, c 350, pt of §1; am L 2002, c 40, §13; am L 2006, c 228, §11]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:3-102 Change of name.

§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 stock financial institution pursuant to this section shall be effected in accordance with chapter 414. Any change of name shall not affect a financial institution's rights, liabilities, or obligations existing prior to the effective date thereof, and no documents of transfer shall be necessary to preserve the rights, liabilities, or obligations; provided that the commissioner may require notice to be given to the public and other governmental agencies. [L 1993, c 350, pt of §1; am L 2002, c 40, §14; am L 2006, c 228, §12; am L 2013, c 172, §13]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:3-104 Qualifications of directors.

§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 time of their election and while holding office. If any resident director ceases to be a resident of this State or ceases to be a director, and such circumstance causes the number of resident directors on the board to be fewer than three, another resident director shall be immediately elected or appointed in accordance with the institution's bylaws. Except for nondepository financial services loan companies, the board of directors of any financial institution, which is a wholly-owned subsidiary of a holding company incorporated in another state shall at all times consist of at least five directors, of whom at least one shall be a resident of this State at the time of election and while on the board. [L 1993, c 350, pt of §1; am L 1996, c 63, §2]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:3-105 Election and appointment of executive officers.

§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, dismiss them, and require that they be bonded. Except for the election or appointment of executive officers, the board of directors may delegate to such officers the employment, discharge, fixing of compensation, bonding, and supervision of subordinate officers, employees and agents. [L 1993, c 350, pt of §1]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:3-106 Residency of chief executive officer.

§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, that person's tenure shall automatically cease, and a successor, alternate, or substitute who is a state resident shall be immediately appointed or elected, as provided in the institution's bylaws. [L 1993, c 350, pt of §1]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:3-107 Meetings of the board.

§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]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:3-110 Holding of assets.

§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 organization as a depository for securities owned or held as collateral, or a computer service organization for accounting, or the practice of nominee registration of title of securities. [L 1993, c 350, pt of §1]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:3-111.5 Request for information by the commissioner.

§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]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:3-114 Duty to report illegal acts.

§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 1993, c 350, pt of §1; am L 2006, c 228, §14]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:3-114.5 Mandatory reporting of suspected financial abuse of an elder.

§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 department if:
(1) In connection with providing financial services to the elder, the officer or employee of a financial institution:
(A) Has direct contact with the elder; or
(B) Reviews or approves the elder's financial documents, records, or transactions; and
(2) The officer or employee, within the scope of employment or professional practice:
(A) Observes or has knowledge of an incident the officer or employee believes in good faith appears to be financial abuse; or
(B) In the case of officers or employers who do not have direct contact with the elder, has a good faith suspicion that financial abuse has occurred or may be occurring, based solely on the information present at the time of reviewing or approving the document, record, or transaction.
(b) Suspected financial abuse shall be reported by telephone, facsimile, or electronic device, immediately or as soon as practicably possible, to the department and the appropriate county police department.
(c) Upon notification by a financial institution of suspected financial abuse, the department, in a timely manner, shall determine whether the department has jurisdiction over the elder involved and proceed in accordance with chapter 346.
(d) Upon notification by a financial institution of suspected financial abuse, the county police department, in a timely manner, shall proceed with a criminal investigation.
(e) Notwithstanding any other state law to the contrary, including but not limited to laws concerning confidentiality, any person, including a financial institution, who:
(1) Participates in the making of a report pursuant to this section; and
(2) Believes, in good faith, that the action is warranted by facts known to that person,
shall have immunity from any liability, civil or criminal, that might be otherwise incurred or imposed by or as a result of the making of the report. Any person making the report shall have the same immunity with respect to participation in any judicial proceeding resulting from the report.
(f) For the purposes of this section:
"Department" means the department of human services.
"Elder" means a person who is sixty-two years of age or older.
"Financial abuse" means to wrongfully take, appropriate, obtain, or retain, or assist in taking, appropriating, obtaining, or retaining, real or personal property of an elder by any means, including undue influence, or with intent to defraud the elder. [L 2007, c 94, §2; am L 2013, c 216, §1]
Cross References
For other actions or penalties for violations committed against elders, see § §28-94, 444-10.7, 480-13, 480-13.5, 485A-603.5, 485A-604.5, and 487-14.
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:3-200 Applicability of part.

§412:3-200 Applicability of part.
The provisions of this part shall govern the organization of Hawaii financial institutions that are banks, savings banks, savings and loan associations, trust companies, and depository financial services loan companies. [L 1993, c 350, pt of §1]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:3-203 Deferral of application requirements.

§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]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:3-204 Publication of notice.

§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 in each county in this State where the proposed financial institution intends to establish a principal office, branch, or agency.
(b) The notice shall be in a form prescribed by the commissioner and shall state the fact that an application has been filed, the names of the applicant and organizers, the location of the financial institution's proposed places of business, and the amount of its proposed capital. The notice shall also state that within fifteen days after the last publication of the notice any person may file with the commissioner written comments on the application or a request for an informational and comment proceeding to present information and comments to the commissioner. Any request for an informational and comment proceeding shall be accompanied by a brief statement of the person's interest in the application, the matters to be discussed at the informational and comment proceeding, and the reasons why written comments will not suffice in lieu of an informational and comment proceeding. [L 1993, c 350, pt of §1; am L 2006, c 228, §18]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:3-205 Informational and comment proceeding on application.

§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 any person has requested one.
(b) If the commissioner determines that an informational and comment proceeding is warranted, the commissioner shall notify the applicant and every person who has requested an informational and comment proceeding of the time, date, and place of the proceeding at least ten days prior to the proceeding. [L 1993, c 350, pt of §1]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:3-207 Denial of preliminary approval to organize.

§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 who is denied approval may request a hearing before the commissioner in accordance with chapter 91. Any final decision of the commissioner denying an applicant preliminary approval to organize may be appealed to the circuit court as provided in chapter 91. [L 1993, c 350, pt of §1]
Rules of Court
Appeals, see HRCP rule 72.
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:3-209 Paid-in capital and surplus.

§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 thereafter, have paid-in capital and surplus of not less than the following amounts for each type of institution specified below:
Banks $5,000,000
Savings banks $3,000,000
Savings and loan associations $2,000,000
Trust companies $1,500,000
Nondepository trust companies $1,000,000
Depository financial services
loan companies $1,000,000
(b) The initial paid-in capital and surplus of each financial institution shall be in money or in the form of such other property as may be authorized by the board of directors and approved in writing by the commissioner. [L 1993, c 350, pt of §1; am L 2021, c 105, §3]
Cross References
Nondepository financial services loan companies, paid-in capital and surplus, see §412:3-306.
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:3-211 Time limit to complete organization.

§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 and order granting the application for preliminary approval to organize; provided that for good cause shown by the applicant in organization, the commissioner may by written order extend the deadline for a period not to exceed six months.
(b) If the applicant in organization fails to meet the deadline set forth in subsection (a), the commissioner shall order the applicant in organization to dissolve the proposed Hawaii financial institution. [L 1993, c 350, pt of §1; am L 2006, c 228, §20]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:3-213 Denial of charter or license.

§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 denied approval may request a hearing before the commissioner in accordance with chapter 91. Any final decision of the commissioner denying an applicant a charter or license may be appealed to the circuit court as provided in chapter 91. [L 1993, c 350, pt of §1]
Rules of Court
Appeals, see HRCP rule 72.
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:3-302 Publication of notice.

§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 services loan company intends to establish a principal office, branch or agency.
(b) The notice shall be in a form prescribed by the commissioner and shall state the fact that an application has been filed, the name of the applicant, the location of the nondepository financial services loan company's proposed place of business, and the amount of its proposed capital. The notice shall also state that within fifteen days after the last publication of the notice, any person may file with the commissioner written comments on the application or a request for an informational and comment proceeding to present information and comments to the commissioner. Any request for an informational and comment proceeding shall be accompanied by a brief statement of the person's interest in the application, the matters to be discussed at the informational and comment proceeding, and the reasons why written comments will not suffice in lieu of an informational and comment proceeding. [L 1993, c 350, pt of §1; am L 1994, c 107, §8]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:3-303 Informational and comment proceeding.

§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 requested one.
(b) If the commissioner determines that an informational and comment proceeding is warranted, the commissioner shall notify the applicant and every person who has requested an informational and comment proceeding of the time, date, and place of the proceeding at least ten days prior to the proceeding. [L 1993, c 350, pt of §1]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:3-305 Denial of license.

§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 before the commissioner in accordance with chapter 91. Any final decision of the commissioner denying an applicant a license may be appealed to the circuit court as provided in chapter 91. [L 1993, c 350, pt of §1]
Rules of Court
Appeals, see HRCP rule 72.
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:3-306 Paid-in capital and surplus.

§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 nondepository financial services loan company shall be in money. [L 1993, c 350, pt of §1; am L 1996, c 63, §5]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:3-401 Applicability of Hawaii Business Corporation Act.

§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 case of any inconsistencies, the provisions of this chapter shall control.
(b) A copy of each document delivered to the director of commerce and consumer affairs for filing pursuant to chapter 414 shall be simultaneously delivered to the commissioner. [L 1993, c 350, pt of §1; am L 2002, c 40, §17]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:3-402 Capital stock.

§412:3-402
Capital stock.
The following provisions shall apply to all shares of capital stock of a Hawaii stock financial institution:
(1) Subject to any restrictions in chapter 414 or the articles of incorporation, the consideration to be paid for the issuance of authorized capital stock of a Hawaii stock financial institution shall be authorized by the board of directors of the financial institution and shall be paid only in money or such other consideration as may be authorized by chapter 414 or this chapter, but not in labor or services actually performed for the financial institution; provided that upon authorization by the board of directors, the financial institution may issue its own authorized shares of capital stock in exchange for or in conversion of its outstanding shares, or distribute its own shares pro rata to its shareholders or the shareholders of one or more classes or series, to effectuate stock dividends or splits, and any such transaction shall not require consideration; provided further that no such issuance of shares of any class or series shall be made to the holders of shares of any other class or series unless it is either expressly provided for in the articles of incorporation, or is authorized by the affirmative vote or the written consent of the holders of at least a majority of the outstanding shares of the class or series in which a distribution is to be made.
(2) No Hawaii financial institution shall issue any share of its capital stock unless and until the full amount of any consideration therefor as authorized by the board of directors shall have been paid into or received by the financial institution.
(3) No Hawaii stock financial institution other than a nondepository financial services loan company shall issue preferred stock without first obtaining the written approval of the commissioner as to the amount and terms thereof. While any preferred stock of a financial institution is held as owner or pledgee by any federal agency or entity established by law for the purpose of providing financial assistance to financial institutions, such preferred stock and any dividends paid thereon shall be exempt from taxation by this State.
(4) No Hawaii stock financial institution other than a nondepository financial services loan company shall decrease its authorized capital stock or the par value of capital stock having par value, or decrease its outstanding capital stock by the acquisition of its own shares, without first receiving the written approval of the commissioner. [L 1993, c 350, pt of §1; am L 2002, c 40, §18]