reglab/statecodes huggingface dataset:
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:3-403 Dividends and other capital distributions.

§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; provided that if section 414-111 is inconsistent with this section, the provisions of this section shall control.
(b) In this section, "capital distribution" means:
(1) A distribution of cash or other property by any Hawaii stock financial institution to its owners made on account of that ownership, but excluding any dividends consisting only of shares of the capital stock of the financial institution or rights to purchase such shares;
(2) A payment by any stock financial institution to repurchase, redeem, retire, or otherwise acquire any of its shares or other ownership interest, including any extensions of credit to finance an affiliated company's acquisition of those shares or interests; or
(3) A transaction that the commissioner determines, by order or rule, to be in substance a distribution of capital to the owners of the financial institution.
(c) A Hawaii stock financial institution shall not make any capital distribution in an amount greater than its retained earnings then on hand or if after such capital distribution the financial institution shall not have the minimum paid-in capital and surplus required by this chapter. For purposes of this section the amount of retained earnings on hand, capital and surplus shall be determined in accordance with generally accepted accounting principles, except that:
(1) All loans and extensions of credit on which interest has been delinquent for one year or more, or upon which a final judgment has been unsatisfied for more than one year and interest has been delinquent for one year or more, unless and to the extent the same are well secured or in the process of collection shall have been charged down;
(2) All assets which the commissioner may have required to be charged down pursuant to section 412:3-109, shall have been charged down; and
(3) Any loss sustained or charge made by a Hawaii financial institution as provided in this subsection shall be netted first against any reserve established therefor, then charged to retained earnings, then to surplus, and then to capital.
(d) Before making any capital distribution, each Hawaii stock financial institution, except for a nondepository financial services loan company, shall, until its capital and surplus equal at least one hundred thirty-three per cent of its initial minimum capital and surplus required under section 412:3-209, transfer to surplus from its retained earnings at least twenty-five per cent of its net profits from the preceding fiscal year. [L 1993, c 350, pt of §1; am L 2002, c 40, §19]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:3-500 Prohibition of business at unauthorized locations.

§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 this part and except to the extent so authorized. [L 1993, c 350, pt of §1]
Cross References
Automated teller machine fees, see §412:14-100.
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:3-502 Foreign financial institution.

§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, unless expressly authorized by this chapter, other laws of this State, or federal law; provided that nothing in this section shall prohibit any foreign financial institution from participating in the disbursement of cash through an automated teller machine network or from operating from any location in this State as a licensee under chapter 454F, or as a real estate collection servicing agent. [L 1993, c 350, pt of §1; am L 1999, c 254, §2; am L Sp 2009, c 32, §3; am L 2010, c 84, §7; am L 2014, c 9, §4]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:3-503 Opening or relocating principal office, branch, or agency.

§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 prior written approval; provided, that approval shall not be required if the relocation will be less than one mile from the institution's present place of business, the institution gives the commissioner written notice at least twenty days prior to the move, the type of business carried on at the new place of business will be the same as at the present place of business, and there will be no financial involvement in the relocation by a director, executive officer, or principal shareholder, or a related interest of any of these persons.
(b) The institution shall file an application with the commissioner. The application shall be in a form prescribed by the commissioner and shall be accompanied by a fee if required by section 412:2-105.2. The application shall contain the following information:
(1) The name of the financial institution;
(2) The specific location of the proposed site of the principal office, branch, or agency;
(3) The anticipated opening date and, if open for a specified period, the end of such period;
(4) The nature of the business or transactions intended to be carried on at the location;
(5) Facts showing the necessity or justification for the proposed site and that there is a reasonable assurance of sufficient volume of business so that opening and maintaining the proposed business location will not jeopardize the solvency of the financial institution; and
(6) Any other information that the commissioner may require.
(c) If after appropriate examination and investigation, the commissioner is satisfied that the proposed opening or relocation is justified and proper, the commissioner shall approve the application in writing, with any conditions as the commissioner deems appropriate. Upon payment by a financial services loan company of the initial license fee for the new branch or agency, or the reissuance of license fee for the relocated office as established by rule pursuant to chapter 91, the commissioner shall issue a license for the new or relocated office. [L 1993, c 350, pt of §1; am L 2016, c 149, §6]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:3-504 Notice and deadline for opening or relocating principal office, branch, or agency.

§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 has been completed, no later than five days after the opening or relocation. If the opening or relocation will not be completed within nine months after the opening date stated in the application, the financial institution may obtain from the commissioner an extension of the time to open or relocate, which shall be reasonably granted for good cause. If an extension of time to open or relocate is not obtained in writing, the commissioner may revoke the permission to open or relocate. [L 1993, c 350, pt of §1]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:3-505 Opening or relocating out-of-state branch or agency.

§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 of the United States or any foreign country. An application to open or relocate an out-of-state branch or agency shall be filed in accordance with section 412:3-503. [L 1993, c 350, pt of §1; am L 2013, c 172, §17]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:3-506 Opening or relocating a support facility

§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:
(1) The location of the support facility;
(2) A description of the type of functions which the support facility will perform; and
(3) The date or anticipated date of opening or relocation. [L 1993, c 350, pt of §1; am L 2006, c 228, §22]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:3-507 Closing branch or agency; temporary closures and relocations.

§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:
(1) The intended date of closing;
(2) The reasons for the closing; and
(3) A certification by the secretary or other authorized officer of the institution that the decision to close was duly approved by its board of directors.
This notice may be satisfied by providing to the commissioner a copy of any notice pertaining to the closure given to the financial institution's appropriate federal regulatory agency.
(b) A Hawaii financial institution may temporarily close or relocate a branch or agency for a period of time up to one hundred eighty days, or a longer time period as determined necessary by the commissioner in the event of an emergency or for other good cause. For purposes of this section, an emergency means a situation of an unusual or compelling urgency that creates a threat to life, public health, welfare, or safety by reason of major natural disaster, epidemic, riot, fire, or other reason as determined by the commissioner. Written notice of a temporary closure or relocation shall be provided to the commissioner and to the Hawaii financial institution's customers as soon as practicable, and shall state:
(1) The reasons for the temporary closure or relocation;
(2) The expected date of reopening; and
(3) Information regarding where and how customers of the closed or relocated branch or agency will be accommodated during the temporary closure or relocation.
The notice provided to the Hawaii financial institution's customers shall be in the form of a sign posted in a safe, conspicuous location on or in proximity to the primary public entrance of the branch or agency that has been or will be temporarily closed or relocated. Notice of the reopening of the branch or agency that was temporarily closed or relocated shall be provided to the commissioner within five days of the reopening. Written notice to the commissioner of temporary closure and subsequent reopening of a branch or agency shall not be required when the Hawaii financial institution reopens at that location within two business days. [L 1993, c 350, pt of §1; am L 2008, c 196, §5; am L 2009, c 107, §1]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:3-508 Closing a support facility.

§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 1993, c 350, pt of §1; am L 2006, c 228, §23]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:3-509 Out-of-state branch or agency.

§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:
(1) The accounts of each out-of-state branch or agency of the financial institution shall be maintained independently of the accounts of all its other out-of-state branches or agencies, and independently of its offices, branches, and agencies in this State. At the end of every quarter of its fiscal year the financial institution shall transfer to its general ledger at its principal office the profit and loss from each out-of-state branch or agency as separate items;
(2) The commissioner may at any time conduct examinations of any out-of-state branch or agency and may at any time order its discontinuance for the same reasons as a branch or agency within the State may be ordered to be discontinued. The financial institution maintaining the out-of-state branch or agency shall pay for the cost of all examinations, as provided in section 412:2-105; and
(3) A financial institution may act as the fiscal agent of the United States through any of its out-of-state branches or agencies. [L 1993, c 350, pt of §1]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:3-600 Applicability of this part.

§412:3-600 Applicability of this part.
This part applies to:
(1) The conversion, merger, consolidation, acquisition of assets or assumption of liabilities or deposits, acquisition of control, voluntary cessation of business, or voluntary dissolution involving a Hawaii financial institution;
(2) The merger, consolidation, or acquisition of control of a financial institution holding company which controls:
(A) A Hawaii financial institution; and
(B) To the extent permitted by federal law, a federal financial institution whose operations are principally conducted in this State; and
(3) All persons who seek to merge or consolidate with, acquire the assets or assume the liabilities of, or acquire control of:
(A) A Hawaii financial institution;
(B) A financial institution holding company which controls a Hawaii financial institution; and
(C) To the extent permitted by federal law, a financial institution holding company which controls a federal financial institution whose operations are principally conducted in this State. [L 1993, c 350, pt of §1; am L 1994, c 107, §10; am L 1998, c 39, §1]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:3-601 No conversions, mergers, consolidations, acquisitions, assumptions, voluntary cessations of business, or voluntary dissolutions except pursuant to this part.

§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 institution or financial institution holding company may acquire all or substantially all of the assets or assume any of the liabilities of another company, undergo a conversion, merger, or consolidation, sell all or substantially all of its assets, be subject to any assumption of any of its liabilities or to an acquisition of control, cease business, or dissolve except in accordance with this part. [L 1993, c 350, pt of §1; am L 1994, c 107, §11; am L 1998, c 39, §2]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:3-602 Definitions.

§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 the financial institution resulting from a merger, consolidation or conversion 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 › 412:3-604 Shareholder or member vote.

§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:
(1) If a Hawaii financial institution is a stock institution, the holders of two-thirds of each class of the issued and outstanding capital stock of the financial institution entitled to vote, or such greater majority as may be provided by the articles of incorporation of the Hawaii financial institution, shall be required to approve any action under this part; or
(2) If a Hawaii financial institution is a credit union, a majority of members present in person at any meeting shall be required to approve any action under this part.
(b) This section shall control over the required percentages for any shareholder vote contained in section 414-313 on approval by shareholders of a merger or consolidation, section 414-332 on approval by shareholders on the sale of assets not in the usual and regular course of business, and section 414-382 on approval by shareholders on the voluntary dissolution of a corporation. [L 1993, c 350, pt of §1; am L 1994, c 107, §13; am L 2002, c 40, §20; am L 2006, c 228, §24]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:3-605 Notice to credit union member.

§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 shall be provided not less than twenty days before the date of the meeting. The notice shall state that the purpose or one of the purposes of the meeting is to vote upon a transaction covered by this part and shall be accompanied by a detailed description of the proposed transaction or a summary of the transaction and a copy of the plan of conversion, merger, consolidation, sale of assets or assumption of liabilities, or voluntary cessation of business and dissolution approved by the board of directors. [L 1993, c 350, pt of §1; am L 2002, c 40, §21; am L 2006, c 228, §25]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:3-606 Conversion from State to comparable federal financial institution.

§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 vote which satisfies the requirements of section 412:3-604.
(b) Within ten days after the meeting of its shareholders or members approving the conversion, the financial institution shall file with the commissioner:
(1) A notice of intention to convert; and
(2) A certificate signed by two executive officers of the financial institution verifying the validity of the meeting, that the required vote was obtained, and that the attached copy of the resolution to convert adopted at the meeting is true and correct.
(c) Within a reasonably prompt time and without any unnecessary delay after the meeting approving the conversion, the financial institution shall take the action necessary to complete the conversion and to obtain a federal license, charter, certificate, or other approval to become a federal financial institution.
(d) The date of issuance of the federal license, charter, certificate, or other approval, or the effective date of conversion stated in the license, charter, certificate or other approval, shall be the effective date of the conversion.
(e) Upon the effective date of the conversion as determined under federal law, the institution's state charter or license shall terminate without further notice, and the institution shall cease to be regulated by the commissioner. Within ten days after receipt of the federal charter, license, certificate, or other approval, the resulting financial institution shall deliver a copy thereof to the commissioner. The resulting financial institution shall also file with the director of commerce and consumer affairs a confirmation in writing by the commissioner of the date and time of the conversion, together with the appropriate filing fee pursuant to chapter 414. [L 1993, c 350, pt of §1; am L 1995, c 54, §1; am L 2002, c 40, §22]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:3-607 Conversion from federal to comparable Hawaii financial institution.

§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 holding companies, if any, shall have complied with all requirements, conditions, and limitations imposed by federal law with respect to the conversion, subject to any rights of dissenting shareholders or members and to obtaining a charter under this chapter.
(b) The federal financial institution shall file an application with the commissioner pursuant to section 412:3-603 for a charter to engage in business as a comparable Hawaii financial institution pursuant to this chapter. The application shall be accompanied by:
(1) A certificate signed by two executive officers of the financial institution, verifying that it has complied with all federal laws and regulations relating to the conversion;
(2) The information required from applicants for approval to organize a Hawaii financial institution of the same type; and
(3) Any other information that the commissioner may require.
(c) The commissioner may require notice to be given to the public as may be deemed appropriate. The commissioner may conduct an examination of the institution as provided under article 2, part II. The cost of any examination shall be assessed against and paid by the institution pursuant to section 412:2-105.
(d) The charter shall be granted only if the commissioner is satisfied that the granting of the charter will not impair the safety or soundness of the financial institution or any other financial institution, and that the applicant meets all the requirements set forth in this chapter for the type of financial institution for which the application has been filed. The requirements shall include, but not be limited to, the appropriate location of offices, capital structure, business experience, the character of its executive officers and directors, and compliance with all applicable provisions of chapter 414. The director of commerce and consumer affairs shall not file the articles of incorporation until the application for a charter to engage in business as a Hawaii financial institution shall have been approved by the commissioner in writing. The commissioner may impose any restrictions and conditions on the operation of the resulting financial institution as the commissioner deems appropriate and consistent with federal law.
(e) The conversion shall be effective upon the filing of articles of incorporation by the director of commerce and consumer affairs after all provisions of this section and applicable federal law have been complied with in full. [L 1993, c 350, pt of §1; am L 1995, c 54, §2; am L 2002, c 40, §23]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:3-614 Sale or transfer of charter or license prohibited.

§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 of a conversion, merger, consolidation, sale, assumption or acquisition of control permitted under this part. Any attempted sale, transfer, or disposition in violation of this section shall be null, void, and unenforceable. [L 1993, c 350, pt of §1]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:3-615 Nonconforming assets or business.

§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 assumption, or if it may no longer engage in certain types of business activities, the commissioner shall, as part of the order approving the transaction, allow a reasonable time within which the institution may divest itself of the nonconforming assets or business activities in order to conform with law. [L 1993, c 350, pt of §1]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:3-616 Authority for expedited conversion, merger, consolidation, acquisition, or assumption.

§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 conversion, merger, consolidation, acquisition, or assumption pursuant to this part and order the transaction to take effect immediately; provided that the financial institutions shall have complied with any applicable federal law and provided that the commissioner finds that such expedited action is necessary to protect the financial institutions' depositors, beneficiaries, creditors, or shareholders, or the public. The commissioner's findings shall be expressed in writing as part of the decision and order approving the conversion, merger, consolidation, acquisition, or assumption. [L 1993, c 350, pt of §1]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:3-618 Injunctions.

§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 the person from violating or continuing to violate this part or any rule or order and for injunctive relief as the nature of the case or the interests of the financial institution or the financial institution holding company or its depositors, beneficiaries, creditors or shareholders may require. [L 1993, c 350, pt of §1]
Rules of Court
Injunctions, see HRCP rule 65.
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:4-100 Law applicable.

§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 sections of this article shall apply to all Hawaii financial institutions and, to the extent permitted by federal law, to federal financial institutions that are authorized to solicit, accept, and hold deposits in this State.
(b) Other provisions of the laws of this State, including, but not limited to, chapter 490, the Uniform Commercial Code, chapter 551E, the Uniform Power of Attorney Act, chapter 553A, Uniform Transfers to Minors Act, chapter 556, the Uniform Fiduciaries Act, chapter 560, the Uniform Probate Code, and any successor or similar acts shall also be applicable to deposits in this State. The rights, protections, releases and discharges of financial institutions with respect to its depositors or third parties contained in this article and other applicable laws shall be cumulative. [L 1993, c 350, pt of §1; am L 2014, c 22, §2; am L 2019, c 253, §4]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:4-101 Forms of deposit.

§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 412:9-500 with respect to nondepository financial services loan companies, Hawaii financial institutions may open accounts and accept deposits therein of any type generally accepted by financial institutions in the United States.
(b) Hawaii financial institutions may open accounts and accept deposits therein in the name of one or more persons, in the person's own right or in a fiduciary or other representative capacity, in any form of ownership not inconsistent with the laws of this State. [L 1993, c 350, pt of §1; am L 1995, c 55, §1]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:4-102 Deposit account statements.

§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 balances of the account for the period of the statement; provided that quarterly statements need not be provided to any holders of passbooks or certificates of deposit or time deposit accounts, whether or not matured. [L 1993, c 350, pt of §1]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:4-103 Statements presumed correct after one year; statute of limitations.

§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 one year from the date of its first rendition, and unless the holder has objected to such statement within such period, the account shall be deemed finally adjusted and settled.
(b) Any legal action to correct the account not brought within one year shall be barred; provided, however, that the period for commencement of any legal action shall be extended for any length of time that the financial institution has been given notice by the account holder of any alleged error within said one-year period and the financial institution has not denied the account holder's objection to the correctness of the statement.
(c) A statement of account shall be deemed to have been rendered when the financial institution has made a notation in the account holder's passbook, or has provided either a deposit account statement showing the balance of the account and the transactions since the last statement, or a written notice reasonably calculated to apprise the holder of such transactions and balance.
(d) The account holder of an account has a duty to exercise reasonable care and diligence in examining any statement rendered by the financial institution, if any, and nothing in this section relieves the holder of such duty or from the consequences of neglecting such duty. [L 1993, c 350, pt of §1]
Cross References
Multiple-party accounts, see chapter 560, article VI.
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:4-104 Federal deposit insurance required.

§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 Deposit Insurance Corporation or a successor agency. No credit union which is a Hawaii financial institution shall accept deposits or issue shares unless such deposits or shares are insured to the extent allowed by the National Credit Union Administration or a successor agency. [L 1993, c 350, pt of §1]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:4-105 Accounts held in more than one name.

§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 received for deposit to an account in the name of more than one person, or to inquire as to the proposed application of any sum paid from the account. Unless the terms of the deposit account clearly require the signature of more than one person for payment, transfer or withdrawal:
(1) Payment, transfer or withdrawal of funds therefrom by or on the order of any of the persons shall release and discharge the financial institution from any liability for the paid, transferred or withdrawn funds with respect to all of the persons, and no action at law or equity may be maintained against the financial institution for payment, transfer or withdrawal made in accordance with this section; and
(2) If the account is pledged, but not all the owners of the account sign the pledge, the pledge shall nevertheless be valid as to all funds in the account, and the pledge shall not operate to sever or terminate the form of multiple ownership of the account. [L 1993, c 350, pt of §1]
Cross References
Multiple-party accounts, see chapter 560, article VI.
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:4-106 Fiduciary accounts.

§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 subject to the following treatment:
(1) If a financial institution has not received written notice and is not on actual notice that a fiduciary named on a deposit account has been removed, resigned, died or adjudicated an incapacitated person by a court of competent jurisdiction under applicable law, it may make payments or allow transfers or withdrawals from the account to or on the order of the fiduciary in accordance with the provisions of its contract with the account holder;
(2) Any fiduciary who withdraws funds from a fiduciary account and whose name appears as a fiduciary on such account shall be presumed by the financial institution to be acting within the scope of any authority granted or belonging to the fiduciary. A payment, transfer or withdrawal from the account made by or on the order of the fiduciary payable to or for the benefit or account of the fiduciary or credited to the personal account of the fiduciary shall not be sufficient in the absence of actual knowledge on the part of the financial institution to charge it with a duty of inquiry or notice of any infirmity or defect in the right or title of the fiduciary to the funds paid, transferred or withdrawn;
(3) If a financial institution pays funds or allows the transfer or withdrawal of funds from a fiduciary account according to the provisions of this section or other applicable law of this State, such payment, withdrawal or transfer shall operate to release and discharge the financial institution of any further liability to any person with respect to the funds so paid, transferred or withdrawn, and no action at law or equity may be maintained against the financial institution for payment, transfer or withdrawal made in accordance with this section;
(4) A financial institution which pays or allows any transfer or withdrawal from a fiduciary account pursuant to this section shall not be liable for any estate taxes that may be due with respect to said account;
(5) Notwithstanding the foregoing, trust accounts established by the financial institution meeting the definition of "trust account" in section 560:6
-
101 shall be subject to the treatment provided in article VI of chapter 560. [L 1993, c 350, pt of §1]
Cross References
Uniform Fiduciaries Act, see chapter 556.
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:4-107 Accounts of minors.

§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 person. All relations between the financial institution and the minor shall be on the same basis as though the minor were an adult, and any payment, transfer or withdrawal made to or on the order of the minor shall operate to release and discharge the financial institution for the paid, transferred or withdrawn funds with respect to all persons, and any pledge of the account by the minor shall be valid. Provided, however, that in case any guardian, conservator or trustee is appointed for the minor by a court having jurisdiction, the financial institution may pay over or credit to the guardian, conservator or trustee the deposit and interest or dividends pertaining thereto, and such payment or credit shall operate to release and discharge the financial institution from further liability to the guardian, conservator or trustee and to the minor with respect to the funds so paid or credited. No action at law or equity may be maintained against the financial institution for payment, transfer, withdrawal or pledge made in accordance with this section. [L 1993, c 350, pt of §1]
Cross References
Uniform Transfers to Minors Act, see chapter 553A.
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:4-108 No notice of incapacity.

§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 allow transfers or withdrawals from the account to or on the order of the account holder in accordance with the provisions of its contract with the holder, and such payment, transfer or withdrawal shall operate to release and discharge the financial institution from further liability to the account holder and the holder's successors in interest with respect to the funds so paid, transferred or withdrawn, and no action at law or equity may be maintained against the financial institution for payment, transfer or withdrawal in accordance with this section. [L 1993, c 350, pt of §1]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:4-109 Checks drawn or transfers or withdrawals made by authorized persons.

§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 from the account, the financial institution, in the absence of proper written notice to the contrary, shall be justified in presuming that any check drawn on the account or transfer or withdrawal made by or on the order of the authorized person in the form or manner authorized by the account contract, including payments, transfers or withdrawals made to or for the account and benefit of the authorized person, was paid or made for a purpose authorized by the account holder and within the scope of the authority conferred upon the authorized person. The death, disability or incapacity of the account holder does not revoke or terminate the authority granted by the holder as to the financial institution if, without actual knowledge of the death, disability or incapacity of the holder, the financial institution acts in good faith in accordance with the authorization. Any payment, transfer or withdrawal paid or allowed by the financial institution pursuant to this section shall release and discharge the financial institution from any liability to any person for the funds paid, transferred or withdrawn, and no action at law or equity may be maintained against the financial institution for payment, transfer or withdrawal in accordance with this section. [L 1993, c 350, pt of §1]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:4-110 Checks drawn or transfers or withdrawals made by intoxicated persons.

§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 in good faith have reason to believe that the person signing or indorsing the instrument is or was so under the influence of alcohol, drugs or other intoxicating substances as to make it doubtful whether the person is or was at the time of signing or indorsing the instrument capable of intelligently transacting business; and no action at law or equity may be maintained against the financial institution or its officers or employees on account of any refusal pursuant to this section. [L 1993, c 350, pt of §1]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:4-111 Accounts of deceased nonresidents.

§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 $5,000 in net value, may be paid to the executor, administrator or other personal representative of the decedent appointed by a court of competent jurisdiction therein. Upon presentation of letters of administration or other documentation purporting to establish the appointment under the law of the decedent's domicile, the financial institution may make the payment without requiring the filing of ancillary proceedings in this State. Upon such payment, the financial institution shall be released and discharged of any further liability to any person with respect to the funds so paid, and no action at law or equity may be maintained against the financial institution for payment made in accordance with this section. [L 1993, c 350, pt of §1]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:4-112 Pledging of assets.

§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 pledge or hypothecate its assets as collateral security therefor.
(b) A financial institution may pledge its assets to secure deposits or borrowing of public funds. For purposes of this section, "public funds" means funds belonging:
(1) To the State, if credited to the State or to the official credit of the director of finance;
(2) To any county within the State, if credited to such county or to the official credit of the treasurer or similar fiscal officer of the county;
(3) To the government of any state or foreign country, or any territory or possession thereof, or any of its political subdivisions, instrumentalities or municipalities, in which the pledging financial institution has a branch office, if credited to such government or to the official credit of the treasurer or similar fiscal officer thereof;
(4) To the United States, if credited in such manner and under such rules and regulations as may be prescribed by the United States government.
Once the financial institution has complied with all conditions necessary for the return of any assets it has pledged to secure the deposit or borrowing of the public funds, the government official in possession of such assets shall promptly return the same to the financial institution. If such assets are not so returned, the financial institution shall have its appropriate remedies at law and in equity, including, in the case of the State or any county of the State, the remedies under chapter 38; provided, that nothing in this subsection shall permit the avoidance of any requirements or liabilities imposed on the State or any county under chapter 38. [L 1993, c 350, pt of §1]
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:4-113 Savings promotion or prize-linked savings contest.

§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:
(1) Conducts the savings promotion contest in a manner that ensures that each entry has a chance of winning the designated prize based on the number of entries;
(2) Requires the deposit of a minimum specified amount of money in a savings account or other savings promotion or prize-linked savings contest program to qualify for a chance to win the designated prizes;
(3) Offers an interest rate that is commensurate with the interest rate that the depository institution offers on comparable savings accounts or savings promotion or prize-linked savings programs that are not subject to a savings promotion or prize-linked savings contest;
(4) Fully discloses the terms and conditions of the savings promotion or prize-linked savings contest to each of its account holders; and
(5) Maintains records sufficient to facilitate an audit of the savings promotion or prize-linked savings contest.
(b) Deposits made by a consumer into a savings account or other savings program shall remain under the ownership of the consumer.
(c) A financial institution that offers a savings promotion or prize-linked savings contest shall comply with the requirements of the American Savings Promotion Act, Public Law 113-251, and the regulations promulgated by the federal prudential regulators of the financial institutions applicable to the savings promotion or prize-linked savings contest program.
(d) For the purposes of this section, "financial institution" shall have the same meaning as in section 412:1-109. [L 2019, c 253, §2]
Cross References
Savings promotion or prize-linked savings contest not gambling, see §712-1232.
2023 Hawaii Revised Statutes › Title 22. Banks and Financial Institutions › 412. Code of Financial Institutions › 412:5-101 Necessity for bank charter.

§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 of deposits in the State, the use of the term "bank", or the exercise of such other powers or privileges restricted to banks under applicable law unless it is a corporation incorporated in this State and has such a charter. [L 1993, c 350, pt of §1; am L 2002, c 40, §29]