reglab/statecodes huggingface dataset:
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 25 - APPLICATION PROCEDURES RELATING TO HAWAII FINANCIAL INSTITUTIONS › Subchapter 6 - REQUESTS FOR OPINIONS AND INTERPRETATIONS OF STATUTE OR RULE › Section 16-25-61 - Inquiries from the public

Current through June, 2024
Any opinion, interpretation, or advice rendered by the
				  division shall be in keeping with the division's regulatory purpose. The
				  division shall not render opinions or interpretations to private individuals,
				  as to determine an individual's rights against an
				  institution.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 25 - APPLICATION PROCEDURES RELATING TO HAWAII FINANCIAL INSTITUTIONS › Subchapter 6 - REQUESTS FOR OPINIONS AND INTERPRETATIONS OF STATUTE OR RULE › Section 16-25-62 - Inquiries from financial institution or industry trade association

Current through June, 2024
The division's response to an inquiry from a financial
				  institution or industry trade association shall not determine private rights
				  and obligations. The commissioner may decide to respond to a financial
				  institution's or industry trade association's inquiry regarding an
				  interpretation of a statute or rule that is consistent with the division's
				  regulatory purpose. A financial institution or industry trade association has a
				  right to know whether the division will find a particular action to be within
				  the bounds of the law.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 25 - APPLICATION PROCEDURES RELATING TO HAWAII FINANCIAL INSTITUTIONS › Subchapter 6 - REQUESTS FOR OPINIONS AND INTERPRETATIONS OF STATUTE OR RULE › Section 16-25-63 - Requests for interpretation or opinion

Current through June, 2024
(a) An inquirer who
				requests an interpretation of statute or rule shall state in writing:
(1) The facts giving rise to the
				questions;
(2) The specific
				questions being presented;
(3) The
				inquirer's position on the questions; and
(4) Any authority, legal or otherwise, for
				that position.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 25 - APPLICATION PROCEDURES RELATING TO HAWAII FINANCIAL INSTITUTIONS › Subchapter 6 - REQUESTS FOR OPINIONS AND INTERPRETATIONS OF STATUTE OR RULE › Section 16-25-64 - Interpretations and opinions by commissioner

Current through June, 2024
(a) The
				commissioner shall issue in writing any statement that appears to interpret a
				statute or rule, render an opinion, or define a policy.
(b) The commissioner's interpretation or
				opinion shall have particular applicability to the inquirer, and shall not be
				intended to apply to other financial institutions or persons, unless so
				stated.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 25 - APPLICATION PROCEDURES RELATING TO HAWAII FINANCIAL INSTITUTIONS › Subchapter 6 - REQUESTS FOR OPINIONS AND INTERPRETATIONS OF STATUTE OR RULE › Section 16-25-65 - Construction

Current through June, 2024
Whenever this chapter is silent on a matter, the
				  commissioner may refer to chapter 16-201 for guidance.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 25 - APPLICATION PROCEDURES RELATING TO HAWAII FINANCIAL INSTITUTIONS › Subchapter 7 - CONSUMER COMPLAINTS › Section 16-25-69 - Consumer complaints

Current through June, 2024
The division may only investigate and act upon complaints
				  against Hawaii financial institutions. Consumer complaints against Hawaii
				  financial institutions shall be filed in writing with the
				  division.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 26 - EXAMINATION AND OFF-SITE MONITORING OF HAWAII FINANCIAL INSTITUTIONS › Subchapter 1 - GENERAL PROVISIONS › Section 16-26-1 - Objectives

Current through June, 2024
The objective of this chapter is to set forth the policies
				  of the division of financial institutions with respect to examination
				  priorities, frequency, scope, and procedures.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 26 - EXAMINATION AND OFF-SITE MONITORING OF HAWAII FINANCIAL INSTITUTIONS › Subchapter 1 - GENERAL PROVISIONS › Section 16-26-4 - Purpose of examination

Current through June, 2024
(a) Disclosure of
				any information related to an examination of an institution is prohibited by
				statute, but public knowledge of the examination process should promote
				confidence in the integrity of the financial system and in individual
				institutions.
(b) The examination
				of a depository institution is designed to determine the financial condition of
				the institution, to evaluate the safety and soundness of its operations, to
				evaluate its management, and to determine compliance with applicable laws and
				rules. It is aimed at early detection of adverse trends and problems, so as to
				allow time for remedial action to be taken to correct unsafe and unsound
				practices or violations of laws and rules.
(c) The examination provides the commissioner
				with an understanding of the nature, relative seriousness, and ultimate cause
				of an institution's problems and provides the factual foundation on which to
				order corrective actions or measures. The examination, therefore, plays a key
				role in the supervisory and enforcement process.
(d) The examination of a depository
				institution does not serve the function of an audit. The examiner performs an
				evaluation function, rating capital adequacy, asset quality, management,
				earnings, liquidity, and sensitivity to market risk. The examiner accepts and
				relies on an institution's records and on statements and information provided
				by its employees, officers, and directors, and does not independently verify
				matters disclosed on an institution's books and records.
(e) The examination is not undertaken for the
				detection of fraud, nor is its sole or primary purpose to assure the complete
				correctness or appropriateness of records. Nevertheless, where deemed
				appropriate, in those cases where the examiner in charge perceives the need,
				the examination branch chief may make the determination to expand the scope of
				an examination to include the use of certain audit techniques and procedures
				and shall notify the deputy commissioner in writing of the expansion of the
				examination scope.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 26 - EXAMINATION AND OFF-SITE MONITORING OF HAWAII FINANCIAL INSTITUTIONS › Subchapter 1 - GENERAL PROVISIONS › Section 16-26-5 - Purpose of visitation

Current through June, 2024
(a) The purpose of
				a visitation may include one or more of the following:
(1) Determination of an institution's
				progress in complying with requirements of a formal corrective order or
				memorandum of understanding;
(2)
				Determination of the reasons for an apparent adverse situation revealed by
				off-site review;
(3) Determination
				of an institution's progress in improving the quality of its assets or
				correcting other deficiencies, since the last examination or visitation;
				or
(4) Determination of the
				condition of an institution that is newly chartered, recently converted from a
				federal charter, or has recently undergone a change in management or
				control.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 26 - EXAMINATION AND OFF-SITE MONITORING OF HAWAII FINANCIAL INSTITUTIONS › Subchapter 1 - GENERAL PROVISIONS › Section 16-26-6 - Coordination with federal authorities

Current through June, 2024
(a) Every effort
				shall be made to conduct joint examinations and visitations with federal
				authorities, or alternating independent examinations and visitations, so that
				regulatory resources may be maximized and duplication of effort may be
				minimized.
(b) The scope and
				frequency of examinations and visitations conducted by the division, shall not
				be governed by the needs of federal authorities, availability of federal
				personnel, or the requirements of federal laws or rules.
Where circumstances make it impossible to conduct a joint
				  examination within the twenty-four month period or other period provided by
				  law, the division shall conduct an independent examination.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 26 - EXAMINATION AND OFF-SITE MONITORING OF HAWAII FINANCIAL INSTITUTIONS › Subchapter 1 - GENERAL PROVISIONS › Section 16-26-7 - Uniform financial institutions rating system

Current through June, 2024
(a) The
				division adopts the "Uniform Financial Institutions Rating System" (UFIRS),
				which was issued and recommended by the Federal Financial Institutions
				Examination Council. The rating system reflects in a comprehensive and uniform
				fashion an institution's financial condition, compliance with laws and
				regulations, and overall operating soundness. Its primary purpose is to help
				identify those institutions whose financial, operating, or compliance
				weaknesses require special supervisory attention or warrant a higher than
				normal degree of supervisory concern.
(b) The uniform rating of institutions will
				ensure that:
(1) The degree of supervisory
				attention and the type of supervisory response are based upon the severity and
				nature of an institution's problems;
(2) Supervisory attention and action are, to
				the extent possible, administered uniformly and consistently, regardless of the
				type of institution or the identity of the regulatory agency; and
(3) Appropriate supervisory action is taken
				to address those institutions whose problems entail the greatest potential for
				hardship or inconvenience to depositors, borrowers, or the public; or those
				institutions whose potential weaknesses would most seriously disrupt the proper
				and efficient functioning of the financial system.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 26 - EXAMINATION AND OFF-SITE MONITORING OF HAWAII FINANCIAL INSTITUTIONS › Subchapter 1 - GENERAL PROVISIONS › Section 16-26-8 - Rating system for a nondepository financial services loan company

Current through June, 2024
(a) In assigning a composite rating to a
				nondepository financial services loan company, the UFIRS adopted in section
				16-26-7
				shall not be used. In lieu thereof, the division shall evaluate and weigh
				several factors, including the nature and extent of present compliance by the
				institution with consumer credit law and other Hawaii statutes, the commitment
				of management to compliance and its ability and willingness to take the
				necessary steps to assure compliance, and the adequacy of operating systems,
				including internal procedures, controls, and audit activities designed to
				ensure compliance on a routine and consistent basis. This evaluation system of
				a nondepository financial services loan company shall be called the
				Nondepository Rating System ("NRS"). The assignment of the composite compliance
				rating may incorporate other factors that impact significantly on the overall
				effectiveness of an institution's compliance efforts.
(b) Each nondepository institution shall be
				assigned a composite rating based on an evaluation of pertinent compliance
				standards, criteria, and principles. This overall rating is expressed through
				use of a numerical scale of "1" through "5" in ascending order of supervisory
				concern. Thus, "1" represents the highest rating and, consequently, the lowest
				level of supervisory concern; "5" represents the lowest rating and, therefore,
				the highest degree of supervisory concern. The composite rating and individual
				component ratings shall be contained in the report of examination and shall be
				deemed confidential, pursuant to section
				412:2-104,
				HRS.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 26 - EXAMINATION AND OFF-SITE MONITORING OF HAWAII FINANCIAL INSTITUTIONS › Subchapter 2 - EXAMINATION FREQUENCY › Section 16-26-14 - Examination priority and frequency

Current through June, 2024
(a) The division's
				priority shall be the effective examination and supervision of those
				institutions requiring special supervisory attention.
(b) Each institution shall be examined at
				least once every twenty-four months unless otherwise provided by law. If an
				additional examination within the twenty-four month interval is deemed
				necessary, the commissioner may order the examination to be
				conducted.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 26 - EXAMINATION AND OFF-SITE MONITORING OF HAWAII FINANCIAL INSTITUTIONS › Subchapter 2 - EXAMINATION FREQUENCY › Section 16-26-15 - Institutions rated "1" or "2"

Current through June, 2024
(a) Each
				institution assigned a UFIRS or NRS composite rating of "1" or "2" is to be
				examined as deemed necessary with a maximum permissible interval between
				examinations of twenty-four months.
(b) At least one visitation may be performed
				in each twelve-month period during which an examination is not conducted. An
				off-site review may be substituted for a visitation if no adverse factors or
				trends are noted in the off-site review.
(c) Additional examinations or visitations
				may be conducted when it is believed that the condition of an institution may
				have deteriorated or may have been affected adversely.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 26 - EXAMINATION AND OFF-SITE MONITORING OF HAWAII FINANCIAL INSTITUTIONS › Subchapter 2 - EXAMINATION FREQUENCY › Section 16-26-16 - Institutions rated "3"

Current through June, 2024
(a) Each
				institution assigned a UFIRS or NRS composite rating of "3" is to be examined
				at least once every twelve months. This interval may be extended up to every
				eighteen months when a longer interval is deemed appropriate. Acceptable
				reasons for extending an interval would include, but not be limited to:
				compliance with enforcement actions, favorable financial trends, and
				satisfactory improvement noted from meetings with the institution's management,
				visitations, progress reports, or other sources of information.
(b) At least one visitation shall be
				performed in each six-month period when an examination is not conducted. An
				off-site review may be substituted for a visitation if no additional adverse
				factors or trends are noted in the review.
(c) Additional examinations or visitations of
				such institutions are encouraged when deemed necessary.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 26 - EXAMINATION AND OFF-SITE MONITORING OF HAWAII FINANCIAL INSTITUTIONS › Subchapter 2 - EXAMINATION FREQUENCY › Section 16-26-17 - Institutions rated "4" or "5"

Current through June, 2024
(a) Each
				institution assigned a UFIRS or NRS composite rating of "4" or "5" shall be
				examined at least once every twelve months.
(b) Additional examinations or visitations to
				monitor progress or to prevent deterioration should be performed when deemed
				necessary. At a minimum, one visitation shall be performed in each three-month
				period when an examination or other appropriate supervisory activity is not
				conducted.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 26 - EXAMINATION AND OFF-SITE MONITORING OF HAWAII FINANCIAL INSTITUTIONS › Subchapter 2 - EXAMINATION FREQUENCY › Section 16-26-18 - Newly chartered or licensed institutions

Current through June, 2024
Each newly chartered or licensed institution shall be
				  examined within the first twelve months of operation. In addition, as time and
				  resources of the division allow, at least one visitation is to be performed
				  within the first sixty days and one hundred-twenty days, respectively.
				  Subsequent to the first examination and through the third year of operation, at
				  least one visitation shall be performed in each twelve-month period during
				  which an examination is not conducted.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 26 - EXAMINATION AND OFF-SITE MONITORING OF HAWAII FINANCIAL INSTITUTIONS › Subchapter 2 - EXAMINATION FREQUENCY › Section 16-26-19 - Institutions converting from a federal charter

Current through June, 2024
Each institution converting from a federal charter to a
				  state charter shall be examined within twelve months of the conversion if the
				  institution was previously assigned a UFIRS composite rating of "3", "4", or
				  "5" by the applicable federal regulatory agency.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 26 - EXAMINATION AND OFF-SITE MONITORING OF HAWAII FINANCIAL INSTITUTIONS › Subchapter 2 - EXAMINATION FREQUENCY › Section 16-26-20 - Institutions which have had a change of control

Current through June, 2024
(a) Each
				institution in which there has been a change of control in ownership or
				management shall be examined within the first twelve months of the change,
				unless satisfactory financial and managerial records of performance are
				demonstrated by the new owners or managers in the interim period.
(b) A visitation may be conducted within
				ninety days of the date the change in control became operational, then
				quarterly thereafter until the first examination. Subsequent to the first
				examination and through the third year from the change of control, at least one
				visitation may be performed in each twelve-month period during which an
				examination is not conducted.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 26 - EXAMINATION AND OFF-SITE MONITORING OF HAWAII FINANCIAL INSTITUTIONS › Subchapter 3 - EXAMINATION SCOPE AND FORMAT › Section 16-26-26 - Examination scope

Current through June, 2024
The examination may be general in scope. Examiners may
				  employ detailed work programs, procedures, and questionnaires to review every
				  aspect of a depository institution's corporate affairs. The six key performance
				  standards are: capital adequacy, asset quality, management competency,
				  earnings, liquidity, and sensitivity to market risk. Examiners may also conduct
				  specialized examinations which emphasize close scrutiny of specific areas of an
				  institution's operations and minimize coverage in other areas, depending on an
				  institution's operating and supervisory history.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 26 - EXAMINATION AND OFF-SITE MONITORING OF HAWAII FINANCIAL INSTITUTIONS › Subchapter 3 - EXAMINATION SCOPE AND FORMAT › Section 16-26-27 - Examination format and procedure

Current through June, 2024
(a) Examinations of
				banks shall be conducted in accordance with the "FDIC Division Of Supervision
				Manual Of Examination Policies."
(b) Examinations of foreign bank branches and
				agencies shall be conducted in accordance with the "FFIEC Revised Uniform
				Report Of Examination For Branches And Agencies Of Foreign Banking
				Organizations" and related instructions.
(c) Examinations of trust companies shall be
				conducted by reference to the "FDIC Division of Supervision Trust Examination
				Manual," as may be applicable to operations of trust companies
				generally.
(d) Examinations of
				savings and loan associations shall be conducted in accordance with the "OTS
				Thrift Activities Regulatory Handbook," and related instructions.
(e) Examinations of depository financial
				services loan companies shall be conducted in accordance with the "FDIC
				Division Of Supervision Manual Of Examination Policies."
(f) Examination of nondepository financial
				services loan companies shall be conducted in accordance with the "Division of
				Financial Institution Manual Of Examination Policies For Nondepository
				Financial Services Loan Companies."
(g) Examination of credit unions shall be
				conducted in accordance with the "NCUA Examiner's Guide."
(h) Examination of the information systems of
				an institution shall be conducted in accordance with the "FFIEC Information
				Systems Examination Handbook."
(i)
				Examinations for compliance with applicable federal consumer protection, fair
				lending, and record keeping laws and regulations shall be conducted in
				accordance with the "FDIC Division of Compliance and Consumer Affairs
				Compliance Examination Manual."
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 26 - EXAMINATION AND OFF-SITE MONITORING OF HAWAII FINANCIAL INSTITUTIONS › Subchapter 4 - SPECIALTY EXAMINATIONS › Section 16-26-33 - Examination of holding company, subsidiary, or affiliate

Current through June, 2024
(a)
				The division shall review and rely on holding company inspection reports
				prepared by the federal regulatory agencies in determining the frequency or
				scope of an examination and the UFIRS composite rating of the subsidiary
				institution.
(b) When the
				operations of a holding company, subsidiary, or affiliate may have a
				substantial adverse impact on an institution, an examination of the holding
				company, subsidiary, or affiliate may be conducted.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 26 - EXAMINATION AND OFF-SITE MONITORING OF HAWAII FINANCIAL INSTITUTIONS › Subchapter 5 - OFF-SITE MONITORING › Section 16-26-39 - Off-site monitoring

Current through June, 2024
Off-site monitoring of institutions involves the systematic
				  review of financial reports, audit statements, and other reports requested on
				  an ad hoc basis. The principal purpose of off-site monitoring is to identify
				  institutions that appear to evidence unusual conditions. Off-site monitoring
				  complements, but does not substitute for, the examination of institutions, and
				  may trigger an early examination or highlight areas in which special attention
				  must be given.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 27 - SUPERVISORY AND ENFORCEMENT ACTION RELATING TO HAWAII FINANCIAL INSTITUTIONS › Subchapter 1 - GENERAL PROVISIONS › Section 16-27-1 - Objectives

Current through June, 2024
The objectives of this chapter are to assure that
				  supervisory and enforcement actions are directed to institutions whose
				  condition warrants greater regulatory oversight, and to assure uniformity of
				  such actions by the division of financial institutions.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 27 - SUPERVISORY AND ENFORCEMENT ACTION RELATING TO HAWAII FINANCIAL INSTITUTIONS › Subchapter 1 - GENERAL PROVISIONS › Section 16-27-2 - Definitions

Current through June, 2024
As used in this chapter:
"Commissioner" means the commissioner of financial
				  institutions of this State.
"Division" means the division of financial institutions of
				  the department of commerce and consumer affairs of this State.
"Hawaii financial institution" or "institution"
				  means:
(1) A corporation or credit union which holds a charter or
				  license under chapter 412, HRS, or under prior Hawaii law, authorizing it to
				  accept deposits, to make loans in excess of the rates permitted in chapter 478,
				  HRS, or to engage in the business of a trust company; or
(2) A resulting bank as defined in article 12 of chapter 412,
				  HRS, and includes a corporation, mutual savings and loan association or credit
				  union existing and chartered as a Hawaii financial institution or licensed to
				  transact business in this State on July 1, 1993. A Hawaii financial institution
				  may be a bank, resulting bank as defined in article 12 of chapter 412, HRS,
				  savings bank, savings and loan association, depository financial services loan
				  company, nondepository financial services loan company, trust company, credit
				  union, or intra-Pacific bank.
"Institution-affiliated party" means any of the
				  following:
(1) Any director, officer, employee, or controlling
				  shareholder of, or agent for, or other person that controls a financial
				  institution;
(2) Any person who has filed or is required to file an
				  application to become a financial institution with the commissioner or an
				  application to acquire control of a Hawaii financial institution or financial
				  institution holding company with the commissioner;
(3) Any shareholder, consultant, joint venture partner, and
				  any other person as determined by the commissioner (by rule or case-by-case)
				  who participates in the conduct of the affairs of a financial institution;
				  or
(4) Any independent contractor (including any attorney,
				  appraiser, or accountant) who knowingly or recklessly participates in any of
				  the following which caused or is likely to cause more than a minimal financial
				  loss to, or a significant adverse effect on, the financial institution:
(A) Any violation of law or rule;
(B) Any breach of fiduciary duty; or
(C) Any unsafe or unsound practice.
"NRS" (Nondepository Rating System) means the rating system
				  for nondepository financial services loan companies adopted by the division
				  pursuant to section
				  16-26-8.
"UFIRS" (Uniform Financial Institutions Rating System) means
				  the policy statement which was issued and recommended by the Federal Financial
				  Institutions Examination Council, and adopted by the division, pursuant to
				  section 16-26-7.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 27 - SUPERVISORY AND ENFORCEMENT ACTION RELATING TO HAWAII FINANCIAL INSTITUTIONS › Subchapter 2 - BASIS FOR SUPERVISORY AND ENFORCEMENT ACTION › Section 16-27-8 - Authorized actions by commissioner

Current through June, 2024
(a) The
				commissioner has broad supervisory and enforcement powers under chapter 412,
				HRS. The commissioner has the power to direct a Hawaii financial institution to
				discontinue any violation of law or rule, or any unsafe or unsound practice, or
				to cease the conduct of its business in an unsafe or unsound manner. Failure or
				refusal to comply with the commissioner's order shall be deemed a violation of
				law.
(b) If an institution fails to
				comply with the commissioner's order, the commissioner may exercise such
				supervision, control, and management over the institution as the commissioner
				deems necessary for the public welfare, including, but not limited to, the
				appointment of a receiver.
(c)
				Supervisory or enforcement action shall be taken on institutions which have
				been assigned a UFIRS or NRS composite rating of "3", "4", or "5", unless
				circumstances do not warrant the use of such supervisory tools.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 27 - SUPERVISORY AND ENFORCEMENT ACTION RELATING TO HAWAII FINANCIAL INSTITUTIONS › Subchapter 2 - BASIS FOR SUPERVISORY AND ENFORCEMENT ACTION › Section 16-27-9 - Unsafe or unsound practice

Current through June, 2024
(a) The concept of
				an unsafe or unsound practice is one of general application which touches upon
				the entire field of operations of an institution.
An unsafe or unsound practice encompasses any action or lack
				  of action, which is contrary to generally accepted standards of prudent
				  operation, the possible consequences of which, if continued, would result in
				  abnormal risk of loss or damage to an institution, its depositors, or its
				  shareholders. An activity not necessarily unsafe or unsound in every instance
				  may be so in a particular instance when considered in light of all relevant
				  facts pertaining to that situation.
(b) An unsafe or unsound practice can result
				from either action or inaction by management. Although the law does not define
				the term unsafe or unsound practice, the division has established examples of
				such practices, some of which are listed below.
(c) Inaction by management which is deemed an
				unsafe or unsound practice includes, but is not limited to:
(1) Failure to provide adequate supervision
				and direction over officers of the institution;
(2) Failure to make provision for an adequate
				reserve for possible loan losses;
(3) Failure to post the general ledger
				promptly;
(4) Failure to keep
				accurate books and records;
(5)
				Failure to enforce programs for repayment of loans;
(6) Failure to obtain or maintain on the
				premises evidence of priority of liens on loans secured by real estate;
				or
(7) Failure to account properly
				for transactions.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 27 - SUPERVISORY AND ENFORCEMENT ACTION RELATING TO HAWAII FINANCIAL INSTITUTIONS › Subchapter 2 - BASIS FOR SUPERVISORY AND ENFORCEMENT ACTION › Section 16-27-10 - Unsafe or unsound condition

Current through June, 2024
(a) An unsafe or
				unsound condition of an institution depends upon an analysis of virtually every
				aspect of the institution's operation. The institution's capital position,
				asset condition, management, earnings posture, liquidity position, and
				sensitivity to market risk shall be carefully evaluated. An institution's
				condition need not deteriorate to a point where it is on the brink of
				insolvency before its condition may be found to be unsafe or unsound.
(b) Although not an all-inclusive list, the
				following are examples of unsafe or unsound conditions:
(1) Maintenance of unduly low net interest
				margins;
(2) Excessive overhead
				expenses;
(3) Excessive volume of
				loans subject to adverse classification;
(4) Excessive net loan losses;
(5) Excessive volume of overdue
				loans;
(6) Excessive volume of
				nonearning assets; or
(7) Excessive
				large liability dependence.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 27 - SUPERVISORY AND ENFORCEMENT ACTION RELATING TO HAWAII FINANCIAL INSTITUTIONS › Subchapter 3 - INFORMAL SUPERVISORY AND ENFORCEMENT ACTION › Section 16-27-16 - Memorandum of understanding

Current through June, 2024
(a) Informal action
				by means of a memorandum of understanding shall be considered for institutions
				which have been assigned a UFIRS or NRS composite "3" rating. The memorandum of
				understanding is a means of seeking informal corrective administrative action
				from institutions considered to be of supervisory concern, but which have not
				deteriorated to the point where they warrant formal administrative action. The
				purpose of the memorandum is to correct an institution's weaknesses by focusing
				on the institution's problem areas and defining responsibility for ensuring
				that deficiencies are addressed within designated time periods.
(b) The memorandum of understanding shall be
				signed by the commissioner and the institution's board of directors. In all
				instances, the respective federal authority shall be invited to join in this
				action.
(c) The memorandum of
				understanding shall address the specific problems of an individual institution.
				Use of the memorandum, as opposed to formal supervisory and enforcement action,
				is appropriate where the problems discussed with management and the board of
				directors of the institution have been adequately detailed and the institution,
				in good faith, will work to eliminate the problems. An institution's failure to
				comply with the provisions of the memorandum, or continued deterioration in the
				areas addressed in the memorandum, may facilitate implementation of formal
				administrative action.
(d)
				Monitoring of an outstanding memorandum of understanding may be conducted by
				the division through progress reports, visitations, or examinations.
(e) Termination of a memorandum of
				understanding shall be considered when the institution's overall condition has
				improved significantly and the institution has substantially complied with the
				terms of the memorandum. The division shall coordinate any termination with the
				federal authority, if the latter is a party to the action.
(f) General use of a memorandum of
				understanding for a UFIRS or NRS composite "3" rated institution does not
				preclude recourse to formal supervisory and enforcement action when it is
				believed that management is unwilling to take necessary corrective
				action.
(g) The memorandum of
				understanding may be used in a situation where other than a UFIRS or NRS
				composite "3" rating is assigned, depending on the circumstances.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 27 - SUPERVISORY AND ENFORCEMENT ACTION RELATING TO HAWAII FINANCIAL INSTITUTIONS › Subchapter 4 - FORMAL SUPERVISORY AND ENFORCEMENT ACTION › Section 16-27-22 - Institutions rated "4" or "5"

Current through June, 2024
(a) Institutions
				with UFIRS or NRS composite ratings of "4" or "5" by definition will have
				problems of sufficient severity to warrant formal supervisory and enforcement
				action. Formal action may be taken against institutions rated "4" or "5", where
				evidence of an unsafe or unsound practice or condition is present. The formal
				action may consist of a cease and desist order, or order to suspend or remove
				an institution-affiliated party.
(b) The commissioner may consider not taking
				formal action when the condition of the institution reflects significant
				improvement resulting from an effective corrective program or where individual
				circumstances strongly mitigate the appropriateness of the action.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 27 - SUPERVISORY AND ENFORCEMENT ACTION RELATING TO HAWAII FINANCIAL INSTITUTIONS › Subchapter 4 - FORMAL SUPERVISORY AND ENFORCEMENT ACTION › Section 16-27-23 - Compliance with cease and desist order

Current through June, 2024
(a) When a cease
				and desist order is issued under part III of article 2 of chapter 412, HRS, the
				periods for compliance with the various provisions of the cease and desist
				order are determined based on the circumstances and may include different
				periods ranging from thirty days to twelve months or more, from the effective
				date of the order. A cease and desist order may specify intervals setting forth
				the form and manner of compliance with the substantive requirements of the
				order.
(b) A visitation may be made
				as a cross-check on the accuracy of the institution's progress reports and its
				degree of compliance with the cease and desist order. Examinations of the
				institution may also be conducted to determine compliance with the order and
				may be scheduled to coincide with one of the specific corrective periods stated
				in the order.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 28 - ESCROW DEPOSITORIES › Subchapter 1 - GENERAL PROVISIONS › Section 16-28-1 - Objectives

Current through June, 2024
The objectives of this chapter are to implement the
				  requirements of chapter
				  449, Hawaii Revised Statutes, and set
				  forth procedures regarding escrow depositories.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 28 - ESCROW DEPOSITORIES › Subchapter 1 - GENERAL PROVISIONS › Section 16-28-2 - Definitions

Current through June, 2024
As used in this chapter:
"Commissioner" means the commissioner of financial
				  institutions of this State.
"Division" means the division of financial institutions of
				  the department of commerce and consumer affairs of this State.
"Foreign financial institution" means a person, other than a
				  Hawaii financial institution or a federal financial institution whose
				  operations are principally conducted in this State, which is authorized to
				  engage under the laws of its jurisdiction of organization, or does engage, in
				  the business of accepting deposits or making loans or engaging in the trust
				  business.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 28 - ESCROW DEPOSITORIES › Subchapter 1 - GENERAL PROVISIONS › Section 16-28-3 - Public review of escrow depository applications and records; exceptions

Current through June, 2024
(a) Subject to other provisions of this
				chapter, all applications and supporting documents that are filed by a proposed
				escrow depository shall be available for public review as provided by law
				following receipt of a written request to review the records.
(b) Subject to other provisions of this
				chapter, all applications, supporting documents, and records filed by an escrow
				depository, including audited statements and records relating to bonding and
				insurance, shall be available for public review as provided by law following
				receipt of a written request to review the records.
(c) Information claimed by an applicant or
				escrow depository to be confidential shall be submitted on separate pages which
				can be detached from the rest of the application or filing and shall be
				identified by the words "Submitted as Confidential" printed on the top of each
				page. Information submitted as being confidential shall be accompanied by a
				separate statement requesting confidential treatment and providing reasons and
				authority for maintaining confidentiality.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 28 - ESCROW DEPOSITORIES › Subchapter 1 - GENERAL PROVISIONS › Section 16-28-4 - Confidential portion of application or records

Current through June, 2024
No material contained in any application or record shall be
				  made available to the public if it is determined by the commissioner to be
				  confidential. Information that may be considered confidential includes, but is
				  not limited to the following:
(1)
				Commercial or financial information, the disclosure of which would, or would be
				likely to, result in substantial competitive harm to the applicant or escrow
				depository;
(2) Information, the
				disclosure of which could seriously affect the financial condition of the
				applicant or escrow depository; or
(3) Personal information, the release of
				which would, or would be likely to, constitute an unwarranted invasion of
				privacy.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 28 - ESCROW DEPOSITORIES › Subchapter 2 - APPLICATION FORMS AND FEES › Section 16-28-8 - General procedures

Current through June, 2024
Any person desiring to obtain the approval of the
				  commissioner shall:
(1) File an
				application in the form prescribed by this chapter;
(2) File the appropriate application fee, if
				any; and
(3) Provide, if
				applicable, public notice of the filing of the application, as prescribed by
				this chapter.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 28 - ESCROW DEPOSITORIES › Subchapter 2 - APPLICATION FORMS AND FEES › Section 16-28-9 - Application forms; fees

Current through June, 2024
(a) Each
				application referred to in this chapter shall be made by the completion and
				submittal to the commissioner, in duplicate, of:
(1) The application form prescribed by the
				commissioner, copies of which may be obtained by request from the division;
				or
(2) The application in letter
				form, if no application form has been prescribed by the commissioner. The
				application in letter form shall state in detail the nature and scope of the
				requested consent or approval and all information reasonably required for the
				commissioner's review and consideration of the application.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 28 - ESCROW DEPOSITORIES › Subchapter 2 - APPLICATION FORMS AND FEES › Section 16-28-10 - Application for license

Current through June, 2024
(a) Any person
				desiring to obtain an escrow depository license shall file an application in a
				form prescribed by the commissioner together with the required application
				fee.
(b) The applicant shall
				provide public notice and an opportunity to comment on the application, as
				prescribed by subchapter 3.
(c) The
				application shall be subject to standards of review and decisions, as
				prescribed by subchapter 4.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 28 - ESCROW DEPOSITORIES › Subchapter 2 - APPLICATION FORMS AND FEES › Section 16-28-11 - Establishment of branch office

Current through June, 2024
An application for approval to establish a branch office,
				  together with the application fee, shall be filed with the commissioner in
				  letter form and shall contain the following information:
(1) The exact location of the proposed site,
				including street address;
(2) The
				name and qualifications of the designated escrow officer or other principal
				officer who will manage the office; and
(3) The reasons for establishing the branch
				office.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 28 - ESCROW DEPOSITORIES › Subchapter 2 - APPLICATION FORMS AND FEES › Section 16-28-12 - Relocation of existing office or branch

Current through June, 2024
(a) An application
				for approval to relocate an existing office or branch, together with the
				application fee, shall be filed with the commissioner prior to the proposed
				relocation. The application shall be in letter form and shall contain the
				following information:
(1) The location and
				the identity of the existing office or branch that will be relocated;
(2) The exact location of the proposed site,
				including street address;
(3)
				Details of the proposed location, including lease terms, rent, and size;
				and
(4) The reasons for the
				relocation.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 28 - ESCROW DEPOSITORIES › Subchapter 2 - APPLICATION FORMS AND FEES › Section 16-28-13 - Renewal of license

Current through June, 2024
An escrow depository license and each branch license are
				  subject to annual renewal. In order to obtain renewal of the escrow depository
				  license and any branch office license, an application to renew the escrow
				  depository license and each branch license, together with the applicable fee
				  for each license to be renewed, shall be filed with the commissioner at least
				  three weeks prior to July 1 of each year.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 28 - ESCROW DEPOSITORIES › Subchapter 3 - NOTICE AND COMMENT PROCEDURES › Section 16-28-19 - Notice by publication of application; opportunity to comment and provide information

Current through June, 2024
(a) Upon the filing
				of an application, the applicant shall publish notice of the proposed
				transaction in a newspaper of general circulation in the State. The published
				notice shall include the name of the applicant, the subject matter of the
				application, and the location or locations at which the applicant proposes to
				engage in business. A copy of the notice shall be filed with the
				division.
(b) In order to apprise
				the public of an opportunity to comment on an application, the notice shall
				include a statement describing the opportunity to comment on or protest the
				granting of, or request an informational and comment proceeding on the
				application. The notice shall include the following statement:
"Any person wishing to comment on the application may file
				  comments in writing with the Commissioner of Financial Institutions (by mail to
				  P.O. Box 2054, Honolulu, Hawaii 96805; or delivered to 335 Merchant Street,
				  Room 221, Honolulu, Hawaii 96813) within fifteen days of the date of this
				  notice. The comments may include a statement protesting or supporting the
				  application.
You may at the same time request that an informational and
				  comment proceeding be held on the application. If this proceeding is requested,
				  you should include a brief statement of your interest in the application, the
				  matters you wish to discuss, and the reasons why a written presentation would
				  not suffice in lieu of the proceeding.
The nonconfidential portion of the application and related
				  documents will be available for inspection within one working day following a
				  request for the application and documents. The application and documents may be
				  inspected at the Division of Financial Institutions during regular business
				  hours."
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 28 - ESCROW DEPOSITORIES › Subchapter 3 - NOTICE AND COMMENT PROCEDURES › Section 16-28-20 - Comments on application; request for informational and comment proceeding

Current through June, 2024
(a) Any person may file with the commissioner
				written comments on an application within fifteen days of the publication of
				notice. The comment period may be extended by the commissioner for good
				cause.
(b) Any person who files a
				written comment may at the same time request that an informational and comment
				proceeding be held on the application. A request for the proceeding shall be
				accompanied by a brief statement of the person's interest in the application,
				the matters the person wishes to discuss at the proceeding, and the reasons why
				a written presentation would not suffice in lieu of the proceeding.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 28 - ESCROW DEPOSITORIES › Subchapter 3 - NOTICE AND COMMENT PROCEDURES › Section 16-28-21 - Informational and comment proceeding

Current through June, 2024
(a) The purpose of
				the informational and comment proceeding shall be to receive information and
				comments from interested persons on an application.
(b) If the commissioner decides to hold an
				informational and comment proceeding, the commissioner shall notify the
				applicant and each person who requested a proceeding of the date, time, and
				location of the proceeding, not less than ten days prior to the proceeding. The
				commissioner may also decide not to hold an informational and comment
				proceeding, in which case the commissioner shall so advise the applicant and
				each person who requested the proceeding.
(c) The informational and comment proceeding
				shall involve a meeting with division representatives at which the participants
				shall be asked to present their views orally. Separate meetings with each of
				the participants may be conducted where deemed advisable.
(d) There is no proof to be made during an
				informational and comment proceeding. Witness statements are unshorn,
				voluntary, and not subject to any restriction, except that they pertain to the
				application. The proceeding shall not be recorded or transcribed.
(e) The informational and comment proceeding
				shall be open to the public, except when the commissioner determines that the
				circumstances warrant confidentiality.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 28 - ESCROW DEPOSITORIES › Subchapter 4 - STANDARDS OF REVIEW; DECISIONS › Section 16-28-26 - Rights of applicants; obligations of commissioner

Current through June, 2024
An applicant has a right to file an application and to
				  obtain full consideration of the application by the commissioner in light of
				  all relevant facts and without prejudice. If all of the relevant criteria are
				  resolved favorably, the applicant is entitled to receive the requested
				  authorization. In the event an application is disapproved, an applicant has a
				  right to be informed by the commissioner of the reasons for
				  disapproval.