Untitled section

Section

412:1-100 Short title

412:1-101 Purpose

412:1-102 Scope and application of chapter

412:1-103 Application to existing financial institutions

412:1-104 Names

412:1-105 Deposits

412:1-106 Headings; references

412:1-107 Particular provisions prevail

412:1-108 Jurisdiction conferred upon circuit court

412:1-109 Definitions

ARTICLE 2. DIVISION OF FINANCIAL INSTITUTIONS

Part I. Administration

412:2-100 Commissioner of financial institutions; division

of financial institutions

412:2-100.5 Powers of the commissioner

412:2-101 Deputy commissioner, acting commissioner

412:2-102 Examiners and other personnel

412:2-103 Disqualifications

412:2-104 Confidentiality of information possessed by

commissioner

412:2-105 Fees

412:2-105.1 Repealed

412:2-105.2 Hawaii financial institutions; assessments;

fees; penalty

412:2-106 Public or private hearings

412:2-107 Rules

412:2-108 Alternative mortgage loans rules

412:2-109 Compliance resolution fund; financial institution

examiners

412:2-110 Emergency applications

412:2-111 Commissioner’s power to subpoena

Part II. Examinations

412:2-200 Examinations

412:2-201 Use of federal examinations

Part III. Enforcement Actions

412:2-300 Enforcement actions

412:2-301 Joint enforcement with federal regulatory agency

412:2-302 Cease and desist orders; grounds for issuance

412:2-303 Permanent cease and desist orders; procedure;

hearing; enforcement

412:2-304 Temporary cease and desist orders; effective date;

hearing; enforcement

412:2-305 Consent cease and desist orders

412:2-306 Removal or prohibition of institution-affiliated

party; grounds

412:2-307 Removal or prohibition of institution-affiliated

party; procedure; hearing; enforcement

412:2-308 Order of immediate suspension; procedure;

effective date; hearing; enforcement

412:2-309 Consent order of removal or prohibition

412:2-310 Removal, prohibition, or suspension; effect of

order

412:2-311 Suspension or revocation of charter or license

412:2-312 Suspension or revocation; procedure; hearing;

enforcement

412:2-313 Consent suspension and revocation order

412:2-314 Action to correct capital and surplus impairment

412:2-315 National or state emergencies

Part IV. Conservators and Receivers

412:2-400 Grounds for appointment of conservator or receiver

412:2-401 Appointment of conservator or receiver; judicial

review

412:2-402 Additional grounds for appointment

412:2-403 Who may serve as conservator or receiver

412:2-404 Federal insurer as conservator or receiver;

subrogation

412:2-405 Removal or replacement of conservator or receiver

412:2-406 Compensation and expenses of conservator or

receiver

412:2-407 Stay of judicial proceedings

412:2-408 Duties and powers of conservator

412:2-409 Conservator’s segregation of deposits

412:2-410 Supervised reorganization

412:2-411 Termination of conservatorship

412:2-412 Duties and powers of receiver

412:2-413 No interest on deposits of an institution in

receivership

412:2-414 Optional court supervision

412:2-415 Notice of receivership; filing of claims

412:2-416 Liquidation by receiver; priority of claims

412:2-417 Final accounting and discharge

412:2-418 Transfer of assets in contemplation of

insolvency void

412:2-419 Treatment of lessors

412:2-420 Claims for wrongful termination of employment

412:2-421 Bailments and safe deposit boxes in receivership

Part V. Supervised Acquisition of Financial

Institutions

412:2-500 Definitions

412:2-501 Commissioner’s determination of failing

institution

412:2-502 Solicitation of purchasers

412:2-503 Applications to purchase

412:2-504 Granting of application; criteria for approval

412:2-505 Waiver of statewide concentration limits under

the Bank Holding Company Act of 1956, as amended

412:2-506 Charter or license

412:2-507 Expedited approvals

412:2-508 Provisional approval to organize

412:2-509 Effect of merger or acquisition on prior business,

title and obligations

412:2-510 Commissioner’s powers

412:2-511 Modification of time periods

412:2-512 Repealed

Part VI. Penalties, Administrative Fines and

Prohibited Acts

412:2-600 Applicability of part

412:2-601 Violation of chapter

412:2-602 Copying records of Hawaii financial institutions

412:2-603 Disclosures of records of Hawaii financial

institutions

412:2-604 Concealment

412:2-605 Repealed

412:2-606 Witness; failure to testify or produce records

412:2-606.5 Financial institution name fraud

412:2-607 Deception; false statements

412:2-608 Misapplication of funds

412:2-609 Imposition of administrative fines; assessment

412:2-609.5 Imposition of administrative fines on persons who

are not Hawaii financial institutions; assessment

412:2-610 Compromise or modification of administrative

fines;

determining amount of fine; hearing

412:2-611 Action to recover administrative fines; deposit to

compliance resolution fund

ARTICLE 3. ORGANIZATION AND MANAGEMENT OF FINANCIAL

INSTITUTIONS

Part I. General Provisions

412:3-100 Applicability of this part

412:3-101 Name of financial institution

412:3-102 Change of name

412:3-103 Repealed

412:3-104 Qualifications of directors

412:3-105 Election and appointment of executive officers

412:3-106 Residency of chief executive officer

412:3-107 Meetings of the board

412:3-108 Generally accepted accounting principles

412:3-109 Charging down assets

412:3-110 Holding of assets

412:3-111 Maintenance of books and records

412:3-111.5 Request for information by the commissioner

412:3-112 Submissions to commissioner

412:3-113 Repealed

412:3-114 Duty to report illegal acts

412:3-114.5 Mandatory reporting of suspected financial abuse

of an elder

412:3-115 Repealed

Part II. Organization of Banks, Savings Banks,

Savings and Loan Associations, Trust

Companies and Depository Financial

Services Loan Companies

412:3-200 Applicability of part

412:3-201 Application for preliminary approval to organize

a financial institution

412:3-202 Additional requirements for holding company

412:3-203 Deferral of application requirements

412:3-204 Publication of notice

412:3-205 Informational and comment proceeding on

application

412:3-206 Grant of preliminary approval to organize a

financial institution

412:3-207 Denial of preliminary approval to organize

412:3-208 Repealed

412:3-209 Paid-in capital and surplus

412:3-210 Repealed

412:3-211 Time limit to complete organization

412:3-212 Final application for charter or license

412:3-213 Denial of charter or license

Part III. Organization of Nondepository

Financial Services Loan Companies

412:3-300 Applicability of part

412:3-301 Application for license

412:3-302 Publication of notice

412:3-303 Informational and comment proceeding

412:3-304 Grant of approval

412:3-305 Denial of license

412:3-306 Paid-in capital and surplus

Part IV. Management of Stock Financial Institutions

412:3-400 Applicability of part

412:3-401 Applicability of Hawaii Business Corporation Act

412:3-402 Capital stock

412:3-403 Dividends and other capital distributions

Part V. Places of Business

412:3-500 Prohibition of business at unauthorized locations

412:3-501 Authorized places of business

412:3-502 Foreign financial institution

412:3-503 Opening or relocating principal office, branch,

or agency

412:3-504 Notice and deadline for opening or relocating

principal office, branch, or agency

412:3-505 Opening or relocating out-of-state branch or

agency

412:3-506 Opening or relocating a support facility

412:3-507 Closing branch or agency; temporary closures

and relocations

412:3-508 Closing a support facility

412:3-509 Out-of-state branch or agency

Part VI. Conversions, Mergers, Consolidations,

Acquisitions, Assumptions, and Voluntary

Dissolutions

412:3-600 Applicability of this part

412:3-601 No conversions, mergers, consolidations,

acquisitions, assumptions, voluntary cessations of

business, or voluntary dissolutions except

pursuant to this part

412:3-602 Definitions

412:3-603 Procedure for applications pursuant to this part

412:3-604 Shareholder or member vote

412:3-605 Notice to credit union member

412:3-606 Conversion from State to comparable federal

financial institution

412:3-607 Conversion from federal to comparable Hawaii

financial institution

412:3-608 Conversion to another type of financial

institution

412:3-609 Merger or consolidation of Hawaii financial

institutions

412:3-610 Effect of conversion, merger, or consolidation

412:3-611 Merger or consolidation of financial institution

holding companies

412:3-612 Acquisition of control of financial institution

or financial institution holding company

412:3-613 Sale or acquisition of assets and transfer or

assumption of liabilities

412:3-614 Sale or transfer of charter or license prohibited

412:3-615 Nonconforming assets or business

412:3-616 Authority for expedited conversion, merger,

consolidation, acquisition, or assumption

412:3-617 Voluntary cessation of business; dissolution

412:3-618 Injunctions

ARTICLE 4. DEPOSITS IN FINANCIAL INSTITUTIONS GENERALLY

412:4-100 Law applicable

412:4-101 Forms of deposit

412:4-102 Deposit account statements

412:4-103 Statements presumed correct after one year;

statute of limitations

412:4-104 Federal deposit insurance required

412:4-105 Accounts held in more than one name

412:4-106 Fiduciary accounts

412:4-107 Accounts of minors

412:4-108 No notice of incapacity

412:4-109 Checks drawn or transfers or withdrawals made by

authorized persons

412:4-110 Checks drawn or transfers or withdrawals made by

intoxicated persons

412:4-111 Accounts of deceased nonresidents

412:4-112 Pledging of assets

ARTICLE 5. BANKS

Part I. General Provisions

412:5-100 Definition

412:5-101 Necessity for bank charter

Part II. Powers of Banks

412:5-200 General powers

412:5-201 Powers granted under federal law

412:5-202 Membership in federal banks

412:5-203 Operating subsidiaries

412:5-204 Acceptances of drafts and bills of exchange

412:5-205 Authority to engage in trust business

412:5-205.5 Insurance and annuities powers

412:5-205.6 Requirements of banks engaging in insurance

activities

412:5-205.7 Securities powers

412:5-206 International banking facilities

Part III. Loans and Investments

412:5-300 Applicability of part

412:5-301 General requirements for loans

412:5-302 Limitations on loans and extensions of credit to

one borrower

412:5-303 Loans to executive officers, directors, principal

shareholders and affiliates

412:5-304 General requirement for investments

412:5-305 Permitted investments

412:5-306 Deposits made by banks

Part IV. Intra-Pacific Banks

412:5-400 Definitions

412:5-401 Required approval

412:5-402 Procedure to obtain approval

412:5-403 Examination and regulation

412:5-404 Termination of authority of intra-Pacific bank

412:5-405 Termination of authority of intra-Pacific bank

holding company

412:5-406 Paid-in capital and surplus

412:5-407 Same powers and duties as banks

ARTICLE 5A. INTERNATIONAL BANKING CORPORATIONS

Part I. General Provision

412:5A-100 Applicability of other provisions of this chapter

Part II. Application Procedures and Powers

412:5A-200 Scope and definitions

412:5A-201 Application; fee; approval

412:5A-202 Majority ownership by bank

412:5A-203 Paid-in capital and surplus

412:5A-204 Prohibition of business in United States

412:5A-205 Powers and duties

412:5A-206 Acceptance of deposits and reserves

412:5A-207 Deposit of corporate funds

412:5A-208 Limitation on investments

412:5A-209 Acquisition of stock in competing corporation

412:5A-210 Acquisition of stock to save a loss

412:5A-211 Prohibited corporate activities

412:5A-212 Improper discounting of loans

412:5A-213 Improper fixing of commodity prices

412:5A-214 Misrepresentation of state liability for bonds

Part III. Foreign Bank Offices and Agencies–Repealed

412:5A-300 to 316 Repealed

ARTICLE 6. SAVINGS BANKS

Part I. General Provisions

412:6-100 Definition

412:6-101 Necessity for savings bank charter

Part II. Powers of Savings Banks

412:6-200 General powers

412:6-201 Powers granted under federal law

412:6-202 Membership in federal home loan bank

412:6-203 Service corporations

412:6-204 Operating subsidiaries

Part III. Loans and Investments

412:6-300 Applicability of part

412:6-301 General requirements for loans

412:6-302 Requirements and limits for certain loans

412:6-303 Limitations on loans and extensions of credit to one

borrower

412:6-304 Loans and extensions of credit to executive

officers, directors, principal shareholders and

affiliates

412:6-305 General requirement for investments

412:6-306 Permitted investments

412:6-307 Deposits made by savings banks

ARTICLE 7. SAVINGS AND LOAN ASSOCIATIONS

Part I. General Provisions

412:7-100 Definition

412:7-101 Necessity for savings and loan association charter

Part II. Powers of Savings and Loan Associations

412:7-200 General powers

412:7-201 Powers granted under federal law

412:7-202 Membership in federal home loan bank

412:7-203 Service corporations

412:7-204 Operating subsidiaries

Part III. Loans and Investments

412:7-300 Applicability of part

412:7-301 General requirements for loans

412:7-302 Requirements and limits for certain loans

412:7-303 Limitations on loans and extensions of credit to one

borrower

412:7-304 Loans and extensions of credit to executive

officers, directors, principal shareholders and

affiliates

412:7-305 General requirement for investments

412:7-306 Permitted investments

412:7-307 Deposits made by savings and loan associations

Part IV. Management of Mutual Savings and Loan

Associations–Repealed

412:7-400 to 408 Repealed

ARTICLE 8. TRUST COMPANIES

Part I. General Provisions

412:8-100 Applicability of article

412:8-101 Definitions

412:8-102 Necessity for trust company charter

412:8-103 Authority to serve as trustee

Part II. Powers of Trust Companies

412:8-200 General powers

412:8-201 Fiduciary powers

412:8-202 Acting as agent

412:8-203 Use of nominees

412:8-204 Agreement between trust companies and banks

Part III. Investment of Trust Company Assets

412:8-300 Applicability of part

412:8-301 Permitted investments of capital and surplus

412:8-302 Deposits made by trust companies

Part IV. Investment of Fiduciary Assets

412:8-400 General requirements

412:8-401 Trust funds awaiting investment

412:8-402 Common trust fund investments

412:8-403 Disclosure of fees

ARTICLE 9. FINANCIAL SERVICES LOAN COMPANIES

Part I. General Provisions

412:9-100 Definitions

412:9-101 Necessity for financial services loan company

license

412:9-102 Repealed

412:9-103 Display of license

Part II. Powers of Financial Services Loan Companies

412:9-200 General powers

412:9-201 Powers that require regulatory approval

412:9-202 Prohibitions

Part III. Loans and Extensions of Credit

412:9-300 General requirements for loans and extensions

of credit

412:9-301 Interest computation methods

412:9-302 Interest rates

412:9-303 Effect of excessive interest

412:9-304 Consumer loan charges

412:9-305 Open-end consumer loans

412:9-306 Refunds on prepayment of a precomputed loan

412:9-307 Fraction of a month

412:9-308 Repayment terms

412:9-309 Assignments, sale or pledge of loans

Part IV. Depository Financial Services Loan Companies

412:9-400 Special powers of a depository financial services

loan company

412:9-401 Required reserve for a depository financial services

loan company

412:9-402 Membership in federal home loan bank

412:9-403 Service corporations

412:9-404 Limitations on loans and extensions of credit to one

borrower

412:9-405 Loans and extensions of credit fully secured by real

property

412:9-406 Repealed

412:9-407 Limits on transactions with affiliates, executive

officers, directors or principal shareholders

412:9-408 General requirement for investments

412:9-409 Permitted investments

412:9-410 Deposits made by depository financial services loan

companies

Part V. Nondepository Financial Services Loan

Companies

412:9-500 Prohibitions

412:9-501 Registration of nondepository financial services loan

companies with NMLS

ARTICLE 10. CREDIT UNIONS

Part I. General Provisions

412:10-100 Definitions

412:10-101 Necessity for credit union charter

412:10-102 Capital stock or surplus

412:10-103 Application for charter

412:10-104 Articles and bylaws

412:10-105 Disclosure of information

412:10-106 Deposit and share insurance

412:10-107 Grant of approval

412:10-108 Denial of charter

412:10-109 Membership

412:10-110 Membership meetings

412:10-111 Voting

412:10-112 Board of directors

412:10-113 No compensation of directors or committee members

412:10-114 Credit committee

412:10-115 Credit manager

412:10-116 Loan officers

412:10-117 Supervisory committee

412:10-118 Record of officials

412:10-119 Conflicts of interest

412:10-120 Suspension or removal of officials

412:10-121 Central credit unions

412:10-122 Taxation

412:10-123 Fiscal year

412:10-124 Conducting business outside this State

412:10-125 Repealed

Part II. Powers of Credit Unions

412:10-200 General powers

412:10-201 Powers granted under federal law

412:10-202 Credit union service organizations

412:10-203 Sale or purchase of obligations or notes

412:10-204 Sale or purchase of assets

Part III. Accounts

412:10-300 Applicability of other provisions of this chapter

412:10-301 Share accounts and membership shares

412:10-302 Dividends

412:10-303 Deposit accounts

412:10-304 Withdrawals

412:10-305 Minor accounts

412:10-306 Joint accounts

412:10-307 Trust accounts

412:10-308 Payable-on-death accounts

412:10-309 Liens

412:10-310 Dormant accounts

Part IV. Loans

412:10-400 Applicability of part

412:10-401 General requirements for loans

412:10-402 Loans to members

412:10-403 Interest rates

412:10-404 Other charges

412:10-405 Applications

412:10-406 Prepayment of loan

412:10-407 Limitations on obligations of one borrower

412:10-408 Loans to officials

412:10-409 Real estate mortgage loans

412:10-410 Lines of credit

412:10-411 Loans to other credit unions

412:10-412 Participation loans

412:10-413 Other loan programs

Part V. Investments

412:10-500 Applicability of part

412:10-501 General requirement for investments

412:10-502 Permitted investments

412:10-503 Deposits made by credit unions

Part VI. Reserve Allocations

412:10-600 Regular reserve

412:10-601 Special reserves

412:10-602 Risk assets

Part VII. Other Member Services

412:10-700 Insurance for members

412:10-701 Liability insurance for officers

412:10-702 Group purchasing

412:10-703 Money-type instruments

412:10-704 Retirement accounts

Part VIII. Corporate Credit Union

412:10-800 Application of part

412:10-801 Purposes

412:10-802 Membership

412:10-803 Organization

412:10-804 Management and operation of corporate credit union

412:10-805 Powers

412:10-806 Participation in central system

412:10-807 Collection on loans to members

412:10-808 Meetings

ARTICLE 11. FINANCIAL INSTITUTION HOLDING COMPANIES

412:11-100 Applicability of article

412:11-101 Registration and reporting of financial

institution

holding companies

412:11-102 Examination of financial institution holding

company

412:11-103 Use of state or federal examinations

412:11-104 Service of process

412:11-105 Sanctions for failure to register or submit

reports

412:11-106 Injunctions

ARTICLE 12. INTERSTATE BRANCHING AND BANK MERGERS

412:12-100 Purpose

412:12-101 Definitions

412:12-102 Authority of Hawaii state banks to establish

interstate branches by merger

412:12-103 Authority of Hawaii state banks to establish a de

novo interstate branch or acquire an interstate

branch

412:12-104 Authority of out-of-state banks to establish

interstate branches in Hawaii by merger

412:12-105 Authority of out-of-state banks to establish a de

novo interstate branch or acquire an interstate

branch

412:12-106 No concentration limit under Hawaii state law;

waiver of federal concentration limits

412:12-107 Powers; additional branches

412:12-108 Examinations; periodic reports; cooperative

agreements; assessment of fees

412:12-109 Enforcement

412:12-110 Notice of subsequent merger, etc.

ARTICLE 13. THE HAWAII INTERNATIONAL BANKING ACT

Part I. General

412:13-100 Title and purpose

412:13-101 Application to existing foreign banks

412:13-102 Definitions

Part II. Direct Branch, Agency, and Representative

Offices of Foreign Banks

412:13-200 Purpose

412:13-201 Branches and agencies of foreign banks; necessity

of licensure

412:13-202 Application to establish and maintain a branch or

agency; contents

412:13-203 Application to establish and maintain a branch or

agency; manner of filing and determination

412:13-204 Denial of license

412:13-205 Amended license to establish and maintain a branch

or agency

412:13-206 Application fees

412:13-207 No concurrent maintenance of federal branches or

agencies

412:13-208 Powers of branch and agency

412:13-209 Filing of amendments to articles of incorporation

412:13-210 Separate assets

412:13-211 Disclosure of lack of deposit insurance

412:13-212 Limitations on payment of interest on deposits

412:13-213 Pledge of assets

412:13-214 Asset maintenance

412:13-215 Representative office of foreign banks; necessity

of licensure

412:13-216 Representative office; application

412:13-217 Representative office; factors for approval of

application

412:13-218 Representative office; permissible activities

412:13-219 Posting of license

412:13-220 Licenses not transferable

412:13-221 Change of control of foreign bank

412:13-222 Relocation of office; written application

necessary

412:13-223 Examination; payment of fees

412:13-224 Supervision and enforcement

412:13-225 Reports

412:13-226 Books, accounts, and records

412:13-227 Voluntary closure of branch, agency, or

representative office; application

412:13-228 Suspension or revocation of license; grounds;

procedures

412:13-229 Immediate suspension or revocation

412:13-230 Seizure of foreign bank’s property and business;

liquidation

Part III. Hawaii Branches of Out-of-State Foreign

Banks

412:13-300 Purposes

412:13-301 Establishment of interstate branches in this State

by out-of-state foreign banks

ARTICLE 14. MISCELLANEOUS PROVISIONS

412:14-100 Automated teller machine fees

Revision Note

Chapter heading added by revisor.

Cross References

Money transmitters act, see chapter 489D.

Secure and fair enforcement for mortgage licensing act, see chapter 454F.

Rules of Court

Applicability of Hawaii Rules of Civil Procedure, see HRCP rule 81(b)(12).

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