CHAPTER 412

[CODE OF FINANCIAL INSTITUTIONS]

 

ARTICLE 1.  GENERAL PROVISIONS

 

Section

412:1-100Short title 412:1-101Purpose 412:1-102Scope and application of chapter 412:1-103Application to existing financial institutions 412:1-104Names 412:1-105Deposits 412:1-106Headings; references 412:1-107Particular provisions prevail 412:1-108Jurisdiction conferred upon circuit court 412:1-109Definitions

ARTICLE 2.  DIVISION OF FINANCIAL INSTITUTIONS

 

          Part I.  Administration

412:2-100Commissioner of financial institutions; division of financial institutions 412:2-100.5Powers of the commissioner 412:2-101Deputy commissioner, acting commissioner 412:2-102Examiners and other personnel 412:2-103Disqualifications 412:2-104Confidentiality of information possessed by commissioner 412:2-105Fees 412:2-105.1Hawaii financial institutions; fees; penalty 412:2-105.2Hawaii financial institutions; assessments; fees; penalty 412:2-106Public or private hearings 412:2-107Rules 412:2-108Alternative mortgage loans rules 412:2-109Compliance resolution fund; financial institution examiners 412:2-110Emergency applications 412:2-111Commissioner's power to subpoena

          Part II.  Examinations

412:2-200Examinations 412:2-201Use of federal examinations

          Part III.  Enforcement Actions

412:2-300Enforcement actions 412:2-301Joint enforcement with federal regulatory agency 412:2-302Cease and desist orders; grounds for issuance 412:2-303Permanent cease and desist orders; procedure; hearing; enforcement 412:2-304Temporary cease and desist orders; effective date; hearing; enforcement 412:2-305Consent cease and desist orders 412:2-306Removal or prohibition of institution-affiliated party; grounds 412:2-307Removal or prohibition of institution-affiliated party; procedure; hearing; enforcement 412:2-308Order of immediate suspension; procedure; effective date; hearing; enforcement 412:2-309Consent order of removal or prohibition 412:2-310Removal, prohibition, or suspension; effect of order 412:2-311Suspension or revocation of charter or license 412:2-312Suspension or revocation; procedure; hearing; enforcement 412:2-313Consent suspension and revocation order 412:2-314Action to correct capital and surplus impairment 412:2-315National or state emergencies

          Part IV.  Conservators and Receivers

412:2-400Grounds for appointment of conservator or receiver 412:2-401Appointment of conservator or receiver; judicial review 412:2-402Additional grounds for appointment 412:2-403Who may serve as conservator or receiver 412:2-404Federal insurer as conservator or receiver; subrogation 412:2-405Removal or replacement of conservator or receiver 412:2-406Compensation and expenses of conservator or receiver 412:2-407Stay of judicial proceedings 412:2-408Duties and powers of conservator 412:2-409Conservator's segregation of deposits 412:2-410Supervised reorganization 412:2-411Termination of conservatorship 412:2-412Duties and powers of receiver 412:2-413No interest on deposits of an institution in receivership 412:2-414Optional court supervision 412:2-415Notice of receivership; filing of claims 412:2-416Liquidation by receiver; priority of claims 412:2-417Final accounting and discharge 412:2-418Transfer of assets in contemplation of insolvency void 412:2-419Treatment of lessors 412:2-420Claims for wrongful termination of employment 412:2-421Bailments and safe deposit boxes in receivership

          Part V.  Supervised Acquisition of Financial

                   Institutions

412:2-500Definitions 412:2-501Commissioner's determination of failing institution 412:2-502Solicitation of purchasers 412:2-503Applications to purchase 412:2-504Granting of application; criteria for approval 412:2-505Waiver of statewide concentration limits under the Bank Holding Company Act of 1956, as amended 412:2-506Charter or license 412:2-507Expedited approvals 412:2-508Provisional approval to organize 412:2-509Effect of merger or acquisition on prior business, title and obligations 412:2-510Commissioner's powers 412:2-511Modification of time periods 412:2-512Repealed

          Part VI.  Penalties, Administrative Fines and

                    Prohibited Acts

412:2-600Applicability of part 412:2-601Violation of chapter 412:2-602Copying records of Hawaii financial institutions 412:2-603Disclosures of records of Hawaii financial institutions 412:2-604Concealment 412:2-605Repealed 412:2-606Witness; failure to testify or produce records 412:2-606.5Financial institution name fraud 412:2-607Deception; false statements 412:2-608Misapplication of funds 412:2-609Imposition of administrative fines; assessment 412:2-609.5Imposition of administrative fines on persons who are not Hawaii financial institutions; assessment 412:2-610Compromise or modification of administrative fines;

            determining amount of fine; hearing

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

 

ARTICLE 3.  ORGANIZATION AND MANAGEMENT OF FINANCIAL

INSTITUTIONS

 

          Part I.  General Provisions

412:3-100Applicability of this part 412:3-101Name of financial institution 412:3-102Change of name 412:3-103Repealed 412:3-104Qualifications of directors 412:3-105Election and appointment of executive officers 412:3-106Residency of chief executive officer 412:3-107Meetings of the board 412:3-108Generally accepted accounting principles 412:3-109Charging down assets 412:3-110Holding of assets 412:3-111Maintenance of books and records 412:3-111.5Request for information by the commissioner 412:3-112Submissions to commissioner 412:3-113Repealed 412:3-114Duty to report illegal acts 412:3-114.5Mandatory reporting of suspected financial abuse of an elder 412:3-115Repealed

          Part II.  Organization of Banks, Savings Banks,

                    Savings and Loan Associations, Trust

                    Companies and Depository Financial

                    Services Loan Companies

412:3-200Applicability of part 412:3-201Application for preliminary approval to organize a financial institution 412:3-202Additional requirements for holding company 412:3-203Deferral of application requirements 412:3-204Publication of notice 412:3-205Informational and comment proceeding on application 412:3-206Grant of preliminary approval to organize a financial institution 412:3-207Denial of preliminary approval to organize 412:3-208Repealed 412:3-209Paid-in capital and surplus 412:3-210Repealed 412:3-211Time limit to complete organization 412:3-212Final application for charter or license 412:3-213Denial of charter or license

          Part III.  Organization of Nondepository

                     Financial Services Loan Companies

412:3-300Applicability of part 412:3-301Application for license 412:3-302Publication of notice 412:3-303Informational and comment proceeding 412:3-304Grant of approval 412:3-305Denial of license 412:3-306Paid-in capital and surplus

          Part IV.  Management of Stock Financial Institutions

412:3-400Applicability of part 412:3-401Applicability of Hawaii Business Corporation Act 412:3-402Capital stock 412:3-403Dividends and other capital distributions

          Part V.  Places of Business

412:3-500Prohibition of business at unauthorized locations 412:3-501Authorized places of business 412:3-502Foreign financial institution 412:3-503Opening or relocating principal office, branch, or agency 412:3-504Notice and deadline for opening or relocating principal office, branch, or agency 412:3-505Opening or relocating out-of-state branch or agency 412:3-506Opening or relocating a support facility 412:3-507Closing branch or agency; temporary closures and relocations 412:3-508Closing a support facility 412:3-509Out-of-state branch or agency

          Part VI.  Conversions, Mergers, Consolidations,

                    Acquisitions, Assumptions, and Voluntary

                    Dissolutions

412:3-600Applicability of this part 412:3-601No conversions, mergers, consolidations, acquisitions, assumptions, voluntary cessations of

            business, or voluntary dissolutions except

            pursuant to this part

412:3-602Definitions 412:3-603Procedure for applications pursuant to this part 412:3-604Shareholder or member vote 412:3-605Notice to credit union member 412:3-606Conversion from State to comparable federal financial institution 412:3-607Conversion from federal to comparable Hawaii financial institution 412:3-608Conversion to another type of financial institution 412:3-609Merger or consolidation of Hawaii financial institutions 412:3-610Effect of conversion, merger, or consolidation 412:3-611Merger or consolidation of financial institution holding companies 412:3-612Acquisition of control of financial institution or financial institution holding company 412:3-613Sale or acquisition of assets and transfer or assumption of liabilities 412:3-614Sale or transfer of charter or license prohibited 412:3-615Nonconforming assets or business 412:3-616Authority for expedited conversion, merger, consolidation, acquisition, or assumption 412:3-617Voluntary cessation of business; dissolution 412:3-618Injunctions

ARTICLE 4.  DEPOSITS IN FINANCIAL INSTITUTIONS GENERALLY

 

412:4-100Law applicable 412:4-101Forms of deposit 412:4-102Deposit account statements 412:4-103Statements presumed correct after one year; statute of limitations 412:4-104Federal deposit insurance required 412:4-105Accounts held in more than one name 412:4-106Fiduciary accounts 412:4-107Accounts of minors 412:4-108No notice of incapacity 412:4-109Checks drawn or transfers or withdrawals made by authorized persons 412:4-110Checks drawn or transfers or withdrawals made by intoxicated persons 412:4-111Accounts of deceased nonresidents 412:4-112Pledging of assets

ARTICLE 5.  BANKS

 

          Part I.  General Provisions

412:5-100Definition 412:5-101Necessity for bank charter

          Part II.  Powers of Banks

412:5-200General powers 412:5-201Powers granted under federal law 412:5-202Membership in federal banks 412:5-203Operating subsidiaries 412:5-204Acceptances of drafts and bills of exchange 412:5-205Authority to engage in trust business 412:5-205.5Insurance and annuities powers 412:5-205.6Requirements of banks engaging in insurance activities 412:5-205.7Securities powers 412:5-206International banking facilities

          Part III.  Loans and Investments

412:5-300Applicability of part 412:5-301General requirements for loans 412:5-302Limitations on loans and extensions of credit to one borrower 412:5-303Loans to executive officers, directors, principal shareholders and affiliates 412:5-304General requirement for investments 412:5-305Permitted investments 412:5-306Deposits made by banks

          Part IV.  Intra-Pacific Banks

412:5-400Definitions 412:5-401Required approval 412:5-402Procedure to obtain approval 412:5-403Examination and regulation 412:5-404Termination of authority of intra-Pacific bank 412:5-405Termination of authority of intra-Pacific bank holding company 412:5-406Paid-in capital and surplus 412:5-407Same powers and duties as banks

ARTICLE 5A.  INTERNATIONAL BANKING CORPORATIONS

 

          Part I.  General Provision

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

          Part II.  Application Procedures and Powers

412:5A-200Scope and definitions 412:5A-201Application; fee; approval 412:5A-202Majority ownership by bank 412:5A-203Paid-in capital and surplus 412:5A-204Prohibition of business in United States 412:5A-205Powers and duties 412:5A-206Acceptance of deposits and reserves 412:5A-207Deposit of corporate funds 412:5A-208Limitation on investments 412:5A-209Acquisition of stock in competing corporation 412:5A-210Acquisition of stock to save a loss 412:5A-211Prohibited corporate activities 412:5A-212Improper discounting of loans 412:5A-213Improper fixing of commodity prices 412:5A-214Misrepresentation of state liability for bonds

          Part III.  Foreign Bank Offices and Agencies--Repealed

412:5A-300to 316 Repealed

ARTICLE 6.  SAVINGS BANKS

 

          Part I.  General Provisions

412:6-100Definition 412:6-101Necessity for savings bank charter

          Part II.  Powers of Savings Banks

412:6-200General powers 412:6-201Powers granted under federal law 412:6-202Membership in federal home loan bank 412:6-203Service corporations 412:6-204Operating subsidiaries

          Part III.  Loans and Investments

412:6-300Applicability of part 412:6-301General requirements for loans 412:6-302Requirements and limits for certain loans 412:6-303Limitations on loans and extensions of credit to one borrower 412:6-304Loans and extensions of credit to executive officers, directors, principal shareholders and

            affiliates

412:6-305General requirement for investments 412:6-306Permitted investments 412:6-307Deposits made by savings banks

ARTICLE 7.  SAVINGS AND LOAN ASSOCIATIONS

 

          Part I.  General Provisions

412:7-100Definition 412:7-101Necessity for savings and loan association charter

          Part II.  Powers of Savings and Loan Associations

412:7-200General powers 412:7-201Powers granted under federal law 412:7-202Membership in federal home loan bank 412:7-203Service corporations 412:7-204Operating subsidiaries

          Part III.  Loans and Investments

412:7-300Applicability of part 412:7-301General requirements for loans 412:7-302Requirements and limits for certain loans 412:7-303Limitations on loans and extensions of credit to one borrower 412:7-304Loans and extensions of credit to executive officers, directors, principal shareholders and

            affiliates

412:7-305General requirement for investments 412:7-306Permitted investments 412:7-307Deposits made by savings and loan associations

          Part IV.  Management of Mutual Savings and Loan

                    Associations--Repealed

412:7-400to 408 Repealed

ARTICLE 8.  TRUST COMPANIES

 

          Part I.  General Provisions

412:8-100Applicability of article 412:8-101Definitions 412:8-102Necessity for trust company charter 412:8-103Authority to serve as trustee

          Part II.  Powers of Trust Companies

412:8-200General powers 412:8-201Fiduciary powers 412:8-202Acting as agent 412:8-203Use of nominees 412:8-204Agreement between trust companies and banks

          Part III.  Investment of Trust Company Assets

412:8-300Applicability of part 412:8-301Permitted investments of capital and surplus 412:8-302Deposits made by trust companies

          Part IV.  Investment of Fiduciary Assets

412:8-400General requirements 412:8-401Trust funds awaiting investment 412:8-402Common trust fund investments 412:8-403Disclosure of fees

ARTICLE 9.  FINANCIAL SERVICES LOAN COMPANIES

 

          Part I.  General Provisions

412:9-100Definitions 412:9-101Necessity for financial services loan company license 412:9-102Annual license fee 412:9-103Display of license

          Part II.  Powers of Financial Services Loan Companies

412:9-200General powers 412:9-201Powers that require regulatory approval 412:9-202Prohibitions

          Part III.  Loans and Extensions of Credit

412:9-300General requirements for loans and extensions of credit 412:9-301Interest computation methods 412:9-302Interest rates 412:9-303Effect of excessive interest 412:9-304Consumer loan charges 412:9-305Open-end consumer loans 412:9-306Refunds on prepayment of a precomputed loan 412:9-307Fraction of a month 412:9-308Repayment terms 412:9-309Assignments, sale or pledge of loans

          Part IV.  Depository Financial Services Loan Companies

412:9-400Special powers of a depository financial services loan company 412:9-401Required reserve for a depository financial services loan company 412:9-402Membership in federal home loan bank 412:9-403Service corporations 412:9-404Limitations on loans and extensions of credit to one borrower 412:9-405Loans and extensions of credit fully secured by real property 412:9-406Repealed 412:9-407Limits on transactions with affiliates, executive officers, directors or principal shareholders 412:9-408General requirement for investments 412:9-409Permitted investments 412:9-410Deposits made by depository financial services loan companies

 

          Part V.  Nondepository Financial Services Loan

                   Companies

412:9-500Prohibitions 412:9‑501Registration of nondepository financial services loan companies with NMLS

 

ARTICLE 10.  CREDIT UNIONS

 

          Part I.  General Provisions

412:10-100Definitions 412:10-101Necessity for credit union charter 412:10-102Capital stock or surplus 412:10-103Application for charter 412:10-104Articles and bylaws 412:10-105Disclosure of information 412:10-106Deposit and share insurance 412:10-107Grant of approval 412:10-108Denial of charter 412:10-109Membership 412:10-110Membership meetings 412:10-111Voting 412:10-112Board of directors 412:10-113No compensation of directors or committee members 412:10-114Credit committee 412:10-115Credit manager 412:10-116Loan officers 412:10-117Supervisory committee 412:10-118Record of officials 412:10-119Conflicts of interest 412:10-120Suspension or removal of officials 412:10-121Central credit unions 412:10-122Taxation 412:10-123Fiscal year 412:10-124Conducting business outside this State 412:10-125Credit union advisory board

          Part II.  Powers of Credit Unions

412:10-200General powers 412:10-201Powers granted under federal law 412:10-202Credit union service organizations 412:10-203Sale or purchase of obligations or notes 412:10-204Sale or purchase of assets

          Part III.  Accounts

412:10-300Applicability of other provisions of this chapter 412:10-301Share accounts and membership shares 412:10-302Dividends 412:10-303Deposit accounts 412:10-304Withdrawals 412:10-305Minor accounts 412:10-306Joint accounts 412:10-307Trust accounts 412:10-308Payable-on-death accounts 412:10-309Liens 412:10-310Dormant accounts

          Part IV.  Loans

412:10-400Applicability of part 412:10-401General requirements for loans 412:10-402Loans to members 412:10-403Interest rates 412:10-404Other charges 412:10-405Applications 412:10-406Prepayment of loan 412:10-407Limitations on obligations of one borrower 412:10-408Loans to officials 412:10-409Real estate mortgage loans 412:10-410Lines of credit 412:10-411Loans to other credit unions 412:10-412Participation loans 412:10-413Other loan programs

          Part V.  Investments

412:10-500Applicability of part 412:10-501General requirement for investments 412:10-502Permitted investments 412:10-503Deposits made by credit unions

          Part VI.  Reserve Allocations

412:10-600Regular reserve 412:10-601Special reserves 412:10-602Risk assets

          Part VII.  Other Member Services

412:10-700Insurance for members 412:10-701Liability insurance for officers 412:10-702Group purchasing 412:10-703Money-type instruments 412:10-704Retirement accounts

          Part VIII.  Corporate Credit Union

412:10-800Application of part 412:10-801Purposes 412:10-802Membership 412:10-803Organization 412:10-804Management and operation of corporate credit union 412:10-805Powers 412:10-806Participation in central system 412:10-807Collection on loans to members 412:10-808Meetings

ARTICLE 11.  FINANCIAL INSTITUTION HOLDING COMPANIES

 

412:11-100Applicability of article 412:11-101Registration and reporting of financial institution

            holding companies

412:11-102Examination of financial institution holding company 412:11-103Use of state or federal examinations 412:11-104Service of process 412:11-105Sanctions for failure to register or submit reports 412:11-106Injunctions

ARTICLE 12.  INTERSTATE BRANCHING AND BANK MERGERS

 

412:12-100Purpose 412:12-101Definitions 412:12-102Authority of Hawaii state banks to establish interstate branches by merger 412:12-103Authority of Hawaii state banks to establish a de novo interstate branch or acquire an interstate

            branch

412:12-104Authority of out-of-state banks to establish interstate branches in Hawaii by merger 412:12-105Authority of out-of-state banks to establish a de novo interstate branch or acquire an interstate

            branch

412:12-106No concentration limit under Hawaii state law; waiver of federal concentration limits 412:12-107Powers; additional branches 412:12-108Examinations; periodic reports; cooperative agreements; assessment of fees 412:12-109Enforcement 412:12-110Notice of subsequent merger, etc.

ARTICLE 13.  THE HAWAII INTERNATIONAL BANKING ACT

 

          Part I.  General

412:13-100Title and purpose 412:13-101Application to existing foreign banks 412:13-102Definitions

          Part II.  Direct Branch, Agency, and Representative

                    Offices of Foreign Banks

412:13-200Purpose 412:13-201Branches and agencies of foreign banks; necessity of licensure 412:13-202Application to establish and maintain a branch or agency; contents 412:13-203Application to establish and maintain a branch or agency; manner of filing and determination 412:13-204Denial of license 412:13-205Amended license to establish and maintain a branch or agency 412:13-206Application fees 412:13-207No concurrent maintenance of federal branches or agencies 412:13-208Powers of branch and agency 412:13-209Filing of amendments to articles of incorporation 412:13-210Separate assets 412:13-211Disclosure of lack of deposit insurance 412:13-212Limitations on payment of interest on deposits 412:13-213Pledge of assets 412:13-214Asset maintenance 412:13-215Representative office of foreign banks; necessity of licensure 412:13-216Representative office; application 412:13-217Representative office; factors for approval of application 412:13-218Representative office; permissible activities 412:13-219Posting of license 412:13-220Licenses not transferable 412:13-221Change of control of foreign bank 412:13-222Relocation of office; written application necessary 412:13-223Examination; payment of fees 412:13-224Supervision and enforcement 412:13-225Reports 412:13-226Books, accounts, and records 412:13-227Voluntary closure of branch, agency, or representative office; application 412:13-228Suspension or revocation of license; grounds; procedures 412:13-229Immediate suspension or revocation 412:13-230Seizure of foreign bank's property and business; liquidation

 

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

                     Banks

412:13-300Purposes 412:13-301Establishment of interstate branches in this State by out-of-state foreign banks

 

ARTICLE 14.  MISCELLANEOUS PROVISIONS

 

412:14-100Automated 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).