CHAPTER 412
[CODE OF FINANCIAL INSTITUTIONS]
ARTICLE 1. GENERAL PROVISIONS
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
412:2-101 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 and assessments
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
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
412:2-607 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
412:3-115 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
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 Annual license fee
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 Limitation 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
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 Credit union advisory board
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
Revision Note
Chapter heading added by revisor.
Cross References
Money transmitters act, see chapter 489D.
Rules of Court
Applicability of Hawaii Rules of Civil Procedure, see HRCP rule 81(b)(12).