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HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO THE CODE OF FINANCIAL INSTITUTIONS.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Chapter 412, Hawaii Revised Statutes, is amended
 
 2 by adding to part I of article 2 a new section to be
 
 3 appropriately designated and to read as follows:
 
 4      "§412:2-     Waiver of fees.  Notwithstanding any law to the
 
 5 contrary, the commissioner, for good cause, may waive any fee
 
 6 imposed pursuant to this chapter.  The waiver of any such fee
 
 7 shall be in the discretion of the commissioner."
 
 8      SECTION 2.  Chapter 412, Hawaii Revised Statutes, is amended
 
 9 by adding to part I of article 2 a new section to be
 
10 appropriately designated and to read as follows:
 
11      "§412:2-     Emergency applications.  Notwithstanding any
 
12 law to the contrary, an application may be approved by the
 
13 commissioner without investigation, notice, comment, or hearing
 
14 in any case which the commissioner determines to be an emergency
 
15 arising from the insolvency of an existing institution or to
 
16 prevent the failure of an existing institution.  No such
 
17 emergency applications may be granted unless the commissioner
 
18 determines that the relevant statutory criteria have been met.
 
19 Notwithstanding the granting of any approval, if the commissioner
 

 
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 1 discovers good cause why an approval should not have been
 
 2 granted, the approval may be revoked by giving written notice of
 
 3 revocation to the applicant."
 
 4      SECTION 3.  Chapter 412, Hawaii Revised Statutes, is amended
 
 5 by adding to part I of article 2 a new section to be
 
 6 appropriately designated and to read as follows:
 
 7      "§412:2-     Commissioner's power to subpoena.  In the
 
 8 course of an investigation of matters affecting the interest of
 
 9 consumers or depositors or of any other matter within the
 
10 jurisdiction of the division, the commissioner shall have the
 
11 power and authority to summon persons and subpoena witnesses,
 
12 compel their attendance, administer oaths and examine any person
 
13 under oath, and require the production of books, papers,
 
14 documents, or objects that the commissioner deems relevant or
 
15 material to the inquiry.  Any summons or subpoena may be served
 
16 by certified mail with return receipt requested.  Powers granted
 
17 under this section may be enforced by the circuit court."
 
18      SECTION 4.  Section 412:1-109, Hawaii Revised Statutes, is
 
19 amended by amending the definition of "financial institution
 
20 holding company" to read as follows:
 
21      ""Financial institution holding company" [is] means a
 
22 holding company which controls a Hawaii financial institution or
 
23 which controls another financial institution holding company.
 

 
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 1 The following persons shall not be deemed to come within the
 
 2 definition of a financial institution holding company:
 
 3      (1)  A registered dealer who acts as an underwriter or
 
 4           member of a selling group in a public offering of the
 
 5           voting securities of a financial institution or of a
 
 6           financial institution holding company;
 
 7      (2)  A person who acts as proxy for the sole purpose of
 
 8           voting at a designated meeting of the security holders
 
 9           of a financial institution or of a financial
 
10           institution holding company;
 
11      (3)  A person who acquires control of a financial
 
12           institution or of a financial institution holding
 
13           company by devise or descent; or
 
14      (4)  A pledgee of a voting security of a financial
 
15           institution or of a financial institution holding
 
16           company who does not have the right, as pledgee, to
 
17           vote such voting security."
 
18      SECTION 5.  Section 412:2-105, Hawaii Revised Statutes, is
 
19 amended to read as follows:
 
20      "§412:2-105  Fees and assessments.(a)  The commissioner
 
21 may charge an examination fee based upon the cost per hour per
 
22 examiner for all financial institutions examined by the
 
23 commissioner or the commissioner's staff.  Effective July 1,
 

 
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 1 1995, the hourly fee shall be $40.  After July 1, 1996, the
 
 2 commissioner may establish, increase, decrease, or repeal the
 
 3 hourly fee when necessary pursuant to rules adopted in accordance
 
 4 with chapter 91.
 
 5      (b)  In addition to the examination fee, the commissioner
 
 6 may charge any financial institution examined or investigated by
 
 7 the commissioner or the commissioner's staff, additional amounts
 
 8 for travel, per diem, mileage, and other reasonable expenses
 
 9 incurred in connection with the examination.
 
10      (c)  The commissioner shall bill the affected financial
 
11 institution for examination fees and expenses as soon as feasible
 
12 after the close of the examination or investigation.  The
 
13 affected financial institution shall pay the division of
 
14 financial institutions within thirty days following the billing.
 
15 All such payments shall be deposited to the compliance resolution
 
16 fund established pursuant to section 26-9(o).  All disputes
 
17 relating to these billings between the affected financial
 
18 institution and the commissioner shall be resolved in accordance
 
19 with the procedures for contested cases under chapter 91.
 
20      (d)  Notwithstanding any law to the contrary, the fee for a
 
21 request by any person to search, review, or segregate the records
 
22 of the division shall include the following charges:
 
23      (1)  Actual time expended by examiners or other staff of the
 

 
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 1           division to search, review, or segregate the records of
 
 2           the division shall be charged at the then-prevailing
 
 3           hourly examiner fee as established by statute or rule,
 
 4           and shall be billed at such hourly fee prorated in
 
 5           increments of fifteen minutes, including any fraction
 
 6           thereof; and
 
 7      (2)  If applicable, the actual rate of charge, based upon
 
 8           time expended, that is charged to the division by a
 
 9           person other than the division for services to assist
 
10           the division in the search for, review, or segregation
 
11           of a record.
 
12 Unless otherwise provided by statute, a fee imposed under this
 
13 subsection shall be required to recover the actual costs incurred
 
14 by the division in response to a request to search, review, or
 
15 segregate its records, and shall be deposited into the compliance
 
16 resolution fund established pursuant to section 26-9(o).  The
 
17 division may waive any of the fees contemplated by this
 
18 subsection for any agency of any state, federal, or foreign
 
19 government entity duly entitled to request access to a record of
 
20 the division.
 
21      [(d)] (e)  The commissioner, by rules adopted in accordance
 
22 with chapter 91, may set reasonable fee amounts to be collected
 
23 by the division in connection with its regulatory functions,
 

 
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 1 including, without limitation, any fees for renewals,
 
 2 applications, licenses, and charters.  Unless otherwise provided
 
 3 by statute, all such fees shall be deposited into the compliance
 
 4 resolution fund established pursuant to section 26-9(o).
 
 5      [(e)] (f)  A Hawaii financial institution that fails to make
 
 6 a payment required by this section shall be subject to an
 
 7 administrative fine of not more than $250 per day for each day it
 
 8 is in violation of this section, which fine, together with the
 
 9 amount due under this section, may be recovered pursuant to
 
10 section 412:2-611 and shall be deposited into the compliance
 
11 resolution fund established pursuant to section 26-9(o)."
 
12      SECTION 6.  Section 412:2-306, Hawaii Revised Statutes, is
 
13 amended to read as follows:
 
14      "§412:2-306  Removal or prohibition of institution-
 
15 affiliated party; grounds.  (a)  The commissioner may order the
 
16 removal of any institution-affiliated party from office or
 
17 employment with a Hawaii financial institution and the
 
18 prohibition of such party's affiliation or participation in the
 
19 affairs of such financial institution if the commissioner
 
20 determines that all three of the following circumstances exist:
 
21      (1)  The institution-affiliated party has violated this
 
22           chapter or any rules issued pursuant to this chapter,
 
23           violated a cease and desist order which has become
 

 
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 1           effective, engaged or participated in an unsafe or
 
 2           unsound practice in connection with the financial
 
 3           institution, or breached a fiduciary duty owed to the
 
 4           financial institution;
 
 5      (2)  By reason of such violation, practice, or breach the
 
 6           financial institution has suffered or will probably
 
 7           suffer financial loss or other damage, the interests of
 
 8           the financial institution's depositors have been or may
 
 9           be prejudiced, or the institution-affiliated party has
 
10           received financial gain or other benefit as a result of
 
11           such violation, practice, or breach; and
 
12      (3)  The violation, practice, or breach involves the
 
13           institution-affiliated party's personal dishonesty, or
 
14           demonstrates such party's wilful or continuing
 
15           disregard for the safety or soundness of the financial
 
16           institution.
 
17      (b)  The commissioner may also order the removal of any
 
18 institution-affiliated party from office or employment with a
 
19 Hawaii financial institution and the prohibition of such party's
 
20 affiliation or participation in the affairs of such financial
 
21 institution if the commissioner determines that the institution-
 
22 affiliated party has been charged in any information, indictment,
 
23 or complaint authorized by a United States attorney, state
 

 
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 1 attorney general, or similar legal officer, with the commission
 
 2 of, or participation in a crime involving dishonesty or breach of
 
 3 trust which is punishable by imprisonment for a term exceeding
 
 4 one year under state or federal law, and continued service by the
 
 5 institution-affiliated party may pose a threat to the interests
 
 6 of the institution's depositors or may threaten to impair public
 
 7 confidence in the institution."
 
 8      SECTION 7.  Section 412:2-311, Hawaii Revised Statutes, is
 
 9 amended by amending subsection (a) to read as follows:
 
10      "(a)  The commissioner may revoke or suspend any charter or
 
11 license issued hereunder if the commissioner finds that:
 
12      (1)  Any information or representations submitted by an
 
13           applicant in connection with the issuance of the
 
14           charter or license were materially false when made;
 
15      (2)  Grounds exist for the appointment of a conservator or
 
16           receiver under this article; [or]
 
17      (3)  The Hawaii financial institution, for a period of six
 
18           months or more, has ceased to engage in the business
 
19           for which its charter or license was granted[.]; or
 
20      (4)  The Hawaii financial institution has violated or is
 
21           violating laws, rules, or regulations, or has committed
 
22           or is committing an unsafe or unsound practice."
 
23      SECTION 8.  Section 412:3-304, Hawaii Revised Statutes, is
 

 
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 1 amended by amending subsection (b) to read as follows:
 
 2      "(b)  If the commissioner is satisfied that the applicant
 
 3 has fulfilled all the requirements of law and is qualified to
 
 4 engage in the business of a nondepository financial services loan
 
 5 company, the commissioner shall issue a written decision and
 
 6 order approving the application.  Upon [approving] the approval
 
 7 of the application [and upon], the payment of an initial license
 
 8 fee established by rule pursuant to chapter 91, and, if
 
 9 applicable, upon providing satisfactory evidence to the
 
10 commissioner of compliance with the requirements of chapter 415
 
11 relating to foreign corporations, the commissioner shall issue to
 
12 the applicant a license to engage in the business of a
 
13 nondepository financial services loan company under this
 
14 chapter."
 
15      SECTION 9.  Section 412:3-617, Hawaii Revised Statutes, is
 
16 amended by amending subsection (b) to read as follows:
 
17      "(b)  Subject to the approval of the commissioner, a solvent
 
18 credit union whose capital is not impaired and which has not
 
19 received a notice of charges and proposed order of suspension or
 
20 revocation pursuant to section 412:2-312 may elect to dissolve
 
21 voluntarily and liquidate its affairs in the manner prescribed in
 
22 this section:
 
23      (1)  The board of directors shall adopt a resolution
 

 
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 1           adopting a plan of liquidation and dissolution,
 
 2           recommending the voluntary dissolution of the credit
 
 3           union, and directing that the question of the
 
 4           dissolution be submitted to the commissioner for
 
 5           approval and, if approved, requesting that the
 
 6           liquidation question be submitted to the members.  The
 
 7           plan of liquidation and dissolution shall include but
 
 8           not be limited to provisions for the orderly payment or
 
 9           assumption of the credit union's deposits, shares, and
 
10           other liabilities;
 
11      (2)  Not later than ten days after the meeting of the board
 
12           of directors described in paragraph (1), the credit
 
13           union shall file an application with the commissioner
 
14           pursuant to section 412:3-603, for approval to cease
 
15           business and dissolve.  The application shall be
 
16           accompanied by a copy of the plan of liquidation and
 
17           dissolution[,] certified by two executive officers of
 
18           the credit union[, and] to have been duly adopted by
 
19           the board[,] and shall include any other information
 
20           that the commissioner may require.  A copy of the
 
21           notice shall be delivered contemporaneously to any
 
22           government agency or other organization insuring member
 
23           accounts thereof, in writing, setting forth the reasons
 

 
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 1           for the proposed liquidation;
 
 2      (3)  The commissioner shall approve the application to cease
 
 3           business and dissolve if the commissioner is satisfied
 
 4           that the depositors, beneficiaries, and creditors will
 
 5           be adequately protected under the plan, the credit
 
 6           union is not insolvent or in danger of becoming
 
 7           insolvent, its capital is not impaired and is not in
 
 8           danger of becoming impaired, and no other reason exists
 
 9           to deny the application.  The commissioner may impose
 
10           any restrictions and conditions as the commissioner
 
11           deems appropriate;
 
12      (4)  Upon receipt of the commissioner's approval to cease
 
13           business and dissolve and as soon as the board of
 
14           directors decides to submit the liquidation question to
 
15           the members, all business affairs of the credit union,
 
16           including but not limited to payments on and
 
17           withdrawals of shares, share certificates, share
 
18           drafts, deposits, and deposit certificates, (except for
 
19           the transfer of shares or deposits to loans and
 
20           interest), the making of investments of any kind[,]
 
21           (other than short-term investments), and the issuing of
 
22           loans, shall be suspended until the members act on the
 
23           liquidation question.  Upon approval by the members,
 

 
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 1           all business transactions of the credit union shall be
 
 2           permanently discontinued.  Transfer of deposits or
 
 3           shares to loans and interest, collection of loans and
 
 4           interest, and the payment of necessary expenses of
 
 5           operation shall continue upon authorization by the
 
 6           board of directors or the liquidating agent during
 
 7           liquidation;
 
 8      (5)  An affirmative majority vote by the members by ballot,
 
 9           in person, by letter, or other written communication,
 
10           is necessary for a credit union to enter into voluntary
 
11           liquidation.  Whenever authorization for liquidation is
 
12           to be obtained at a meeting of the members, notice in
 
13           writing shall be given to each member, by first-class
 
14           mail, at least ten days prior to such meeting;
 
15      (6)  Not later than ten days after the members act on the
 
16           liquidation question, the chairperson of the board of
 
17           directors shall notify the commissioner and any
 
18           government agency or other organization insuring member
 
19           accounts, in writing, of the action of the members on
 
20           the liquidation question;
 
21      (7)  A liquidating credit union shall remain in existence
 
22           for the purpose of discharging its debts, collecting
 
23           its loans, distributing its assets, and any other
 

 
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 1           necessary functions in order to conclude its business.
 
 2           A liquidating credit union may sue or be sued for the
 
 3           purpose of enforcing its debts and obligations until
 
 4           its affairs are complete;
 
 5      (8)  The board of directors or the liquidating agent who may
 
 6           be the insurer shall use the assets of the credit union
 
 7           to pay:
 
 8           (A)  First, the expenses incidental to liquidation
 
 9                including any surety bonds required during
 
10                liquidation;
 
11           (B)  Second, any liability due to nonmembers;
 
12           (C)  Third, the deposits and deposit certificates of
 
13                the members of the credit union; and
 
14           (D)  Fourth, the remaining assets shall be distributed
 
15                to the members in proportion to the number of
 
16                shares held by each member on the date dissolution
 
17                was approved by the members;
 
18      (9)  When the board of directors or the liquidating agent
 
19           determines that all assets of the credit union having a
 
20           reasonable expectancy of realization have been
 
21           liquidated and distributed as provided in this section,
 
22           the board or the liquidating agent, whichever is
 
23           applicable, shall complete a certificate of dissolution
 

 
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 1           on a form prescribed by the commissioner.  Upon the
 
 2           completion of such certificate, the board or the
 
 3           liquidating agent, whichever is applicable, shall file
 
 4           such certificate with the commissioner for the complete
 
 5           dissolution and liquidation of the credit union; and
 
 6     (10)  Any credit union whose capital is impaired or in danger
 
 7           of becoming impaired, and any credit union that is
 
 8           insolvent or in danger of becoming insolvent, may not
 
 9           undergo a voluntary dissolution."
 
10      SECTION 10.  Section 412:5-305, Hawaii Revised Statutes, is
 
11 amended by amending subsection (b) to read as follows:
 
12      "(b)  [To the extent specified herein, a] A bank may invest
 
13 its own assets in bonds, securities, or similar obligations
 
14 issued by this State or any county of this State, through an
 
15 appropriate agency or instrumentality."
 
16      SECTION 11.  Section 412:6-306, Hawaii Revised Statutes, is
 
17 amended by amending subsection (b) to read as follows:
 
18      "(b)  [To the extent specified herein, a] A savings bank may
 
19 invest its own assets in bonds, securities, or similar
 
20 obligations issued by this State or any county of this State,
 
21 through an appropriate agency or instrumentality."
 
22      SECTION 12.  Section 412:7-306, Hawaii Revised Statutes, is
 
23 amended by amending subsection (b) to read as follows:
 

 
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 1      "(b) [To the extent specified herein, a] A savings and loan
 
 2 association may invest its own assets in bonds, securities, or
 
 3 similar obligations issued by this State or any county of this
 
 4 State, through an appropriate agency or instrumentality."
 
 5      SECTION 13.  Section 412:8-301, Hawaii Revised Statutes, is
 
 6 amended by amending subsection (b) to read as follows:
 
 7      "(b) [To the extent specified herein, a] A trust company may
 
 8 invest its own assets in bonds, securities, or similar
 
 9 obligations issued by this State or any county of this State,
 
10 through an appropriate agency or instrumentality."
 
11      SECTION 14.  Section 412:9-401, Hawaii Revised Statutes, is
 
12 amended by amending subsection (c) to read as follows:
 
13      "(c)  Other securities used as reserves shall be limited to
 
14 obligations of the United States and its agencies and of this
 
15 State and its counties that qualify as permitted investments
 
16 under sections 412:9-409(a)(1) and (a)(2) and 412:9-409(b),
 
17 reverse repurchase agreements whereby the depository financial
 
18 services loan company has purchased obligations of the United
 
19 States under terms which require the seller to repurchase the
 
20 obligations of the United States for cash on demand or in not
 
21 less than thirty days, bankers acceptances, irrevocable lines of
 
22 credit of one year or more approved by the commissioner, and
 
23 securities listed on the New York or the American stock exchanges
 

 
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 1 or the [Nasdaq] National Market System of the Nasdaq Stock
 
 2 Market.  Not more than twenty-five per cent of the total reserve
 
 3 shall be held in securities listed on the New York or American
 
 4 stock exchanges, or the [Nasdaq] National Market System of the
 
 5 Nasdaq Stock Market."
 
 6      SECTION 15.  Section 412:9-409, Hawaii Revised Statutes, is
 
 7 amended by amending subsection (b) to read as follows:
 
 8      "(b)  [To the extent specified in this subsection, a] A
 
 9 depository financial services loan company may invest its own
 
10 assets in bonds, securities, or similar obligations issued by
 
11 this State or any county of this State, through an appropriate
 
12 agency or instrumentality."
 
13      SECTION 16.  Section 412:10-502, Hawaii Revised Statutes, is
 
14 amended by amending subsection (b) to read as follows:
 
15      "(b)  [To the extent specified herein, a] A credit union may
 
16 invest its own assets in bonds, securities, or similar
 
17 obligations issued by this State[,] or any county of this State,
 
18 through an appropriate agency or instrumentality."
 
19      SECTION 17.  Section 412:13-202, Hawaii Revised Statutes, is
 
20 amended to read as follows:
 
21      "[[]§412:13-202[]]  Application to establish and maintain a
 
22 branch or agency; contents.  A foreign bank, in order to procure
 
23 a license under this article to establish and maintain a Hawaii
 

 
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 1 state branch or Hawaii state agency, shall submit an application
 
 2 to the commissioner, together with the application fee prescribed
 
 3 in section 412:13-206.  The application shall contain:
 
 4      (1)  The same information as required by the Board of
 
 5           Governors of the Federal Reserve System for an
 
 6           application to establish a branch or agency, as the
 
 7           case may be, in the United States;
 
 8      (2)  [A] If applicable, a statement under oath appointing an
 
 9           agent in this State for receipt of service of process
 
10           in accordance with section 415-113, if the license is
 
11           granted; and
 
12      (3)  Any additional information that the commissioner may
 
13           require."
 
14      SECTION 18.  Section 412:13-203, Hawaii Revised Statutes, is
 
15 amended by amending subsection (a) to read as follows:
 
16      "(a)  A foreign bank making an application under this
 
17 article for a license to establish and maintain a Hawaii state
 
18 branch or Hawaii state agency shall deliver to the commissioner[:
 
19      (1)  Three duplicate originals of the foreign bank's
 
20           application, or a greater number as the commissioner
 
21           may require by rule; and
 
22      (2)  Three], together with the application, two copies of
 
23 its charter or articles of incorporation and all amendments
 

 
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 1 thereto, duly authenticated by the proper officer of the country
 
 2 of the foreign bank's organization, or a greater number of copies
 
 3 as the commissioner may require by rule.  If the charter,
 
 4 articles of incorporation, or amendments are in a foreign
 
 5 language, [three] two copies (or a greater number of copies as
 
 6 the commissioner may require by rule) of an English translation
 
 7 of the documents under the oath of the translator shall accompany
 
 8 the charter, articles of incorporation, or amendments."
 
 9      SECTION 19.  Section 412:13-203, Hawaii Revised Statutes, is
 
10 amended by amending subsection (e) to read as follows:
 
11      "(e)  If the commissioner approves the application of the
 
12 foreign bank for a license to establish and maintain a Hawaii
 
13 state branch or Hawaii state agency, the foreign bank shall then
 
14 provide satisfactory evidence to the commissioner of compliance
 
15 with the [applicable] requirements of chapter 415 relating to
 
16 foreign corporations[.], if applicable.  The commissioner shall
 
17 then[:
 
18      (1)  Endorse on each document filed as part of the
 
19           application the word "Filed", and the date of the
 
20           filing thereof and return to the foreign bank a copy of
 
21           each document so endorsed;
 
22      (2)  File in the commissioner's office one of the originals
 
23           of the application and copies of the charter or
 

 
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 1           articles of incorporation and amendments thereto; and
 
 2      (3)  Issue] issue a license to establish and maintain a
 
 3           Hawaii state branch or Hawaii state agency to the
 
 4           foreign bank."
 
 5      SECTION 20.  Section 412:13-216, Hawaii Revised Statutes, is
 
 6 amended by amending subsection (b) to read as follows:
 
 7      "(b)  [Each] An application to establish and maintain a
 
 8 Hawaii representative office shall include, if applicable, a
 
 9 statement under oath appointing an agent in this State for
 
10 receipt of service of process in accordance with section 415-113,
 
11 if the license is granted."
 
12      SECTION 21.  Section 412:13-217, Hawaii Revised Statutes, is
 
13 amended to read as follows:
 
14      "[[]§412:13-217[]]  Representative office; factors for
 
15 approval of application.  [(a)  A foreign bank making an
 
16 application for a license to establish and maintain a Hawaii
 
17 representative office shall deliver to the commissioner three
 
18 duplicate originals, or a greater number as the commissioner may
 
19 require by rule, of the foreign bank's application.
 
20      (b)] (a)  The commissioner shall issue a license to a
 
21 foreign bank to establish and maintain a Hawaii representative
 
22 office if the commissioner finds that:
 
23      (1)  The foreign bank is in good standing under the laws of
 

 
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 1           the country in which it is organized and is in sound
 
 2           financial condition;
 
 3      (2)  The management of the foreign bank and the proposed
 
 4           management of the Hawaii representative office are of
 
 5           good moral character, competent, and sufficiently
 
 6           experienced; and
 
 7      (3)  The convenience and needs of persons to be served by
 
 8           the proposed Hawaii representative office will be
 
 9           promoted.
 
10      [(c)] (b)  In considering whether the management of the
 
11 foreign bank and the proposed management of the Hawaii
 
12 representative office is of good moral character for the purposes
 
13 of subsection [(b),] (a), the commissioner may presume that in
 
14 the absence of creditable evidence to the contrary, the
 
15 management is of good moral character.  The presumption may be
 
16 rebutted by evidence to the contrary, including, but not limited
 
17 to, a finding that a person has:
 
18      (1)  Been convicted of, or has pleaded nolo contendere to,
 
19           any crime involving an act of fraud or dishonesty;
 
20      (2)  Consented to or suffered a judgment in any civil action
 
21           based upon conduct involving an act of fraud or
 
22           dishonesty;
 
23      (3)  Consented to or suffered the suspension or revocation
 

 
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 1           of any professional, occupational, or vocational
 
 2           license based upon conduct involving an act of fraud or
 
 3           dishonesty;
 
 4      (4)  Wilfully made or caused to be made in any application
 
 5           or report filed with the commissioner, or in any
 
 6           proceeding before the commissioner, any statement which
 
 7           was at the time and in the light of the circumstances
 
 8           under which it was made false or misleading with
 
 9           respect to any material fact, or has wilfully omitted
 
10           to state in any application or report any material fact
 
11           which was required to be stated therein; or
 
12      (5)  Wilfully committed any violation of, or has wilfully
 
13           aided, abetted, counseled, commanded, induced, or
 
14           procured the violation by any other person of, any
 
15           provision of this chapter or of any rule or order
 
16           issued under this chapter.
 
17      [(d)] (c)  If the commissioner approves the application of
 
18 the foreign bank for a license to establish and maintain a Hawaii
 
19 representative office, the foreign bank shall then provide
 
20 satisfactory evidence to the commissioner of compliance with the
 
21 [applicable] requirements of chapter 415[,] relating to foreign
 
22 corporations[.], if applicable.  The commissioner shall then[:
 
23      (1)  Endorse on each original of the application the word
 

 
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 1           "Filed", and the date of the filing thereof and return
 
 2           to the foreign bank one original so endorsed;
 
 3      (2)  File in the commissioner's office one of the originals
 
 4           of the application; and
 
 5      (3)  Issue] issue a license to establish and maintain a
 
 6           Hawaii representative office to the foreign bank.
 
 7      [(e)] (d)  Each license issued to a foreign bank to
 
 8 establish and maintain a Hawaii representative office shall state
 
 9 fully the name of the foreign bank to which the license is
 
10 issued, the address or addresses at which the Hawaii
 
11 representative office is to be located, and any other information
 
12 as the commissioner may require."
 
13      SECTION 22.  Section 412:13-222, Hawaii Revised Statutes, is
 
14 amended to read as follows:
 
15      "§412:13-222  Relocation of office; written application
 
16 necessary.(a)  No foreign bank that is licensed to establish
 
17 and maintain a Hawaii state branch, Hawaii state agency, or
 
18 Hawaii representative office shall relocate any Hawaii office
 
19 [unless the foreign bank files a written application with the
 
20 commissioner and the commissioner approves the relocation.]
 
21 without the commissioner's prior written approval.
 
22      (b)  The [written application filed by a] foreign bank
 
23 [under this section] shall file an application with the
 

 
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 1 commissioner.  The application shall be in a form and contain any
 
 2 information as the commissioner shall require and shall be
 
 3 accompanied by a fee, the amount of which shall be established by
 
 4 rule.
 
 5      (c)  If after appropriate examination and investigation, the
 
 6 commissioner is satisfied that the proposed relocation is
 
 7 justified and proper, the commissioner shall approve the
 
 8 application in writing, with any conditions that the commissioner
 
 9 deems appropriate."
 
10      SECTION 23.  Section 412:2-605, Hawaii Revised Statutes, is
 
11 repealed.
 
12      ["§412:2-605  Subpoena power.  The commissioner shall have
 
13 the power and authority to summon persons and subpoena witnesses,
 
14 compel their attendance, require production of evidence,
 
15 administer oaths and examine any person under oath in conducting
 
16 any proceeding under this part.  Any summons or subpoena may be
 
17 served by certified mail with return receipt requested.  Powers
 
18 granted under this section may be enforced by the circuit
 
19 court."]
 
20      SECTION 24.  Statutory material to be repealed is bracketed.
 
21 New statutory material is underscored.
 
22      SECTION 25.  This Act shall take effect upon its approval. 
 
23 
 

 
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