REPORT TITLE:
Code of Financial Inst.


DESCRIPTION:
Makes amendments to the Code of Financial Institutions, Chapter
412, HRS, inadvertently not changed upon adoption of prior Code
amendments, to clarify Code sections, and deal with issues
inadequately addressed in the Code.  (HB2465 HD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2465
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   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, three new sections 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 a fee shall be
 
 7 at the discretion of the commissioner.
 
 8      §412:2-     Emergency applications.  Notwithstanding any law
 
 9 to the contrary, an application may be approved by the
 
10 commissioner without investigation, notice, comment, or hearing
 
11 in any case that the commissioner determines to be an emergency
 
12 arising from the insolvency of an existing institution or to
 
13 prevent the failure of an existing institution.  No emergency
 
14 application may be granted unless the commissioner determines
 
15 that the relevant statutory criteria have been met.
 
16 Notwithstanding the granting of any approval, if the commissioner
 
17 discovers good cause why an approval should not have been
 
18 granted, the approval may be revoked by giving written notice of
 
19 revocation to the applicant.
 

 
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 1      §412:2-     Commissioner's power to subpoena.  In the course
 
 2 of an investigation of matters affecting the interest of
 
 3 consumers or depositors or of any other matter within the
 
 4 jurisdiction of the division, the commissioner may summon persons
 
 5 and subpoena witnesses, compel their attendance, administer oaths
 
 6 and examine any person under oath, and require the production of
 
 7 books, papers, documents, or objects that the commissioner deems
 
 8 relevant or material to the inquiry.  Any summons or subpoena may
 
 9 be served by certified mail with return receipt requested.
 
10 Powers granted under this section may be enforced by the circuit
 
11 court."
 
12      SECTION 2.  Section 412:1-109, Hawaii Revised Statutes, is
 
13 amended by amending the definition of "financial institution
 
14 holding company" to read as follows:
 
15      ""Financial institution holding company" [is] means a
 
16 holding company [which] that controls a Hawaii financial
 
17 institution or [which] that controls another financial
 
18 institution holding company.  The following persons shall not be
 
19 deemed to come within the definition of a financial institution
 
20 holding company:
 
21      (1)  A registered dealer who acts as an underwriter or
 
22           member of a selling group in a public offering of the
 
23           voting securities of a financial institution or of a
 
24           financial institution holding company;
 

 
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 1      (2)  A person who acts as proxy for the sole purpose of
 
 2           voting at a designated meeting of the security holders
 
 3           of a financial institution or of a financial
 
 4           institution holding company;
 
 5      (3)  A person who acquires control of a financial
 
 6           institution or of a financial institution holding
 
 7           company by devise or descent; or
 
 8      (4)  A pledgee of a voting security of a financial
 
 9           institution or of a financial institution holding
 
10           company who does not have the right, as pledgee, to
 
11           vote such voting security."
 
12      SECTION 3.  Section 412:2-105, Hawaii Revised Statutes, is
 
13 amended to read as follows:
 
14      "§412:2-105  Fees and assessments.(a)  The commissioner
 
15 may charge an examination fee based upon the cost per hour per
 
16 examiner for all financial institutions examined by the
 
17 commissioner or the commissioner's staff.  Effective July 1,
 
18 1995, the hourly fee shall be $40.  After July 1, 1996, the
 
19 commissioner may establish, increase, decrease, or repeal the
 
20 hourly fee when necessary pursuant to rules adopted in accordance
 
21 with chapter 91.
 
22      (b)  In addition to the examination fee, the commissioner
 
23 may charge any financial institution examined or investigated by
 

 
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 1 the commissioner or the commissioner's staff, additional amounts
 
 2 for travel, per diem, mileage, and other reasonable expenses
 
 3 incurred in connection with the examination.
 
 4      (c)  The commissioner shall bill the affected financial
 
 5 institution for examination fees and expenses as soon as feasible
 
 6 after the close of the examination or investigation.  The
 
 7 affected financial institution shall pay the division of
 
 8 financial institutions within thirty days following the billing.
 
 9 All such payments shall be deposited to the compliance resolution
 
10 fund established pursuant to section 26-9(o).  All disputes
 
11 relating to these billings between the affected financial
 
12 institution and the commissioner shall be resolved in accordance
 
13 with the procedures for contested cases under chapter 91.
 
14      (d)  Notwithstanding any law to the contrary, the fee for a
 
15 request by any person to search, review, or segregate the records
 
16 of the division shall include the following charges:
 
17      (1)  Actual time expended by examiners or other staff of the
 
18           division to search, review, or segregate the records of
 
19           the division shall be charged at the then-prevailing
 
20           hourly examiner fee as established by statute or rule,
 
21           and shall be billed at that hourly fee prorated in
 
22           increments of fifteen minutes, including any fraction
 
23           thereof; and
 

 
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 1      (2)  If applicable, the actual rate of charge, based upon
 
 2           time expended, that is charged to the division by a
 
 3           person other than the division for services to assist
 
 4           the division in the search for, review, or segregation
 
 5           of a record.
 
 6 Unless otherwise provided by statute, a fee imposed under this
 
 7 subsection shall be required to recover the actual costs incurred
 
 8 by the division in response to a request to search, review, or
 
 9 segregate its records, and shall be deposited into the compliance
 
10 resolution fund established pursuant to section 26-9(o).  The
 
11 division may waive any of the fees contemplated by this
 
12 subsection for any agency of any state, federal, or foreign
 
13 government entity duly entitled to request access to a record of
 
14 the division.
 
15      [(d)] (e)  The commissioner, by rules adopted in accordance
 
16 with chapter 91, may set reasonable fee amounts to be collected
 
17 by the division in connection with its regulatory functions,
 
18 including, without limitation, any fees for renewals,
 
19 applications, licenses, and charters.  Unless otherwise provided
 
20 by statute, all such fees shall be deposited into the compliance
 
21 resolution fund established pursuant to section 26-9(o).
 
22      [(e)] (f)  A Hawaii financial institution that fails to make
 
23 a payment required by this section shall be subject to an
 

 
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 1 administrative fine of not more than $250 per day for each day it
 
 2 is in violation of this section, which fine, together with the
 
 3 amount due under this section, may be recovered pursuant to
 
 4 section 412:2-611 and shall be deposited into the compliance
 
 5 resolution fund established pursuant to section 26-9(o)."
 
 6      SECTION 4.  Section 412:2-306, Hawaii Revised Statutes, is
 
 7 amended to read as follows:
 
 8      "§412:2-306  Removal or prohibition of institution-
 
 9 affiliated party; grounds.  (a)  The commissioner may order the
 
10 removal of any institution-affiliated party from office or
 
11 employment with a Hawaii financial institution and the
 
12 prohibition of [such] the party's affiliation or participation in
 
13 the affairs of [such] the financial institution if the
 
14 commissioner determines that all three of the following
 
15 circumstances exist:
 
16      (1)  The institution-affiliated party has violated this
 
17           chapter or any rules issued pursuant to this chapter,
 
18           violated a cease and desist order which has become
 
19           effective, engaged or participated in an unsafe or
 
20           unsound practice in connection with the financial
 
21           institution, or breached a fiduciary duty owed to the
 
22           financial institution;
 

 
 
 
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 1      (2)  By reason of such violation, practice, or breach the
 
 2           financial institution has suffered or will probably
 
 3           suffer financial loss or other damage, the interests of
 
 4           the financial institution's depositors have been or may
 
 5           be prejudiced, or the institution-affiliated party has
 
 6           received financial gain or other benefit as a result of
 
 7           such violation, practice, or breach; and
 
 8      (3)  The violation, practice, or breach involves the
 
 9           institution-affiliated party's personal dishonesty, or
 
10           demonstrates such party's wilful or continuing
 
11           disregard for the safety or soundness of the financial
 
12           institution.
 
13      (b)  The commissioner may also order the removal of any
 
14 institution-affiliated party from office or employment with a
 
15 Hawaii financial institution and prohibit the party's affiliation
 
16 or participation in the affairs of the financial institution if
 
17 the commissioner determines that:
 
18      (1)  The institution-affiliated party has been charged in
 
19           any information, indictment, or complaint authorized by
 
20           a United States attorney, state attorney general, or
 
21           similar legal officer, with the commission of, or
 
22           participation in a crime involving dishonesty or breach
 
23           of trust that is punishable by imprisonment for a term
 
24           exceeding one year under state or federal law; and
 

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

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

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

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

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

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

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

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

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

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

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

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