REPORT TITLE:
Banks & Financial Institutions


DESCRIPTION:
Requires banks and institutions to maintain books and records as
original for 3 years and to provide legible copies after 3 years.
Requires certain records and files to be kept for 9 rather than 6
years.

 
a                                                      r-10b(99)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           1392
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO BANKS AND FINANCIAL INSTITUTIONS.



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

 1      SECTION 1.  Section 412:3-111, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      1.  By amending subsection (d) to read:
 
 4      "(d)  The books and records of the Hawaii financial
 
 5 institution [may] shall be maintained as originals [or
 
 6 photocopies,] for a period of three years, and after a three-year
 
 7 period, they may be photocopied clearly and legibly on microfilm
 
 8 or microfiche, on computer disks or tapes, or similar forms,
 
 9 provided that they are readily accessible and may be easily
 
10 examined.  It shall be the responsibility of the Hawaii financial
 
11 institution to maintain its equipment so that clear and legible
 
12 photocopies on microfilm or microfiche, on computer disks or
 
13 tapes, or similar recording media can be provided to those paying
 
14 for these copies."
 
15      2.  By amending subsections (f) and (g) to read:
 
16      "(f)  No Hawaii financial institution shall be required to
 
17 preserve or keep its records or files for a period longer than
 
18 [six] nine years, except as specified in subsection (g).
 
19      (g)  The following records or files of a Hawaii financial
 

 
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                                     S.B. NO.           1392
                                                        
                                                        

 
 1 institution shall not be destroyed except in accordance with
 
 2 rules of the commissioner promulgated under chapter 91:
 
 3      (1)  Minute books of meetings of shareholders, directors,
 
 4           and executive committee;
 
 5      (2)  Capital stock ledger; and
 
 6      (3)  General ledgers and trust ledgers.
 
 7 These records and files [may] shall be maintained in original
 
 8 form for a period of three years, and after three years, may be
 
 9 maintained in the form of a clear and legible photographic,
 
10 photostatic, microfilm, microcard, miniature photographic, or
 
11 other reproduction by a durable medium for reproducing the
 
12 original."
 
13      SECTION 2.  This Act does not affect rights and duties that
 
14 matured, penalties that were incurred, and proceedings that were
 
15 begun, before its effective date.
 
16      SECTION 3.  Statutory material to be repealed is bracketed.
 
17 New statutory material is underscored.
 
18      SECTION 4.  This Act shall take effect upon its approval.
 
19 
 
20                              INTRODUCED BY:______________________
 

 
a                                                      r-10b(99)