Places of Business

HRS div. 2, tit. 22, ch. 412, art. 3, pt. V

in effect

HRS §412:3-500 Prohibition of business at unauthorized locations

412:3-500. Prohibition of business at unauthorized locations Except as expressly authorized by this chapter or by federal law, no financial institution shall conduct any business in this State except at places of business or in the manner authorized in this part and except to the extent so authorized. [L 1993, c 350, pt of §1]

HRS §412:3-501 Authorized places of business

412:3-501. Authorized places of business (a) A Hawaii financial institution may conduct business at one or more of the following places of business, to the extent authorized: (1) The principal office of a Hawaii financial institution is the place of business that it designates as its executive headquarters in this State. A financial institution may, but need not, conduct other businesses permitted under its charter or license at its principal office; provided that for the purposes of this section, the terms "principal office", "home office", and "main office" are interchangeable; (2) A branch is a place of business open to the public where a financial institution shall be authorized to conduct all businesses permitted under its charter or license, except for the maintenance of its executive headquarters. A branch does not include an automated teller machine or a remote service unit; (3) An agency is a place of business open to the public where a financial institution may conduct only specific businesses approved by the commissioner in writing; (4) An automated teller machine or ATM is a place of business, either at a fixed location or mobile, consisting of an on-line or off-line, staffed or unstaffed, electronic processing device, including associated equipment and structures, that is situated at a premises separate from a financial institution's principal office, branch, agency, or support facility, at which deposits of cash or instruments, or cash disbursement transactions between a person and one or more financial institutions are accomplished, whether instantaneous or otherwise, through or by means of electronic or automated signals or impulses including the human voice. The term does not include merchant operated terminals, point of sale terminals, and remote service units; (5) A remote service unit is a place of business, consisting of an on-line or off-line, staffed or unstaffed, electronic processing device, including associated equipment and structures, that is used only for transactions between a financial institution customer and the financial institution, and that is situated at premises separate from a financial institution's principal office, branch, agency, or support facility, at which deposits of cash or instruments, or cash disbursement transactions, are accomplished, whether instantaneous or otherwise, through or by means of electronic or automated signals or impulses including the human voice; and (6) A support facility is a place of business that is not generally open to the public, where a financial institution conducts limited types of significant business operations of the financial institution, including but not limited to data processing, clerical activities, and storage. (b) In addition to conducting business at a place of business described in subsection (a), a Hawaii financial institution may conduct business in any other manner or place necessary or convenient; provided that deposits of cash or instruments shall not be received, checks, negotiable orders of withdrawal, or share drafts shall not be paid, and cash shall not be disbursed, except at an authorized principal office, branch, automated teller machine, or remote service unit, or at any agency or support facility which has been authorized by the commissioner to accept deposits or disburse cash. [L 1993, c 350, pt of §1; gen ch 1993; am L 1994, c 107, §9; am L 2013, c 172, §3]

HRS §412:3-502 Foreign financial institution

412:3-502. Foreign financial institution No foreign financial institution shall receive deposits, lend money, or pay checks, negotiate orders of withdrawal or share drafts from any principal office, branch, agency, automated teller machine, or other location in this State, unless expressly authorized by this chapter, other laws of this State, or federal law; provided that nothing in this section shall prohibit any foreign financial institution from participating in the disbursement of cash through an automated teller machine network or from operating from any location in this State as a licensee under chapter 454F, or as a real estate collection servicing agent. [L 1993, c 350, pt of §1; am L 1999, c 254, §2; am L Sp 2009, c 32, §3; am L 2010, c 84, §7; am L 2014, c 9, §4]

HRS §412:3-503 Opening or relocating principal office, branch, or agency

412:3-503. Opening or relocating principal office, branch, or agency (a) No Hawaii financial institution may relocate its [principal] office to another location in this State, or open or relocate any branch or agency within or outside of this State without the commissioner's prior written approval; provided, that approval shall not be required if the relocation will be less than one mile from the institution's present place of business, the institution gives the commissioner written notice at least twenty days prior to the move, the type of business carried on at the new place of business will be the same as at the present place of business, and there will be no financial involvement in the relocation by a director, executive officer, or principal shareholder, or a related interest of any of these persons. (b) The institution shall file an application with the commissioner. The application shall be in a form prescribed by the commissioner and shall be accompanied by a fee if required by section 412:2-105.2. The application shall contain the following information: (1) The name of the financial institution; (2) The specific location of the proposed site of the principal office, branch, or agency; (3) The anticipated opening date and, if open for a specified period, the end of such period; (4) The nature of the business or transactions intended to be carried on at the location; (5) Facts showing the necessity or justification for the proposed site and that there is a reasonable assurance of sufficient volume of business so that opening and maintaining the proposed business location will not jeopardize the solvency of the financial institution; and (6) Any other information that the commissioner may require. (c) If after appropriate examination and investigation, the commissioner is satisfied that the proposed opening or relocation is justified and proper, the commissioner shall approve the application in writing, with any conditions as the commissioner deems appropriate. Upon payment by a financial services loan company of the initial license fee for the new branch or agency, or the reissuance of license fee for the relocated office as established by rule pursuant to chapter 91, the commissioner shall issue a license for the new or relocated office. [L 1993, c 350, pt of §1; am L 2016, c 149, §6]

HRS §412:3-504 Notice and deadline for opening or relocating principal office, branch, or agency

412:3-504. Notice and deadline for opening or relocating principal office, branch, or agency Every financial institution permitted under this part to open or relocate a principal office, branch, or agency shall notify the commissioner in writing that the opening or relocation has been completed, no later than five days after the opening or relocation. If the opening or relocation will not be completed within nine months after the opening date stated in the application, the financial institution may obtain from the commissioner an extension of the time to open or relocate, which shall be reasonably granted for good cause. If an extension of time to open or relocate is not obtained in writing, the commissioner may revoke the permission to open or relocate. [L 1993, c 350, pt of §1]

HRS §412:3-505 Opening or relocating out-of-state branch or agency

412:3-505. Opening or relocating out-of-state branch or agency With the commissioner's prior written approval, a Hawaii financial institution may open or relocate a branch or agency that is outside of this State, including but not limited to any state, possession, or territory of the United States or any foreign country. An application to open or relocate an out-of-state branch or agency shall be filed in accordance with section 412:3‑503. [L 1993, c 350, pt of §1; am L 2013, c 172, §17]

HRS §412:3-506 Opening or relocating a support facility

412:3-506. Opening or relocating a support facility A Hawaii financial institution that opens or relocates a support facility shall within thirty days thereafter submit a letter to the commissioner containing the following information: (1) The location of the support facility; (2) A description of the type of functions which the support facility will perform; and (3) The date or anticipated date of opening or relocation. [L 1993, c 350, pt of §1; am L 2006, c 228, §22]

HRS §412:3-507 Closing branch or agency; temporary closures and relocations

412:3-507. Closing branch or agency; temporary closures and relocations (a) A Hawaii financial institution shall give the commissioner prior notice of its intent to close any branch or agency at least thirty days prior to the closing. The notice shall specify: (1) The intended date of closing; (2) The reasons for the closing; and (3) A certification by the secretary or other authorized officer of the institution that the decision to close was duly approved by its board of directors. This notice may be satisfied by providing to the commissioner a copy of any notice pertaining to the closure given to the financial institution's appropriate federal regulatory agency. (b) A Hawaii financial institution may temporarily close or relocate a branch or agency for a period of time up to one hundred eighty days, or a longer time period as determined necessary by the commissioner in the event of an emergency or for other good cause. For purposes of this section, an emergency means a situation of an unusual or compelling urgency that creates a threat to life, public health, welfare, or safety by reason of major natural disaster, epidemic, riot, fire, or other reason as determined by the commissioner. Written notice of a temporary closure or relocation shall be provided to the commissioner and to the Hawaii financial institution's customers as soon as practicable, and shall state: (1) The reasons for the temporary closure or relocation; (2) The expected date of reopening; and (3) Information regarding where and how customers of the closed or relocated branch or agency will be accommodated during the temporary closure or relocation. The notice provided to the Hawaii financial institution's customers shall be in the form of a sign posted in a safe, conspicuous location on or in proximity to the primary public entrance of the branch or agency that has been or will be temporarily closed or relocated. Notice of the reopening of the branch or agency that was temporarily closed or relocated shall be provided to the commissioner within five days of the reopening. Written notice to the commissioner of temporary closure and subsequent reopening of a branch or agency shall not be required when the Hawaii financial institution reopens at that location within two business days. [L 1993, c 350, pt of §1; am L 2008, c 196, §5; am L 2009, c 107, §1]

HRS §412:3-508 Closing a support facility

412:3-508. Closing a support facility A Hawaii financial institution shall provide notice to the commissioner of its closure of a support facility within thirty days of the closing. The notice shall contain the location of the support facility closed and the date of closing. [L 1993, c 350, pt of §1; am L 2006, c 228, §23]

HRS §412:3-509 Out-of-state branch or agency

412:3-509. Out-of-state branch or agency A Hawaii financial institution maintaining a branch or agency outside of this State shall be subject to the following requirements: (1) The accounts of each out-of-state branch or agency of the financial institution shall be maintained independently of the accounts of all its other out-of-state branches or agencies, and independently of its offices, branches, and agencies in this State. At the end of every quarter of its fiscal year the financial institution shall transfer to its general ledger at its principal office the profit and loss from each out-of-state branch or agency as separate items; (2) The commissioner may at any time conduct examinations of any out-of-state branch or agency and may at any time order its discontinuance for the same reasons as a branch or agency within the State may be ordered to be discontinued. The financial institution maintaining the out-of-state branch or agency shall pay for the cost of all examinations, as provided in section 412:2‑105; and (3) A financial institution may act as the fiscal agent of the United States through any of its out-of-state branches or agencies. [L 1993, c 350, pt of §1]

Source: Hawaii State Legislature (capitol.hawaii.gov), via Internet Archive capturesURL: https://www.capitol.hawaii.gov/hrscurrent/Vol08_Ch0401-0429/HRS0412/HRS_0412-.htmFetched: 11/10/2026