Administration

HRS div. 2, tit. 22, ch. 412, art. 2, pt. I

in effect

HRS §412:2-100 Commissioner of financial institutions; division of financial institutions

412:2-100. Commissioner of financial institutions; division of financial institutions (a) The director of commerce and consumer affairs, with the approval of the governor, shall appoint the commissioner of financial institutions. The commissioner shall be in charge of the division of financial institutions within the department of commerce and consumer affairs. The commissioner shall be the primary regulator of Hawaii financial institutions, and shall have the authority expressly conferred by or reasonably implied from the provisions of this chapter. The commissioner may be removed by the director of commerce and consumer affairs with the approval of the governor; provided that while there is any vacancy in the office of the commissioner, the director of commerce and consumer affairs shall serve as ex officio commissioner. The commissioner shall not be subject to chapter 76. (b) The salary of the commissioner shall be set by the director of commerce and consumer affairs but shall not be more than the maximum salary of first deputy to the director of commerce and consumer affairs. (c) It shall be the primary purpose of the division of financial institutions to ensure the safety and soundness of Hawaii financial institutions and to maintain public confidence in such institutions through the process of chartering and licensing, regulatory approval, examinations and supervision. [L 1993, c 350, pt of §1; am L 2000, c 253, §150; am L 2005, c 226, §13]

HRS §412:2-100.5 Powers of the commissioner

412:2-100.5. Powers of the commissioner In addition to any other powers provided by law, the commissioner shall have the authority to: (1) Administer and enforce the provisions and requirements of this chapter; (2) Adopt, amend, or repeal rules or issue declaratory rulings pursuant to chapter 91 to effectuate the purposes of this chapter; (3) Issue informal nonbinding interpretations to effectuate the purposes of this chapter; (4) Develop requirements for charter or licensure through rules; (5) Investigate and conduct hearings regarding any violation of this chapter or any rule or order of, or agreement with, the commissioner; and (6) Require a licensed or chartered entity or other entity with a certificate of authority to comply with any rule, guidance, guideline, statement, supervisory policy, or any similar proclamation issued or adopted by the appropriate federal regulatory authority. [L 2013, c 172, §1]

HRS §412:2-101 Deputy commissioner, acting commissioner

412:2-101. Deputy commissioner, acting commissioner The deputy commissioner shall have such duties as are assigned by the commissioner from time to time, and shall serve as acting commissioner whenever the commissioner is out of the State or is otherwise incapable of performing the commissioner's duties. [L 1993, c 350, pt of §1]

HRS §412:2-102 Examiners and other personnel

412:2-102. Examiners and other personnel The commissioner may hire as many examiners, professional employees and clerical personnel as the business of the division of financial institutions may require. The commissioner may also appoint an examiner knowledgeable in international banking who shall have the same powers and authority as other examiners, but who shall not be subject to chapter 76. [L 1993, c 350, pt of §1; am L 2000, c 253, §150]

HRS §412:2-103 Disqualifications

412:2-103. Disqualifications No person shall be an examiner who is a director of or owner of any interest, or shares of stock, in any company that may be examined pursuant to this chapter. L 1993, c 350, pt of §1

HRS §412:2-104 Confidentiality of information possessed by commissioner

412:2-104. Confidentiality of information possessed by commissioner (a) The commissioner and all employees, contractors, attorneys retained or employed by the State, and appointees of the division of financial institutions shall not divulge or furnish any information in their possession or obtained by them in the course of their official duties to persons outside the division of financial institutions, except to the director of commerce and consumer affairs or unless otherwise permitted by this section or any other law regulating financial institutions or financial institution holding companies, in which case that disclosure shall not authorize or permit any further disclosure of that information. The disclosures prohibited by this subsection shall include without limitation information that is: (1) Privileged or exempt from disclosure under any federal or state law; (2) Related to an examination performed by or on behalf of the commissioner or contained in any report of examination; (3) Contained in any report submitted to or for the use of the commissioner, except for the nonproprietary portions of applications; (4) Related to the business, personal, or financial affairs of any person that is furnished to or for the use of the commissioner in confidence; (5) Related to trade secrets and commercial or financial information obtained from a person that is privileged or confidential; (6) Obtained pursuant to any lawful investigation for the purpose of enforcing the laws regulating financial institutions and financial institution holding companies in an action or proceeding under parts III, IV, V, and VI of this article; (7) Related solely to the internal personnel rules or other internal practices of the commissioner; (8) Contained in personnel, medical, and similar files (including financial files), the disclosure of which would constitute a clearly unwarranted invasion of personal privacy; or (9) Contained in inter-agency and intra-agency communications, whether or not contained in written memoranda, letters, tapes, or records that would not be routinely available by law to a private party, including but not limited to memoranda, reports, and other documents prepared by the staff of the commissioner. Any information identified in paragraphs (1) through (9) is confidential and shall not be subject to subpoena or other legal process. (b) The commissioner shall furnish a copy of each report of examination to the financial institution or financial institution holding company examined. The report and its contents shall remain the property of the commissioner and shall not be disclosed to any person who is not an officer, director, employee, or authorized auditor, attorney, or other consultant or advisor of the financial institution or financial institution holding company. Any person who has received the report from the financial institution or financial institution holding company shall be bound by the confidentiality provisions of this part. The report and its contents shall not be subject to subpoena or other legal process requiring disclosure. (c) The commissioner may furnish reports of examination and other information relating to the examination of a financial institution or financial institution holding company to: (1) The governor, attorney general and the heads of other state governmental agencies having regulatory authority over the financial institution or financial institution holding company; (2) The appropriate federal regulatory agencies of the financial institution or financial institution holding company; (3) The Office of Comptroller of the Currency, the Federal Housing Finance Board or a federal, state, or foreign bank regulatory agency if the requesting agency agrees to use the information only for functions directly related to the exercise of its appropriate supervisory authority; and (4) Other agencies of the United States or a state for use where necessary to investigate civil or criminal charges in connection with the affairs of any financial institution or financial institution holding company under the supervision of the commissioner. (d) Upon the request of the financial institution or financial institution holding company, and pursuant to a proper showing of cause, the commissioner may furnish examination reports, or portions thereof, and other information relating to that financial institution or financial institution holding company (1) in instances other than those set forth in subsection (c), or (2) to persons not enumerated in subsection (c), including to prospective acquirers of the Hawaii financial institution or financial institution holding company. The decision to grant a request under this subsection shall be in the sole discretion of the commissioner. (e) All reports or other information made available pursuant to this section shall remain the property of the commissioner, and no person, financial institution or financial institution holding company, agency or authority to whom the information is made available, or any officer, director, employee or agent thereof, shall disclose any of that information, except for the publishing of aggregate statistical material that would not disclose the identity of any person, financial institution or financial institution holding company. In exchanging reports or other information permitted in this section, the commissioner shall require the person receiving the report, as a condition of receipt, to comply with the confidentiality provisions of this section. (f) The commissioner may provide information regarding trends and issues affecting financial institutions and may make available to the public a combined statement of the condition of Hawaii financial institutions in such form as the commissioner may see fit, using information derived from reports furnished to the commissioner by the Hawaii financial institutions. The commissioner may also disclose statistical data regarding the number of consumer complaints filed against an institution, the general nature of the complaint and the resolution of the complaint. (g) Any person who violates this section shall be guilty of a misdemeanor punishable pursuant to sections 706-663 and 706-640. Such person shall also be subject to an administrative fine pursuant to section 412:2-609. If such person is an employee, contractor or appointee of the State, such person shall be subject to immediate dismissal or termination proceedings without violating such person's contract, if any. [L 1993, c 350, pt of §1; am L 2006, c 228, §5]

HRS §412:2-105 Fees

412:2-105. Fees (a) The commissioner shall charge any financial institution examined by the commissioner or the commissioner's staff, an amount for travel, per diem, mileage, and other reasonable expenses incurred in connection with the examination. (b) The commissioner shall bill the affected financial institution for expenses as soon as feasible after the close of the examination. The affected financial institution shall pay the division within thirty days following the billing. All such payments shall be deposited to the compliance resolution fund established pursuant to section 26-9(o). All disputes relating to these billings between the affected financial institution and the commissioner shall be resolved in accordance with the procedures for contested cases under chapter 91. (c) A Hawaii financial institution that fails to make a payment required by this section shall be subject to an administrative fine of not more than $250 per day for each day it is in violation of this section, which fine, together with the amount due under this section, may be recovered pursuant to section 412:2-611, and shall be deposited into the compliance resolution fund established pursuant to section 26-9(o). [L 1993, c 350, pt of §1; am L Sp 1995, c 11, §9; am L 1999, c 129, §7; am L 2013, c 172, §11]

HRS §412:2-105.2 Hawaii financial institutions; assessments; fees; penalty

412:2-105.2. Hawaii financial institutions; assessments; fees; penalty (a) Beginning January 1, 2014, every Hawaii financial institution shall be assessed a yearly fee in accordance with the following: (1) For financial institutions with total assets under $750,000, the assessment shall be the sum of $1,000 plus the product of 0.00029111 times total assets; (2) For financial institutions with total assets of at least $750,000 but under $7,500,000, the assessment shall be the sum of $2,000 plus the product of 0.00029111 times total assets; (3) For financial institutions with total assets of at least $7,500,000 but under $20,000,000, the assessment shall be the sum of $4,800 plus the product of 0.00029111 times total assets; (4) For financial institutions with total assets of at least $20,000,000 but under $75,000,000, the assessment shall be the sum of $9,900 plus the product of 0.000064 times total assets; (5) For financial institutions with total assets of at least $75,000,000 but under $200,000,000, the assessment shall be the sum of $15,000 plus the product of 0.00005333 times total assets; (6) For financial institutions with total assets of at least $200,000,000 but under $1,000,000,000, the assessment shall be the sum of $21,100 plus the product of 0.00004750 times total assets; (7) For financial institutions with total assets of at least $1,000,000,000 but under $20,000,000,000, the assessment shall be the sum of $29,000 plus the product of 0.00004 times total assets; provided that the yearly fee assessed for financial institutions with total assets of at least $2,000,000,000 but less than $10,000,000,000 shall be no more than $100,000, and the yearly fee assessed for financial institutions with total assets of at least $10,000,000,000 shall be no more than $150,000. (b) The assessments shall be paid semiannually on March 1 and September 1 of each year based on the institution's total assets reported as of the previous December 31 and June 30, respectively. (c) In addition to the assessments established in subsection (a), a financial institution or financial institution applicant shall pay fees as follows: (1) A nonrefundable fee of $10,000 for an application for preliminary approval by the commissioner for the organization of a Hawaii financial institution pursuant to section 412:3-201, 412:3-202, 412:3-206, or 412:3-301; (2) A nonrefundable fee of $9,000 for an application for preliminary approval by the commissioner for the organization of a Hawaii financial institution pursuant to section 412:5-402; (3) A nonrefundable fee of $2,500 for a final application for a charter or license to engage in the business of a Hawaii financial institution pursuant to section 412:3-212; (4) A nonrefundable fee of $10,000 for an application for a merger or consolidation or acquisition of control involving a Hawaii financial institution; (5) A nonrefundable fee of $2,500 for an application for the conversion of a federal financial institution to a Hawaii financial institution or the conversion of a Hawaii financial institution to another Hawaii financial institution charter; (6) A nonrefundable fee of $5,000 for an application of a bank to conduct a trust business through a subsidiary, division, or department of the bank pursuant to section 412:5-205; (7) A nonrefundable fee of $5,000 for an application of a bank to conduct insurance activities pursuant to section 412:5-205.5; (8) A nonrefundable fee of $5,000 for an application of a bank to engage in securities activities pursuant to section 412:5-205.7; (9) A nonrefundable fee of $2,000 for an application for a bank, savings bank, or depository financial services loan company to comply with lending limits applicable to federal financial institutions pursuant to section 412:5-302, 412:6-303, or 412:9-404; (10) A nonrefundable fee of $2,000 for an application to exceed certain permitted investment limits pursuant to sections 412:5-305(f) and (h), 412:6-306(f) and (h), 412:7-306(f) and (h), 412:8-301(f), 412:9-409(f) and (i), and 412:10-502(g); and (11) A nonrefundable fee of $2,500 for an application to engage in the business of a credit union. (d) The annual fee for each intra-Pacific financial institution and interstate branch of out-of-state banks is the sum of $1,000 for each office, agency, and branch office maintained by the financial institution, payment of which shall be made before December 31 of each year. The commissioner may establish, increase, decrease, or repeal this fee pursuant to rules adopted in accordance with chapter 91. (e) Intra-Pacific bank fees shall be as follows: (1) A nonrefundable fee of $9,000 to establish an initial branch pursuant to section 412:5-401; (2) A nonrefundable fee of $750 to establish an additional branch or agency of an intra-Pacific bank; and (3) A nonrefundable fee of $500 for an application to relocate a branch or agency of an intra-Pacific bank established or acquired pursuant to section 412:5-401. (f) A nonrefundable fee of $500 shall be assessed for an application to relocate a branch or office established pursuant to section 412:12-107. (g) A nonrefundable fee of $100 shall be assessed for each certificate of good standing for any Hawaii financial institution; provided that an additional fee of $100 shall be assessed for each certificate of good standing that is requested to be provided in two business days from receipt of request. (h) All assessments and fees shall be deposited into the compliance resolution fund established pursuant to section 26-9(o). (i) For purposes of this section, "total assets" means for an insured depository institution the total assets reported in the financial institution's quarterly reports of condition, or call reports, which are required to be filed pursuant to section 7(a)(3) of the Federal Deposit Insurance Act or in the unaudited financial statements filed pursuant to section 412:3-112. (j) A Hawaii financial institution that fails to make a payment required by this section shall be subject to an administrative fine of not more than $250 per day for each day it is in violation of this section, which fine, together with the amount due under this section, may be recovered pursuant to section 412:2-611 and shall be deposited into the compliance resolution fund established pursuant to section 26-9(o). [L 2013, c 172, §10; am L 2016, c 149, §2]

HRS §412:2-106 Public or private hearings

412:2-106. Public or private hearings (a) All hearings before the commissioner shall be subject to chapter 91 and the rules adopted pursuant thereto, unless it is expressly provided otherwise in this chapter. (b) All actions of and proceedings before the commissioner under parts III, IV, V and VI of this article shall be closed to the public. In such proceedings, reports of examination, testimony of examiners and other evidence may be presented to substantiate or refute allegations stated in any notice of charges. Except as otherwise provided by law, no person shall divulge information regarding such actions or proceedings except to governmental authorities, to the person's directors, and to its officers, employees, attorneys, auditors, or other consultants or advisors of the person who have responsibilities related to the action or proceeding. Hearings which result from joint supervisory or enforcement actions with an appropriate federal regulatory agency shall be closed to the public, unless the procedures set forth in this section are preempted by federal law. (c) Notwithstanding subsection (b) of this section, the commissioner may authorize the disclosure of the existence or outcome of an action or proceeding under parts III, IV, V and VI of this article and may disclose other general information concerning the action or proceeding, if the commissioner shall determine that such disclosure is in the public interest. [L 1993, c 350, pt of §1]

HRS §412:2-107 Rules

412:2-107. Rules The commissioner may adopt, amend or repeal rules pursuant to chapter 91 to effectuate the purpose of all laws within the jurisdiction of the division. L 1993, c 350, pt of §1

HRS §412:2-108 Alternative mortgage loans rules

412:2-108. Alternative mortgage loans rules The commissioner may by rule permit financial institutions to make loans secured by mortgages that do not meet the loan-to-value ratio, payment terms, compounding of interest, or other requirements contained under this chapter, chapter 478 or other law of this State, including but not limited to, alternative mortgage loans, such as "reverse annuity" and "graduated payment" mortgage loans. Such rules may specify the borrowers eligible for such alternative mortgage loans, and the limitations, restrictions, and other requirements the commissioner shall deem appropriate. [L 1993, c 350, pt of §1]

HRS §412:2-109 Compliance resolution fund; financial institution examiners

412:2-109. Compliance resolution fund; financial institution examiners (a) Any law to the contrary notwithstanding, fees and fines collected by the commissioner of financial institutions shall be deposited into the compliance resolution fund established pursuant to section 26-9(o). (b) The commissioner may appoint financial institution examiners, in accordance with chapter 76, who shall examine the affairs, transactions, accounts, records, documents, and assets of financial institutions. The commissioner also may appoint administrative support personnel, in accordance with chapter 76, who shall assist and support the examiners. The commissioner may pay the salaries of the financial institution examiners and administrative support personnel from the compliance resolution fund. (c) The compliance resolution fund also may be used to reimburse financial institution examiners and administrative support personnel for the following expenses necessarily incurred on account of an examination and the education and training of financial institution examiners and administrative support personnel: (1) Actual travel expenses in amounts customary for these expenses and approved by the commissioner; (2) A reasonable living expense allowance at a rate customary for these expenses and approved by the commissioner; and (3) Any fee or tuition necessary to attend educational and training conferences, workshops, seminars, and any similar events of this nature. (d) The compliance resolution fund also may be used for other expenses relating to examinations of financial institutions and administrative costs, including personnel costs of the division and costs incurred by supporting offices and divisions. (e) All persons receiving any reimbursement or compensation from the compliance resolution fund shall submit to the commissioner for approval a detailed account of all expenses and compensation necessarily incurred. Persons shall not receive or accept any additional compensation on account of an examination. In the case of an examination, any reimbursement or compensation made by the fund and approved by the commissioner shall be charged to the financial institution being examined by the commissioner and all receipts shall be credited to the fund. (f) Moneys in the compliance resolution fund shall not revert to the general fund. [L Sp 1995, c 11, §5; am L 1996, c 207, §2; am L 1999, c 129, §8; am L 2000, c 253, §150; am L 2006, c 228, §6 and c 300, §14; am L 2016, c 149, §3]

HRS §412:2-110 Emergency applications

412:2-110. Emergency applications Notwithstanding any law to the contrary, an application may be approved by the commissioner without investigation, notice, comment, or hearing in any case in which the commissioner determines to be an emergency arising from the insolvency of an existing institution or to prevent the failure of an existing institution. No emergency application may be granted unless the commissioner determines that the relevant statutory criteria have been met. Notwithstanding the granting of any approval, if the commissioner discovers good cause why an approval should not have been granted, the approval may be revoked by giving written notice of revocation to the applicant. [L 2001, c 170, pt of §1]

HRS §412:2-111 Commissioner's power to subpoena

412:2-111. Commissioner's power to subpoena In the course of an investigation of matters affecting the interest of consumers or depositors or of any other matter within the jurisdiction of the division, the commissioner may summon persons and subpoena witnesses, compel their attendance, administer oaths and examine any person under oath, and require the production of books, papers, documents, or objects that the commissioner deems relevant or material to the inquiry. Any summons or subpoena may be served by certified mail with return receipt requested. Powers granted under this section may be enforced by the circuit court. [L 2001, c 170, 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