HRS §412:3-100 Applicability of this part
412:3-100. Applicability of this part
This part shall apply to all Hawaii financial institutions.
L 1993, c 350, pt
of §1
General Provisions
HRS div. 2, tit. 22, ch. 412, art. 3, pt. I
in effectHRS §412:3-101 Name of financial institution
412:3-101. Name of financial institution
(a) The name of every Hawaii financial institution shall be subject to the approval of the commissioner and shall conform with the provisions of section 414-51 or any successor thereto, whether or not the Hawaii financial institution is a corporation. If the Hawaii financial institution is incorporated, its name may, but need not, contain the word "corporation", "incorporated", or "limited", or an abbreviation of any of the words.
(b) Prior to using a trade name or a
fictitious name, a Hawaii financial institution shall provide written
notification to the commissioner.
[L 1993, c 350, pt of §1; am L 2002, c 40,
§13; am L 2006, c 228, §11]
HRS §412:3-102 Change of name
412:3-102. Change of name
To change its name, a Hawaii financial institution shall file an application with the commissioner. The application shall be approved if the commissioner is satisfied that the new name complies with this chapter and chapter 414. Any change of name of a stock financial institution pursuant to this section shall be effected in accordance with chapter 414. Any change of name shall not affect a financial institution's rights, liabilities, or obligations existing prior to the effective date thereof, and no documents of transfer shall be necessary to preserve the rights, liabilities, or obligations; provided that the commissioner may require notice to be given to the public and other governmental agencies.
[L 1993, c 350, pt of §1; am L 2002, c 40, §14; am L 2006, c 228, §12; am L 2013, c 172, §13]
HRS §412:3-104 Qualifications of directors
412:3-104. Qualifications of directors
Except for nondepository financial services loan companies, the board of directors of every Hawaii financial institution shall at all times consist of at least five directors, of whom at least three shall be residents of this State at the time of their election and while holding office. If any resident director ceases to be a resident of this State or ceases to be a director, and such circumstance causes the number of resident directors on the board to be fewer than three, another resident director shall be immediately elected or appointed in accordance with the institution's bylaws. Except for nondepository financial services loan companies, the board of directors of any financial institution, which is a wholly-owned subsidiary of a holding company incorporated in another state shall at all times consist of at least five directors, of whom at least one shall be a resident of this State at the time of election and while on the board.
[L 1993, c 350, pt of §1; am L 1996, c 63, §2]
HRS §412:3-105 Election and appointment of executive officers
412:3-105. Election and appointment of executive officers
The directors of a Hawaii financial institution shall elect or appoint its executive officers. The directors may also appoint and employ all other necessary officers and agents, define their duties, fix their compensation, dismiss them, and require that they be bonded. Except for the election or appointment of executive officers, the board of directors may delegate to such officers the employment, discharge, fixing of compensation, bonding, and supervision of subordinate officers, employees and agents.
[L 1993, c 350, pt of §1]
HRS §412:3-106 Residency of chief executive officer
412:3-106. Residency of chief executive officer
The chief executive officer of every Hawaii financial institution, except a nondepository financial services loan company, shall be a resident of this State. If at any time a person holding the office ceases to be a state resident, that person's tenure shall automatically cease, and a successor, alternate, or substitute who is a state resident shall be immediately appointed or elected, as provided in the institution's bylaws.
[L 1993, c 350, pt of §1]
HRS §412:3-107 Meetings of the board
412:3-107. Meetings of the board
Except for nondepository financial services loan companies, the board of directors of every Hawaii financial institution shall hold a regular meeting at least once every three months.
L 1993, c 350, pt of §1
HRS §412:3-108 Generally accepted accounting principles
412:3-108. Generally accepted accounting principles
Every Hawaii financial institution shall follow generally accepted accounting principles, except as otherwise prescribed by the appropriate federal regulatory agency.
L 1993, c 350, pt of §1
HRS §412:3-109 Charging down assets
412:3-109. Charging down assets
The commissioner may require any asset on the books of a Hawaii financial institution to be charged down to such sum as represents its fair value.
L
1993, c 350, pt of §1
HRS §412:3-110 Holding of assets
412:3-110. Holding of assets
Every Hawaii financial institution shall take the action necessary to assure the safekeeping of its assets, and to keep them separate and apart from the assets or property of others. An institution may use the services of a correspondent financial organization as a depository for securities owned or held as collateral, or a computer service organization for accounting, or the practice of nominee registration of title of securities.
[L 1993, c 350, pt of §1]
HRS §412:3-111 Maintenance of books and records
412:3-111. Maintenance of books and records
(a) Every Hawaii financial institution shall keep its books and records in a safe and secure place in this State. The commissioner may authorize such records to be maintained outside this State.
(b) A nondepository financial services loan
company which is not incorporated in this State shall maintain at its principal
office in this State all books and records relevant to the transaction of its
business in this State for the purpose of examination by the commissioner under
section 412:2-200; provided that the commissioner may approve in writing
specific books and records which may be maintained outside this State. For the
purpose of an examination under section 412:2-200, specified books and records
maintained outside this State shall be made available for review by the
commissioner within ten business days after the date that a written request for
the specified books and records is made by the commissioner, or at such
subsequent time as approved in writing by the commissioner. The commissioner
may impose an administrative fine on a nondepository financial services loan
company which fails to make available any specified books or records as
requested by the commissioner under this subsection. The fine shall not exceed
$1,000 for each day that any specified books or records are not made available
as requested by the commissioner. The fine shall be recovered under section
412:2-609.
(c) A computer service bureau or data
processing service may be utilized to process data without obtaining the
commissioner's authorization, provided that the final books and records are
maintained in accordance with subsection (a).
(d) The books and records of the Hawaii
financial institution may be maintained as originals or photocopies, on
microfilm or microfiche, on computer disks or tapes, or similar forms, provided
that they are readily accessible and may be easily examined.
(e) Records, statements, or reports required
or authorized by this chapter may be in a spoken language other than English
provided that English translations are also maintained.
(f) No Hawaii financial institution shall be
required to preserve or keep its records or files for a period longer than six
years, except as specified in subsection (g).
(g) The following records or files of a Hawaii financial institution shall not be destroyed except in accordance with rules of the
commissioner adopted under chapter 91:
(1) Minute books of meetings of shareholders,
directors, and executive committees;
(2) Articles of incorporation or association and
bylaws, and any amendments thereto;
(3) Capital stock ledgers; and
(4) General ledgers and trust ledgers.
These records and files may be maintained in
original form or in the form of a photographic, photostatic, microfilm,
microcard, miniature photographic, or other reproduction by a durable medium
for reproducing the original.
(h) No liability shall accrue against any Hawaii financial institution for its destruction of its records or files in accordance with
this section or the rules adopted hereunder. A showing by the financial
institution that its records or files have been destroyed in accordance with
this section or rules adopted hereunder shall be sufficient excuse for the
failure to produce them.
[L 1993, c 350, pt of §1; am L 1996, c 63, §3; am L
2006, c 228, §13]
HRS §412:3-111.5 Request for information by the commissioner
412:3-111.5. Request for information by the commissioner
The commissioner, for good cause, may at any time request records, documents, information, and reports from any financial institution regulated by the division of financial institutions.
L 2006, c 228,
§1
HRS §412:3-112 Submissions to commissioner
412:3-112. Submissions to commissioner
(a) Every Hawaii financial institution, at its own expense, shall file the following written reports with the commissioner:
(1) An independent audit report of its financial
statements as of the close of its fiscal year shall be filed by a Hawaii
financial institution, other than a nondepository financial services loan
company or credit union, within one hundred twenty days of the close of its
fiscal year; provided that the commissioner for good cause shown may grant a
reasonable extension of not more than forty-five days. For depository
institutions, the independent audit report specified in this paragraph shall
comply with the requirements for annual reports under section 36 of the Federal
Deposit Insurance Act (12 U.S.C. §1831m), as amended; provided that for a
depository institution which, in any fiscal year, is a small depository
institution within the meaning of section 36(j) of the Federal Deposit
Insurance Act, or any implementing regulations thereunder, the independent
audit report specified in this paragraph shall comply with the requirements for
annual independent audits of financial statements under section 36(d). For trust
companies, the independent audit report shall contain audited financial
statements prepared in accordance with generally accepted accounting principles
and shall be based on an audit performed in accordance with generally accepted
auditing standards, the independent auditor's report on the fair presentation
of the financial statements and any qualification to the report, any management
letter, and any other report. Hawaii financial institutions that are
subsidiaries of a financial institution holding company may satisfy the
requirements of this paragraph by filing an independent audit report of the
financial institution holding company;
(2) Unaudited financial statements as of the
following dates shall be filed by a Hawaii financial institution within thirty
days of the date of the financial statement as follows:
(A) For a trust company or credit union, the
statements shall be filed as of June 30 and December 31 of each year;
(B) For a Hawaii financial institution, other
than a nondepository financial services loan company, trust company, or credit
union, the statements shall be filed as of March 31, June 30, September 30, and
December 31 of each year; and
(C) For a nondepository financial services
loan company, the statement shall be filed as of the last day of the sixth
month and the last day of the twelfth month of each fiscal or calendar year;
provided that the commissioner for good cause
shown may grant a reasonable extension of not more than forty-five days.
The reports shall be in a form prescribed by
the commissioner and prepared in accordance with section 412:3-108. In the
alternative, the institution may file the Call Reports, Consolidated Reports of
Condition and Reports of Income, or Thrift Financial Reports as of those dates
which are submitted to the appropriate federal regulatory agency of the
institution;
(3) A notice of any change in the office of the
person who has primary responsibility for the operation and management of the
financial institution shall be filed by a Hawaii financial institution within
ten days of the change. The notice shall specify the name and address of the
person, who shall be designated that institution's "chief executive
officer"; and
(4) Any other reports and other information that the
commissioner may require with respect to any financial institution at the times
and in the form as the commissioner deems appropriate for the proper
supervision and regulation of the institution.
Each report shall be signed by an officer
authorized by the institution's board of directors to sign the report, and
shall contain a declaration of the officer's authority and a statement that the
report is true and correct.
(b) Each wholly-owned subsidiary of a Hawaii
financial institution whose assets constitute ten per cent or more of the
consolidated assets of the Hawaii financial institution shall also submit
separate unaudited financial statements meeting the requirements of subsections
(a)(2)(A) or (B) as applicable, whether or not the financial institution
prepares a consolidated financial statement.
(c) If the commissioner determines that any
report is inadequate, the report shall be returned to the financial
institution, with directions to rectify the inadequacies within the time
specified by the commissioner, which shall not be longer than thirty days;
provided that the commissioner may, for good cause shown, grant a reasonable
extension of not more than forty-five days for making and filing such report.
(d) The commissioner may impose an
administrative fine upon any financial institution failing to furnish any
report or information as required under this section. The fine shall not
exceed $1,000 for each day that the report is delinquent and shall be recovered
pursuant to the provisions of section 412:2-609.
[L 1993, c 350, pt of §1; am L
1994, c 107, §7; am L 1995, c 53, §1; am L 1996, c 207, §6; am L 1999, c 245,
§4]
HRS §412:3-114 Duty to report illegal acts
412:3-114. Duty to report illegal acts
A Hawaii financial institution shall immediately notify the commissioner in writing of any act of robbery, embezzlement, or fraud committed in connection with its affairs whenever the concerned act involves a sum in excess of $100,000.
[L 1993, c 350, pt of §1; am L 2006, c 228, §14]
HRS §412:3-114.5 Mandatory reporting of suspected financial abuse of an elder
412:3-114.5. Mandatory reporting of suspected financial abuse of an elder
(a) A financial institution shall report suspected financial abuse that is directed towards, targets, or is committed against an elder to the department of human services and the appropriate county police department if:
(1) In connection with providing financial services
to the elder, the officer or employee of a financial institution:
(A) Has direct contact with the elder; or
(B) Reviews or approves the elder's financial
documents, records, or transactions; and
(2) The officer or employee, within the scope of
employment or professional practice:
(A) Observes or has knowledge of an incident
the officer or employee believes in good faith appears to be financial abuse;
or
(B) In the case of officers or employers who
do not have direct contact with the elder, has a good faith suspicion that
financial abuse has occurred or may be occurring, based solely on the
information present at the time of reviewing or approving the document, record,
or transaction.
(b) Suspected financial abuse shall be
reported by telephone, facsimile, or electronic device, immediately or as soon
as practicably possible, to the department and the appropriate county police
department.
(c) Upon notification by a financial
institution of suspected financial abuse, the department, in a timely manner,
shall determine whether the department has jurisdiction over the elder involved
and proceed in accordance with chapter 346.
(d) Upon notification by a financial
institution of suspected financial abuse, the county police department, in a
timely manner, shall proceed with a criminal investigation.
(e) Notwithstanding any other state law to the
contrary, including but not limited to laws concerning confidentiality, any
person, including a financial institution, who:
(1) Participates in the making of a report pursuant
to this section; and
(2) Believes, in good faith, that the action is
warranted by facts known to that person,
shall have immunity from any liability, civil or
criminal, that might be otherwise incurred or imposed by or as a result of the
making of the report. Any person making the report shall have the same
immunity with respect to participation in any judicial proceeding resulting
from the report.
(f) For the purposes of this section:
"Department" means the department of
human services.
"Elder" means a person who is
sixty-two years of age or older.
"Financial abuse" means to wrongfully
take, appropriate, obtain, or retain, or assist in taking, appropriating,
obtaining, or retaining, real or personal property of an elder by any means,
including undue influence, or with intent to defraud the elder.
[L 2007, c 94,
§2; am L 2013, c 216, §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