Operating subsidiaries
HRS §412:6-204
in effect412:6-204. Operating subsidiaries
(a) "Operating subsidiary" means a corporation other than a corporation referred to in section 412:6-306(g)(2) to (7) of which more than fifty per cent of the voting securities is held by a savings bank.
(b) An operating subsidiary may engage in
activities authorized for a savings bank or that are usual or incidental to the
business of a savings bank.
(c) No savings bank may acquire, establish, or
hold the voting securities of an operating subsidiary without the
commissioner's prior written approval; provided that approval shall not be
required so long as the savings bank's aggregate net contributions to the
capital of the operating subsidiary remain less than ten per cent of the
savings bank's capital and surplus; provided further that the savings bank
shall comply with the notification requirements of subsection (f). Unless
otherwise provided by law or rule, all provisions of this chapter applicable to
the operations of the parent savings bank shall apply to the operations of its
operating subsidiary. Unless otherwise provided by law or rule, pertinent
accounts of the parent savings bank and its operating subsidiaries shall be
consolidated for the purpose of applying applicable statutory limitations such
as contained in section 412:6-303.
(d) The savings bank shall file an application
with the commissioner in a form approved by the commissioner. The application
shall contain the following information concerning the proposed operating
subsidiary:
(1) The name and date for commencement of operations;
(2) The specific location;
(3) The activities and nature of business;
(4) The ownership, amount, and nature of the
investment; and
(5) Any other information that the
commissioner may require.
(e) If after appropriate examination and
investigation, the commissioner is satisfied that the acquisition,
establishment, or holding the voting securities of the operating subsidiary
will comply with this section, the commissioner shall approve the application
in writing, with conditions as the commissioner may deem appropriate.
(f) The savings bank shall notify the
commissioner in writing within five days of acquiring or establishing any
operating subsidiary or performing new activities in the operating subsidiary.
The notification shall provide the information specified in subsection (d).
(g) The accounts of each operating subsidiary
of a savings bank shall be maintained independently of the accounts of all of
the savings bank's other operating subsidiaries and independently of the
accounts of the savings bank itself. At least at the end of every quarter of
its fiscal year the savings bank shall consolidate or recognize its
proportionate share of the profit and loss from each operating subsidiary.
(h) The savings bank shall notify the
commissioner in writing within five days of closing an operating subsidiary.
The notification shall provide the date of closing, the reasons for the
closure, and the means by which the assets and liabilities of the operating
subsidiary were disposed.
[L 1993, c 350, pt of §1; am L 2006, c 228, §35; am L
2016, c 149, §10]
Source: Hawaii State Legislature (capitol.hawaii.gov), via Internet Archive capturesURL: https://www.capitol.hawaii.gov/hrscurrent/Vol08_Ch0401-0429/HRS0412/HRS_0412-0006-0204.htmFetched: 11/10/2026