Organization of Nondepository

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

in effect

HRS §412:3-301 Application for license

412:3-301. Application for license (a) Any corporation or any person intending to form a corporation incorporated in this State may file an application with the commissioner for a license to engage in the business of a nondepository financial services loan company. (b) The application shall contain the following information, unless waived by the commissioner: (1) The proposed name of the nondepository financial services loan company, the location of its principal office, and any lease agreements for the principal office; (2) Any intended or existing affiliates, subsidiaries, and holding company of the proposed nondepository financial services loan company and the extent and nature of the holding company's control over the operations of the proposed nondepository financial services loan company; (3) A business plan which shall contain the following: (A) A written description of the company's proposed financial products; (B) A written statement which explains how the scope of the proposed business complies with article 9 and why any existing lines of business do not conflict with article 9; (C) A written description of the company's proposed plan of marketing its products, whether through affiliates, subsidiaries, service corporations, or holding company; (D) Financial projections regarding the nondepository financial services loan company's profitability; and (E) Any and all contractual arrangements which are intended to be executed between the nondepository financial services loan company and its holding company, affiliates, and subsidiaries; (4) Financial statements, employment history, education, management experience, and other biographical information for the proposed executive officers and directors of the nondepository financial services loan company and its holding company, if any; (5) Proposed policies regarding loans, investments, operations, accounting, recordkeeping, and compliance with applicable federal and state consumer laws; (6) The name and address of each proposed subscriber of capital stock in the nondepository financial services loan company or the majority shareholders in any holding company; (7) A copy of the nondepository financial services loan company's articles of incorporation and bylaws; (8) Information necessary to conduct a criminal history record check in accordance with section 846-2.7 of each of the proposed directors and executive officers of the nondepository financial services loan company, accompanied by payment of the applicable fee for each record check to be conducted; and (9) Any other information that the commissioner may require. (c) The application shall be submitted on a form prescribed by the commissioner and shall be accompanied by an application fee assessed pursuant to section 412:2-105.2. (d) The identity of each applicant and organizer, and any information which is not confidential shall be available to the public. The applicant may request in writing that information be kept confidential. The applicant shall designate and separate any matter which the applicant claims is confidential and shall submit a separate statement providing the reasons and authority for the request for confidential treatment. The failure by the applicant to request confidential treatment and designate and separate the confidential matter shall preclude any objection or claim for wrongful disclosure of the same. Information determined by the commissioner to be confidential, pursuant to an applicant's request or otherwise, shall not be available to the public. [L 1993, c 350, pt of §1; am L 1996, c 63, §4; am L 2008, c 196, §4; am L 2013, c 172, §15]

HRS §412:3-302 Publication of notice

412:3-302. Publication of notice (a) Once the application for a license is complete and has been accepted by the commissioner, the applicant shall publish a notice at least once in a newspaper of general circulation in each county in this State where the nondepository financial services loan company intends to establish a principal office, branch or agency. (b) The notice shall be in a form prescribed by the commissioner and shall state the fact that an application has been filed, the name of the applicant, the location of the nondepository financial services loan company's proposed place of business, and the amount of its proposed capital. The notice shall also state that within fifteen days after the last publication of the notice, any person may file with the commissioner written comments on the application or a request for an informational and comment proceeding to present information and comments to the commissioner. Any request for an informational and comment proceeding shall be accompanied by a brief statement of the person's interest in the application, the matters to be discussed at the informational and comment proceeding, and the reasons why written comments will not suffice in lieu of an informational and comment proceeding. [L 1993, c 350, pt of §1; am L 1994, c 107, §8]

HRS §412:3-303 Informational and comment proceeding

412:3-303. Informational and comment proceeding (a) An informational and comment proceeding on the application shall not be mandatory and whether an informational and comment proceeding is held shall be within the commissioner's discretion, regardless of whether any person has requested one. (b) If the commissioner determines that an informational and comment proceeding is warranted, the commissioner shall notify the applicant and every person who has requested an informational and comment proceeding of the time, date, and place of the proceeding at least ten days prior to the proceeding. [L 1993, c 350, pt of §1]

HRS §412:3-304 Grant of approval

412:3-304. Grant of approval (a) An application for a license shall be approved only if the commissioner finds that: (1) The proposed nondepository financial services loan company and holding company, if any, will comply with the requirements of this chapter; and (2) The qualifications, character, financial responsibility, experience, and general fitness of the proposed directors and executive officers of the nondepository financial services loan company are such as will warrant public confidence and a belief that the business of the nondepository financial services loan company will be honestly and efficiently conducted. For purposes of this section, the commissioner may presume that in the absence of credible evidence to the contrary, a director, officer, or controlling person is of good character and sound financial standing. Such presumption may be rebutted by evidence to the contrary, including without limitation a finding that such director, officer, or controlling person has: (A) Been convicted of, or has pleaded nolo contendere to, any crime involving an act of fraud or dishonesty; (B) Consented to or suffered a judgment in any civil action based upon conduct involving an act of fraud or dishonesty; (C) Consented to or suffered the suspension or revocation of any professional, occupational, or vocational license based upon conduct involving an act of fraud or dishonesty; (D) Wilfully made or caused to be made in any application or report filed with the commissioner, or in any proceeding before the commissioner, any statement which was at the time and in the light of the circumstances under which it was made false or misleading with respect to any material fact, or has wilfully omitted to state in any application or report any material fact which was required to be stated therein; or (E) Wilfully committed any violation of, or has wilfully aided, abetted, counseled, commanded, induced, or procured the violation by any other person of, any provision of this chapter or of any rule or order issued under this chapter. (b) If the commissioner is satisfied that the applicant has fulfilled all the requirements of law and is qualified to engage in the business of a nondepository financial services loan company, the commissioner shall issue a written decision and order approving the application. Upon the approval of the application and, if applicable, upon providing satisfactory evidence to the commissioner of compliance with the requirements of chapter 414 relating to foreign corporations, the commissioner shall issue to the applicant a license to engage in the business of a nondepository financial services loan company under this chapter. (c) In granting approval, the commissioner may impose any conditions and restrictions that are in the public interest, including but not limited to requiring the applicant to fulfill representations contained in its application and agreements made with the commissioner during the application process. [L 1993, c 350, pt of §1; am L 2001, c 170, §5; am L 2002, c 40, §16; am L 2013, c 172, §16]

HRS §412:3-305 Denial of license

412:3-305. Denial of license If the commissioner is not satisfied that the applicant meets all the criteria set forth for approval, the commissioner shall issue a written decision denying the applicant's application. An applicant who is denied approval may request a hearing before the commissioner in accordance with chapter 91. Any final decision of the commissioner denying an applicant a license may be appealed to the circuit court as provided in chapter 91. [L 1993, c 350, pt of §1]

HRS §412:3-306 Paid-in capital and surplus

412:3-306. Paid-in capital and surplus (a) Every nondepository financial services loan company conducting business under the laws of this State shall at all times have paid-in capital and surplus of not less than $500,000. (b) The initial paid-in capital and surplus of every nondepository financial services loan company shall be in money. [L 1993, c 350, pt of §1; am L 1996, c 63, §5]

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