Financial institution: includes a bank, trust company, banking association, savings and loan association, mortgage company, investment bank, credit union, or nontraditional financial institution. See Hawaii Revised Statutes 211D-1
Reserve account: means an account established in a participating financial institution on approval of the department in which money is deposited to serve as a source of additional revenue to reimburse the financial institution for losses on loans enrolled in the program. See Hawaii Revised Statutes 211D-1
(b) The State is entitled to earn interest on the amount of contributions made by the department, borrower, and institution to a reserve account under this chapter. The department shall withdraw monthly or quarterly from a reserve account the amount of the interest earned by the State. The department shall deposit the amount withdrawn under this section into the fund.(c) If the amount in a reserve account exceeds an amount equal to thirty-three per cent of the balance of the financial institution‘s outstanding capital access loans, the department may withdraw the excess amount and deposit the amount in the fund. A withdrawal of money authorized under this subsection may not reduce an active reserve account to an amount that is less than $200,000.(d) The department shall withdraw from the institution’s reserve account the total amount in the account and any interest earned on the account and deposit the amount in the fund when:
(1) A financial institution is no longer eligible to participate in the program or a participation agreement entered into under this chapter expires without renewal by the department or institution; and(2) The financial institution has no outstanding capital access loans.