(a) Except as otherwise specifically provided in this article or in rules or orders adopted by the commissioner, and notwithstanding any other law or rule of this State to the contrary, operations of a foreign bank at a Hawaii state branch or Hawaii state agency shall be conducted with the same rights, privileges, and powers as a Hawaii state bank at the location and shall be subject to all the same duties, restrictions, penalties, liabilities, conditions, and limitations that would apply under the laws of this State to a Hawaii state bank doing business at the same location.

Terms Used In Hawaii Revised Statutes 412:13-208

  • Agency: when used in reference to an office of a foreign bank, shall have the same meaning as is set forth in section 1(b)(1) of the federal International Banking Act (12 U. See Hawaii Revised Statutes 412:13-102
  • Bank: means any bank as defined in: section 2(c) of the Bank Holding Company Act (12 U. See Hawaii Revised Statutes 412:13-102
  • Branch: when used in reference to an office of a foreign bank, has the same meaning as is set forth in section 1(b)(3) of the federal International Banking Act (12 U. See Hawaii Revised Statutes 412:13-102
  • Capital: means :

    (1) The aggregate par value or other amount received and allocated to the issued and outstanding capital stock of a financial institution; or

    (2) The total amount of a credit union's outstanding and unimpaired membership shares or share accounts. See Hawaii Revised Statutes 412:1-109

  • Capital stock: means the units of interest, whether or not having a par value, common or preferred, legally issued by a financial institution or other corporation, which represents a fractional ownership interest in the institution or corporation. See Hawaii Revised Statutes 412:1-109
  • Commissioner: means the commissioner of financial institutions of this State. See Hawaii Revised Statutes 412:1-109
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • deposits: means money or its equivalent received or held by a person in the usual course of business and for which it has given or is obligated to give credit, either conditionally or unconditionally, to a demand, checking, savings, time, passbook, negotiable order of withdrawal, thrift, or share account, or which is evidenced by its passbook, certificate of deposit, thrift certificate, investment certificate, certificate of indebtedness, or other similar instrument, or a check, draft, or share draft drawn against a deposit account and certified by a person, on which the person is primarily liable. See Hawaii Revised Statutes 412:1-109
  • Federal: means belonging to, part of, or related to the government of the United States of America. See Hawaii Revised Statutes 412:1-109
  • Federal Deposit Insurance Corporation: A government corporation that insures the deposits of all national and state banks that are members of the Federal Reserve System. Source: OCC
  • Fiduciary: A trustee, executor, or administrator.
  • Foreign bank: means any company organized under the laws of a foreign country, a territory of the United States, Puerto Rico, Guam, American Samoa, or the Virgin Islands, that engages directly in the business of banking. See Hawaii Revised Statutes 412:13-102
  • Hawaii state agency: when used in reference to an office of a foreign bank, means an agency of a foreign bank that is located in this State and licensed pursuant to this chapter, part II, of this article. See Hawaii Revised Statutes 412:13-102
  • Hawaii state bank: means a bank organized under the laws of Hawaii. See Hawaii Revised Statutes 412:13-102
  • Hawaii state branch: when used in reference to an office of a foreign bank, means a branch of a foreign bank that is located in this State and licensed pursuant to this chapter, part II, of this article. See Hawaii Revised Statutes 412:13-102
  • Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
  • surplus: includes retained earnings, whether or not transferred or allocated to surplus. See Hawaii Revised Statutes 412:1-109
  • this State: means the State of Hawaii, its political subdivisions, agencies, and departments. See Hawaii Revised Statutes 412:1-109
  • United States: when used in a geographical sense, means the several states, the District of Columbia, Puerto Rico, Guam, American Samoa, the American Virgin Islands, the Trust Territory of the Pacific Islands, and any other territory of the United States; and, when used in a political sense, means the federal government of the United States. See Hawaii Revised Statutes 412:13-102
(b) Among other exceptions to subsection (a) that may be required or authorized by the commissioner pursuant to this part:

(1) A Hawaii state branch shall not accept, from individuals who are citizens or residents of the United States, deposits (other than credit balances that are incidental to or arise out of its exercise of other lawful banking powers) of less than $100,000, except to the extent that the deposits are determined by the Federal Deposit Insurance Corporation not to constitute “domestic retail deposit activities requiring deposit insurance protection” within the meaning of section 6 of the federal International Banking Act (12 U.S.C. § 3104); provided that, a Hawaii state branch of a bank organized under the laws of any territory of the United States, Puerto Rico, Guam, American Samoa or the Virgin Islands, the deposits of which are insured by the Federal Deposit Insurance Corporation, shall not be subject to the foregoing limitation on domestic retail deposit taking;
(2) A Hawaii state agency shall not accept any deposits except:

(A) Deposits of a foreign nation, its political subdivisions, agencies, or instrumentalities; and
(B) Deposits of persons who reside, are domiciled and maintain their principal place of business in a foreign nation, and are not citizens of the United States;
(3) A Hawaii state branch or Hawaii state agency shall not be required to maintain federal deposit insurance under any law, rule, or order of this State that requires Hawaii state banks and other depository institutions to maintain federal deposit insurance, and the commissioner, by rule or order, may exclude or exempt uninsured Hawaii state branches and Hawaii state agencies from, or otherwise modify the applicability to uninsured Hawaii state branches and Hawaii state agencies of, any law or rule of this State that is generally applicable to insured Hawaii state banks, or that would otherwise be applicable to an insured Hawaii state bank doing business at the same location, as the commissioner may deem necessary or desirable, taking into account applicable limitations on the retail deposit-taking powers and privileges of Hawaii state branches and Hawaii state agencies;
(4) A foreign bank which is licensed to establish and maintain a Hawaii state branch or Hawaii state agency shall not engage in fiduciary activities at its Hawaii office;
(5) Any limitation or restriction based on the capital stock and surplus of a Hawaii state bank shall be deemed to refer, as applied to a Hawaii state branch or Hawaii state agency, to the dollar equivalent of the capital stock and surplus of the foreign bank, and if the foreign bank has more than one Hawaii state branch or Hawaii state agency in this State, the business transacted by all the Hawaii state branches and Hawaii state agencies shall be aggregated in determining compliance with the limitation; and
(6) The commissioner may adopt any additional or modify the applicability of any existing standards, conditions, or requirements, by rule or order, as the commissioner may deem necessary to ensure the safety and soundness and the protection of creditors of the operations of branches and agencies of foreign banks in this State.
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