(a) Whenever it appears to the commissioner that any person has engaged or is about to engage in any act or practice constituting a violation of any:

Terms Used In Hawaii Revised Statutes 412:2-302

  • Commissioner: means the commissioner of financial institutions of this State. See Hawaii Revised Statutes 412:1-109
  • Financial institution: means a Hawaii financial institution, and unless the context indicates otherwise, a federal financial institution or foreign financial institution. See Hawaii Revised Statutes 412:1-109
  • Institution-affiliated party: means any of the following:

    (1) Any director, officer, employee or controlling shareholder of, or agent for, or other person that controls a financial institution;

    (2) Any person who has filed or is required to file an application to become a financial institution with the commissioner or an application to acquire control of a Hawaii financial institution or financial institution holding company with the commissioner;

    (3) Any shareholder, consultant, joint venture partner, and any other person as determined by the commissioner (by rule or case-by-case) who participates in the conduct of the affairs of a financial institution; or

    (4) Any independent contractor (including any attorney, appraiser, or accountant) who knowingly or recklessly participates in any of the following which caused or is likely to cause more than a minimal financial loss to, or a significant adverse effect on, the financial institution:

    (A) Any violation of law or rule,

    (B) Any breach of fiduciary duty, or

    (C) Any unsafe or unsound practice. See Hawaii Revised Statutes 412:1-109

  • Person: means a natural person, entity or organization, including without limitation an individual, corporation, joint venture, partnership, sole proprietorship, association, cooperative, estate, trust, or governmental unit. See Hawaii Revised Statutes 412:1-109
(1) Provision of this chapter;
(2) Rule adopted or order issued under this chapter; or
(3) Condition of an approval of request or application by the commissioner or a written agreement between such person and the commissioner,

the commissioner may, in the commissioner’s discretion, issue a temporary or permanent cease and desist order to enforce compliance with this chapter, with any rule adopted or order issued under this chapter, or with the conditions of such approval or written agreement.

The commissioner shall have the discretion to include in the order an assessment of an administrative penalty against any person who violates this chapter or who has knowingly violated a written agreement with, or a rule or order of, the commissioner made pursuant to this chapter.

(b) The commissioner may issue a temporary or permanent cease and desist order to any Hawaii financial institution, any institution-affiliated party, or any other person that the commissioner finds or has reasonable cause to believe:

(1) Is violating, has violated, or is about to violate this chapter or any rules adopted pursuant to this chapter;
(2) Is violating, has violated, or is about to violate any written condition imposed or order issued by the commissioner on such financial institution’s or other person’s authority to engage in business, or any condition of a written agreement between the financial institution or other person and the commissioner;
(3) Is engaging, has engaged, or is about to engage in an illegal, unauthorized, unsafe, or unsound practice; or
(4) Is failing to maintain books and records that are sufficiently complete and accurate so as to permit the commissioner to determine the financial condition of the institution named in the order.
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