(a) Upon determining that a Hawaii financial institution is a failing financial institution, the commissioner shall serve written notice of such determination to the institution. The notice shall set forth the basis for the commissioner’s determination, and shall indicate that the commissioner intends to implement the provisions of this part.

Terms Used In Hawaii Revised Statutes 412:2-501

  • Appeal: A request made after a trial, asking another court (usually the court of appeals) to decide whether the trial was conducted properly. To make such a request is "to appeal" or "to take an appeal." One who appeals is called the appellant.
  • Appellate: About appeals; an appellate court has the power to review the judgement of another lower court or tribunal.
  • Chambers: A judge's office.
  • Circuit court: means the court established in each of the judicial circuits of this State pursuant to chapter 603 and which has jurisdiction under § 412:1-108 over a matter. See Hawaii Revised Statutes 412:1-109
  • Commissioner: means the commissioner of financial institutions of this State. See Hawaii Revised Statutes 412:1-109
  • Division: means the division of financial institutions of the department of commerce and consumer affairs of this State. See Hawaii Revised Statutes 412:1-109
  • Failing financial institution: means a Hawaii financial institution or a federal financial institution whose operations are principally conducted in this State, and which:

    (1) Is insolvent or has failed to make good an impairment of its capital and surplus as provided in § 412:2-314;

    (2) Has incurred or is likely to incur losses that will deplete all or substantially all of its capital and surplus, and there is no reasonable prospect for such capital and surplus to be replenished without federal assistance; or

    (3) Has violated or is violating laws, rules or regulations, or has committed or is committing an unsafe or unsound practice, and such violation or practice is likely to cause insolvency or a substantial dissipation of assets or is likely to severely weaken the institution's condition or otherwise seriously prejudice the interests of its depositors. See Hawaii Revised Statutes 412:2-500

  • 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
(b) If the financial institution contests the commissioner’s determination, it shall petition the circuit court to enjoin the commissioner’s action, not more than five days after receiving notice of the commissioner’s determination that it is a failing financial institution. A hearing on the petition shall be held not more than fifteen days after the petition is filed, and in all other respects the matter shall be expedited. The hearing under this subsection shall be closed to the public.
(c) An order by the circuit court made pursuant to this section may be appealed to the intermediate appellate court, subject to chapter 602, but no stay of the order shall be granted pending such appeal.
(d) All court records, documents and files of the financial institution, the division of financial institutions, and the court, so far as they pertain to or are part of the record of the proceedings, shall be and remain confidential. The court may, after hearing the arguments from the parties in chambers, order disclosure of documents for good cause. Unless otherwise ordered, all papers filed with the court shall be sealed from the public and held in a confidential file.
(e) Nothing in this section shall preclude any action by the commissioner under any of the other powers granted to the commissioner by this chapter.

  Previous
Next  
 Part V Contents