Haw. Rev. Stat. § 412:2-503

Current through the 2024 Legislative Session

Section 412:2-503 - Applications to purchase

(a) If the failing financial institution is a bank, savings bank, or depository financial services loan company that is a Hawaii financial institution, or if the institution to result from the acquisition proposed in the application is to be any of the foregoing, the commissioner may accept an application under this part only from:

(1) A Hawaii financial institution;

(2) A federal financial institution whose operations are principally conducted in this State (unless the operations of any holding company of such an applicant are principally conducted elsewhere than in Hawaii);

(3) A resulting bank as defined in article 12;

(4) An out-of-state bank as defined in article 12;

(5) The holding company of any of the foregoing, if any; and

(6) A person that is not a company.

(b) No application shall be accepted which provides for a merger or consolidation of a failing financial institution or a purchase of its assets or assumption of its liabilities, or a purchase of its capital stock if, as a result of such merger, consolidation, purchase or assumption, any person would be eligible to receive deposits in this State other than through a Hawaii financial institution, a federal financial institution whose operations are principally conducted in this State, or a resulting bank as defined in article 12.

(c) An application filed under this part shall contain such information as the commissioner may require, and shall indicate:

(1) Whether the applicant proposes to merge with the failing financial institution, purchase all or part of its assets and assume all or part of its liabilities or purchase its capital stock;

(2) The consideration to be paid; and

(3) How the proposed purchase will promote the safety and soundness of the failing financial institution, protect its depositors and creditors, and otherwise be in the public interest.

(d) The commissioner may establish a reasonable deadline for the receipt of applications.

HRS § 412:2-503

L 1993, c 350, pt of §1; am L 1995, c 33, §1; am L 1996, c 207, §4; am L 1999, c 245, §2