Section 480J-34 - License; grounds for denial(a) The commissioner shall conduct an investigation of every applicant to determine the applicant's financial responsibility, character, and general fitness. The commissioner shall issue the applicant a license to engage in the business of making installment loans if the commissioner determines that the applicant or, in the case of an applicant that is not an individual, each of the applicant's control persons, executive officers, directors, general partners, and managing members:(1) Has never had an installment lender license revoked in any jurisdiction; provided that a subsequent formal vacation of a revocation shall not be deemed a revocation;(2) Has not been convicted of, pled guilty or nolo contendere to, or been granted a deferred acceptance of a guilty plea under any federal law or under chapter 853 to a felony in a domestic, foreign, or military court, either: (A) During the seven-year period preceding the date of the application for licensing; or(B) At any time preceding the date of application, if the felony involved an act of fraud, dishonesty, breach of trust, or money laundering; provided that any pardon of a conviction shall not be deemed a conviction for the purposes of this section;
(3) Has demonstrated sufficient financial responsibility, good character, and general fitness to command the confidence of the community and to warrant a determination that the applicant will operate honestly, fairly, and efficiently, pursuant to this chapter. For the purposes of this paragraph, a person is not financially responsible when the person has shown disregard in the management of the person's own financial condition. A determination that a person has shown disregard in the management of the person's own financial condition may be based upon:(A) Current outstanding judgments, except judgments solely as a result of medical expenses;(B) Current outstanding tax liens or other government liens and filings, subject to applicable disclosure laws and administrative rules;(C) Foreclosures within the prior three years; and(D) A pattern of seriously delinquent accounts within the prior three years;(4) Has not been convicted of, pled guilty or nolo contendere to, or been granted a deferred acceptance of a guilty plea under federal law or chapter 853 to any misdemeanor involving an act of fraud, dishonesty, breach of trust, or money laundering;(5) Has satisfied the licensing requirements of this chapter; and(6) Has provided the bond required by section 480J-35.(b) The applicant or, in the case of an applicant that is not an individual, each of the applicant's control persons, executive officers, directors, general partners, and managing members shall submit authorization to the commissioner to conduct background checks to determine or verify the information in subsection (a) in each state where the person has made installment loans. Authorization pursuant to this subsection shall include consent to provide additional fingerprints, if necessary, to law enforcement or regulatory bodies in other states.(c) A license shall not be issued to an applicant: (1) Whose license to conduct business under this chapter, or any similar statute in any other jurisdiction, has been suspended or revoked within five years of the filing of the present application;(2) Whose license to conduct business in the installment loan or payday industry has been revoked by an administrative order issued by the commissioner or the commissioner's designee, or the licensing authority of another state or jurisdiction, for the period specified in the administrative order;(3) Who has advertised directly and purposefully to Hawaii consumers or made internet loans in violation of this chapter; or(4) Who has failed to complete an application for licensure.(d) A license issued in accordance with this chapter shall remain in force and effect until surrendered, suspended, or revoked, or until the license expires as a result of nonpayment of the annual license renewal fee required by this chapter.Added by L 2021, c 56,§ 2, eff. 1/1/2022.