HAR §16-27-2. Definitions

As used in this chapter: "Commissioner" means the commissioner of financial institutions of this State. "Division" means the division of financial institutions of the department of commerce and consumer affairs of this State. "Hawaii financial institution" or "institution" means: (1) A corporation or credit union which holds a charter or license under chapter 412, HRS, or under prior Hawaii law, authorizing it to accept deposits, to make loans in excess of the rates permitted in chapter 478, HRS, or to engage in the business of a trust company; or (2) A resulting bank as defined in article 12 of chapter 412, HRS, and includes a corporation, mutual savings and loan association or credit union existing and chartered as a Hawaii financial institution or licensed to transact business in this State on July 1, 1993. A Hawaii financial institution may be a bank, resulting bank as defined in article 12 of chapter 412, HRS, savings bank, savings and loan association, depository financial services loan company, nondepository financial services loan company, trust company, credit union, or intra-Pacific bank. "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; 27-2 §16-27-8 (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. "NRS" (Nondepository Rating System) means the rating system for nondepository financial services loan companies adopted by the division pursuant to section 16-26-8. "UFIRS" (Uniform Financial Institutions Rating System) means the policy statement which was issued and recommended by the Federal Financial Institutions Examination Council, and adopted by the division, pursuant to section 16-26-7. [Eff 8/13/87; am and comp 1/27/01] (Auth: HRS §§412:2-100, 412:2-107) (Imp: HRS §§412:1-109, 412:2-100) SUBCHAPTER 2 BASIS FOR SUPERVISORY AND ENFORCEMENT ACTION