(a) All of the money in a reserve account established under this chapter is property of the State.
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Terms Used In Hawaii Revised Statutes 211D-8

  • Department: means the department of business, economic development, and tourism. See Hawaii Revised Statutes 211D-1
  • Financial institution: includes a bank, trust company, banking association, savings and loan association, mortgage company, investment bank, credit union, or nontraditional financial institution. See Hawaii Revised Statutes 211D-1
  • Fund: means the Hawaii capital loan revolving fund established in section 210-3. See Hawaii Revised Statutes 211D-1
  • Program: means the capital access program. See Hawaii Revised Statutes 211D-1
  • Reserve account: means an account established in a participating financial institution on approval of the department in which money is deposited to serve as a source of additional revenue to reimburse the financial institution for losses on loans enrolled in the program. See Hawaii Revised Statutes 211D-1
(b) The State is entitled to earn interest on the amount of contributions made by the department, borrower, and institution to a reserve account under this chapter. The department shall withdraw monthly or quarterly from a reserve account the amount of the interest earned by the State. The department shall deposit the amount withdrawn under this section into the fund.
(c) If the amount in a reserve account exceeds an amount equal to thirty-three per cent of the balance of the financial institution‘s outstanding capital access loans, the department may withdraw the excess amount and deposit the amount in the fund. A withdrawal of money authorized under this subsection may not reduce an active reserve account to an amount that is less than $200,000.
(d) The department shall withdraw from the institution’s reserve account the total amount in the account and any interest earned on the account and deposit the amount in the fund when:

(1) A financial institution is no longer eligible to participate in the program or a participation agreement entered into under this chapter expires without renewal by the department or institution; and
(2) The financial institution has no outstanding capital access loans.
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