(a) Beginning January 1, 2014, every Hawaii financial institution shall be assessed a yearly fee in accordance with the following:
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Terms Used In Hawaii Revised Statutes 412:2-105.2
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Capital: means :
(1) The aggregate par value or other amount received and allocated to the issued and outstanding capital stock of a financial institution; or
(2) The total amount of a credit union's outstanding and unimpaired membership shares or share accounts. See Hawaii Revised Statutes 412:1-109
- Commissioner: means the commissioner of financial institutions of this State. See Hawaii Revised Statutes 412:1-109
- Company: means any corporation, partnership, trust (business or otherwise), association, joint venture, pool syndicate, unincorporated organization, or any form of business entity not specifically listed herein and, unless specifically excluded, a financial institution; provided that "company" does not mean any trust existing on July 1, 1993, which under its terms must terminate within twenty-five years, or not later than twenty-one years and ten months after the death of individuals living on the effective date of the trust. See Hawaii Revised Statutes 412:1-109
- Control: means , unless the context clearly requires otherwise, directly or indirectly, solely or through another person or transaction, or in concert with another:
(1) Owning or having the power to vote twenty-five per cent or more of any class of voting securities;
(2) Owning or having the power to exercise twenty-five per cent or more of the votes of a mutual association, credit union, or other entity whose voting rights are not determined by voting securities;
(3) Owning or having the power to vote ten per cent or more of any class of voting securities if:
(A) the issuer of that class of securities has issued any class of securities under section 12 of the Securities Exchange Act of 1934, as amended; or
(B) immediately after the acquisition, no other person will own a greater percentage of that class of voting securities;
(4) Having the power to elect by any means a majority of the directors; or
(5) Having the power to exercise a dominant influence over management, if so determined by the commissioner after notice and a hearing. See Hawaii Revised Statutes 412:1-109
- Depository institution: means a financial institution that is authorized to accept deposits under its chartering or licensing authority and includes a bank, savings bank, savings and loan association, depository financial services loan company, credit union, or intra-Pacific bank. 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
- Federal: means belonging to, part of, or related to the government of the United States of America. See Hawaii Revised Statutes 412:1-109
- Federal financial institution: means a national banking association, federal savings bank, federal savings and loan association or federal credit union. See Hawaii Revised Statutes 412:1-109
- Fiduciary: A trustee, executor, or administrator.
- 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
- Hawaii financial institution: means :
(1) A corporation or credit union that holds a charter or license under this chapter or under prior Hawaii law, authorizing it to accept deposits, to make loans in excess of the rates permitted in chapter 478, or to engage in the business of a trust company; or
(2) A resulting bank as defined in article 12,
and includes a corporation or credit union existing and chartered as a Hawaii financial institution or licensed to transact business in this State on July 1, 1993. See Hawaii Revised Statutes 412:1-109
- Loans and extensions of credit: includes a contractual commitment to advance funds. See Hawaii Revised Statutes 412:1-109
- Subsidiary: means a corporation, joint venture, partnership, or other company that is controlled by another corporation. See Hawaii Revised Statutes 412:1-109
provided that the yearly fee assessed for financial institutions with total assets of at least $2,000,000,000 but less than $10,000,000,000 shall be no more than $100,000, and the yearly fee assessed for financial institutions with total assets of at least $10,000,000,000 shall be no more than $150,000.
(b) Beginning July 1, 2021, subsection (a) shall not apply to nondepository trusts, and nondepository trusts shall be assessed a yearly fee in accordance with the following:
(1) For nondepository trusts with total assets under management under $750,000, the assessment shall be the sum of $1,000 plus the product of 0.00029111 multiplied by total assets under management;
(2) For nondepository trusts with total assets under management of at least $750,000 but under $7,500,000, the assessment shall be the sum of $2,000 plus the product of 0.00029111 multiplied by total assets under management;
(3) For nondepository trusts with total assets under management of at least $7,500,000 but under $20,000,000, the assessment shall be the sum of $4,800 plus the product of 0.00029111 multiplied by total assets under management;
(4) For nondepository trusts with total assets under management of at least $20,000,000 but under $75,000,000, the assessment shall be the sum of $9,900 plus the product of 0.000064 multiplied by total assets under management;
(5) For nondepository trusts with total assets under management of at least $75,000,000 but under $200,000,000, the assessment shall be the sum of $15,000 plus the product of 0.00005333 multiplied by total assets under management;
(6) For nondepository trusts with total assets under management of at least $200,000,000 but under $1,000,000,000, the assessment shall be the sum of $21,100 plus the product of 0.00004750 multiplied by total assets under management; and
(7) For nondepository trusts with total assets under management of at least $1,000,000,000 but under $20,000,000,000, the assessment shall be the sum of $29,000 plus the product of 0.00004 multiplied by total assets under management;
provided that the yearly fee assessed for nondepository trusts with total assets under management of at least $2,000,000,000 but under $10,000,000,000 shall be no more than $100,000, and the yearly fee assessed for nondepository trusts with total assets under management of at least $10,000,000,000 shall be no more than $150,000.
(c) The assessments shall be paid semiannually on March 1 and September 1 of each year based on the institution’s total assets or total assets under management reported as of the previous December 31 and June 30, respectively.
(d) In addition to the assessments established in subsection (a), a financial institution or financial institution applicant shall pay fees as follows:
(1) A nonrefundable fee of $10,000 for an application for preliminary approval by the commissioner for the organization of a Hawaii financial institution pursuant to § 412:3-201, 412:3-202, 412:3-206, or 412:3-301;
(2) A nonrefundable fee of $9,000 for an application for preliminary approval by the commissioner for the organization of a Hawaii financial institution pursuant to § 412:5-402;
(3) A nonrefundable fee of $2,500 for a final application for a charter or license to engage in the business of a Hawaii financial institution pursuant to § 412:3-212;
(4) A nonrefundable fee of $10,000 for an application for a merger or consolidation or acquisition of control involving a Hawaii financial institution;
(5) A nonrefundable fee of $2,500 for an application for the conversion of a federal financial institution to a Hawaii financial institution or the conversion of a Hawaii financial institution to another Hawaii financial institution charter;
(6) A nonrefundable fee of $5,000 for an application of a bank to conduct a trust business through a subsidiary, division, or department of the bank pursuant to § 412:5-205;
(7) A nonrefundable fee of $5,000 for an application of a bank to conduct insurance activities pursuant to section 412:5-205.5;
(8) A nonrefundable fee of $5,000 for an application of a bank to engage in securities activities pursuant to section 412:5-205.7;
(9) A nonrefundable fee of $2,000 for an application for a bank, savings bank, or depository financial services loan company to comply with lending limits applicable to federal financial institutions pursuant to § 412:5-302, loans and extensions of credit to one borrower” class=”unlinked-ref” datatype=”S” sessionyear=”2022″ statecd=”HI”>412:6-303, or 412:9-404;
(10) A nonrefundable fee of $2,000 for an application to exceed certain permitted investment limits pursuant to sections 412:5-305(f) and (h), 412:6-306(f) and (h), 412:7-306(f) and (h), capital and surplus” class=”unlinked-ref” datatype=”S” sessionyear=”2022″ statecd=”HI”>412:8-301(f), 412:9-409(f) and (i), and 412:10-502(g); and
(11) A nonrefundable fee of $2,500 for an application to engage in the business of a credit union.
(e) The annual fee for each intra-Pacific financial institution and interstate branch of out-of-state banks is the sum of $1,000 for each office, agency, and branch office maintained by the financial institution, payment of which shall be made before December 31 of each year. The commissioner may establish, increase, decrease, or repeal this fee pursuant to rules adopted in accordance with chapter 91.
(f) Intra-Pacific bank fees shall be as follows:
(1) A nonrefundable fee of $9,000 to establish an initial branch pursuant to § 412:5-401;
(2) A nonrefundable fee of $750 to establish an additional branch or agency of an intra-Pacific bank; and
(3) A nonrefundable fee of $500 for an application to relocate a branch or agency of an intra-Pacific bank established or acquired pursuant to § 412:5-401.
(g) A nonrefundable fee of $500 shall be assessed for an application to relocate a branch or office established pursuant to section 412:12-107.
(h) A nonrefundable fee of $100 shall be assessed for each certificate of good standing for any Hawaii financial institution; provided that an additional fee of $100 shall be assessed for each certificate of good standing that is requested to be provided in two business days from receipt of request.
(i) All assessments and fees shall be deposited into the compliance resolution fund established pursuant to section 26-9(o).
(j) For purposes of this section:
“Total assets” means for an insured depository institution the total assets reported in the financial institution’s quarterly reports of condition, or call reports, which are required to be filed pursuant to section 7(a)(3) of the Federal Deposit Insurance Act or in the unaudited financial statements filed pursuant to § 412:3-112.
“Total assets under management” means the total market value of the assets that a trust company oversees, administers, or manages on behalf of its clients pursuant to its fiduciary and trust powers in article 8, including assets for which a trust company has engaged a third-party platform investment service, property management services, or real estate services.
(k) A Hawaii financial institution that fails to make a payment required by this section shall be subject to an administrative fine of not more than $250 per day for each day it is in violation of this section, which fine, together with the amount due under this section, may be recovered pursuant to section 412:2-611 and shall be deposited into the compliance resolution fund established pursuant to section 26-9(o).
