Hawaii Revised Statutes 412:2-502 – Solicitation of purchasers
Terms Used In Hawaii Revised Statutes 412:2-502
- 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
- Failing financial institution: means a Hawaii financial institution or a federal financial institution whose operations are principally conducted in this State, and which:
(1) Is insolvent or has failed to make good an impairment of its capital and surplus as provided in § 412:2-314;
(2) Has incurred or is likely to incur losses that will deplete all or substantially all of its capital and surplus, and there is no reasonable prospect for such capital and surplus to be replenished without federal assistance; or
(3) Has violated or is violating laws, rules or regulations, or has committed or is committing an unsafe or unsound practice, and such violation or practice is likely to cause insolvency or a substantial dissipation of assets or is likely to severely weaken the institution's condition or otherwise seriously prejudice the interests of its depositors. See Hawaii Revised Statutes 412:2-500
- 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
- Holding company: means any company which controls another company. See Hawaii Revised Statutes 412:1-109
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
If the court sustains the commissioner‘s determination that the financial institution is a failing financial institution, or if the institution has not contested the determination and the time for petitioning the court has passed, the commissioner may solicit applications to merge with the failing financial institution or with its holding company, or to purchase all or part of the assets or assume all or part of the liabilities of the failing financial institution, or to purchase the capital stock of the failing financial institution or its holding company. The solicitation may be by private letter, by personal contact, or by publication, as in the commissioner’s discretion may be appropriate in order to obtain as many fair offers as possible with the least danger to the safety of the failing financial institution, its depositors and creditors, and the general public. The commissioner may disclose information concerning the failing financial institution as shall be necessary for the prospective applicants to formulate a proposal to purchase; provided that the recipients of the information shall be required to keep the information confidential.