Hawaii Revised Statutes 412:2-608 – Misapplication of funds
Attorney's Note
Under the Hawaii Revised Statutes, punishments for crimes depend on the classification. In the case of this section:| Class | Prison | Fine |
|---|---|---|
| Class C felony | up to 5 years | up to $10,000 |
| misdemeanor | up to 1 year | $2,000 |
| petty misdemeanor | up to 30 days | up to $1,000 |
Terms Used In Hawaii Revised Statutes 412:2-608
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- 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
- 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;
(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. See Hawaii Revised Statutes 412:1-109
Any institution-affiliated party who wilfully abstracts or misapplies any of the money, funds, credits, assets, or property of a Hawaii financial institution, whether owned by the financial institution or held for safekeeping or as agent, or held in trust shall be guilty of a class C felony punishable pursuant to sections 706-660 and 706-640. However, if the amount abstracted or wilfully misapplied does not exceed $300, the institution-affiliated party shall be guilty of a misdemeanor punishable pursuant to sections 706-663 and 706-640.