(a) Not less than fifty per cent of the amount of loans and extensions of credit made by a savings bank shall be in loans and extensions of credit secured by real estate.
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Terms Used In Hawaii Revised Statutes 412:6-302

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Loans and extensions of credit: includes a contractual commitment to advance funds. See Hawaii Revised Statutes 412:1-109
  • Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
(b) The aggregate amount loaned by any savings bank for the following types of loans, whether secured or unsecured, shall not exceed the following limits:

(1) Commercial loans: fifteen per cent of the savings bank’s total assets. For purposes of this section “commercial loan” means any loan primarily for business, corporate, commercial, or agricultural purposes where the savings bank substantially relies on the borrower’s general credit standing for repayment of the loan and, if the loan is secured by real property, does not primarily rely on the value of or income or projected income from the security for repayment of the loan; and
(2) Education loans: ten per cent of the savings bank’s total assets. For purposes of this section, “education loan” means any loan the proceeds of which are used to pay for tuition, fees, books, and other expenses related to primary, secondary, vocational and undergraduate and postgraduate college or university education.
(c) A savings bank may reclassify or apportion a loan from one category to another in this section.

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