(a) The commissioner shall conduct an investigation of every applicant to determine the applicant’s financial responsibility, character, and general fitness. The commissioner shall issue the applicant a license to engage in the business of making installment loans if the commissioner determines that the applicant or, in the case of an applicant that is not an individual, each of the applicant’s control persons, executive officers, directors, general partners, and managing members:

Attorney's Note

Under the Hawaii Revised Statutes, punishments for crimes depend on the classification. In the case of this section:
ClassPrisonFine
misdemeanorup to 1 year$2,000
For details, see Haw. Rev. Stat. § 706-663
lawyer at desk

Ask a legal question, get an answer ASAP!
Click here to chat with a lawyer about your rights.

Terms Used In Hawaii Revised Statutes 480J-34

  • Commissioner: means the commissioner of financial institutions. See Hawaii Revised Statutes 480J-1
  • Control: means the power, either directly or indirectly, to direct management or policies of a company, whether through ownership of securities, by contract, or otherwise. See Hawaii Revised Statutes 480J-1
  • Conviction: A judgement of guilt against a criminal defendant.
  • Fraud: Intentional deception resulting in injury to another.
  • Installment loan: means a loan made pursuant to this chapter. See Hawaii Revised Statutes 480J-1
  • Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
  • lender: means any person who is in the business of offering or making a consumer loan, who arranges a consumer loan for a third party, or who acts as an agent for a third party, regardless of whether the third party is exempt from licensure under this chapter or whether approval, acceptance, or ratification by the third party is necessary to create a legal obligation for the third party, through any method including mail, telephone, the Internet, or any electronic means. See Hawaii Revised Statutes 480J-1
  • Nolo contendere: No contest-has the same effect as a plea of guilty, as far as the criminal sentence is concerned, but may not be considered as an admission of guilt for any other purpose.
  • Person: means an individual, sole proprietorship, partnership, corporation, limited liability company, limited liability partnership, or other association of individuals, however organized. See Hawaii Revised Statutes 480J-1
  • Plea: In a criminal case, the defendant's statement pleading "guilty" or "not guilty" in answer to the charges, a declaration made in open court.
  • Renewal: means the refinancing of an installment loan that occurs during the period between the original maturity date and the immediately preceding installment payment due date. See Hawaii Revised Statutes 480J-1
  • Statute: A law passed by a legislature.
(1) Has never had an installment lender license revoked in any jurisdiction; provided that a subsequent formal vacation of a revocation shall not be deemed a revocation;
(2) Has not been convicted of, pled guilty or nolo contendere to, or been granted a deferred acceptance of a guilty plea under any federal law or under chapter 853 to a felony in a domestic, foreign, or military court, either:

(A) During the seven-year period preceding the date of the application for licensing; or
(B) At any time preceding the date of application, if the felony involved an act of fraud, dishonesty, breach of trust, or money laundering;

provided that any pardon of a conviction shall not be deemed a conviction for the purposes of this section;

(3) Has demonstrated sufficient financial responsibility, good character, and general fitness to command the confidence of the community and to warrant a determination that the applicant will operate honestly, fairly, and efficiently, pursuant to this chapter. For the purposes of this paragraph, a person is not financially responsible when the person has shown disregard in the management of the person’s own financial condition. A determination that a person has shown disregard in the management of the person’s own financial condition may be based upon:

(A) Current outstanding judgments, except judgments solely as a result of medical expenses;
(B) Current outstanding tax liens or other government liens and filings, subject to applicable disclosure laws and administrative rules;
(C) Foreclosures within the prior three years; and
(D) A pattern of seriously delinquent accounts within the prior three years;
(4) Has not been convicted of, pled guilty or nolo contendere to, or been granted a deferred acceptance of a guilty plea under federal law or chapter 853 to any misdemeanor involving an act of fraud, dishonesty, breach of trust, or money laundering;
(5) Has satisfied the licensing requirements of this chapter; and
(6) Has provided the bond required by section 480J-35.
(b) The applicant or, in the case of an applicant that is not an individual, each of the applicant’s control persons, executive officers, directors, general partners, and managing members shall submit authorization to the commissioner to conduct background checks to determine or verify the information in subsection (a) in each state where the person has made installment loans. Authorization pursuant to this subsection shall include consent to provide additional fingerprints, if necessary, to law enforcement or regulatory bodies in other states.
(c) A license shall not be issued to an applicant:

(1) Whose license to conduct business under this chapter, or any similar statute in any other jurisdiction, has been suspended or revoked within five years of the filing of the present application;
(2) Whose license to conduct business in the installment loan or payday industry has been revoked by an administrative order issued by the commissioner or the commissioner’s designee, or the licensing authority of another state or jurisdiction, for the period specified in the administrative order;
(3) Who has advertised directly and purposefully to Hawaii consumers or made internet loans in violation of this chapter; or
(4) Who has failed to complete an application for licensure.
(d) A license issued in accordance with this chapter shall remain in force and effect until surrendered, suspended, or revoked, or until the license expires as a result of nonpayment of the annual license renewal fee required by this chapter.

  Previous
Next  
 Part II Contents