Rules of Court

Receivers, see HRCP rule 66.

§412:2-400 Grounds for appointment of conservator or receiver. A conservator or receiver may be appointed to take possession and control of a Hawaii financial institution if such financial institution:

(1) Is insolvent or has failed to correct an impairment of its capital and surplus as provided in section 412:2-314 of this chapter;

(2) Is not likely to be able to meet the demands of its depositors or pay its debts in the normal course of business;

(3) Is in an unsafe or unsound condition to transact business;

(4) 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;

(5) 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 substantial dissipation of assets, or is likely to severely weaken the institution's condition or otherwise seriously prejudice the interests of its depositors;

(6) Without lawful cause has concealed from or has refused to provide to the commissioner the institution's books, papers, records, information, or assets for inspection by the commissioner or by any lawful agent of the commissioner; or

(7) Has wilfully violated or is wilfully violating a cease and desist order of the commissioner which has become effective. [L 1993, c 350, pt of §1]