§412:1-102  Scope and application ofchapter.  (a)  This chapter shall be applicable to the following:

(1)  All Hawaii financial institutions;

(2)  Other persons, including foreign financialinstitutions, who subject themselves to special provisions of this chapter, orwho, by violating any of its provisions, become subject to the penalties ofthis chapter; and

(3)  To the extent permitted by federal law, allfederal financial institutions transacting business in this State.

(b)  A person shall not be deemed to be doingbusiness in this State simply because it participates in a mortgage loantransaction with a Hawaii financial institution or a federal financialinstitution whose operations are principally conducted in this State bypurchasing, acquiring, transferring, servicing, enforcing, or otherwise dealingwith mortgaged property located in this State, or by foreclosing upon, oracquiring title to mortgaged property in case of a default under the mortgage,securing the rents and profits therefrom, or disposing of the same.

(c)  Loans made by a financial institutionpursuant to an agreement that a federal agency will guaranty the loan, or willpurchase the loan, shall be subject to this chapter only to the extentconsistent with federal law.  No law of the State prescribing the nature,amount, or form of security or requiring security upon which loans may be made,or limiting the aggregate amount which is permitted to be invested in loans byreason of type of investment, or prescribing or limiting interest rates uponloans, or prescribing or limiting the period for which loans may be made shallbe deemed to apply to loans made pursuant to an agreement with a federal agencythat it will guaranty or purchase the loan. [L 1993, c 350, pt of §1]