[§412:13-201]  Branches and agencies offoreign banks; necessity of licensure.  (a)  No foreign bank shall transactbusiness in this State except at a Hawaii state branch or Hawaii state agencywhich it is licensed to establish and maintain pursuant to, and at which itconducts the activities as are permitted by this article.

(b)  Subsection (a) shall not be deemed toprohibit:

(1)  Any foreign bank that establishes and maintains afederal agency or federal branch in this State from transacting at the federalagency or federal branch any business it may be authorized to transact underapplicable federal laws and regulations;

(2)  Any foreign bank that does not maintain a Hawaiistate branch or Hawaii state agency from making in this State loans secured by lienson real or personal property located in this State or enforcing the loans inthis State; or

(3)  Any foreign bank organized under the laws of aterritory of the United States, Puerto Rico, Guam, American Samoa, or theVirgin Islands, the deposits of which are insured by the Federal DepositInsurance Corporation, from establishing and operating an interstate branch inthis State in its capacity as a "state bank" as defined in theFederal Deposit Insurance Act, pursuant to the authorities contained in thatAct and in the laws of this State.

(c)  For purposes of subsection (a), no foreignbank shall be deemed to be transacting business in this State merely because asubsidiary or affiliate transacts business in this State, including businessthat any depository institution subsidiary or affiliate may lawfully conduct inthis State, as an agent for the foreign bank in accordance with and to theextent authorized by the laws of this State and applicable rules or orders ofthe commissioner. [L 1996, c 155, pt of §2]