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



(b)  Subsection (a) shall not be deemed to
prohibit:



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



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



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



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