[§412:13-208]  Powers of branch and agency. (a)  Except as otherwise specifically provided in this article or in rules ororders adopted by the commissioner, and notwithstanding any other law or ruleof this State to the contrary, operations of a foreign bank at a Hawaii statebranch or Hawaii state agency shall be conducted with the same rights,privileges, and powers as a Hawaii state bank at the location and shall besubject to all the same duties, restrictions, penalties, liabilities,conditions, and limitations that would apply under the laws of this State to aHawaii state bank doing business at the same location.

(b)  Among other exceptions to subsection (a)that may be required or authorized by the commissioner pursuant to this part:

(1)  A Hawaii state branch shall not accept, fromindividuals who are citizens or residents of the United States, deposits (otherthan credit balances that are incidental to or arise out of its exercise ofother lawful banking powers) of less than $100,000, except to the extent thatthe deposits are determined by the Federal Deposit Insurance Corporation not toconstitute "domestic retail deposit activities requiring deposit insuranceprotection" within the meaning of section 6 of the federal International BankingAct (12 U.S.C. 3104); provided that, a Hawaii state branch of a bank organizedunder the laws of any territory of the United States, Puerto Rico, Guam,American Samoa or the Virgin Islands, the deposits of which are insured by theFederal Deposit Insurance Corporation, shall not be subject to the foregoinglimitation on domestic retail deposit taking;

(2)  A Hawaii state agency shall not accept anydeposits except:

(A)  Deposits of a foreign nation, itspolitical subdivisions, agencies, or instrumentalities; and

(B)  Deposits of persons who reside, aredomiciled and maintain their principal place of business in a foreign nation,and are not citizens of the United States;

(3)  A Hawaii state branch or Hawaii state agencyshall not be required to maintain federal deposit insurance under any law,rule, or order of this State that requires Hawaii state banks and otherdepository institutions to maintain federal deposit insurance, and thecommissioner, by rule or order, may exclude or exempt uninsured Hawaii state branchesand Hawaii state agencies from, or otherwise modify the applicability touninsured Hawaii state branches and Hawaii state agencies of, any law or ruleof this State that is generally applicable to insured Hawaii state banks, orthat would otherwise be applicable to an insured Hawaii state bank doingbusiness at the same location, as the commissioner may deem necessary ordesirable, taking into account applicable limitations on the retaildeposit-taking powers and privileges of Hawaii state branches and Hawaii stateagencies;

(4)  A foreign bank which is licensed to establish andmaintain a Hawaii state branch or Hawaii state agency shall not engage infiduciary activities at its Hawaii office;

(5)  Any limitation or restriction based on thecapital stock and surplus of a Hawaii state bank shall be deemed to refer, asapplied to a Hawaii state branch or Hawaii state agency, to the dollarequivalent of the capital stock and surplus of the foreign bank, and if theforeign bank has more than one Hawaii state branch or Hawaii state agency inthis State, the business transacted by all the Hawaii state branches and Hawaiistate agencies shall be aggregated in determining compliance with thelimitation; and

(6)  The commissioner may adopt any additional or modifythe applicability of any existing standards, conditions, or requirements, byrule or order, as the commissioner may deem necessary to ensure the safety andsoundness and the protection of creditors of the operations of branches andagencies of foreign banks in this State. [L 1996, c 155, pt of §2]