[§412:13-213]  Pledge of assets.  (a) 
Each foreign bank that is licensed to establish and maintain a Hawaii state
branch or Hawaii state agency shall keep on deposit $500,000 or any greater
amount as the commissioner may prescribe by rule in unaffiliated Hawaii banks
as have been selected by the foreign bank and approved in writing by the
commissioner.



(b)  The only assets that may be deposited in
order to comply with this section are:



(1)  Cash;



(2)  Any negotiable certificate of deposit which:



(A)  Has a maturity of not more than one year;



(B)  Is payable in the United States; and



(C)  Is issued by a bank organized under the
laws of a state of the United States, by a national bank, or by a branch office
of a foreign bank which is located in the United States;



(3)  Securities and obligations of the United States
government and any agency of the United States government whose debt
obligations are fully and explicitly guaranteed as to the timely payment of
principal and interest by the full faith and credit of the United States;



(4)  Securities and obligations of United States
government-sponsored agencies which are originally established or chartered by
the United States government to serve public purposes specified by the Congress
but whose debt obligations are not explicitly guaranteed by the full faith and
credit of the United States;



(5)  Obligations of the International Bank for
Reconstruction and Development, the Inter-American Development Bank, the Asian
Development Bank, or the African Development Bank;



(6)  Securities and obligations issued by this State
or any county of this State, through an appropriate agency or instrumentality;
and



(7)  Any other assets as the commissioner shall permit
by rule or order.



Any assets deposited shall be valued at the lower of
principal amount or market value.  The commissioner may limit the amount of
each type of asset that may be deposited.  An asset will not satisfy the
requirements of this section if it is an instrument that is issued by the
foreign bank itself, or by a person who controls, is controlled by, or is in
common control with the foreign bank.



(c)  The commissioner, from time to time, may
require that the assets deposited pursuant to this section may be maintained by
the foreign bank in an amount, in a form, and subject to any conditions, the
commissioner deems necessary or desirable for the maintenance of a sound
financial condition, the protection of depositors and the public interest, and
to maintain public confidence in the business of the Hawaii state branch or
Hawaii state agency.  The commissioner may give credit to reserves required to
be maintained with a Federal Reserve Bank in or outside this State pursuant to
federal law, in accordance with rules or procedures as the commissioner may
adopt.



(d)  So long as it shall continue business in
the ordinary course, the foreign bank shall be permitted to collect interest on
the securities deposited under this section and from time to time exchange,
examine and compare the securities. [L 1996, c 155, pt of §2]