[§412:13-214]  Asset maintenance.  (a) Each foreign bank that is licensed to establish and maintain a Hawaii statebranch or Hawaii state agency shall hold in this State currency, bonds, notes,debentures, drafts, bills of exchange, or other evidences of indebtedness,including loan participation agreements or certificates, or other obligationspayable in the United States or in United States funds or, with the priorapproval of the commissioner, in funds freely convertible into United Statesfunds, or any other assets as the commissioner shall by rule or order permit,in an amount which shall bear the relationship as the commissioner prescribesby rule or order to liabilities of the foreign bank appearing in the books,accounts, or records of its Hawaii state branch or Hawaii state agency,including acceptances, but excluding amounts due and other liabilities to otheroffices, agencies or branches of, and wholly owned (except for a nominal numberof directors' shares) subsidiaries of, the foreign bank and any otherliabilities as the commissioner shall determine.

(b)  In implementing this section, thecommissioner may vary the ratio of assets to liabilities for Hawaii statebranches or Hawaii state agencies applicable under this section, of certainforeign banks as determined by the commissioner in the commissioner'sdiscretion to be necessary or desirable to reflect differences among theseHawaii state branches or Hawaii state agencies on account of:

(1)  The financial condition of the Hawaii statebranch or agency offices of the foreign bank;

(2)  The financial condition of branch or agencyoffices of the same foreign bank located in other states;

(3)  General economic conditions prevalent in the homecountry of the parent foreign bank; or

(4)  The financial condition of the parent foreignbank itself, including but not limited to (A) the financial condition of itsbranches and agencies located in other countries, (B) the financial conditionof its affiliated bank and nonbank subsidiaries in the United States, and (C)the financial condition of the foreign bank on a worldwide consolidated basisor in its home country.

(c)  For the purposes of this section, thecommissioner shall value marketable securities at principal amount or marketvalue, whichever is lower, shall have the right to determine the value of anynonmarketable bond, note, debenture, draft, bill of exchange, other evidence ofindebtedness, including loan participation agreements or certificates, or ofany other asset or obligation held or owed to the foreign bank or its Hawaiistate branch or Hawaii state agency in this State, and in determining theamount of assets for the purpose of computing the above ratio of assets toliabilities, by rule or order may exclude in whole or in part any particularasset.

(d)  If, by reason of the existence or thepotential occurrence of unusual and extraordinary circumstances, thecommissioner deems it necessary or desirable for the maintenance of a soundfinancial condition, the protection of depositors, creditors, and the publicinterest, and to maintain public confidence in the business of a Hawaii statebranch or Hawaii state agency, the commissioner, subject to any terms andconditions as the commissioner may prescribe, may require the foreign bank todeposit the assets required to be held in this State pursuant to this sectionwith any Hawaii bank, as the commissioner may designate.

(e)  The assets held to satisfy the assets toliabilities relationship, prescribed by the commissioner pursuant to this section,shall include obligations of any person for money borrowed from a foreign bankholding a license to establish and maintain a Hawaii state branch or Hawaiistate agency only to the extent that the total of the obligations of any personare not more than ten per cent of the assets considered for purposes of thissection. [L 1996, c 155, pt of §2]