[§412:13-214]  Asset maintenance.  (a) 
Each foreign bank that is licensed to establish and maintain a Hawaii state
branch 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 obligations
payable in the United States or in United States funds or, with the prior
approval of the commissioner, in funds freely convertible into United States
funds, or any other assets as the commissioner shall by rule or order permit,
in an amount which shall bear the relationship as the commissioner prescribes
by 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 other
offices, agencies or branches of, and wholly owned (except for a nominal number
of directors' shares) subsidiaries of, the foreign bank and any other
liabilities as the commissioner shall determine.



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



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



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



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



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



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



(d)  If, by reason of the existence or the
potential occurrence of unusual and extraordinary circumstances, the
commissioner deems it necessary or desirable for the maintenance of a sound
financial condition, the protection of depositors, creditors, and the public
interest, and to maintain public confidence in the business of a Hawaii state
branch or Hawaii state agency, the commissioner, subject to any terms and
conditions as the commissioner may prescribe, may require the foreign bank to
deposit the assets required to be held in this State pursuant to this section
with any Hawaii bank, as the commissioner may designate.



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