§412:2-306  Removal or prohibition of
institution-affiliated party; grounds.  (a)  The commissioner may order the
removal of any institution-affiliated party from office or employment with a Hawaii financial institution and the prohibition of the party's affiliation or
participation in the affairs of the financial institution or any other Hawaii financial institution if the commissioner determines that all three of the following
circumstances exist:



(1)  The institution-affiliated party has violated
this chapter or any rules adopted pursuant to this chapter, violated a cease
and desist order that has become effective, engaged or participated in an
unsafe or unsound practice in connection with the financial institution, or
breached a fiduciary duty owed to the financial institution;



(2)  By reason of such violation, practice, or breach
the financial institution has suffered or will probably suffer financial loss
or other damage, the interests of the financial institution's depositors have
been or may be prejudiced, or the institution-affiliated party has received
financial gain or other benefit as a result of the violation, practice, or
breach; and



(3)  The violation, practice, or breach involves the
institution-affiliated party's personal dishonesty or demonstrates the party's
wilful or continuing disregard for the safety or soundness of the financial
institution.



(b)  The commissioner may also order the
removal of any institution-affiliated party from office or employment with a Hawaii financial institution and the prohibition of the party's affiliation or
participation in the affairs of the financial institution or any other Hawaii financial institution if the commissioner determines that:



(1)  The institution-affiliated party has been charged
in any information, indictment, or complaint authorized by a United States
attorney, state attorney general, or similar legal officer, with the commission
of, or participation in, a crime involving dishonesty or breach of trust that
is punishable by imprisonment for a term exceeding one year under state or
federal law; and



(2)  The continued service by the
institution-affiliated party may pose a threat to the interests of the
financial institution's depositors or may threaten to impair public confidence
in the institution. [L 1993, c 350, pt of §1; am L 2001, c 170, §3; am L 2006,
c 228, §7; am L 2008, c 196, §2]