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

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

(2)  By reason of such violation, practice, or breachthe financial institution has suffered or will probably suffer financial lossor other damage, the interests of the financial institution's depositors havebeen or may be prejudiced, or the institution-affiliated party has receivedfinancial gain or other benefit as a result of the violation, practice, orbreach; and

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

(b)  The commissioner may also order theremoval of any institution-affiliated party from office or employment with a Hawaii financial institution and the prohibition of the party's affiliation orparticipation 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 chargedin any information, indictment, or complaint authorized by a United Statesattorney, state attorney general, or similar legal officer, with the commissionof, or participation in, a crime involving dishonesty or breach of trust thatis punishable by imprisonment for a term exceeding one year under state orfederal law; and

(2)  The continued service by theinstitution-affiliated party may pose a threat to the interests of thefinancial institution's depositors or may threaten to impair public confidencein 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]