§412:2-400 - Grounds for appointment of conservator or receiver.

PART IV. CONSERVATORS AND RECEIVERS

Rules of Court

  Receivers, see HRCP rule 66.

§412:2-400  Grounds for appointment ofconservator or receiver.  A conservator or receiver may be appointed totake possession and control of a Hawaii financial institution if such financialinstitution:

(1)  Is insolvent or has failed to correct animpairment of its capital and surplus as provided in section 412:2‑314 ofthis chapter;

(2)  Is not likely to be able to meet the demands ofits depositors or pay its debts in the normal course of business;

(3)  Is in an unsafe or unsound condition to transactbusiness;

(4)  Has incurred or is likely to incur losses thatwill deplete all or substantially all of its capital and surplus, and there isno reasonable prospect for such capital and surplus to be replenished withoutfederal assistance;

(5)  Has violated or is violating laws, rules orregulations, or has committed or is committing an unsafe or unsound practice,and such violation or practice is likely to cause insolvency or substantialdissipation of assets, or is likely to severely weaken the institution'scondition or otherwise seriously prejudice the interests of its depositors;

(6)  Without lawful cause has concealed from or hasrefused to provide to the commissioner the institution's books, papers,records, information, or assets for inspection by the commissioner or by anylawful agent of the commissioner; or

(7)  Has wilfully violated or is wilfully violating acease and desist order of the commissioner which has become effective. [L 1993,c 350, pt of §1]