§412:2-609  Imposition of administrative
fines; assessment.  (a)  Any Hawaii financial institution which, and any
institution-affiliated party who:



(1)  Commits a material violation of any law or rule
for which a penalty or fine is not expressly provided herein;



(2)  Commits a material violation of any order issued
by the commissioner which has become effective;



(3)  Commits a material violation of any condition
imposed in writing by the commissioner in connection with the grant of any
application or other request by the financial institution; or



(4)  Commits a material violation of any written
agreement between the financial institution and the commissioner;



may be ordered by the commissioner to forfeit and
pay an administrative fine of not more than $1,000 for each day during which
the violation continues.



(b)  Notwithstanding subsection (a), any Hawaii
financial institution which, and any institution-affiliated party who:



(1)  Commits any violation described in any clause of
subsection (a);



(2)  Recklessly engages in an unsafe or unsound
practice in conducting the affairs of the Hawaii financial institution; or



(3)  Breaches any fiduciary duty owed to the financial
institution;



which violation, practice, or breach is:



(1)  Part of a pattern of misconduct;



(2)  Causes or is likely to cause more than a minimal
loss to the Hawaii financial institution; or



(3)  Results in pecuniary gain or other benefit to
such party;



may be ordered by the commissioner to forfeit and
pay an administrative fine of not more than $5,000 for each day during which
the violation, practice, or breach continues.



(c)  Notwithstanding subsections (a) and (b),
any Hawaii financial institution which, and any institution-affiliated party
who:



(1)  Knowingly commits any violation described in any
clause of subsection (a); knowingly engages in any unsafe or unsound practice
in conducting the affairs of the Hawaii financial institution; or knowingly
breaches any fiduciary duty owed to the financial institution; and



(2)  Knowingly or recklessly causes a substantial loss
to the Hawaii financial institution or a substantial pecuniary gain or other
benefit to such party by reason of such violation, practice, or breach;



may be ordered by the commissioner to forfeit and
pay an administrative fine of not more than $100,000 for each day during which
the violation, practice, or breach continues.  The maximum administrative fine
shall not exceed in the case of any person other than a Hawaii financial
institution, the amount of $500,000 and in the case of any Hawaii financial
institution, the lesser of $1,000,000 or one per cent of the total assets of
the Hawaii financial institution.



(d)  Any administrative fine imposed under
subsection (a), (b), or (c) may be assessed and collected by the commissioner
by service of written notice and order upon the Hawaii financial institution or
institution-affiliated party by means of certified mail, return receipt
requested.  If, with respect to any such assessment, a hearing is not requested
pursuant to section 412:2‑610(c) within the period of time allowed under
section 412:2‑610(c), the assessment shall constitute a final and
unappealable order. [L 1993, c 350, pt of §1; am L 1994, c 107, §5; am L 1998,
c 196, §8]