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

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

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

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

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

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

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

(1)  Commits any violation described in any clause ofsubsection (a);

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

(3)  Breaches any fiduciary duty owed to the financialinstitution;

which violation, practice, or breach is:

(1)  Part of a pattern of misconduct;

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

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

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

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

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

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

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

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