§412:3-608  Conversionto another type of financial institution.  (a)  A financial institution of any type, whether federal or State,may convert to a Hawaii financial institution of any other type if theinstitution and its holding company or holding companies, if any, shall havecomplied with all requirements, conditions, and limitations imposed by thispart and by federal law, if applicable.

(b)  If theconverting institution is a Hawaii financial institution, its shareholders ormembers shall approve a conversion to another type of financial institution ata meeting duly called and noticed and upon a vote which satisfies therequirements of section 412:3-604.

(c)  Thefinancial institution shall file an application with the commissioner pursuantto section 412:3-603 for a charter or license to engage in the business of thetype of financial institution to which it will convert.  The application shallbe accompanied by:

(1)  A certificate signed by two executive officers ofthe financial institution, verifying the validity of the meeting of theshareholders or members, that the requisite vote had been obtained, and thatthe attached copy of the resolution to convert adopted at the meeting is trueand correct, or that the applicant has complied with all federal laws andregulations regarding the conversion, as the case may be;

(2)  The information required from applicants forapproval to organize a Hawaii financial institution of the type into which itwill convert; and

(3)  Any other information that the commissioner mayrequire.

(d)  Thecommissioner may require notice to be given to the

public as may bedeemed appropriate.  The commissioner may conduct an examination of thefinancial institution as provided under article 2, part II.  The cost of anyexamination shall be assessed against and paid by the financial institutionpursuant to section 412:2-105.

(e)  Thecharter or license shall be granted only if the commissioner is satisfied thatthe granting of the charter or license will not impair the safety or soundnessof the financial institution or any other financial institution, and that theapplicant meets all the requirements set forth in this chapter for the type offinancial institution for which the application has been filed.  Therequirements shall include but not be limited to the appropriate location ofoffices, capital structure, business experience, the character of its executiveofficers and directors, and compliance with all applicable provisions ofchapter 414.  If the resulting Hawaii financial institution is a newcorporation to be formed under chapter 414, the director of commerce andconsumer affairs shall not file the articles of incorporation until theapplication for a charter or license to engage in the business of the type offinancial institution to which it will convert shall have been approved by thecommissioner in writing.  The commissioner may impose any restrictions andconditions on the operation of the resulting financial institution as thecommissioner deems appropriate and consistent with federal law.

(f)  If theresulting Hawaii financial institution is an existing corporation formed underchapter 414, the conversion shall be effective upon the effective date of thenew charter or license granted by the commissioner after all provisions of thissection and of federal law shall have been complied with in full.  If theresulting Hawaii financial institution is a new corporation to be formed underchapter 414, the effective date of the new charter or license shall be the dateof filing of the articles of incorporation by the director of commerce andconsumer affairs. [L 1993, c 350, pt of §1; am L 1994, c 107, §14; am L1995, c 54, §3; am L 2002, c 40, §24; am L 2006, c 228, §26]