HRS §412:2-407
Court cases pause when a bank is taken over
When a Hawaii financial institution is put under a conservator or receiver, most court cases involving it automatically pause for a set time. The conservator or receiver can ask a judge to extend the pause if continuing the case would hurt the takeover's goals.
courtsfinancial institutions
The statute, as written — Stay of judicial proceedings
All non-criminal judicial proceedings to which the Hawaii financial institution in conservatorship or receivership, is a party at the time of the appointment of a conservator or receiver, including without limitation any action, hearing, judgment, execution, attachment, summons, discovery or deposition, shall be stayed automatically for a period of forty-five days after the appointment of the conservator or ninety days after the appointment of a receiver. The conservator or receiver may apply to the court presiding over the judicial proceedings for an extension of the stay, which shall be granted only upon a showing that the resumption of the proceeding will substantially detract from the purposes of the conservatorship or receivership and will not significantly diminish the potential recovery or remedy of the other party or parties in the judicial proceedings.
LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.