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HRS §412:5-405

What happens when a bank holding company loses its special status

This section explains what happens when a financial institution holding company no longer qualifies as an intra-Pacific bank holding company. It must immediately give up control of any bank subsidiary it has in Hawaii. If it does not do so within 30 days, the subsidiary's charter or approval can be suspended or revoked.

financial institutions

The statute, as written — Termination of authority of intra-Pacific bank holding company

(a) A financial institution holding company ceases to be an intra-Pacific bank holding company at such time as it no longer meets the definition of an intra-Pacific bank holding company under section 412:5-400. (b) A financial institution holding company which loses its status as an intra-Pacific bank holding company shall immediately divest itself of its direct or indirect control of any financial institution subsidiary chartered or approved by this State. Failure to accomplish such divestiture within thirty days after termination of its intra-Pacific bank holding company status shall be grounds for the suspension or revocation of the financial institution subsidiary's charter or approval.
Read the official text at capitol.hawaii.gov ↗as published Jan 6, 2026our copy taken Aug 20, 2026

LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.