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HRS §412:5A-210

When a bank can take stock to avoid a loss

This section lets an international banking corporation take stock in another company to avoid losing money on a debt it already made in good faith. But the bank must sell or get rid of that stock within twelve months, unless the commissioner gives more time.

financial institutions

The statute, as written — Acquisition of stock to save a loss

Nothing in this part shall prevent an international banking corporation from acquiring and holding stock in any corporation if the acquisition is necessary to prevent a loss upon a debt previously contracted in good faith; provided, that stock so acquired shall within twelve months from the acquisition be sold or disposed of at public or private sale, or within such further time as may be granted by the commissioner.
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.