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HRS §412:5A-212

Bank staff cannot buy loans the bank turned down

This section stops certain bank workers from buying loans or debts at a discount, or lending money using a receivable as collateral, if they know the bank already refused that loan. If they break this rule, they must pay a civil penalty of twice what they paid for the loan.

employees

The statute, as written — Improper discounting of loans

No officer, director, agent or employee of an international banking corporation shall directly or indirectly, as an individual, purchase any loan or other obligation at a discount, or make any loan using a receivable as collateral, when such person knows that the loan or other obligation has been offered to the corporation and has been refused. Any violation of this section shall subject the violator to a civil penalty equal to twice the amount of the consideration given for the loan.
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.