Hawaii Administrative Rules
Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS
Chapter 28 - ESCROW DEPOSITORIES
Subchapter 4 - STANDARDS OF REVIEW; DECISIONS
Section 16-28-28 - Presumptive disqualification criteria
Universal Citation: HI Admin Rules 16-28-28
Current through February, 2024
(a) Managerial resource test. The following factors shall give rise to a rebuttable presumption that the criterion regarding the general character of management has not been met, if the applicant, the individual officers or directors, or any controlling shareholder has:
(1) Been
convicted of, or has pleaded nolo contendere to, any crime involving an act of
fraud or dishonesty;
(2) Consented
to or suffered a judgment in any civil or administrative action based upon
conduct involving an act of fraud or dishonesty;
(3) Consented to or suffered any indictment,
formal investigation, examination, or civil or administrative proceedings that
resulted in any agreement, undertaking, consent, or order issued by any federal
or state court, any department, agency, or commission of the United States
government, any state or municipality, any self-regulatory trade or
professional organization, or any foreign government or governmental entity,
which involves an act of fraud or dishonesty;
(4) Consented to or suffered the suspension
or revocation of any professional, occupational, or vocational license based
upon conduct involving an act of fraud or dishonesty;
(5) Knowingly made or caused to be made in
any application or report filed with the commissioner or in any proceeding
before the commissioner, any written or oral statement which was at the time
and in light of the circumstances under which it was made false or misleading
with respect to material fact, or has wilfully omitted to state in any
application or report any material fact which was required to be stated
therein;
(6) Wilfully committed any
violation of, or has wilfully aided, abetted, counseled, commanded, induced, or
procured the violation by any other person of, any provision of state law or
rule;
(7) Been involved in the
denial, withdrawal after receipt of formal or informal notice of an intent to
deny, by the applicant or affiliates of the applicant, of:
(A) Any application relating to the
organization of an escrow depository, a financial institution, a foreign
financial institution, or a trust company;
(B) An application to acquire any escrow
depository, financial institution, foreign financial institution, trust
company, or subsidiary or holding company thereof; or
(C) A notice relating to a change in control
of any escrow depository, financial institution, foreign financial institution,
trust company, or subsidiary or holding company thereof; or
(8) Been placed in receivership or
conservatorship during the preceding ten years, was a management official or
director of an escrow depository, a financial institution, a foreign financial
institution, or a trust company which entered into receivership or
conservatorship, was placed in a management consignment program, or was
liquidated during his or her tenure or within two years thereafter.
(b) Financial resource and future prospects test. The following factors shall give rise to a rebuttable presumption that the applicant has not satisfied the financial resources and future prospects criteria:
(1) Liability for
amounts of debt which, in the opinion of the commissioner, create excessive
risks of default and pressure on the escrow depository; or
(2) Failure to furnish a business plan or
furnishing a business plan projecting activities which are inconsistent with
the standards of the escrow industry.
(c) Subsections (a) and (b) shall not be deemed an exclusive list of the grounds upon which the commissioner may find that the relevant criteria have not been met.
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