412:2-311 Suspension or revocation of charter or license. (a) The commissioner may revoke or suspend any charter or license issued hereunder if the commissioner finds that:

(1) Any information or representations submitted by an applicant in connection with the issuance of the charter or license were materially false when made;

(2) Grounds exist for the appointment of a conservator or receiver under this article;

(3) The Hawaii financial institution, for a period of six months or more, has ceased to engage in the business for which its charter or license was granted; or

(4) The Hawaii financial institution has violated or is violating state or federal laws, rules, or regulations, or has committed or is committing an unsafe or unsound practice.

(b) In issuing a suspension or revocation order, whether by consent or as a result of a chapter 91 hearing, the commissioner may impose such terms and conditions as the commissioner deems appropriate to protect the public interest. The order of suspension or revocation may require the Hawaii financial institution to cease engaging in business altogether, to close one or more of its places of business, or to cease engaging in a particular type of business, as the commissioner deems appropriate.

(c) No suspension or revocation of any charter or license shall impair or affect the obligation of any preexisting lawful contract between a Hawaii financial institution and the other party or parties. Neither shall the suspension or revocation of a charter or license affect the institution's administrative, regulatory, civil or criminal liability for any act or condition existing prior to the suspension or revocation.

(d) The commissioner shall have discretion to reinstate any suspended charter or license, or issue a new charter or license to a Hawaii financial institution whose charter or license has been revoked, if the grounds for ordering the suspension or revocation are no longer present. [L 1993, c 350, pt of 1; am L 1994, c 107, 2; am L 2001, c 170, 4]


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