Section 412:13-214 - Asset maintenance(a) Each foreign bank that is licensed to establish and maintain a Hawaii state branch or Hawaii state agency shall hold in this State currency, bonds, notes, debentures, drafts, bills of exchange, or other evidences of indebtedness, including loan participation agreements or certificates, or other obligations payable in the United States or in United States funds or, with the prior approval of the commissioner, in funds freely convertible into United States funds, or any other assets as the commissioner shall by rule or order permit, in an amount which shall bear the relationship as the commissioner prescribes by rule or order to liabilities of the foreign bank appearing in the books, accounts, or records of its Hawaii state branch or Hawaii state agency, including acceptances, but excluding amounts due and other liabilities to other offices, agencies or branches of, and wholly owned (except for a nominal number of directors' shares) subsidiaries of, the foreign bank and any other liabilities as the commissioner shall determine.(b) In implementing this section, the commissioner may vary the ratio of assets to liabilities for Hawaii state branches or Hawaii state agencies applicable under this section, of certain foreign banks as determined by the commissioner in the commissioner's discretion to be necessary or desirable to reflect differences among these Hawaii state branches or Hawaii state agencies on account of: (1) The financial condition of the Hawaii state branch or agency offices of the foreign bank;(2) The financial condition of branch or agency offices of the same foreign bank located in other states;(3) General economic conditions prevalent in the home country of the parent foreign bank; or(4) The financial condition of the parent foreign bank itself, including but not limited to (A) the financial condition of its branches and agencies located in other countries, (B) the financial condition of its affiliated bank and nonbank subsidiaries in the United States, and (C) the financial condition of the foreign bank on a worldwide consolidated basis or in its home country.(c) For the purposes of this section, the commissioner shall value marketable securities at principal amount or market value, whichever is lower, shall have the right to determine the value of any nonmarketable bond, note, debenture, draft, bill of exchange, other evidence of indebtedness, including loan participation agreements or certificates, or of any other asset or obligation held or owed to the foreign bank or its Hawaii state branch or Hawaii state agency in this State, and in determining the amount of assets for the purpose of computing the above ratio of assets to liabilities, by rule or order may exclude in whole or in part any particular asset.(d) If, by reason of the existence or the potential occurrence of unusual and extraordinary circumstances, the commissioner deems it necessary or desirable for the maintenance of a sound financial condition, the protection of depositors, creditors, and the public interest, and to maintain public confidence in the business of a Hawaii state branch or Hawaii state agency, the commissioner, subject to any terms and conditions as the commissioner may prescribe, may require the foreign bank to deposit the assets required to be held in this State pursuant to this section with any Hawaii bank, as the commissioner may designate.(e) The assets held to satisfy the assets to liabilities relationship, prescribed by the commissioner pursuant to this section, shall include obligations of any person for money borrowed from a foreign bank holding a license to establish and maintain a Hawaii state branch or Hawaii state agency only to the extent that the total of the obligations of any person are not more than ten per cent of the assets considered for purposes of this section.