Bill Text: HI HB1619 | 2018 | Regular Session | Introduced
Bill Title: Relating To Financial Institutions.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2018-02-05 - Passed Second Reading as amended in HD 1 and referred to the committee(s) on CPC with Representative(s) Har, McDermott, Nakamura, Thielen, Tupola voting aye with reservations; Representative(s) Ward voting no (1) and Representative(s) Souki, Todd excused (2). [HB1619 Detail]
Download: Hawaii-2018-HB1619-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1619 |
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TWENTY-NINTH LEGISLATURE, 2018 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to financial institutions.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 412:1-109, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:
""Residential mortgage loan" has the same meaning as defined in section 454F-1."
SECTION 2. Section 412:5-301, Hawaii Revised Statutes, is amended to read as follows:
"§412:5-301 General requirements for
loans. A bank shall make loans and extensions of credit that are
consistent with prudent banking practices and in compliance with all applicable
federal and state law[.]; provided that a residential mortgage loan
may be sold only to:
(1) A financial institution that has an authorized place of business in this State pursuant to part V of article 3; or
(2) A financial institution that designates and maintains an agent in this State who is authorized to accept service of process on behalf of the financial institution."
SECTION 3. Section 412:6-301, Hawaii Revised Statutes, is amended to read as follows:
"§412:6-301 General
requirements for loans. A savings bank shall make loans and extensions of
credit that are consistent with prudent lending practices and in compliance
with all applicable federal and state law[.]; provided that a residential
mortgage loan may be sold only to:
(1) A financial institution that has an authorized place of business in this State pursuant to part V of article 3; or
(2) A financial institution that designates and maintains an agent in this State who is authorized to accept service of process on behalf of the financial institution."
SECTION 4. Section 412:7-301, Hawaii Revised Statutes, is amended to read as follows:
"§412:7-301 General
requirements for loans. A savings and loan association shall make loans
and extensions of credit that are consistent with prudent lending practices and
in compliance with all applicable federal and state law[.]; provided that
a residential mortgage loan may be sold only to:
(1) A financial institution that has an authorized place of business in this State pursuant to part V of article 3; or
(2) A financial institution that designates and maintains an agent in this State who is authorized to accept service of process on behalf of the financial institution."
SECTION 5. Section 412:9-300, Hawaii Revised Statutes, is amended to read as follows:
"§412:9-300 General
requirements for loans and extensions of credit. A financial services loan
company shall make loans and extensions of credit that are consistent with
prudent lending practices, and in compliance with all applicable federal and
state laws[.]; provided that a residential mortgage loan may be sold
only to:
(1) A financial institution that has an authorized place of business in this State pursuant to part V of article 3; or
(2) A financial institution that designates and maintains an agent in this State who is authorized to accept service of process on behalf of the financial institution."
SECTION 6. Section 412:10-401, Hawaii Revised Statutes, is amended to read as follows:
"§412:10-401 General requirements for
loans. A credit union shall make loans and extensions of credit that are
consistent with prudent lending practices and in compliance with all applicable
federal and state law[.]; provided that a residential mortgage loan
may be sold only to:
(1) A financial institution that has an authorized place of business in this State pursuant to part V of article 3; or
(2) A financial institution that designates and maintains an agent in this State who is authorized to accept service of process on behalf of the financial institution."
SECTION 7. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.
SECTION 8. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 9. This Act shall take effect upon its approval.
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INTRODUCED BY: |
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Report Title:
Financial Institutions; Residential Mortgage Loans; Sale
Description:
Places restrictions on the ability of financial institutions to sell residential mortgage loans to other financial institutions. Defines "residential mortgage loans" as any loan primarily for personal, family, or household use that is secured by a mortgage, deed of trust, or other equivalent consensual security interest on a dwelling or residential real estate upon which is constructed or intended to be constructed a dwelling, and includes refinancings, reverse mortgages, home equity lines of credit, and other first and additional lien loans that meet the qualifications of the definition.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
