2013 Hawaii Revised Statutes
TITLE 22. BANKS AND FINANCIAL INSTITUTIONS
412. Code of Financial Institutions
412:7-302 Requirements and limits for certain loans.

§412:7-302 Requirements and limits for certain loans. (a) Not less than sixty per cent of the amount of loans and extensions of credit made by a savings and loan association shall be in loans and extensions of credit secured by real estate.

(b) The aggregate amount loaned by any savings and loan association for the following types of loans, whether secured or unsecured, shall not exceed the following limits:

(1) Commercial loans: twelve and one-half per cent of the savings and loan association's total assets. For purposes of this section "commercial loan" means any loan primarily for business, corporate, commercial, or agricultural purposes where the savings and loan association substantially relies on the borrower's general credit standing for repayment of the loan and, if the loan is secured by real property, does not primarily rely on the value of or income or projected income from the security for repayment of the loan;

(2) Education loans: five per cent of the savings and loan association's total assets. For purposes of this section, "education loan" means any loan the proceeds of which are used to pay for tuition, fees, books, and other expenses related to primary, secondary, vocational and undergraduate and postgraduate college or university education;

(3) Unsecured construction loans: five per cent of the savings and loan association's total assets. For purposes of this section, "unsecured construction loan" means any loan to provide financing for what is expected to be residential real estate and where the savings and loan association relies primarily on the borrower's general credit and projected future income, if any, from such completed construction.

(c) A savings and loan association may reclassify or apportion a loan from one category to another in this section. [L 1993, c 350, pt of §1]