REPORT TITLE:
Financial Services Loan Co


DESCRIPTION:
Allows depository financial services loan companies to hold up to
a quarter of their total reserves in securities listed on the
National Market system of the National Association of Securities
Dealers Automated Quotation System stock market.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           776
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO FINANCIAL SERVICES LOAN COMPANIES. 


BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Section 412:9-401, Hawaii Revised Statutes, is
 
 2 amended by amending subsection (c) to read as follows:
 
 3      "(c)  Other securities used as reserves shall be limited to
 
 4 obligations of the United States and its agencies and of this
 
 5 State and its counties that qualify as permitted investments
 
 6 under sections 412:9-409(a)(1) and [(a)](2) and 412:9-409(b),
 
 7 reverse repurchase agreements whereby the depository financial
 
 8 services loan company has purchased obligations of the United
 
 9 States under terms which require the seller to repurchase the
 
10 obligations of the United States for cash on demand or in not
 
11 less than thirty days, bankers acceptances, irrevocable lines of
 
12 credit of one year or more approved by the commissioner, and
 
13 securities listed on the New York or the American stock
 
14 exchanges[.], or the National Market system of the National
 
15 Association of Securities Dealers Automated Quotation System
 
16 stock market.  Not more than twenty-five per cent of the total
 
17 reserve shall be held in securities listed on the New York [or],
 
18 American stock exchanges[.], or National Market system of the
 
19 National Association of Securities Dealers Automated Quotation
 

 
Page 2                                                     
                                     S.B. NO.           776
                                                        
                                                        

 
 1 System stock market."
 
 2      SECTION 2.  Statutory material to be repealed is bracketed.
 
 3 New statutory material is underscored.
 
 4      SECTION 3.  This Act shall take effect upon its approval.
 
 5 
 
 6                           INTRODUCED BY:  _______________________