HB 1882 Summary

• Establishes a new regulatory framework for nondepository trust companies in Hawaii, defining them as trust companies not authorized to accept deposits.

• Prohibits nondepository trust companies from accepting deposits, engaging in banking business, real estate brokering, insurance activities, or securities dealing.

• Requires nondepository trust companies to contract with third-party service providers for financial advisory, property management, and real estate brokerage services, with the trust company remaining responsible for provider performance.

• Implements yearly assessments for nondepository trust companies beginning July 1, 2021, calculated based on total assets under management using a tiered fee structure ranging from $1,000 to $150,000.

• Establishes a minimum paid-in capital and surplus requirement of $1,000,000 for nondepository trust companies seeking to operate in Hawaii.