Haw. Code R. § 16-28-27 - Criteria for proposed escrow depositories
The criteria applied to license applications includes, but is not limited to:
(1) General
character of management. The quality of an escrow depository's management is
vital and perhaps the single most important element in determining the
applicant's acceptability as an escrow depository. When the management of a
proposed escrow depository does not have an operating record as a functioning
unit to assist in forming a judgment, the management review may require an
evaluation of the individual officers, directors, and escrow officer.
An evaluation of shareholders who are subscribing to five per cent or more of the aggregate par value of stock to be issued may also be appropriate in reviewing the general character of management.
(A) In evaluating each officer, director, and
escrow officer, and each shareholder subscribing to more than five per cent of
the stock to be issued, the division shall consider, among other things, the
following factors:
(i) Their current and past
business experiences, financial capacities, and financial interests;
(ii) Their proposed duties and
responsibilities as related to their business experience and
capabilities;
(iii) Their
familiarity with the community or trade area; and
(iv) Any financing arrangements to purchase
stock of the proposed escrow depository.
(B) The following information may also be
evaluated in reviewing the proposed management:
(i) Arrangements such as buy-sell, voting
trust or proxy agreements between various individuals or other entities;
and
(ii) Plans for management
changes prior to opening or after the commencement of operations.
(2) Adequacy of capital
structure. A proposed escrow depository shall have:
(A) A minimum net capital structure of the
amount dictated by statute;
(B)
Sufficient balances in shareholder equity accounts against which initial
start-up costs and foreseeable contingencies can be charged; and
(C) An adequate capital structure as related
to its proposed type and volume of business, projected growth, and projected
level of earnings.
(3)
Financial history and condition. The pro forma statement of the proposed escrow
depository as of the beginning of business, a schedule and appraisal of all
assets with which the proposed escrow depository intends to begin business, and
projected financial statements for the first three years of operation shall be
considered in analyzing this factor. If pertinent, consideration may be given
to the history of other escrow depositories presently and formerly operating in
the trade area of the applicant.
(4) Future earnings prospects. Detailed
estimates of operating income and expenses for the first three years of
operation and the assumptions used in determining the projections shall be
analyzed. Information shall include the applicant's plans for payment of cash
dividends, bonuses, director's fees, retainer fees, and the accounting method
to be used. Regarding the accounting systems, the division requires use of the
accrual method from the outset of operations.
(5) Convenience and needs of the community. A
clear definition of the proposed escrow depository's trade area, a description
of the principal economic activities in the trade area, and population figures
and trends are essential factors to consider in determining the convenience and
needs of the community.
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.