REPORT TITLE:
Reserves, Depositories


DESCRIPTION:
Permits securities listed on the National Market System of the
Nasdaq Stock Market as acceptable investments for reserves of a
depository financial services loan company.  (SB776 HD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        776
THE SENATE                              S.B. NO.           H.D. 1
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 Nasdaq National Market of the Nasdaq Stock
 
15 Market.  Not more than twenty-five per cent of the total reserve
 
16 shall be held in securities listed on the New York or American
 
17 stock exchanges[.], or the Nasdaq National Market of the Nasdaq
 
18 Stock Market."
 
19      SECTION 2.  Statutory material to be repealed is bracketed.
 
20 New statutory material is underscored.
 

 
Page 2                                                     776
                                     S.B. NO.           H.D. 1
                                                        
                                                        

 
 1      SECTION 3.  This Act shall take effect upon its approval.