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Bank of Hawaii

The Board of Directors
Bank of Hawaii
130 Merchant Street
Honolulu, Hawaii 96813

Dear Board Members:

The undersigned, under delegated authority, has approved the application filed on behalf of Bank of Hawaii to acquire, indirectly through its subsidiary Banque de Tahiti, one share of S.A. Tahiti Beachcomber, a foreign organization headquartered in French Polynesia, Tahiti, a French Overseas Territory. This approval is subject to the conditions included in the enclosed Order for the reasons set forth in the Statement attached to the Order.

The approval granted herein is based on the facts and circumstances presented or otherwise known to the FDIC in connection with the application. In particular, it is our understanding that the share to be purchased by Banque de Tahiti represent a deminimus, minority investment in S.A. Tahiti Beachcomber, that there is little, if any, shareholder liability attributable to Banque de Tahiti or the Bank of Hawaii as a result of this acquisition, and that said share will be repurchased by S.A. Tahiti Beachcomber by June 30, 2001.

This approval does not represent an opinion of the underlying credit transaction, nor should it be considered as an approval of any similar, future transaction. Any and all future investments in foreign organizations will be subject to application and review requirements as required by Part 347 of the FDIC's Rules and Regulations.

If you have any questions, you may contact Regional Director George J. Masa of our San Francisco Regional Office at (415) 546-1810, 25 Ecker Street, San Francisco, California, 94105. Please advise our San Francisco Regional Office of the action taken regarding this proposal.

Sincerely,

James L. Sexton
Director


FEDERAL DEPOSIT INSURANCE CORPORATION

IN RE: Bank of Hawaii, Honolulu, Hawaii
Application for Consent to Indirectly Acquire a Deminimus, Minority Interest in a Foreign Organization, Organized Under the Laws of French Polynesia, Tahiti, an Overseas Territory of France

STATEMENT

Pursuant to provisions of Section 18(l) of the Federal Deposit Insurance Act and Parts 303 and 347 of the Federal Deposit Insurance Corporation ("FDIC") Rules and Regulations, Bank of Hawaii, Honolulu, Hawaii ("Bank of Hawaii"), has applied for the FDIC's consent to acquire one share in S.A. Tahiti Beachcomber ("Beachcomber"), a foreign entity organized under the laws of the French Polynesian Government, through its subsidiary Banque de Tahiti. The investment will represent less than 0.0002% of the outstanding shares of Beachcomber and will not involve any indicia of control of Beachcomber by either Bank of Hawaii or Banque de Tahiti.

Banque de Tahiti is an indirect subsidiary of Bank of Hawaii. Bank of Hawaii through Banque de Tahiti will acquire this deminimus equity interest in Beachcomber in order to enable Banque de Tahiti to take advantage of certain tax credits in connection with lending transactions. The French Polynesian government has established a tax credit program (called "Loi Flosse") that is designed to encourage development and create job opportunities. These tax credits are available to French Polynesian corporate taxpayers that are investors/lenders in acceptable projects, provided that the investor/lender owns at least one share of the sponsor of the development project.

S.A. Tahiti Beachcomber, the sponsor, is organized as a French Polynesian Societe Anonyme. A Societe Anonyme is similar to a corporation in the United States with shareholder liability generally limited to the amount of the investment.

The FDIC has fully considered all available facts and information relevant to the Bank of Hawaii application. Based on the level of investment in relation to Bank of Hawaii's capital, its current financial condition, and the nominal risk that this transaction represents to the insurance fund, the FDIC has concluded that the application should be approved subject to the conditions of the Order.

FEDERAL DEPOSIT INSURANCE CORPORATION


FEDERAL DEPOSIT INSURANCE CORPORATION

IN RE: Bank of Hawaii
Honolulu, Hawaii
Application for Consent to Indirectly Acquire a Deminimus, Minority Interest in a Foreign Organization, Organized Under the Laws of French Polynesia, Tahiti, an Overseas Territory of France

ORDER

The undersigned, acting under delegated authority, has fully considered all available facts and information relevant to the application of Bank of Hawaii, Honolulu, Hawaii ("Bank of Hawaii"), for consent to acquire one share in a foreign organization, S.A. Tahiti Beachcomber ("Beachcomber") organized under the government of French Polynesia, through its subsidiary Banque de Tahiti and has concluded that the application should be approved under Section 347.104(b)(13) of the FDIC Rules and Regulations.

Accordingly, it is hereby ORDERED, that the application submitted on behalf of Bank of Hawaii for consent to indirectly acquire one share of Beachcomber be and the same is hereby approved, subject to the following conditions:

1. All necessary and final approvals shall have been obtained from the appropriate state, federal, and foreign authorities.

2. The consent granted herein is based on the facts, circumstances, and commitments presented to the FDIC in connection with this request. The FDIC's action is conditioned on its ability to alter, suspend, or withdraw its approval should any development be deemed to warrant such action. Bank of Hawaii shall also take all reasonable steps to be aware of and to notify the FDIC of any changes in relevant facts or circumstances.

3. Bank of Hawaii should divest the proposed investment or ensure that the one share of stock in Beachcomber is repurchased by no later than June 30, 2001.

Dated at Washington D.C., this day of August 2000.

FEDERAL DEPOSIT INSURANCE CORPORATION

James L. Sexton
Director
Division of Supervision



Last Updated 03/24/2011 Legal@fdic.gov