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Haw. Rev. Stat. § 490:9-104

Control of deposit account

Known as the Uniform Commercial Code

The act spans §§ 490–490 (641 sections).

Applied in 1 court decision — leading case In Re Cha Hawaii, LLC (2010)

Most recently applied in In Re Cha Hawaii, LLC (March 2010)

L 2000, c 241, pt of §1; am L 2023, c 132, §36

(a) A secured party shall be deemed to have control of a deposit account if:

(1) The secured party is the bank with which the deposit account is maintained;

(2) The debtor, secured party, and bank have agreed in a signed record that the bank will comply with instructions originated by the secured party directing disposition of the funds in the deposit account without further consent by the debtor;

(3) The secured party becomes the bank's customer with respect to the deposit account; or

(4) Another person, other than the debtor:

(A) Has control of the deposit account and acknowledges that it has control on behalf of the secured party; or

(B) Obtains control of the deposit account after having acknowledged that it will obtain control of the deposit account on behalf of the secured party.

(b) A secured party that has satisfied subsection (a) has control, even if the debtor retains the right to direct the disposition of funds from the deposit account.

Official source: Hawaii State Legislature. Reproduced from public-domain Hawaii statutes; confirm against the official source for the current text. Not legal advice.