(a) Financial institutions shall be permitted to establish individual development accounts pursuant to this chapter. The financial institution shall certify to the fiduciary organization, on forms prescribed by same and accompanied by any documentation required by it, that such accounts have been established pursuant to all the provisions of this chapter and that deposits have been made on behalf of the account holder.
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Terms Used In Hawaii Revised Statutes 257-6

  • Fiduciary: A trustee, executor, or administrator.
  • Financial institution: means an organization authorized to do business pursuant to chapter 412, or under federal laws relating to financial institutions, and includes a bank, trust company, savings bank, building and loan association, savings and loan company or association, and credit union. See Hawaii Revised Statutes 257-1
  • Individual development account: means an optional, interest bearing, subsidized, tax-benefitted account used exclusively for the purpose of paying the qualified expenditure of an eligible individual as determined by the fiduciary organization. See Hawaii Revised Statutes 257-1
(b) A financial institution establishing an individual development account shall:

(1) Keep the account in the name of the account holder;
(2) Permit deposits to be made in the account by the following, subject to the indicated conditions:

(A) The account holder; or
(B) A contribution made on behalf of the account holder. Such deposits may include moneys to match the account holder’s deposits.
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