Hawaii Revised Statutes 468L-25 – Maintenance of qualified charter tour client trust assets by charter tour operators
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Terms Used In Hawaii Revised Statutes 468L-25
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Charter tour: means any travel services in which a travel agency contracts with an air carrier and offers for sale a charter, with or without related ground transportation or hotel accommodations. See Hawaii Revised Statutes 468L-1
- Charter tour operator: means any person who sells or offers for sale charter tours, whether offered on a wholesale or retail basis, excluding any direct air carrier as defined by title 14, Code of Federal Regulations, section 380. See Hawaii Revised Statutes 468L-1
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Qualified charter tour client trust assets: means cash or cash equivalents held by a bank or a similar federally-insured financial institution in one or more separate charter tour client trust accounts maintained in compliance with sections 468L-5 and 468L-23. See Hawaii Revised Statutes 468L-1
- Qualified charter tour client trust liabilities: means all cash or cash equivalents received by a charter tour operator for travel services, and shall be accounted for in a charter tour trust liability account on the books and records of the charter tour operator. See Hawaii Revised Statutes 468L-1
A charter tour operator shall regularly maintain qualified charter tour client trust assets in an amount which is equal to or exceeds the qualified charter tour client trust liabilities of the charter tour operator. A charter tour operator shall be deemed to be in substantial compliance with the provisions of this section even if, during any twelve-month period, qualified charter tour client trust liabilities exceed qualified charter tour client trust assets for any one, but not more than one, quarterly reporting period applicable under § 468L-26; provided that qualified charter tour client trust assets at all times shall be equal to or exceed not less than ninety per cent of qualified charter tour client trust liabilities.