Hawaii Revised Statutes 560:6-112 – Financial institution protection; discharge
Terms Used In Hawaii Revised Statutes 560:6-112
- Account: means a contract of deposit of funds between a depositor and a financial institution, and includes a checking account, savings account, certificate of deposit, share account and other like arrangement;
"Beneficiary" means a person named in a trust account as one for whom a party to the account is named as trustee;
"Financial institution" means any organization authorized to do business under state or federal laws relating to financial institutions, including, without limitation, banks, savings banks, savings and loan companies or associations, financial services loan companies, and credit unions;
"Joint account" means an account payable on request presently or in the future to one or more of two or more parties whether or not mention is made of any right of survivorship;
A "multiple-party account" is any of the following types of account:
(1) a joint account,
(2) a payable-on-death account, or
(3) a trust account. See Hawaii Revised Statutes 560:6-101
- Party: means a person who, by the terms of the account, has a present right, subject to request, to payment from a multiple-party account. See Hawaii Revised Statutes 560:6-101
- Withdrawal: includes payment to a third person pursuant to check or other directive of a party. See Hawaii Revised Statutes 560:6-101
Payment made pursuant to section 560:6-108, 560:6-109, 560:6-110, or 560:6-111 discharges the financial institution from all claims for amounts so paid whether or not the payment is consistent with the beneficial ownership of the account as between parties, payable-on-death payees, or beneficiaries, or their successors. The protection here given does not extend to payments made after a financial institution has received written notice from any party or has actual knowledge that withdrawals in accordance with the terms of the account should not be permitted. Unless the notice is withdrawn by the person giving it, the successor of any deceased party must concur in any demand for withdrawal if the financial institution is to be protected under this section. No other notice or any other information shown to have been available to a financial institution shall affect its right to the protection provided here. The protection here provided shall have no bearing on the rights of parties in disputes between themselves or their successors concerning the beneficial ownership of funds in, or withdrawn from, multiple-party accounts.