(a) Within three business days of receipt, an activity desk shall deposit all sums received from a consumer for excursions or activities offered by the activity desk in a trust account maintained in a federally insured financial institution located in Hawaii. All sums paid by any person to an activity desk for activities furnished by an activity provider shall be held in trust for the benefit of the person making the payment and the activity provider. The activity desk shall be considered the trustee of the funds paid into the client trust account, less any commission.
Terms Used In Hawaii Revised Statutes 468M-9
Activity desk: means any sole proprietorship, organization, trust, group, association, partnership, corporation, society, or combination thereof, which for compensation or other consideration, acts or attempts to act as an intermediary to sell, contract for, arrange, or advertise that it can or will arrange, or has arranged, activities which are furnished by an activity provider. See Hawaii Revised Statutes 468M-1
Activity provider: means an individual, firm, corporation, association, partnership, or any group of persons, whether incorporated or not, which provides specialized air, land, or sea tour excursions and activities, but does not mean sellers of airline coupons or tickets. See Hawaii Revised Statutes 468M-1
Trust account: A general term that covers all types of accounts in a trust department, such as estates, guardianships, and agencies. Source: OCC
Trustee: A person or institution holding and administering property in trust.
(b) The trust account required by this section shall be established and maintained for the benefit of the consumers paying money to the activity desk and the activity provider. The activity desk shall not in any manner encumber the amounts in trust and shall not withdraw money therefrom except:
(1) In partial or full payment to the activity provider directly providing the services for excursion or activities; or(2) To make refunds as required by this chapter.(c) This section shall not prevent the withdrawal from the trust account of:
(1) The amount of the sales commission, up to a maximum of fifteen per cent;(2) Any interest earned and credited to the trust account;(3) Refunds; or(4) Remaining funds of a consumer once the activity provider has been paid.(d) At the time of registration, the activity desk shall file with the department the account number and the name of the financial institution at which the trust account is held or submit a bond or letter of credit as provided in section 468M-10. The activity desk shall notify the department of any change in the account number or location within one business day of the change.
