489D-8 Permissible investments and statutory trust. (a) A licensee, at all times, shall possess permissible investments having an aggregate market value, calculated in accordance with generally accepted accounting principles, of not less than the aggregate amount of all outstanding payment obligations. This requirement may be waived by the commissioner if the dollar volume of a licensee’s outstanding payment obligations does not exceed the bond or other security devices posted by the licensee pursuant to section 489D-7.
Terms Used In Hawaii Revised Statutes 489D-8
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
(b) Permissible investments, even if commingled with other assets of the licensee, shall be held in trust for the benefit of the purchasers and holders of the licensee’s outstanding payment obligations in the event of the bankruptcy of the licensee.