(a) A tobacco product manufacturer that elects to place funds into a qualified escrow fund pursuant to section 675-3(b) may assign to the State the tobacco product manufacturer’s interest in any moneys in the qualified escrow fund.
Terms Used In Hawaii Revised Statutes 675-4
Escrow: Money given to a third party to be held for payment until certain conditions are met.
Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
(b) An assignment executed pursuant to subsection (a) shall be permanent and irrevocable and shall apply to all moneys in the qualified escrow fund, including all moneys deposited into the qualified escrow fund before the tobacco product manufacturer executes the assignment, all moneys deposited into the qualified escrow fund after the tobacco product manufacturer executes the assignment, and any interest or other appreciation earned on any moneys in the qualified escrow fund.(c) A qualified escrow agreement, as referenced in section 486P-5(c)(4), may be amended by the parties to the agreement for the purpose of executing an assignment pursuant to subsection (a).(d) An assignment executed pursuant to subsection (a) shall be in writing and shall be signed by the assignee and the assignor or by an authorized agent or representative thereof. An executed assignment becomes enforceable after a copy of the assignment is delivered to the attorney general and the financial institution where the qualified escrow fund is maintained.(e) Notwithstanding the provisions of section 675-3(b), funds assigned to the State shall be deposited in the Hawaii tobacco settlement special fund established pursuant to § 328L-2.(f) Nothing in this section shall operate to:
(1) Waive the right of the State to bring a claim against a tobacco product manufacturer, except that any funds assigned to the State under this section shall be credited on a dollar-for-dollar basis against any judgment or settlement; or(2) Relieve a tobacco product manufacturer from any obligation or duty imposed pursuant to chapter 245, chapter 486P, or this chapter.(g) When a qualified escrow fund has been deemed abandoned by a tobacco product manufacturer according to the criteria set by each financial institution, the financial institution maintaining the qualified escrow fund and acting as the escrow agent may file a petition in circuit court for an order authorizing a transfer of funds in the qualified escrow fund to the State. The petition shall state the factual and legal bases for the relief sought. The financial institution shall serve the petition on the attorney general at the time the petition is filed. Upon a finding that the fund has been abandoned, the court may order the transfer of funds in the qualified escrow fund to the Hawaii tobacco settlement special fund established pursuant to § 328L-2.(h) The department of the attorney general may adopt rules pursuant to chapter 91 necessary to implement this section.
