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Can you summarize HIRS 412:4-109?
DEPOSITS IN FINANCIAL INSTITUTIONS GENERALLY > Checks drawn or transfers or withdrawals made by authorized persons.
Short Summary
This provision, found in the Hawaii Revised Statutes under the Code of Financial Institutions, pertains to deposit account holders and financial institutions. It states that when a deposit account holder authorizes another person to draw checks, make transfers, or withdrawals from the account, the financial institution can presume that any such action made by the authorized person, in accordance with the account contract, is authorized by the account holder. The authority granted by the account holder to the financial institution is not revoked or terminated by the death, disability, or incapacity of the account holder, as long as the financial institution acts in good faith without knowledge of such circumstances. Any payment, transfer, or withdrawal made by the financial institution based on this authority releases the institution from liability, and no legal action can be taken against the institution for such actions. This provision provides clarity and protection for financial institutions when dealing with authorized persons and their actions on deposit accounts.
Whom does it apply to?
Deposit account holders and financial institutions
What does it govern?
Checks drawn or transfers or withdrawals made by authorized persons
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Hawaii