HRS §38-5
Indemnity bond from depository
This section lets state officials require a bank holding state money to get a bond that protects the state if the bank's security bonds lose value. The bond must be approved by the governor and the director, and the people backing it cannot own stock in the bank.
financial institutions
The statute, as written — Indemnity bond from depository
The director with the approval of the governor, shall, if in the director's judgment it appears necessary for the security of the State, require the depository to give indemnity bonds, the sureties on which shall not be interested as stockholders in the depository, to be approved by the governor and director to secure the State against the loss of any depreciation in value that may occur in the bonds held by the director as security for the safekeeping and prompt payment of the money of the State in the depository.
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