HRS §412:10-807
Collecting loans from members and taking extra security
This section gives the corporate credit union two ways to collect money a member owes: it can take money from the member's share and deposit accounts, and it can ask for extra security like a pledge or mortgage on the member's assets. The credit union's board or credit committee decides if extra security is needed.
borrowerscreditors
The statute, as written — Collection on loans to members
(a) For any amounts due from a member to the corporate credit union, the corporate credit union shall have: (1) A right of immediate setoff against the balances of the share and deposit accounts of each member; and (2) A lien on all share and deposit accounts of each member in the total amount of the indebtedness, which shall attach to such accounts and be effective whenever the member is indebted to the corporate credit union, and which shall have priority over the interest of all members and unsecured creditors of the debtor member. (b) The board of directors or credit committee of the corporate credit union may require and accept additional security for loans to a member in the form of a pledge, assignment, hypothecation, or mortgage of any assets of the member or a guarantor.
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