HRS §412:4-108
Bank can pay account holder unless told of incapacity
A bank can keep paying out money from an account if it has not been told in writing and does not know that a court has ruled the account holder is incapacitated. Once the bank pays, it is released from further responsibility for those funds. No one can sue the bank for making these payments.
financial institutions
The statute, as written — No notice of incapacity
If a financial institution has not received written notice and is not on actual notice that a deposit account holder has been adjudicated an incapacitated person by a court of competent jurisdiction under applicable law, it may make payments or allow transfers or withdrawals from the account to or on the order of the account holder in accordance with the provisions of its contract with the holder, and such payment, transfer or withdrawal shall operate to release and discharge the financial institution from further liability to the account holder and the holder's successors in interest with respect to the funds so paid, transferred or withdrawn, and no action at law or equity may be maintained against the financial institution for payment, transfer or withdrawal in accordance with this section.
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