HRS §431:15-331
Secured creditor's claims
Read the official text at capitol.hawaii.gov ↗This section explains how a creditor with collateral (security) gets paid during an insurance company liquidation. The court decides the collateral's value, and that amount is subtracted from the claim. Any unpaid part becomes an unsecured claim, or the creditor can hand over the collateral and claim the full amount as unsecured.
creditors
The statute, as written — Secured creditor's claims
A copy, taken August 20, 2026. The version published by the Legislature is the one that governs, and it may have changed since. Check it before relying on anything here.
(a) The value of any security held by a secured creditor shall be determined in one of the following ways, as the court may direct: (1) By converting the same into money according to the terms of the agreement pursuant to which the security was delivered to such creditors; or (2) By agreement, arbitration, compromise or litigation between the creditor and the liquidator. (b) The determination shall be under the supervision and control of the court with due regard for the recommendation of the liquidator. The amount so determined shall be credited upon the secured claim, and any deficiency shall be treated as an unsecured claim. If the claimant shall surrender this security to the liquidator, the entire claim shall be allowed as if unsecured.
LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.