HRS §468M-11
Fraud rules for activity desks with trust accounts
If an activity desk breaks laws about client trust accounts or the required bond or letter of credit, that is treated as evidence of fraud. This fraud debt cannot be wiped out in bankruptcy, so the activity desk still owes the consumer or activity provider.
businesses
The statute, as written — Violations; fraud
Any violations by an activity desk of any law relating to client trust accounts or the bond or letter of credit pursuant to section 468M-10 shall constitute a prima facie showing of fraud on the part of the activity desk and may not be dischargeable as a debt to a consumer or an activity provider in any bankruptcy proceeding.
Sections this one refers to
§468M-10 Bond or letter of credit instead of a client trust account for activity desks
LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.