HRS §490:2-506
What rights a financing company gets when it pays for shipped goods
This section explains what happens when a financing company pays for a draft tied to a shipment of goods. It gets the shipper's rights in the goods, including stopping delivery and having the buyer pay the draft. If the company acted in good faith, later problems with documents don't hurt its right to be repaid.
buyersfinancial institutions
The statute, as written — Rights of financing agency
(1) A financing agency by paying or purchasing for value a draft which relates to a shipment of goods acquires to the extent of the payment or purchase and in addition to its own rights under the draft and any document of title securing it any rights of the shipper in the goods including the right to stop delivery and the shipper's right to have the draft honored by the buyer. (2) The right to reimbursement of a financing agency which has in good faith honored as purchased the draft under commitment to or authority from the buyer is not impaired by subsequent discovery of defects with reference to any relevant document which was apparently regular.
LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.