HRS §490:8-115
When brokers and banks are not liable for disputed assets
This section protects securities intermediaries, brokers, agents, and bailees from being sued by someone who claims to own a financial asset, as long as they followed a valid order or customer direction. They lose that protection if they acted after a court order stopped them, colluded with the wrongdoer, or handled a stolen certificate with knowledge of the claim.
financial institutions
The statute, as written — Securities intermediary and others not liable to adverse claimant
A securities intermediary that has transferred a financial asset pursuant to an effective entitlement order, or a broker or other agent or bailee that has dealt with a financial asset at the direction of its customer or principal, is not liable to a person having an adverse claim to the financial asset, unless the securities intermediary, or broker or other agent or bailee: (1) Took the action after it had been served with an injunction, restraining order, or other legal process enjoining it from doing so, issued by a court of competent jurisdiction, and had a reasonable opportunity to act on the injunction, restraining order, or other legal process; (2) Acted in collusion with the wrongdoer in violating the rights of the adverse claimant; or (3) In the case of a security certificate that has been stolen, acted with notice of the adverse claim.
LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.