HRS §490:8-116
When a securities firm is treated as a buyer for value
This section says that when a securities firm (called a securities intermediary) gets a financial asset and sets up a security entitlement for a customer, the firm is treated as a buyer who paid value for that asset. The same rule applies if the firm gets the entitlement from another firm and then sets up an entitlement for a customer.
financial institutions
The statute, as written — Securities intermediary as purchaser for value
A securities intermediary that receives a financial asset and establishes a security entitlement to the financial asset in favor of an entitlement holder is a purchaser for value of the financial asset. A securities intermediary that acquires a security entitlement to a financial asset from another securities intermediary acquires the security entitlement for value if the securities intermediary acquiring the security entitlement establishes a security entitlement to the financial asset in favor of an entitlement holder.
LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.