HRS §490:9-208

What a secured party must do when a debt is paid off

This section applies when a loan or other secured obligation is fully paid and the secured party is not committed to give more value. If the debtor asks in writing, the secured party must take certain steps to release control of collateral, like bank accounts, electronic records, or investment property, within ten days.

debtors

The statute, as written — Additional duties of secured party having control of collateral

(a) This section applies to cases in which there is no outstanding secured obligation and the secured party is not committed to make advances, incur obligations, or otherwise give value. (b) Within ten days after receiving a signed demand by the debtor: (1) A secured party having control of a deposit account under section 490:9-104(a)(2) shall send to the bank with which the deposit account is maintained a signed record that releases the bank from any further obligation to comply with instructions originated by the secured party; (2) A secured party having control of a deposit account under section 490:9-104(a)(3) shall: (A) Pay the debtor the balance on deposit in the deposit account; or (B) Transfer the balance on deposit into a deposit account in the debtor's name; (3) A secured party, other than a buyer, having control under section 490:9-105 of an authoritative electronic copy of a record evidencing chattel paper shall transfer control of the electronic copy to the debtor or a person designated by the debtor; (4) A secured party having control of investment property under section 490:8-106(d)(2) or 490:9-106(b) shall send to the securities intermediary or commodity intermediary with which the security entitlement or commodity contract is maintained a signed record that releases the securities intermediary or commodity intermediary from any further obligation to comply with entitlement orders or directions originated by the secured party; (5) A secured party having control of a letter-of-credit right under section 490:9-107 shall send to each person having an unfulfilled obligation to pay or deliver proceeds of the letter of credit to the secured party a signed release from any further obligation to pay or deliver proceeds of the letter of credit to the secured party; (6) A secured party having control under section 490:7-106 of an authoritative electronic copy of an electronic document shall transfer control of the electronic copy to the debtor or a person designated by the debtor; (7) A secured party having control under section 490:9-105.5 of electronic money shall transfer control of the electronic money to the debtor or a person designated by the debtor; and (8) A secured party having control under section 490:12-105 of a controllable electronic record, other than a buyer of a controllable account or controllable payment intangible evidenced by the controllable electronic record, shall transfer control of the controllable electronic record to the debtor or a person designated by the debtor.

Read the official text at capitol.hawaii.gov ↗as published Jan 6, 2026our copy taken Aug 20, 2026

Sections this one refers to

§490:12-105 Who has control of an electronic record

§490:7-106 When someone is considered to control an electronic document of title

§490:8-106 Who has control of a security and what that means

§490:9-104 When a lender controls a bank account

§490:9-105 When a buyer controls an electronic copy of chattel paper

§490:9-105.5 Who has control of electronic money

§490:9-107 When a lender controls a letter of credit right

LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.