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HRS §490:9-314

How to perfect a security interest by control

This section explains that a lender can perfect a security interest in certain types of property by taking control of it. Perfection starts when the lender gets control and lasts only while the lender keeps control. For investment property, perfection ends if the lender loses control and the debtor gets possession or ownership back.

borrowers

The statute, as written — Perfection by control

(a) A security interest in controllable accounts, controllable electronic records, controllable payment intangibles, deposit accounts, electronic documents, electronic money, investment property, or letter-of-credit rights may be perfected by control of the collateral under section 490:7-106, 490:9-104, 490:9-105.5, 490:9-106, 490:9-107, or 490:9-107.5. (b) A security interest in controllable accounts, controllable electronic records, controllable payment intangibles, deposit accounts, electronic documents, electronic money, or letter-of-credit rights shall be deemed perfected by control under section 490:7-106, 490:9-104, 490:9-105.5, 490:9-107, or 490:9-107.5 no earlier than the time the secured party obtains control and shall be deemed to remain perfected by control only while the secured party retains control. (c) A security interest in investment property shall be deemed perfected by control under section 490:9-106 no earlier than the time the secured party obtains control and shall be deemed to remain perfected by control until: (1) The secured party does not have control; and (2) One of the following occurs: (A) If the collateral is a certificated security, the debtor has or acquires possession of the security certificate; (B) If the collateral is an uncertificated security, the issuer has registered or registers the debtor as the registered owner; or (C) If the collateral is a security entitlement, the debtor is or becomes the entitlement holder.
Read the official text at capitol.hawaii.gov ↗as published Jan 6, 2026our copy taken Aug 20, 2026

Sections this one refers to

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

§490:9-106 Who controls investment property in a secured deal

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