HRS §490:9-318
Seller loses rights to sold payment rights
Read the official text at capitol.hawaii.gov ↗When you sell a right to receive payment (like an account or promissory note), you no longer own it. Until the buyer perfects their interest, creditors and buyers can treat you as still owning it. This affects who has priority over that payment right.
buyerscreditorsdebtors
The statute, as written — No interest retained in right to payment that is sold; rights and title of seller of account or chattel paper with respect to creditors and purchasers
A copy, taken August 20, 2026. The version published by the Legislature is the one that governs, and it may have changed since. Check it before relying on anything here.
(a) A debtor that has sold an account, chattel paper, payment intangible, or promissory note does not retain a legal or equitable interest in the collateral sold. (b) For purposes of determining the rights of creditors of, and purchasers for value of an account or chattel paper from, a debtor that has sold an account or chattel paper, while the buyer's security interest is unperfected, the debtor is deemed to have rights and title to the account or chattel paper identical to those the debtor sold.
LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.