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HRS §490:9-329

Who gets paid first for a letter-of-credit right

This section says which lender has first claim to a letter-of-credit right when more than one lender has a security interest in it. A lender with control of the right gets paid before a lender without control. If two lenders both have control, the one who got control first wins.

creditorsdebtorsfinancial institutions

The statute, as written — Priority of security interests in letter-of-credit right

The following rules govern priority among conflicting security interests in the same letter-of-credit right: (1) A security interest held by a secured party having control of the letter-of-credit right under section 490:9-107 has priority to the extent of its control over a conflicting security interest held by a secured party that does not have control. (2) Security interests perfected by control under section 490:9-314 rank according to priority in time of obtaining control.
Read the official text at capitol.hawaii.gov ↗as published Jan 6, 2026our copy taken Aug 20, 2026

Sections this one refers to

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

§490:9-314 How to perfect a security interest by control

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