HRS §490:9-329
Who gets paid first for a letter-of-credit right
Read the official text at capitol.hawaii.gov ↗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
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.
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.
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.