HRS §490:9-332
When you can keep money or funds despite a security interest
Read the official text at capitol.hawaii.gov ↗This section says that if you receive physical money, funds from a bank account, or electronic money, you take it free of any security interest, as long as you did not work with the debtor to violate the secured party's rights. In simple terms, you get to keep the money if you were not part of a scheme to cheat the lender.
everyone
The statute, as written — Transfer of money; transfer of funds from deposit account
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 transferee of tangible money takes the money free of a security interest if the transferee receives possession of the money without acting in collusion with the debtor in violating the rights of the secured party. (b) A transferee of funds from a deposit account takes the funds free of a security interest in the deposit account if the transferee receives the funds without acting in collusion with the debtor in violating the rights of the secured party. (c) A transferee of electronic money takes the money free of a security interest if the transferee obtains control of the money without acting in collusion with the debtor in violating the rights of the secured party.
LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.