HRS §501-216
State not responsible for trustee or mortgage losses
Read the official text at capitol.hawaii.gov ↗The State won't pay you if a registered owner who is a trustee breaks their trust duties or improperly uses a mortgage's power of sale. If you sue the State on a contract claim, you can only recover up to the property's fair market value at the time of your loss.
everyone
The statute, as written — State, not liable when
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 State shall not be liable to pay for any loss, damage, or deprivation occasioned by a breach of trust, whether expressed, implied, or constructive, by any registered owner who is a trustee, or by the improper exercise of any power of sale in a mortgage. Nor shall any plaintiff prosecuting a contract claim under this chapter recover as compensation more than the fair market value of the real estate at the time when the plaintiff suffered the loss, damage, or deprivation thereof.
LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.