HRS §514B-155
Association as trustee: protections for people who deal with it
This section protects outsiders who do business with the association when it acts as a trustee. They can assume the association has the power to act and is using it properly, unless they actually know otherwise. They do not have to check the association's authority or how it uses trust money.
everyone
The statute, as written — ] Association as trustee
With respect to a third person dealing with the association in the association's capacity as a trustee, the existence of trust powers and their proper exercise by the association may be assumed without inquiry. A third person shall not be bound to inquire whether the association has power to act as trustee or is properly exercising trust powers. A third person, without actual knowledge that the association is exceeding or improperly exercising its powers, shall be fully protected in dealing with the association as if it possessed and properly exercised the powers it purports to exercise. A third person shall not be bound to assure the proper application of trust assets paid or delivered to the association in its capacity as trustee.
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