HRS §556-6
Bank can pay checks from a fiduciary's account
When someone manages money for another person and deposits it in a bank under their role as manager, the bank can pay checks from that account without checking with the owner. The bank is only responsible if it knows the manager is misusing the money or acts in bad faith. If the check pays the manager's own debt to the bank, the bank is responsible if the manager misuses the money.
financial institutionsguardianspersonal representativestrustees
The statute, as written — Deposit in name of fiduciary as such
If a deposit is made in a bank to the credit of a fiduciary as such, the bank is authorized to pay the amount of the deposit or any part thereof upon the check of the fiduciary, signed with the name in which such deposit is entered, without being liable to the principal, unless the bank pays the check with actual knowledge that the fiduciary is committing a breach of the fiduciary's obligation as fiduciary in drawing the check or with knowledge of such facts that its action in paying the check amounts to bad faith. If, however, the check is payable to the drawee bank and is delivered to it in payment of or as security for a personal debt of the fiduciary to it, the bank is liable to the principal if the fiduciary in fact commits a breach of the fiduciary's obligation as fiduciary in drawing or delivering the check.
LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.