HRS §556-8
Bank's duty when a fiduciary deposits trust money into a personal account
When someone managing money for another person (a fiduciary) puts that money into their own bank account, the bank does not have to check if that is allowed. The bank can pay out that money on the fiduciary's personal checks unless the bank actually knows the fiduciary is doing something wrong or is acting in bad faith.
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The statute, as written — Deposit in fiduciary's personal account
If a fiduciary makes a deposit in a bank to his personal credit of checks drawn by him upon an account in his own name as fiduciary, or of checks payable to him as fiduciary, or of checks drawn by him upon an account in the name of his principal if he is empowered to draw checks thereon, or of checks payable to his principal and indorsed by him, if he is empowered to endorse such checks, or if he otherwise makes a deposit of funds held by him as fiduciary, the bank receiving such deposit is not bound to inquire whether the fiduciary is committing thereby a breach of his obligation as fiduciary; and the bank is authorized to pay the amount of the deposit or any part thereof upon the personal check of the fiduciary without being liable to the principal, unless the bank receives the deposit or pays the check with actual knowledge that the fiduciary is committing a breach of his obligation as fiduciary in making such deposit or in drawing such check, or with knowledge of such facts that its action in receiving the deposit or paying the check amounts to bad faith.
LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.