HRS §560:6-112
When banks are protected after paying out an account
This section says that if a bank pays money from an account according to the rules in earlier sections, the bank is released from claims about that payment, even if the payment did not match who really owns the account. The bank loses this protection if it gets written notice or knows that it should not allow the withdrawal. This protection does not affect the rights of the real owners to fight over the money among themselves.
financial institutions
The statute, as written — Financial institution protection; discharge
Payment made pursuant to section 560:6-108, 560:6-109, 560:6-110, or 560:6-111 discharges the financial institution from all claims for amounts so paid whether or not the payment is consistent with the beneficial ownership of the account as between parties, payable-on-death payees, or beneficiaries, or their successors. The protection here given does not extend to payments made after a financial institution has received written notice from any party or has actual knowledge that withdrawals in accordance with the terms of the account should not be permitted. Unless the notice is withdrawn by the person giving it, the successor of any deceased party must concur in any demand for withdrawal if the financial institution is to be protected under this section. No other notice or any other information shown to have been available to a financial institution shall affect its right to the protection provided here. The protection here provided shall have no bearing on the rights of parties in disputes between themselves or their successors concerning the beneficial ownership of funds in, or withdrawn from, multiple-party accounts.
Sections this one refers to
§560:6-108 Bank protection for paying out a shared account
LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.