Good Funds in Hawaii
Contents
Overview
Sources
Wet or Dry Settlement
Dry
Definition
Not defined by statute.
Requirements
No escrow depository may disburse funds from an escrow account until cash or items sufficient to fund any disbursements from the account have been received and deposited to the account. With respect to all such items, the escrow depository must comply with the provisions of either: (i) Where an item has been received and submitted for collection, no escrow depository may disburse funds from an escrow account with respect to that item until final settlement of the item has been received by the financial institution to which the item has been submitted for collection. (ii) No escrow depository may disburse funds from the escrow account with respect to an item drawn on a financial institution until the escrow depository confirms that sufficient collected funds are on deposit in the drawer?s account. HI Rev. Stat. ? 449-16(b).
Exceptions to Requirements
A licensee may deliver any money, consideration, or instrument affecting the title to real property prior to funds becoming available for disbursement under HI Rev. Stat. 449-16(b) if it has received the written consent of the parties to the transaction. HI Rev. Stat. 449-16(c).
