Report Title:

Condominiums; AOAO Funds; Certificates of Deposit

Description:

Repeals prohibition on the purchase of deposits or certificates of deposit through a securities broker by a condominium association.

THE SENATE

S.B. NO.

1137

TWENTY-THIRD LEGISLATURE, 2005

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO CONDOMINIUMS.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Act 164, Session Laws of Hawaii 2004, is amended by amending subsection (c) of section    -149, Hawaii Revised Statutes, to read as follows:

"(c) All funds collected by an association, or by a managing agent for any association, shall be:

(1) Deposited in a financial institution, including a federal or community credit union, located in the State, pursuant to a resolution adopted by the board, and whose deposits are insured by an agency of the United States government;

(2) Held by a corporation authorized to do business under article 8 of chapter 412;

(3) Held by the United States Treasury; or

(4) Purchased in the name of and held for the benefit of the association through a securities broker that is registered with the Securities and Exchange Commission, that has an office in the State, and the accounts of which are held by member firms of the New York Stock Exchange or National Association of Securities Dealers and insured by the Securities Insurance Protection Corporation[; provided that deposits and certificates of deposit shall not be purchased through a securities broker]."

SECTION 2. Statutory material to be repealed is bracketed and stricken.

SECTION 3. This Act shall take effect on July 1, 2005.

INTRODUCED BY:

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