Applicability.

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§490:4-102 Applicability. (a) To the extent that items within this article are also within articles 3 and 8, they are subject to those articles. If there is conflict, this article governs article 3, but article 8 governs this article.

(b) The liability of a bank for action or nonaction with respect to an item handled by it for purposes of presentment, payment, or collection is governed by the law of the place where the bank is located. In the case of action or nonaction by or at a branch or separate office of a bank, its liability is governed by the law of the place where the branch or separate office is located. [L 1965, c 208, §4-102; HRS §490:4-102; am L 1991, c 118, pt of §4]

Case Notes

Subsection (b) does not address the post-judgment garnishment of accounts pursuant to a court order. District court predicted that the Hawaii supreme court would decline to adopt the separate entity rule in this case and concluded that plaintiff's service of writ of execution on vice-president and manager of bank's legal and custody department in Honolulu was sufficient to garnish defendant's funds in the account defendant opened at the bank's branch in American Samoa. 889 F. Supp. 2d 1244 (2012).


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