§516-40  Bonds as legal investments. 
The State and all of its public officers, municipal corporations, political
subdivisions, and public bodies, all banks, bankers, trust companies, savings
banks and institutions, including savings and loan associations, all investment
companies, insurance companies, insurance associations, and other persons
carrying on an insurance business in the State, and all personal
representatives, guardians, trustees, and other fiduciaries in the State may
legally invest moneys or funds belonging to them or within their control and
available for investment under other provisions of law, in any bonds or other
obligations issued by the Hawaii housing finance and development corporation under
this part, and such bonds and other obligations of the corporation shall be
authorized security for all public deposits and shall be fully negotiable in
the State.  It is the purpose of this section to authorize any of the foregoing
to use any funds owned or controlled by them, including (but not limited to)
sinking, insurance, investments, retirement, compensation, pension, and trust
funds and funds held on deposit, for the purchase of any such bonds or other
obligations; provided that nothing contained in this section shall operate to
relieve any person, firm, or corporation from liability for failure to exercise
reasonable care in selecting investments or, in the case of a guardian or
trustee, from liability for failure to exercise the judgment and care to
observe the duties required of a guardian or trustee by article 8 of chapter
412 and section 554-6. [L 1967, c 307, §29; HRS §516-40; am L 1976, c 200, pt
of §1; am L 1987, c 337, §16; am L 1988, c 104, §2; am L 1993, c 350, §32; am L
1997, c 350, §14; am L 2005, c 196, §26(b); am L 2006, c 180, §16]