§412:2-409  Conservator's segregation ofdeposits.  (a)  In the commissioner's discretion, the commissioner mayorder or permit a conservator to accept deposits, notwithstanding theinsolvency of the Hawaii financial institution; provided, that such deposits soreceived shall not be subject to any limitation as to payment or withdrawal,shall be segregated and kept apart from prior deposits, and shall not be usedto liquidate any indebtedness of the institution existing at inception of theconservatorship or any subsequent debt incurred for the purpose of liquidatingsuch prior indebtedness.  Such deposits received by the conservator shall bekept in cash, invested in direct obligations of the United States, or depositedwith a federally insured financial institution.

(b)  Any order requiring segregation ofdeposits under this section shall remain effective no longer than thirty daysafter the conservator has returned possession and control of the affairs of theHawaii financial institution to its board of directors.  At least thirty daysprior to the resumption of such possession and control, the conservator shallpublish in a newspaper of general circulation in every county where thefinancial institution has places of business open to the public, a noticestating the date that possession and control will be returned to the board ofdirectors, and that deposits received during the conservatorship will no longerbe segregated in accordance with this section more than thirty days after thatdate.  The notice shall be in a form approved by the commissioner and shallalso be conspicuously posted at the principal office and each branch and agencyoffice of the financial institution.  The notice shall also be mailed to everyperson who has deposited funds with the institution during the conservatorshipat the depositor's last known address as reflected in the records of theinstitution. [L 1993, c 350, pt of §1]