HAR §16-117-24. Client trust account, bond, irrevocable letter of credit

(a) Each activity desk shall provide: (1) Evidence that a client trust account with a federally insured financial institution located in Hawaii has been established; or (2) A performance or financial guaranty type bond, or an irrevocable letter of credit issued by a surety or federally insured lending institution authorized to do business in the State to indemnify any consumer who may suffer loss as a result of non-performance by an activity desk. (b) The amount of coverage provided by the bond or irrevocable letter of credit shall be equal to the average monthly net sales revenue of the activity desk and shall be calculated in accordance with §16-117-26. (c) The required coverage of the bond or the irrevocable letter of credit shall be provided for by a single bond or by a single irrevocable letter of credit. (d) Substitutions of bonds, or irrevocable letters of credit or the client trust account shall be made in accordance with §16-117-28. [Eff 1/16/93] (Auth: § -17, Act 231, SLH 1992) (Imp: § -10, Act 231, SLH 1992)