§431:6-318 - Collateral loans. - Hawaii Statutes

     §431:6-318  Collateral loans.  An insurer is permitted to loan its funds upon the pledge of securities or evidences of debt eligible for investment under this article.  As at date made, no such loan shall exceed in amount ninety per cent of the fair value of the collateral pledged, except that loans upon pledge of United States government bonds may be equal to the fair value of the bonds pledged and that loans on life insurance policies may equal the cash surrender value of the policy as provided in section 431:6-314.  The amount so loaned shall be included in the maximum percentage of funds permitted to be invested in the kinds of securities for evidences of debt pledged or permitted by section 431:6-105. [L 1987, c 347, pt of §2]