Rule 107 Deposit and Investment of Funds

(a) Bond.

(1) The court may require a guardian of the property to furnish a bond to insure the guardian's faithful discharge of all duties according to law, with sureties as it shall specify. The bond shall be in an amount determined by the court. The court in lieu of sureties on a bond, may accept other security for the performance of the bond, including a pledge of securities or a mortgage of land.

(2) For conservatorships, the court may require a conservator to furnish bond in an amount as set forth in HRS § 560:5-415. If the court has required the conservator to furnish bond and the value of the estate in the conservator's control significantly increases or decreases, the court may order an appropriate adjustment in the amount of bond at the time of the conservator's regular accounting.

(b) Reduction or Elimination of Bond Requirement. The court may consider reducing or eliminating the requirement for bond in the following situations:

(1) Where the bulk or all of the estate in the conservator's control will be deposited in a federally-insured financial institution located in the State of Hawai‘i in the names of the conservator and the conservator's attorney or law firm, the signatures of both the conservator and such attorney, or a representative of the law firm, being required for withdrawal purposes.

(2) Other arrangements as counsel may suggest wherein the estate in the conservator's control will be adequately protected, without involvement of the court clerk.

(c) Deposit of Funds. Unless otherwise ordered by the court, the conservator shall establish accounts for the conservatorship funds as follows:

(1) Such amount or amounts approved by the court for regular expenses of the protected person and the conservator may be deposited in an interest-bearing checking or savings account with a federally-insured financial institution located in the State of Hawai‘i in the name of the conservator as conservator of the protected person, the signature of only the conservator being necessary for withdrawal purposes.

(2) The balance of the funds of the conservatorship estate may be deposited in a separate interest-bearing checking and/or savings account with a federally-insured financial institution located in the State of Hawai‘i in the name of the conservator as conservator of the protected person. The attorney for the conservator shall be responsible for ensuring that the accounts of the conservatorship are established as required by this Rule.

(d) Investment of Assets. Where the assets of the conservatorship estate are sufficiently large in amount, a corporate fiduciary, and with prior court authority, an individual conservator may invest conservatorship assets in securities, mutual funds, common trusts funds, or other investments that provide a higher return than a financial institution account with adequate security of investment.

(e) Setting Forth Plan in Petition. All budgets, investment plans, and account arrangement plans must be set forth in the petition by which the plan is proposed to the court. Every petition for appointment of a conservator shall set forth a proposed investment plan consistent with this Rule.