COM 0423.003 2002-2004 - Laserfiche WebLink

Home

In a letter to the Council dated November 19, 2003, Finance Director William Takaba transmitted Bill No. 189, which established the Shipper's Wharf Committee Trust Fund pursuant to section 10-12, Hawai i County Charter. Bill No. 189 also set forth the purpose of the trust, the terms for use of the funds, conditioned the expenditures, and required annual reporting to the attorney general. As of June 30, 2003, the total value of trust property was $2,591,934.20: Cash Balance $1,564,312.65 Stocks $1,027,621.55 TOTAL VALUE $2,591,934.20 To date, the cash is accounted for in a suspense account and the stock certificates are held by the County Treasurer. However, the County has paid out $19,556 to complete the terms of all but one contract awarded by the State prior to the transfer. TRUSTS Trusts in general are governed by state statutes. A trust is defined by Chapter 560:1-201(50), Hawaii Revised Statutes, which reads, in part, as follows: "Trust" includes any express trust, private or charitable, with additions thereto, wherever and however created. It also includes a trust created or determined by judgment or decree under which the trust is to be administered This definition should not be muddled with the state budget definition of trust fund mentioned previously. It is important to note that Chapter 560:7-306, HRS, relating to personal liability of trustee to third parties, states: (a) "Unless otherwise provided in the contract, a trustee is personally liable on contracts entered into in the trustee's fiduciary capacity in the court of administration of the trust estate. (b) A trustee is personally liable for obligations arising from ownership or control of property of the trust and for torts committed in the court of administration of the trust estate. (c) Claims based on contracts entered into by a trustee in the trustee's fiduciary capacity may be asserted against the trust estate by proceeding against the trustee in the trustee's fiduciary capacity, whether or not the trustee is personally liable therefor. (d) The question of liability as between the trust estate and the trustee personally may be determined in an appropriate proceeding." Further, Chapter 554, HRS, authorizes the circuit court having jurisdiction over the subject matter of the trust to vest the legal title to any trust and establishes a framework for the financial decisions of a trust (leases, investments, annual accounting, creditors, charitable trust expenses and administration.) The state attorney general is charged with trust oversight. 3