HB 1748 Summary

• Amends Section 514B-149, Hawaii Revised Statutes, to allow condominium associations to invest funds exceeding their estimated replacement reserves in higher-grade obligations.

• Funds in excess of estimated replacement reserves may be invested in obligations rated 1, 2, or 3 by the Securities Valuation Office of the National Association of Insurance Commissioners, or equivalent ratings from nationally-recognized statistical rating organizations.

• Defines "amount in excess of the estimated replacement reserves" as total current reserves plus projected collections for the reserve study period, minus the estimated replacement reserves amount.

• Preserves existing restrictions that all other funds (within replacement reserves) must be deposited in insured financial institutions, held by authorized corporations, U.S. Treasury, registered securities brokers, or certificates of deposit.

• Effective upon approval.