Section 16-39-434 - Bonding requirements for certain investment advisers(a) Any investment adviser bond required under this chapter and chapter 485A, HRS, shall be issued by a surety company qualified to do business in this State with the State as obligee, and shall be subject to the claims of all clients of such investment adviser regardless of the client's state of residence. (1) Every investment adviser registered or required to be registered under this chapter and chapter 485A, HRS, having custody of or discretionary authority over client funds or securities shall be bonded in the amount of $50,000.(2) Every investment adviser registered or required to be registered under this chapter and chapter 485A, HRS, who has custody of or discretionary authority over client funds or securities and who does not meet the minimum net worth requirements prescribed in section 16-39-433 shall be bonded in the amount of the net worth deficiency rounded up to the nearest $5,000.(b) For purposes of this section, "custody" shall be as defined in section 16-39-436.(c) An investment adviser that has its principal place of business in a state other than this State shall be exempt from the requirements of subsection (a), provided that the investment adviser is registered as an investment adviser in the state where the investment adviser has its principal place of business and is in compliance with such state's bonding requirements.[Eff 6/30/08] (Auth: HRS §§ 485A-411, 485A-606) (Imp: HRS § 485A-411)