(a) Each applicant and licensee, as the case may be, shall provide a bond by a surety authorized by a certificate of authority granted by the state insurance commissioner to do business in the State.(b) Where a bond cannot reasonably be secured, the director may pursuant to the authority provided in section 441-19(9), HRS, provide for an alternative form of security so long as the alternative security is no less than that provided by the bond. Alternative forms of security may include, but not be limited to: (1) Certificate of deposit from a federally insured institution in the amount equal to the bond required; or(2) Cashier's check from a federally insured institution in the amount equal to the bond required; or(3) An irrevocable letter of credit in a form approved by the director drawn upon a bank or savings and loan association in the amount of the bond required.(c) Any alternative security approved by the director for substitution of the bond shall be in the name of the director or in the case of a letter of credit shall designate the director as beneficiary for the benefit of any eligible person sustaining damage resulting from a failure on the part of the licensee or trustee to faithfully, promptly, and truly account and pay to the person sums that may be properly due from the licensee or trustee.(d) The director shall retain possession of the security as described in subsection (b)(1), (2), and (3) under such terms and conditions as the director shall determine are necessary to carry out the purposes of protecting the public. In the event the alternative security earns interest while in the possession of the director, the interest shall belong to the licensee or trustee.[Eff 11/19/87; comp 1/21/92] (Auth: HRS §§ 441-19) (Imp: HRS §§ 441-19(9), 441-22).