Credit Lines | August 2012

Makethisthe best summer ever! This summer, take a vacation, buy patio furniture and a new grill, or buy a new entertainment system and enjoy the in-doors! Set your own pace and choose the amount or term that fits your financial needs. Don’t miss out! Hawaii State FCU’s Summer Loan is only available until August 31, 2012.

Don’t Miss Out! Ends Aug 31!

Visit us online at HawaiiStateFCU.com for more info

*Offer good from 06/15/2012 to 8/31/2012. APR is for a one-year term loan and it includes a 0.25% discount for automatic payment. Without automatic payment, the APR will be 0.25 percentage points higher. Your APR will be based on your creditworthiness. Payment Example: A loan of $1,000 with a 4.00% APR will have 12 monthly P&I payments of $85.18, which includes $21.84 total interest paid. Offer applies to new HSFCU loans only. Certain terms and conditions apply.

Information on Estate Planning This is an installment in a series of articles discussing various tools available to assist you or your loved ones with managing finances in the event that you are unable to do so or subsequent to your death. Powers of Attorney There may be times in your life when you want to give another person the ability to make transactions on your accounts on your behalf. For personal accounts, such ability may be created pursuant to a legal document called a Power of Attorney. A Power of Attorney creates a principal-agent relationship between the person granting the power (the “principal”) and the person being appointed (the “attorney-in-fact”). The attorney-in-fact is a fiduciary which means that the attorney-in-fact acts on behalf of and for the benefit of the principal. The attorney-in-fact cannot use the Power of Attorney for personal benefit. There are two fundamental types of Powers of Attorney: (1) general and (2) special/limited. • A General Power of Attorney enables the attorney-in-fact to act on behalf of the principal in any manner that the principal is able to act on the principal’s own behalf. While most General Powers of Attorney have long lists of actions that the attorney-in- fact can take on behalf of the principal, a well-drafted General Power of Attorney will state that such acts are examples of the power being granted and not designed to limit the power to those which are listed. • A Special/Limited Power of Attorney may provide limited authority to the attorney-in-fact or set a specific time limit as to when the Power of Attorney continues to be in effect. Powers of Attorney differ in another important respect: whether the powers granted will be effective when the principal is incapacitated. If the Power of Attorney specifically states that it will be effective notwithstanding the incapacity of the principal, then the powers granted, be they general or special, will be effective. This type of Power of Attorney is called “durable” and is authorized by statute. There are two types of durable Powers of Attorney: (1) one that is effective upon execution and continues in effect after the subsequent incapacity of the principal and (2) One that becomes effective only upon the subsequent incapacity of the principal. In no event does a Power of Attorney continue in effect past the death of the principal. Should an account owner decide to present a Power of Attorney, it should be noted that it may or may not be honored as there is no requirement that a Power of Attorney be honored. Before deciding to honor a Power of Attorney, the attorney-in-fact may be required to execute an affidavit attesting to certain facts and giving certain assurances regarding the Power of Attorney. Powers of Attorney are frequently part of an overall estate plan so you may want to consult with an attorney specializing in estate planning. The attorney can help you decide if the Power of Attorney is right for your situation, or if perhaps you should allow a third party to have access to your account by other means.

Information presented in this article is for informational purposes only. You may want to consult an attorney about your individual situation.