HAWAIIAN KINGDOM BONDS

Hawaiian Kingdom (HK) bonds are a savings product. While you own HK bonds they earn interest even during inflation.

You may purchase HK bonds by downloading the application here (PDF) and follow the directions.

For any inquiries regarding HK Bonds you can contact the Ministry of Finance at bonds@hawaiiankingdom.org.

Current Fixed Rate: 2.50%
Minimum purchase: $100 for a $100 bond
Maximum purchase: $100,000 for a $100,000 bond
Denominations: $100, $1,000, $10,000, $50,000, $100,000
Issue Method: Paper HK bonds, with embossed seal, mailed to the bondholder

Rates & Terms

Redemption Information

HK Bond-related Frequently Asked Questions

What is an HK bond?

A bond is a loan to the government and is exempt from any taxes whatsoever. It is a debt security issued by the Ministry of Finance to help pay for the Hawaiian government's borrowing needs. HK bonds are issued in paper form with an embossed seal over the Minister of Finance's signature. The Ministry of Finance keeps an electronic file of the issued HK bond(s).

How is the Ministry of Finance authorized to issue HK bonds?

The last time the Legislative Assembly convened was in 1886 before the insurgency began in 1887. On September 1, 1886, King Kalakaua signed into law An Act To authorize a National Loan and to define the uses to which the money borrowed shall be applied (1886 Bonds Act). Under Section 1 of the Act, "The Minister of Finance with the approval of the King in Cabinet Council is hereby authorized to issue coupon bonds of the Hawaiian Government."

The Legislative Assembly also enacted a line-item Government budget under “An Act making special appropriations for the use of the Government during the two years which will end with the thirty-first day of March, in the year one thousand eight hundred and eighty-eight” (1886 Budget Act). The Legislative Assembly was prevented from reconvening in 1888 because of an insurgency that usurped authority under what came to be known as the 1887 Bayonet Constitution.

After the passing of Queen Lili`uokalani on November 11, 1917, the throne had become vacant to be later filled by an elected Monarch in accordance with Article 22 of the 1864 Constitution. In the meantime, Article 33 provides that the Cabinet Council shall serve as a Council of Regency in the absence of the Monarch.

Why do I need to write the check or money order to “David Keanu Sai” and to write “Aupuni Fund” in the memo of the check?

Money derived from the sale of HK Bonds can only be spent on a line-item of the 1886 Budget Act, which is referred to by the term “Aupuni Fund.” Aupuni in the Hawaiian language is government. There is no line-item in the 1886 Budget for costs incurred in dealing with the American occupation, for example, the legal expenses for the arbitral proceedings at the Permanent Court of Arbitration from 1999-2001.

To comply with the 1886 Budget, there is a line-item for the annual salary of the Minister of the Interior set at $12,000.00 dollars. In 1886, $12,000.00 is equivalent in purchasing power to about $396,160.85 today, which is an increase of $384,160.85 over 138 years. Therefore, the sale of HK Bonds goes to the line-item salary of David Keanu Sai as Minister of the Interior, which cannot exceed $396,160.85 per year. From his salary, the Minister of the Interior can cover costs incurred regarding bringing compliance with international humanitarian law and the law of occupation.

Are HK Bonds taxable?

No. According to Section 2 of the 1886 Bonds Act, "Said bonds shall be exempt from any taxes whatsoever and shall bear interest payable semi-annually at the rate of not more than six per centum per annum and shall be redeemable not less than five nor more than twenty years after the date of their issue, the principal and interest to be paid in gold coin of the United States or its equivalent." The current U.S. dollar is the equivalent today to the U.S. gold coin in 1886.

Who can purchase an HK bond?

Any person, irrespective of nationality, can purchase an HK bond(s). Persons include corporations, companies or trusts.

How is the earnings rate of an HK bond determined?

There is a fixed rate of return, which remains the same throughout the life of the bond.

Is a HK bond inheritable?

Yes. The person or persons named on the bond is part of the bondholder's estate and is regulated by the Hawaiian laws of inheritance.

Can I give a HK bond as a gift?

Yes. When you purchase a HK bond as a gift for someone else, you must provide that person's full name and email address.

Can I ever lose money in HK bonds?

No. HK bonds are securities backed by the Hawaiian government. The interest rate is fixed and the redemption value of your HK bond cannot decline.

How are lost, stolen, or destroyed HK bonds replaced?

Before a new paper HK bond(s) can be reissued you must provide the bond(s) serial number. If you don't have the serial number please provide the full name on the bond, specific month and year of purchase, and the address for the owner of the HK bond.

Where can HK bonds be redeemed?

HK bonds can be redeemed at places to be announced by the Ministry of Finance.

When can I redeem an HK bond?

HK bonds can be redeemed within 1 year after the 5th year from the date when the United States of America's military occupation of the Hawaiian Islands has come to an end and that the Hawaiian government is in complete control in the exercising of its sovereignty.

In order to redeem HK bond(s), identification will be required that will link the person seeking to redeem the bond to the name(s) on the bond.

Did other governments issue bonds with a conditional redemption similar to the Hawaiian Kingdom's bonds?

Yes. When the Irish Republic was fighting for their independence from Great Britain from 1919-1921, the Irish government sold bonds with the following condition, "Said Bond to bear interest at five percent per annum from the first day of the seventh month after the freeing of the territory of the Republic of Ireland from Britain's military control and said Bond to be redeemable at par within one year thereafter."