Page:United States Statutes at Large Volume 79.djvu/788

 748

PUBLIC LAW 89-183-SEPT. 14, 1965

[79 STAT.

(j) Where the subject of the gift is a life insurance or annuity contract, the custodian has all the incidents of ownership in the contract which he may hold as custodian to the same extent as if he were the owner thereof personally. The designated beneficiary of contract held by a custodian shall be the minor or, in the event of his death, the minor's estate. § 21-305. Compensation of custodian or guardian; bond; liability of custodian serving without compensation (a) A custodian is entitled to reasonable compensation for his services and to reimbursement from the custodial property for his reasonable expenses incurred in the performance of his duties, but may act without compensation. (b) Compensation for a guardian or custodian shall be according to: (1) any direction of the donor when the gift is made, where it is not in excess of a statutory limitation of the District of Columbia for guardians or custodians; (2) any statute of the District of Columbia applicable to custodians or guardians; (3) any order of the court. (c) A custodian may not be required to give a bond for the performance of his duties. (d) A custodian not compensated for his services is not liable for losses to the custodial property unless they result from his bad faith, intentional wrongdoing, or gross negligence, or from his failure to maintain the standard of prudence in investing the custodial property prescribed by this chapter. § 21-306. Exemption of third persons from liability An issuer, transfer agent, bank, broker, insurance company, or other person acting on the instructions of or otherwise dealing with a person purporting to act as a donor or in the capacity of a custodian is not responsible for determining whether the person designated by the purported donor or purporting to act as a custodian has been duly designated or whether a purchase, sale, or transfer to or by or other act of a person purporting to act in the capacity of custodian is in accordance with or authorized by this chapter, and is not obliged to inquire into the validity of propriety under this chapter of an instrument or instructions executed or given by a person purporting to act as a donor or in the capacity of a custodian, and is not bound to see to the application by any person purporting to act in the capacity of a custodian of any money or other property paid or delivered to him. §21-307. Successor custodians; eligibility; rights, powers, and duties; manner of resignation; removal (a) Only an adult, a guardian of the minor, or a trust company is eligible to become a successor custodian. A successor custodian has all the rights, powers, duties, and immunities of a custodian designated in the manner prescribed by this chapter. (b) A custodian, other than the donor, may resign and designate his successor by: (1) executing an instrument of resignation designating the successor custodian; and (2) causing each security which is custodial property and in registered form and each life insurance or annuity contract to be registered in the name of the successor custodian followed, in sub-

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