562                               LAWS OF MARYLAND                        [CH. 235

except that the designated beneficiary of any policy or contract on
the life of the minor shall be the minor's estate and the designated
beneficiary of any policy or contract on the life of a person other
than the minor shall be the custodian as custodian for the minor for
whom he is acting; and

(2) may pay premiums on the policy or contract out of the
custodial property.

218.    Exemption of third persons from liability.

No issuer, transfer agent, bank, life insurance company, broker or
other person or financial institution acting on the instructions of or
otherwise dealing with any person purporting to act as a donor or
in the capacity of a custodian is responsible for determining whether
the person designated as custodian by the purported donor or by the
custodian or purporting to act as [a] custodian has been duly desig-
nated or whether any purchase, sale or transfer to or by or any
other act of any person purporting to act in the capacity of custodian
is in accordance with or authorized by this subtitle, or is obliged to
inquire into the validity or propriety under this subtitle of any
instrument or instructions executed or given by a person purporting
to act as a donor or in the capacity of a custodian, or is 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.

219.    Resignation, death or removal of custodian; Bond; [Appoint-
ment] Designation of successor custodian.

(a)    Only an adult member of the minor's family, a guardian of
the minor or a trust company is eligible to become successor custo-
dian. A custodian may designate his successor by executing and
dating an instrument of designation before a subscribing witness
other than the successor; the instrument of designation may but
need not contain the resignation of the custodian. A successor
custodian has all the rights, powers, duties and immunities of a
custodian designated in a manner prescribed by this subtitle.

(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] The designation of a successor custodian
as provided in subsection (a) takes effect as to each item of the
custodial property when the custodian resigns, dies or becomes legally
incapacitated and the custodian or his legal representative:

[(2) Causing each] (1) causes the item, if it is a security
[which is custodial property and] in registered form or a life in-
surance policy or annuity contract, to be registered, with the issuing
insurance company in the case of a life insurance policy or annuity
contract, in the name of the successor custodian followed, in sub-
stance, by the words: "as custodian for ............................................

(name of minor)

under the Maryland Uniform Gifts to Minors Act";
and

[(3) Delivering] (2) delivers or causes to be delivered to the
successor custodian [the instrument of resignation, each security
registered in the name of the successor custodian and all] any other