MARVIN MANDEL, Governor                          129

out of which the claim, action, or judgment arises; or any person
under legal age who actually resides in Maryland at the time
money is paid to him or to any person acting for him because of
a claim, action, or judgment in tort.

(b)    "Net sum" means the net amount due the minor or to any
person acting for him after the deduction of the attorney's fee and
expenses. If the minor is not represented by an attorney, then it
means the amount paid to the minor or to any person acting for him,
by any defendant, insurer, or the State of Maryland under the pro-
visions of the Unsatisfied Claims and Judgment Fund Law.

(c)    "The person responsible for the payment of the money"
means:

(1)    If the minor or any person acting for him is represented by
an attorney, such attorney.

(2)    If the minor or any person acting for him is not represented
by an attorney, any defendant, insurer, or the State of Maryland
under the provisions of the Unsatisfied Claims and Judgment Fund
Law.

Subtitle 5
Miscellaneous Provisions Relating to Minors

501. Facility of Payment.

(a)    Any person under a duty to pay or deliver money or tangible
chattels to a minor may perform such duty, in amounts or values not
exceeding $5,000 per annum, by paying or delivering the money or
chattels to the minor, if he has attained the age of 18 years or is
married, but if he has not attained the age of 18 years or is not mar-
ried, to the guardian of the minor if the person making the payment
or delivery has actual knowledge that there is a guardian, and if
there be no such guardian (or if the pay or has no such knowledge),
to the parent or grandparent of the minor with whom the minor re-
sides, and if there be none, to a financial institution incident to a
deposit in a federal or state insured savings account in the sole
name of such minor which the minor does not, without a Court or-
der, have the power to withdraw, until he attains his majority. A
payor shall not be under any duty to inquire whether the minor has
a guardian. The persons, other than the minor or any such financial
institution receiving money or property for a minor, are obligated to
apply the money to the support and education of the minor, may not
pay themselves except by way of reimbursement for out-of-pocket
expenses for goods and services furnished by others which are neces-
sary for the minor's support. Any excess sums shall be preserved
for future support of the minor and any balance not so used and any
tangible chattels received for the minor shall be turned over to the
minor when he attains majority. Persons owing money or property
to minors who pay or deliver it in accordance with this Section 501
shall not be responsible for the proper application thereof. A re-
lease for any distribution under this Section 501 shall be a valid
release.

(b)    Whenever money is distributable from a trust or estate or