188

LAWS OF MARYLAND

[Ch. 11

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
PROVIDED IN THIS SUBTITLE.

13-306. 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 CUSTODIAN HAS BEEN DULY DESIGNATED OR WHETHER ANY
PURCHASE, SALE, OR TRANSFER TO OR BY OR ANY OTHER ACT OF
ANY PERSON SUPPORTING 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 SHIS 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.

13-307. RESIGNATION, DEATH, INELIGIBILITY, INCAPACITY OR
REMOVAL OF CUSTODIAN; SUCCESSOR CUSTODIAN.

(A) ELIGIBILITY TO BECOME SUCCESSOR CUSTODIAN;
MANNER OF DESIGNATING SUCCESSOR CUSTODIAN; POWERS OF
SUCCESSOR CUSTODIAN.

ANY ADULT OR TRUST COMPANY ELIGIBLE TO BECOME A
CUSTODIAN SHALL ALSO BE ELIGIBLE TO BECOME SUCCESSOR
CUSTODIAN. A CUSTODIAN MAY DESIGNATE HIS SUCCESSOR BY
AND DATING AN INSTRUMENT OF DESIGNATION BEFORE
WITNESS OTHER THAN THE SUCCESSOR; THE
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) WHEN DESIGNATION TAKES EFFECT.

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 INCAPACITATES AND THE CUSTODIAN OR HIS
LEGAL REPRESENTATIVE:

EXECUTING

A SUBSCRIBING

INSTRUMENT OF

(1) CAUSES THE ITEM, IF IT IS A SECURITY IN