WILLIAM DONALD SCHAEFER, Governor Ch. 638

(C) BY MAKING A TRANSFER, THE TRANSFEROR INCORPORATES IN
THE DISPOSITION ALL THE PROVISIONS OF THIS SUBTITLE AND GRANTS TO
THE CUSTODIAN, AND TO ANY THIRD PERSON DEALING WITH A PERSON
DESIGNATED AS CUSTODIAN, THE RESPECTIVE POWERS, RIGHTS, AND
IMMUNITIES PROVIDED IN THIS SUBTITLE.

13-312.

(A)  A CUSTODIAN SHALL:

(1)  TAKE CONTROL OF CUSTODIAL PROPERTY;

(2)  REGISTER OR RECORD TITLE TO CUSTODIAL PROPERTY IF
APPROPRIATE; AND

(3)  COLLECT, HOLD, MANAGE, INVEST, AND REINVEST
CUSTODIAL PROPERTY.

(B)  (1) IN DEALING WITH CUSTODIAL PROPERTY, A CUSTODIAN
SHALL OBSERVE THE STANDARD OF CARE THAT WOULD BE OBSERVED BY A
PRUDENT PERSON DEALING WITH PROPERTY OF ANOTHER AND IS NOT
LIMITED BY ANY OTHER STATUTE RESTRICTING INVESTMENTS BY
FIDUCIARIES.

(2)   IF A CUSTODIAN HAS A SPECIAL SKILL OR EXPERTISE
OR IS NAMED CUSTODIAN ON THE BASIS OF REPRESENTATIONS OF A
SPECIAL SKILL OR EXPERTISE, THE CUSTODIAN SHALL USE THAT SKILL OR
EXPERTISE.

(3)  A CUSTODIAN, IN THE CUSTODIAN'S DISCRETION AND
WITHOUT LIABILITY TO THE MINOR OR THE MINOR'S ESTATE, MAY RETAIN
ANY CUSTODIAL PROPERTY RECEIVED FROM A TRANSFEROR.

(C)  A CUSTODIAN MAY INVEST IN OR PAY PREMIUMS ON LIFE
INSURANCE OR ENDOWMENT POLICIES ON:

(1)  THE LIFE OF THE MINOR ONLY IF THE MINOR OR THE
MINOR'S ESTATE IS THE SOLE BENEFICIARY; OR

(2)  THE LIFE OF ANOTHER PERSON IN WHOM THE MINOR HAS
AN INSURABLE INTEREST ONLY TO THE EXTENT THAT THE MINOR, THE
MINOR'S ESTATE, OR THE CUSTODIAN IN THE CAPACITY OF CUSTODIAN, IS
THE IRREVOCABLE BENEFICIARY.

(D)  (1) A CUSTODIAN AT ALL TIMES SHALL KEEP CUSTODIAL
PROPERTY SEPARATE AND DISTINCT FROM ALL OTHER PROPERTY IN A
MANNER SUFFICIENT TO IDENTIFY IT CLEARLY AS CUSTODIAL PROPERTY OF
THE MINOR.

(2) CUSTODIAL PROPERTY CONSISTING OF AN UNDIVIDED
INTEREST IS SO IDENTIFIED IF THE MINOR'S INTEREST IS HELD AS A
TENANT IN COMMON AND IS FIXED.

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