WILLIAM DONALD SCHAEFER, Governor                           S.B. 727

A SECURITY, WHETHER EVIDENCED BY CERTIFICATE OR ACCOUNT, IS
REGISTERED IN BENEFICIARY FORM WHEN THE REGISTRATION INCLUDES A
DESIGNATION OF A BENEFICIARY TO TAKE THE OWNERSHIP AT THE DEATH OF THE
OWNER OR THE DEATHS OF ALL MULTIPLE OWNERS.

16-105. FORM OF REGISTRATION IN BENEFICIARY FORM.

REGISTRATION IN BENEFICIARY FORM MAY BE SHOWN BY THE WORDS
"TRANSFER-ON-DEATH" OR THE ABBREVIATION "TOD", OR BY THE WORDS "PAY
ON DEATH" OR THE ABBREVIATION "POD", AFTER THE NAME OF THE REGISTERED
OWNER AND BEFORE THE NAME OF A BENEFICIARY.

16-106. EFFECT OF REGISTRATION IN BENEFICIARY FORM.

THE DESIGNATION OF A TOD BENEFICIARY ON A REGISTRATION IN
BENEFICIARY FORM HAS NO EFFECT ON OWNERSHIP UNTIL THE OWNER'S DEATH. A
REGISTRATION OF A SECURITY IN BENEFICIARY FORM MAY BE CANCELED OR
CHANGED AT ANY TIME BY THE SOLE OWNER OR ALL THEN SURVIVING OWNERS
WITHOUT THE CONSENT OF THE BENEFICIARY.

16-107. OWNERSHIP ON DEATH OF OWNER.

ON DEATH OF A SOLE OWNER OR THE LAST TO DIE OF ALL MULTIPLE OWNERS,
OWNERSHIP OF SECURITIES REGISTERED IN BENEFICIARY FORM PASSES TO THE
BENEFICIARY OR BENEFICIARIES WHO SURVIVE ALL OWNERS. ON PROOF OF DEATH
OF ALL OWNERS AND COMPLIANCE WITH ANY APPLICABLE REQUIREMENTS OF THE
REGISTERING ENTITY, A SECURITY REGISTERED IN BENEFICIARY FORM MAY BE
REREGISTERED IN THE NAME OF THE BENEFICIARY OR BENEFICIARIES WHO
SURVIVED THE DEATH OF ALL OWNERS. UNTIL DIVISION OF THE SECURITY AFTER
THE DEATH OF ALL OWNERS, MULTIPLE BENEFICIARIES SURVIVING THE DEATH OF
ALL OWNERS HOLD THEIR INTERESTS AS TENANTS IN COMMON. IF NO BENEFICIARY
SURVIVES THE DEATH OF ALL OWNERS, THE SECURITY BELONGS TO THE ESTATE OF
THE DECEASED SOLE OWNER OR THE ESTATE OF THE LAST TO DIE OF ALL
MULTIPLE OWNERS.

16-108. PROTECTION OF REGISTERING ENTITY.

(A)     A REGISTERING ENTITY IS NOT REQUIRED TO OFFER OR TO ACCEPT A
REQUEST FOR SECURITY REGISTRATION IN BENEFICIARY FORM. IF A
REGISTRATION IN BENEFICIARY FORM IS OFFERED BY A REGISTERING ENTITY, THE
OWNER REQUESTING REGISTRATION IN BENEFICIARY FORM ASSENTS TO THE
PROTECTIONS GIVEN TO THE REGISTERING ENTITY BY THIS TITLE.

(B)     BY ACCEPTING A REQUEST FOR REGISTRATION OF A SECURITY IN
BENEFICIARY FORM, THE REGISTERING ENTITY AGREES THAT THE REGISTRATION
WILL BE IMPLEMENTED ON DEATH OF THE DECEASED OWNER AS PROVIDED IN THIS
TITLE.

(C)     A REGISTERING ENTITY IS DISCHARGED FROM ALL CLAIMS TO A
SECURITY BY THE ESTATE, CREDITORS, HEIRS, OR DEVISEES OF A DECEASED
OWNER IF IT REGISTERS A TRANSFER OF THE SECURITY IN ACCORDANCE WITH
SECTION 7 § 16-107 OF THIS TITLE AND DOES SO IN GOOD FAITH RELIANCE (I) ON THE

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