2006 New York Code - Care Of Custodial Property

 
    § 7-6.12 Care of custodial property
    (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)  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  and is specifically authorized to delegate
  investment and management functions  in  the  manner  of  a  trustee  as
  provided  in  section  11-2.3.  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. However, 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) 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.  Custodial  property
  consisting  of certificated securities may be held on deposit at a stock
  brokerage firm or a financial institution registered in a street name or
  nominee name. 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. Custodial property subject to recordation is so identified  if
  it  is  recorded,  and  custodial property subject to registration is so
  identified if it is either registered, or held in an account designated,
  in the name of the custodian, followed in substance by the words: "as  a
  custodian  for_______________(name  of minor) under the New York Uniform
  Transfers to Minors Act."
    (e) A custodian shall keep records of all transactions with respect to
  custodial property, including information necessary for the  preparation
  of the minor's tax returns, and shall make them available for inspection
  at reasonable intervals by a parent or legal representative of the minor
  or by the minor if the minor has attained the age of fourteen years.