Page:United States Statutes at Large Volume 76A.djvu/195

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–99–

-99(d) Except as otherwise provided in this subchapter, a custodian shall not be required to give a bond for the performance of his duties. (e) A custodian not compensated for his services is not 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 subchapter. § 686. Exemption of third persons from liability No issuer, transfer agent, bank, savings and loan association, broker or other person acting on the instructions of or otherwise dealing with a person purporting to act as a donor or in the capacity of a custodian is not responsible for determining whether the person designated by the purported donor or purporting to act as a custodian has oeen duly designated or whether a purchase, sale or transfer to or by or any other act of a person purporting to act in the capacity of custodian is in accordance with or authorized by this subchapter, and is not obliged to inquire into the validity or propriety under this subchapter of an instrument or instructions executed or given by a person purporting to act as a donor or in the capacity of a custodian, is not bound to see to the application by a person purporting to act in the capacity of a custodian of money or other property paid or delivered to him. § 687. Resignation, death, or removal of custodian; bond; appointment of successor custodian (a) Only an adult member of the minor's family, a guardian of the minor or a trust company is eligible to become successor custodian. A successor custodian has all the rights, powers, duties and immunities of a custodian designated in a manner prescribed by this subchapter. (b) A custodian, other than the donor, may resign and designate his successor by: (1) executing an instrument of resignation designating the successor custodian; and (2) causing each security which is custodial property and in registered form to be registered in the name of the successor custodian followed, in substance, by the words: "as custodian for under the Canal Zone Uniform Gifts to (name of minor) Minors Act"; and (3) delivering to the successor custodian the instrument of resignation, each security registered in the name of the successor custodian and all other custodial property, together with any additional instruments required for the transfer thereof. (c) A custodian, whether or not a donor, may petition the court for permission to resign and for the designation of a successor custodian. (d) If the person designated as custodian is not eligible, renounces or dies before the minor attains the age of 21 years, uie guardian of the minor shall be successor custodian. If the minor has no guardian, a donor, his legal representative, the legal representative of the custodian, an adult member of the minor's family, or the minor, if he has attained the age of 14 years, may petition the court for the designation of a successor custodian. (e) A donor, the legal representative of a donor, an adult member of the minor's family, a guardian of the minor or the minor, if he has attained the age of 14 years, may petition the court that, for cause shown in the petition, the custodian be removed and a successor custodian be designated or, in the alternative, that the custodian be required to give bond for the performance of his duties. (f) Upon the filing of a petition as provided in this section, the court shall grant an order, directed to the persons and returnable