CHAPTER 55

An Act to amend and reenact §§ 81-26 through 81-29 of the Code of
Virginia, so as to permit a savings and loan association to act as
custodian under the Uniform Gifts to Minors Act. 9

[S 62]

Approved February 20, 1964

Be it enacted by the General Assembly of Virginia:

1. That §§ 31-26 through 31-29 of the Code of Virginia be amended
and reenacted as follows:

§ 31-26. In this chapter, unless the context otherwise requires:

(a) An “adult” is a person who has attained the age of twenty-one
years.
(b) A “bank” is any bank, trust company or bank and trust com-
pany, whether State or national, authorized by law to exercise trust
powers and to take, accept and execute trusts of a fiduciary character.

(c) A “broker” is a person lawfully engaged in the business of
effecting transactions in securities for the account of others. The term
includes a bank which effects such transactions. The term also includes
a2 person lawfully engaged in buying and selling securities for his own
account, through a broker or otherwise, as a part of a regular business.

(d) “Court” means the court having appropriate equity jurisdiction.

(e) “The custodial property” includes:

(1) all securities and money under the supervision of the same
custodian for the same minor as a consequence of a gift or gifts made
to the minor in a manner prescribed in this chapter;

(2) the income from the custodial property; and

(3) the proceeds, immediate and remote, from the sale, exchange,
conversion, investment, reinvestment or other disposition of such securi-
ties, money and income.
(f) A “custodian” is a person so designated in a manner prescribed
in this chapter.

(¢g) A “guardian” of a minor includes the natural guardian, guard-
ian, committee or curator of his property, estate or person.

(h) An “issuer” is a person who places or authorizes the placing of
his name on a security (other than as a transfer agent) to evidence that
it represents a share, participation or other interest in his property or
in an enterprise or to evidence his duty or undertaking to perform an
obligation evidenced by the security, or who becomes responsible for or
in place of any such person.

(i) A “legal representative” of a person is his executor or the ad-
ministrator, guardian, committee, conservator or curator of his property
or estate.

(j) A “member” of a “minor’s family” means any of the minor’s
parents, grandparents, brothers, sisters, uncles and aunts, whether of
the whole blood or the half blood, or by or through legal adoption.

(k) A “minor” is a person who has not attained the age of twenty-
one years.

(1) A “security” includes any note, stock, treasury stock, bond,
debenture, evidence of indebtedness, certificate of interest or participation
in an oil, gas or mining title or lease or in payments out of production
under such a title or lease, collateral trust certificate, transferable share,
voting trust certificate or, in general, any interest or instrument com-
monly known as a security, or any certificate of interest or participation
in, any temporary or interim certificate, receipt or certificate of deposit
for, or any warrant or right to subscribe to or purchase, any of the
foregoing. The term does not include a security of which the donor is
the issuer. A security is in “registered form’ when it specifies a person
entitled to it or to the rights it evidences and its transfer may be regis-
tered upon books maintained for that purpose by or on behalf of the
issuer.

(m) A “transfer agent” is a person who acts as authenticating
trustee, transfer agent, registrar or other agent for an issuer in the
registration of transfers of its securities or in the issue of new securities
or in the cancellation of surrendered securities.

(n) A “trust company” is a bank authorized to exercise trust power
in this State.

(o) A “savings and loan association” 1s a savings and loan asso-
ciation incorporated under the laws of Virginia or under the laws of
the United States and authorized to conduct its business as a savings and
loan association in Virginia.

§ 81-27. (a) An adult person may, during his lifetime, make a
gift of a security or money to a person who is a minor on the date of
the gift:

(1) If the subject of the gift is a security in registered form, by
registering it in the name of the donor, another adult person or a trust
company, followed, in substance, by the words: “as custodian for (name
Of MINOL) ........ccceessececeeesscccceeessecceseeeees under the Virginia Uniform Gifts to
Minors Act”;

(2) If the subject of the gift is a security not in registered form,
by delivering it to an adult person other than the donor or a trust com-
pany, accompanied by a statement of gift in the following form, in sub-
stance, signed by the donor and the person designated as custodian:
“GIFT UNDER THE VIRGINIA UNIFORM GIFTS TO MINORS ACT
I, (name Of GONOL) ........cccccceeeesseeeeseeeeeeeeees hereby deliver to (name of cus-
tOGIAN) ....ccecssceeesesceceeeeeees as custodian for (name of minor) ....................... .
under the Virginia Uniform Gifts to Minors Act, the following security
(ies): (insert an appropriate description of the security or securities
delivered sufficient to identify it or them) (signature of donor) .............
(mame Of CUStOdIAN) ............cccessccctssseceeessreeees hereby acknowledges receipt
of the above described security (ies) as custodian for the above minor
under the Virginia Uniform Gifts to Minors Act. Dated devececcssceccussccseeasses
(signature Of CUSTOCIAN) ............ccccssecccsscscccesssecesseceseees

(3) If the subject of the gift is money, by paying or delivering it
to a broker or a bank or savings and loan association for credit to an
account in the name of the donor, another adult person or a bank with
trust powers, followed, in substance, by the words: “as custodian for
(Mame Of MINOM) .............cceceeeecccsesccsscccesscccescsees under the Virginia Uniform
Gifts to Minors Act’’.

(b) Any gift made in a manner prescribed in subsection (a) may
be made to only one minor and only one person may be the custodian.

(c) A donor who makes a gift to a minor in a manner prescribed
in subsection (a) shall promptly do all things within his power to put
the subject of the gift in the possession and control of the custodian,
but neither the donor’s failure to comply with this subsection, nor his
designation of an ineligible person as custodian, nor renunciation by the
person designated as custodian affects the consummation of the gift.

§ 31-28. (a) A gift made in a manner prescribed in this chapter is
irrevocable, but no guardian of the minor has any right, power, duty or
authority with respect to the custodial property except as provided in
this chapter.

(b) By making a gift in a manner prescribed in this chapter, the
donor incorporates in his gift all the provisions of this chapter and
grants to the custodian, and to any issuer, transfer agent, bank or savings
and loan association, broker or third person dealing with a person desig-
nated as custodian, the respective powers, rights and immunities pro-
vided in this chapter.

§ 31-29. (a) The custodian shall collect, hold, manage, invest and
reinvest the custodial property.

(b) The custodian shall pay over to the minor for expenditure by
him, or expend for the minor’s benefit, so much of or all the custodial
property as the custodian deems advisable for the support, maintenance,
education and benefit of the minor in the manner, at the time or times,
and to the extent that the custodian in his discretion deems suitable and
proper, with or without court order, with or without regard to the duty
of himself or of any other person to support the minor or his ability to
do so, and with or without regard to any other income or property of
the minor which may be applicable or available for any such purpose.

(c) The court, on the petition of a parent or guardian of the minor
or of the minor, if he has attained the age of fourteen years, may order
the custodian to pay over to the minor for expenditure by him or to
expend so much of or all the custodial property as is necessary for the
minor’s support, maintenance or education.

(d) To the extent that the custodial property is not so expended,
the custodian shall deliver or pay it over to the minor on his attaining
the age of twenty-one years or, if the minor dies before attaining the age
of twenty-one years, he shall thereupon deliver or pay it over to the
estate of the minor.

(e) The custodian, notwithstanding statutes restricting investments
by fiduciaries, shall invest and reinvest the custodial property as would
a prudent man of discretion and intelligence who is seeking a reasonable
income and the preservation of his capital, except that he may, in his
discretion and without liability to the minor or his estate, retain a
security given to the minor in a manner prescribed in this chapter.

(f) The custodian may sell, exchange, convert or otherwise dispose
of custodial property in the manner, at the time or times, for the price
or prices and upon the terms he deems advisable. He may vote in person
or by general or limited proxy a security which is custodial property.
He may consent, directly or through a committee or other agent, to the
reorganization, consolidation, merger, dissolution or liquidation of an
issuer, a security of which is custodial property, and to the sale, lease,
pledge or mortgage of any property by or to such an issuer, and to any
other action by such an issuer. He may execute and deliver any and
all instruments in writing which he deems advisable to carry out any of
his powers as custodian.

(g) The custodian shall register each security which is custodial
property and in registered form in the name of the custodian, followed,
in substance, by the words: ‘as custodian for (name of minor) ............
sensceeueccecceeasssescassesceeesses under the Virginia Uniform Gifts to Minors Act.”
The custodian shall hold all money which is custodial property in an
account with a broker or in a bank or a savings and loan association
in the name of the custodian, followed, in substance, by the words: “as
custodian for (name Of MINOL) 2............ceeeessecceeessscceeeeeeees under the Virginia
Uniform Gifts to Minors Act’’. The custodian shall keep all other cus-
todial property separate and distinct from his own property in a manner
to identify it clearly as custodial property.

(h) The custodian shall keep records of all transactions with respect
to the custodial property and make them available for inspection at
reasonable intervals by a parent or legal representative of the minor
or by the minor, if he has attained the age of fourteen years.

(i) A custodian has and holds as powers in trust, with respect to
the custodial property, in addition to the rights and powers provided in
this chapter, all the rights and powers which a guardian has with respect
to property not held as custodial property.