An Act to amend and reenact § 46.1-299, as amended, of the Code of Virginia, relating to devices signalling intention to turn or stop and rules therefor.
Volume 1968 Law 99
Volume | 1956 |
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Law Number | 226 |
Subjects |
Law Body
CHAPTER 226
AN ACT to amend the Code of Virginia by adding to Title 81 thereof a
new chapter immediately following Chapter 8, to be designated as
Chapter 4 and containing seven sections numbered 81-19 through
81-25, relating to gifts of securities to minors. [H 6]
Approved March 5, 1956
Be it enacted by the General Assembly of Virginia:
1. That the Code of Virginia be amended by adding to Title 81 thereof
a new chapter immediately following Chapter 8, to be designated as
pape 4 and containing seven sections numbered 31-19 through 31-25, as
ollows:
Chap 4
§ 31-19. This chapter may be cited as the “Gift of Securities to
Minors Law” of Virginia.
§ 31-20. (1) The term “Securities” or “Security” shall include any
note, stock, bond, debenture, evidence of indebtedness, collateral trust
certificate, transferable share, voting trust certificate, certificate of de-
posit for a security or, in general, any interest or instrument commonly
known as a security, or any certificate of interest or participation in, tem-
porary or interim certificate for, or warrant or right to subscribe to or
purchase, any of the foregoing.
(2) A security is in “registered form” when its terms specify a
person entitled to the security or to the rights it evidences and specify
that its transfer may be registered upon books maintained for that pur-
pose by or on behalf of an issuer.
(3) A security is in “bearer form” when it runs to bearer according
to its terms and not by reason of any endorsement.
(4) The term “minor’s family” as used in this chapter means 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.
(5) The term “legal representative’ as used in this chapter means,
as may be appropriate in the circumstances, the executor, administrator,
general guardian, or committee of the property of the person to whose
legal representative reference is made.
(6) The term “guardian of the minor’ as used in this chapter means
a guardian of the person or a guardian of the property of the minor, duly
appointed in the State of Virginia or in the state, territory or country
where the minor was domiciled at the time of such appointment.
CH. 226} ACTS OF ASSEMBLY 245
§ 31-21. (1) Any adult person may make a gift of securities to a
person who has not attained the age of twenty-one years on the date of
the gift (hereinafter referred to as the “minor’) in the following manner:
_ . (a) Securities, if in registered form, shall be registered by the donor
in his own name or in the name of any adult member of the minor’s family
or in the name of any guardian of the minor, followed by the words “as
custodian, fOr noe eeneneney & Minor under the laws of
. (name of minor)
Virginia.”
(b) Securities, if in bearer form, shall be delivered by the donor to
any adult member of the minor’s family, other than the donor, or to any
guardian of the minor, accompanied by a deed of gift duly acknowledged
in substantially the following form, signed by the donor and the person
designated therein as custodian:
“DEED OF GIFT
sd cee » GO hereby Geliver tO nan aneceeeeescenesssnssssnsesssesssneensnees
(name of donor) (name of custodian)
as custodian for —.W......................., &@ minor under the laws of Virginia,
(name of minor)
the following security (ies) : Principal amount $......2.:-sccccccceenene , of the
eng aecaaaeno eC ecereeenceeeeretmecnb a Serial mumber Of SQCULItY.........ccccccecccccee eee
(Description of security)
or
Certificate NO. oe nececcecccmcseny T@PYOSCMEHNG oe ececseccsccsecceecseeeceeeeectnceneven shares
Of the nn ereeeninrrrtrrerrernee SHOCK of
(class or type of stock)
LS
a
Teena eee sete GO hereby acknowledge receipt of
(name of custodian)
the above described security (ies).
(Signature of custodian)
DDT: F<: een
(c) The person designated as a custodian under this section is here-
inafter called “the custodian”.
(2) A gift made in the manner prescribed in subdivision (1) of this
section shall be irrevocable and shall convey to the minor indefeasibly
vested legal title to the securities thus delivered, but no guardian of the
the person or property of the minor shall have any rights, duties or
authority with respect to any property held at any time by the custodian
under the authority of this chapter unless said guardian shall himself be
or become custodian in accordance herewith.
§ 31-22. (1) (a) The custodian shall hold, manage, invest and re-
invest the property held by him as custodian, including any unexpended
income therefrom and the proceeds of sale thereof, as hereinafter pro-
vided. He shall collect the income therefrom and apply so much or the
whole thereof and so much or the whole of the other property held by
him as custodian as he may deem advisable for the support, maintenance,
education and benefit of the minor. To the extent that property held by
the custodian and the income thereof is not so expended, it shall be deliv-
ered or paid over to the minor upon the minor’s attaining the age of
twenty-one years, and in the event that the minor dies before attaining
the age of twenty-one years it shall thereupon be delivered or paid over
to the estate of the minor.
(b) The custodian may sell, exchange, convert, or otherwise dispose
of any and all of the securities or other property held by him in such
manner and at such time or times, for such prices and upon such terms
as he may deem advisable; he shall have the power in his sole and abso-
lute discretion to retain any and all securities delivered to him within the
meaning and under the authority of this section without reference to the
statutes relating to permissible investments by fiduciaries; he shall invest
the minor’s property in such securities as would be acquired by prudent
men of discretion and intelligence who are seeking a reasonable income
and the preservation of their capital without reference to the statutes
relating to permissible investments by fiduciaries or hold part or all of
the same in one or more bank accounts in his name as such custodian;
he may vote in person or by general or limited proxy with respect to any
securities held by him; he may consent directly or through a committee
or other agent to the reorganization, consolidation, merger, dissolution or
liquidation of any corporations, the securities of which may be held by
him, or to the sale, lease, pledge or mortgage of any property by or to
any such corporation. ;
(c) In addition to the foregoing rights, powers and duties with
respect to any securities or other property held by the custodian, the
custodian, in his name as such custodian, shall have all the powers of
management which a guardian of the property of the minor would have.
(d) The custodian may execute and deliver any and all instruments
in writing which he may deem advisable to carry out any of the foregoing
powers. No issuer of securities, transfer agent, registrar or bank or other
person acting on the instructions of any person purporting to be a
custodian or donor shall be responsible for determining whether any
person has been duly designated as a custodian under this chapter, or
whether any purchase, sale or transfer to or by any person as custodian
is in accordance with or authorized by this chapter, or shall be obliged
to inquire into the validity under this chapter of any instrument or
instructions executed or given by a person purporting to act as custodian
or donor, or be bound to see to the application by any person purporting
to act as custodian of any money or other property paid or delivered to
him. All registered securities held by the custodian from time to time shall
be registered in his name followed by the words “as custodian for
eessunasceneessunssssseessnussssesemunssseseessnssestenstunnnsceseesnanasananeseunese , 4 minor under the laws of Virginia.”
(name of minor)
All other property held by the custodian for the minor under the authority
of this chapter shall be kept separate and distinct from the custodian’s
own personal funds and property and shall be maintained at all times in
such a manner as to identify it clearly as the minor’s property held by
the custodian under the authority of this chapter.
(2) A person acting as custodian, other than a guardian of the prop-
erty of the minor, shall receive no compensation for his services but shall
be entitled to reimbursement from the property held by him as custodian
for the reasonable expenses incurred in the performance of his duties
hereunder. A guardian of the property of the minor, when acting as
custodian under the authority of this chapter, may receive such additional
compensation for his services as guardian as he would be entitled to
receive if the property held by him as custodian hereunder were held by
him in his capacity as guardian, in addition to the other property of the
minor held by him in that capacity.
(3) A custodian who is not compensated for acting as such shall be
under no obligation to give bond for the faithful performance of his duties
and shall not be liable for any losses to the property held by him except
such as are the result of his bad faith or intentional wrongdoing or result
CHS. 226, 227] ACTS OF ASSEMBLY 247
from his investing the minor’s property in a manner other than as pre-
scribed in paragraph (b) of subdivision (1) of this section.
§ 31-23. (1) No one other than an adult member of the minor's
family or a guardian of the minor shall be eligible to become a successor
custodian hereunder.
(2) A custodian may petition the court of record of the county or
city having jurisdiction of the minor, on such notice as the court may
require, for permission to resign, and for the appointment of a successor
custodian.
(3) The donor, a parent of the minor or a guardian of the minor
may at any time present to the court of record having jurisdiction of the
minor a petition alleging that removal of the custodian will be in the
best interests of the minor and, on such notice as the court may require,
praying for an order requiring such custodian to show cause why he
should not be removed. The court shall remove the custodian and appoint
a successor custodian if it finds that such action will be in the best in-
terests of the minor.
(4) In the event of the death of a custodian before the minor attains
the age of twenty-one years, the legal representative of the last acting
custodian, the donor, a guardian of the minor or any adult member of
the minor’s family may petition the court of record having jurisdiction
of the minor, on such notice as the court may require, for the appointment
of a successor custodian.
(5) When any petition is made under this section the court may
require the custodian or his legal representative to account for the custo-
dian’s acts and proceedings and may order the custodian or his legal
representative to deliver all property held by the custodian as such to the
‘duly appointed successor custodian and to execute all instruments neces-
sary to complete effective delivery of such property to the successor
custodian.
(6) Any successor custodian shall have the rights, powers and duties
of a custodian under the authority of this chapter.
§ 31-24. A minor after attaining the age of twenty-one years, a
parent of the minor, a legal representative of the minor, or a successor
custodian may petition the court of record having jurisdiction of the
minor for an accounting by the custodian of his acts and proceedings
as custodian. A custodian may not be required to account more than one
year after the delivery or payment of the property held by the custodian
to the minor after he has attained the age of twenty-one years, or to the
estate of the minor, as required by subdivision (1) (a) of § 31-22.
§ 31.25 This chapter shall not be construed as providing an ex-
clusive method for making gifts of securities to minors.
All acts and parts of acts in conflict with this act are hereby repealed.