WILLIAM DONALD SCHAEFER, Governor

S.B. 442

(VI)    THE REASONABLENESS OF ANY COSTS ASSOCIATED WITH THE
INVESTMENT; AND

(VII)  THE STATUS OF RELATED ASSETS OF BENEFICIARIES.

(D)     TO THE EXTENT THAT ANY PROVISION OF THIS SECTION IS INCONSISTENT
WITH THE TERMS OF A GOVERNING INSTRUMENT, THE TERMS OF THE GOVERNING
INSTRUMENT SHALL CONTROL.

(E)     IF MORE THAN ONE PERSON HAS INVESTMENT AUTHORITY OVER
FIDUCIARY ASSETS, THIS SECTION SHALL APPLY IF ANY OF THOSE PERSONS IS A
FIDUCIARY.

(F)      NOTHING IN THIS SECTION SHALL ABROGATE OR RESTRICT THE POWER
OF A COURT TO:

(1)      DIRECT OR PERMIT A FIDUCIARY TO DEVIATE FROM THE TERMS OF
A GOVERNING INSTRUMENT; OR

(2)      DIRECT OR PERMIT A FIDUCIARY TO TAKE, OR TO RESTRAIN A
FIDUCIARY FROM TAKING, ANY ACTION REGARDING THE MAKING OR RETENTION
OF INVESTMENTS.

(G)     THIS SECTION SHALL APPLY TO ANY PERSON WHO:

(1)      IS A TRUSTEE, GUARDIAN, CONSERVATOR, COMMITTEE,
CUSTODIAN UNDER THE MARYLAND UNIFORM TRANSFERS TO MINORS ACT,
INVESTMENT MANAGER, OR INVESTMENT ADVISOR; AND

(2)      FILES WITH THE STATE BANK COMMISSIONER A STATEMENT THAT
THE PERSON ELECTS TO HAVE THIS SECTION APPLY TO ALL FIDUCIARY ASSETS
CONTROLLED BY THE PERSON.

13-312.

(b) (1) [In] EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION,
IN dealing with custodial property[, a]:

(I) 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[.];

[(2)] (II) 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 [.]; AND

[(3)] (III) 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.

(2) A FIDUCIARY SUBJECT TO § 15-114 OF THIS ARTICLE SHALL COMPLY
WITH THAT SECTION IN DEALING WITH CUSTODIAL PROPERTY.

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