NORTH CAROLINA GENERAL ASSEMBLY
1965 SESSION

CHAPTER 992
SENATE BILL 393

AN ACT TO AMEND G.S. 33-71 RELATING TO DUTIES AND POWERS OF A CUSTODIAN UNDER THE NORTH CAROLINA UNIFORM GIFTS TO MINORS ACT.

The General Assembly of North Carolina do enact:

Section 1.  Subsection (e) of G.S. 33-71, as the same appears in the 1963 Cumulative Supplement to the General Statutes, is hereby amended by rewriting the subsection to read as follows:
"(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 Article. The custodian may also use funds in his custody to purchase a policy or policies of life insurance on the life of the minor and to pay premiums thereon, and to retain and use funds in his custody to pay premiums on a policy or policies of life insurance given to the minor in accordance with the provisions of G.S. 33-69(a)(4)."
Sec. 2.  Subsection (j) of G.S. 33-71, as the same appears in the 1963 Cumulative Supplement to the General Statutes, is hereby amended by rewriting the subsection to read as follows:
"(j)	All life insurance policies held by the custodian whether acquired under G.S. 33-69(a)(4) or G.S. 33-71(e) shall be registered in the name of the custodian as owner 'as custodian for _________________(name of minor) under the North Carolina Uniform Gifts to Minors Act'. The custodian shall have and may exercise as custodian all of the incidents of ownership in such life insurance policies to the same extent as if he were the owner thereof personally, including, but not limited to, the right to borrow on such policies for the payment of premiums. If a life insurance policy is issued on the life of the minor, the designated beneficiary shall be the minor's estate. If a life insurance policy is issued on the life of a person other than the minor, the beneficiary shall be the custodian, or, if the custodianship has ceased, the minor, or, in the event of the minor's death, the minor's estate."
Sec. 3.  All laws and clauses of laws in conflict with this Act are hereby repealed.
Sec. 4.  This Act shall become effective upon its ratification.
In the General Assembly read three times and ratified, this the 14th day of June, 1965.