(1) A custodian shall:
(a) Take control of custodial property;
(b) Register or record title to custodial property if appropriate; and
(c) Collect, hold, manage, invest and reinvest custodial property.
(2) In dealing with custodial property, a custodian shall observe the standard of care that would be observed by a prudent investor dealing with property of another and is not limited by any other statute restricting investments by fiduciaries. 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. However, a custodian, in the custodian’s discretion and without liability to the beneficiary or the beneficiary’s estate, may retain any custodial property received from a transferor.
(3) A custodian may invest in or pay premiums on life insurance or endowment policies on:
(a) The life of the beneficiary only if the beneficiary or the beneficiary’s estate is the sole beneficiary; or
(b) The life of another person in whom the beneficiary has an insurable interest only to the extent that the beneficiary, the beneficiary’s estate or the custodian in the capacity of custodian, is the irrevocable beneficiary.
(4) A custodian at all times shall keep custodial property separate and distinct from all other property in a manner sufficient to identify it clearly as custodial property of the beneficiary. Custodial property consisting of an undivided interest is so identified if the beneficiary’s interest is held as a tenant in common and is fixed. Custodial property subject to recordation is so identified if it is recorded, and custodial property subject to registration is so identified if it is either registered, or held in an account designated, in the name of the custodian, followed in substance by the words: “As a custodian for _____ (name of beneficiary) under the Oregon Uniform Transfers to Minors Act.”
(5) A custodian shall keep records of all transactions with respect to custodial property, including information necessary for the preparation of the beneficiary’s tax returns, and shall make them available for inspection at reasonable intervals by a parent or legal representative of the beneficiary or by the beneficiary if the beneficiary has attained 14 years of age. [1985 c.665 §13; 1995 c.157 §17; 2005 c.349 §9]
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