CHAPTER 447
FORMERLY
SENATE BILL NO. 567
AN ACT TO AMEND CHAPTER 45, TITLE 12 OF THE DELAWARE CODE RELATING TO THE DELAWARE UNIFORM GIFTS TO MINORS ACT.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1. Amend Section 4502, Chapter 45, Title 12 of the Delaware Code by striking Subsection (e) in its entirety and substituting in lieu thereof the following:
"(e) A gift (other than a gift of real property, or an interest therein) may be made under this chapter only if, at the time of the gift (or, in the case of a gift pursuant to the terms of a will, trust agreement, life or endowment insurance policy or annuity contract, at the time of execution of such document or at the time of any distribution pursuant to the document) one or more of the donor, the minor or the custodian is a resident of this state or if the custodian, although not a resident of this state, deposits the custodial property with a financial institution or broker within this state. In the case of a gift of real property, or an interest therein, a gift may be made under this chapter only if such property or interest is located in this state. A gift made under this chapter on the basis of the fact that one or more of the donor, the minor or the custodian is a resident of this state shall not be affected by the fact that at some future time none of the donor, the minor or the custodian is a resident of this state, nor shall a gift of real property, or an interest therein, be affected by the fact that at some future time such property or interest is converted Into other custodial property not having a situs In this state."
Section 2. Amend Section 4504, Chapter 45, Title 12 of the Delaware Code by adding to subsection (e) thereof the words "an" following the word "has" and preceding the words "insurable interest."
Section 3. Amend Section 4504, Chapter 45, Title 12 of the Delaware Code by striking from Subsection (f) the word "insurer" therefrom and inserting in lieu thereof the word 'Issurer."
Section 4. Amend Section 4504, Chapter 45, Title 12 of the Delaware Code by adding thereto new Subsection (1) as follows:
"(1) The custodian may borrow cash, securities or other property from the donor or from any other person or entitiy upon such terms and conditions as may, with respect to the minor, be reasonable and prudent. The custodian shall have such powers and duties with respect to the borrowed property as the custodian has with respect to any other property held pursuant to this chapter."
Section 5. Amend Section 4507, Chapter 45, Title 12 of the Delaware Code by striking from Subsection (c) thereof the word "or" following the word "instrument" and preceding the word "designation" and substituting in lieu thereof the word "of."
Section 6. If any provision of this act, or the application thereof to any person or circumstance, is held invalid, the invalidity shall not affect other provisions or applications of this act which can be given effect without the invalid provision or application, and to this end, the provisions of this act are severable.
Section 7. This act shall become effective on the date of enactment but the repeal of any provision by this act shall not affect gifts made pursuant to Chapter 45 of Title 12 of as it existed prior to said date of enactment.
Approved July 23, 1982.