Common use of Transfers to Minors Clause in Contracts

Transfers to Minors. You may make a gift of money to a minor by opening an account in the name of the minor with you listed as custodian on our records for the account (“Custodian”), pursuant to the Uniform Transfers to Minors Act (“UTMA”). Only you, as Custodian, are authorized to act on the account. As Custodian, you will notify us in writing immediately upon the death of the minor or at the time the minor reaches the age of majority in the state where the account was opened. After notifying us of either of these events, your authority over these accounts continues only to the extent allowed by the applicable UTMA. Before we receive such notice and have a reasonable opportunity to act on it, we may honor any checks or drafts written on the account by the Custodian without incurring any liability to the minor or to any third party. You will be liable to us for any Losses we incur because of your failure to give us prompt written notice (as described above) or otherwise abide by the applicable UTMA. We have no duty to monitor the acts of the Custodian or otherwise ensure that his/her acts are for the benefit of the minor and/or are otherwise permissible under the applicable UTMA. We have no liability if the Custodian exceeds his/her authority under and/or fails to comply with the applicable UTMA.