N.Y. SCP Law § 1708 — New York Code / Act SCP / Article 17 / Section 1708
Bonding Requirements; Investment of Guardianship Funds 1
Status: in_force

§ 1708. Bonding Requirements; Investment of Guardianship Funds\n  1. Except as provided in this section, all property of the infant\nshall be secured by bond as provided in this act.\n  2. (a) The court may dispense with a bond wholly or partly and direct\nthat the guardian jointly with a person or depositary designated collect\nand receive the moneys and other property of the infant as directed by\norder and that such moneys and property as it directs be deposited in\nthe name of the guardian, subject to the order of the court, with a\nbank, savings bank, trust company, safe deposit company, or state or\nfederal credit union designated in the order or invested in the name of\nthe guardian, subject to the order of the court, in the shares of a\nsavings and loan association or the savings account of a federal savings\nand loan association designated in the order, provided that no deposit\nor investment of the funds of any one infant in any single bank, savings\nbank, trust company, savings and loan association, federal savings and\nloan association, or state or federal credit union shall exceed the\nmaximum amount insured by the federal deposit insurance corporation or\nthe national credit union share insurance fund.\n  (b) The court may also dispense with a bond wholly or partly when it\nauthorizes the guardian to purchase and invest in United States savings\nbonds, treasury bills, treasury notes, treasury bonds, or bonds of the\nstate of New York or bonds or other obligations of any county, city,\ntown, village or school district of the state of New York for the\nbenefit of the infant and directs the guardian to deposit such bonds,\nbills, notes or other municipal obligations in joint custody with a\nbank, savings bank, trust company, safe deposit company, or state or\nfederal credit union invested in the name of the guardian, subject to\nthe order of the court. The guardian shall collect and receive all\ninterest and income from such United States savings bonds, treasury\nnotes, treasury bonds or bonds of the state of New York or bonds or\nother obligations of any county, city, town, village or school district\nof the state of New York and deposit such interest and income in an\naccount in the name of the guardian, subject to the order of the court,\nas authorized pursuant to this section with the bank, savings bank,\ntrust company, safe deposit company, or state or federal credit union\nhaving joint custody with the guardian of such United States savings\nbonds, treasury bills, treasury notes, treasury bonds, or bonds of the\nstate of New York or bonds or other obligations of any county, city,\ntown, village or school district of the state of New York.\n  (c) The court may also dispense with a bond wholly or partly when it\nauthorizes the guardian to invest the guardianship funds pursuant to an\ninvestment advisory agreement with a bank, trust company, brokerage\nhouse, or other financial services entity acceptable to the court. The\ninvestment advisory agreement shall provide that the guardianship funds\nwill be invested in accordance with the provisions of section 11-2.3 of\nthe estates, powers, and trusts law and that the funds so invested shall\nnot be released from the custody of the custodian identified therein\nexcept on order of the court. The petition to invest the guardianship\nfunds pursuant to this subdivision shall be accompanied by a copy of the\nproposed investment advisory agreement. If the custodian of the funds is\nnot the same person or entity providing the investment advice, a\nseparate custodial agreement shall also accompany the petition to invest\nthe guardianship pursuant to this subdivision. Such custodial agreement\nshall be with an institution acceptable to the court for the purpose of\nretaining control of the guardianship funds and shall also provide that\nthe funds under the control of the custodian shall not be released from\ncustody except on order of the court.\n  (d) Such deposit or investment shall be withdrawn or removed only on\nthe order of the court, except that no court order shall be required to\npay over to the infant who has attained the age of eighteen years all\nthe moneys so held unless the depository is in receipt of an order from\na court of competent jurisdiction directing it to withhold such payment\nbeyond the infant's eighteenth birthday.\n  3. Where an infant is a beneficiary of a contract of life insurance\nunder which moneys are payable to the infant or under which rights may\naccrue to the infant pursuant to election made by his guardian under the\nterms of the contract, the court may by order dispense wholly or partly\nwith a bond and direct that the insurance company and the guardian shall\nmake no withdrawal of the funds due to the infant under the contract\nexcept by joint check to the order of the guardian and a person\ndesignated by the court to receive such moneys.\n  4. The letters issued shall contain the substance of the order.\n