Editorial Note on Subchapter A of Chapter II
Editorial Note: Nomenclature changes to subchapter A appear at 78 FR 60697, Oct. 2, 2013.

Editorial Note on Part 363
Editorial Note: Nomenclature changes to part 363 appear at 70 FR 57433, Sept. 30, 2005, 70 FR 57442, Sept. 30, 2005, and 75 FR 70815, Nov. 19, 2010.

§ 363.27 What do I need to know about accounts for minors who have not had a legal guardian appointed by a court? ( a ) We do not permit a minor to purchase securities.
( b ) *Opening an account in the name of a minor.* ( 1 ) A parent or an individual who provides the chief financial support of a minor may open an account for a minor. The person opening the account for a minor is referred to as the custodian of the minor's account.
( 2 ) The custodian is a fiduciary for the minor as to the securities held in the minor's account.
( 3 ) The custodian must have an existing primary TreasuryDirect ® account in order to open the minor's account. ( i ) The minor's account is an account that is linked to the custodian's primary account.
( ii ) The custodian must use his or her primary TreasuryDirect account as a portal to open and access the minor's account.
( 4 ) Securities contained in the minor's account will be registered in the name and SSN of the minor, in either sole owner, owner with beneficiary, or primary owner with secondary owner forms of registration.
( c ) *Procedure for opening an account for a minor.* ( 1 ) Online instructions will be provided for establishing an account for a minor.
( 2 ) The custodian must certify that all transactions conducted through the account will be on the minor's behalf.
( d ) *Procedure for conducting transactions in the minor's account.* The custodian must conduct all transactions in the minor's account on behalf of the minor. Access to the minor's account is through the custodian's primary account.
( e ) *Transactions permitted in the minor's account.* ( 1 ) The custodian may purchase securities for and on behalf of the minor through the minor's account.
( 2 ) The custodian may redeem savings bonds on behalf of the minor through the minor's account. We will report the interest earned on the security to the name and SSN of the minor.
( 3 ) The custodian may not purchase gift savings bonds from the minor's account.
( 4 ) The custodian may transfer a security to another TreasuryDirect account, provided the account is a linked account bearing the name and taxpayer identification number of the minor. The custodian can transfer a marketable Treasury security to an account in the commercial book-entry system.
( 5 ) Securities may be transferred to the minor's account.
( 6 ) Gift savings bonds may be delivered to the minor's account.
( 7 ) The custodian may grant rights to view and conduct transactions in the security as may be permitted by § 363.22.
( 8 ) The custodian may purchase a zero-percent certificate of indebtedness on behalf of the minor. The zero-percent certificate of indebtedness is the property of the minor.
( f ) *When the minor reaches the age of 18 years.* ( 1 ) The only transactions that the custodian may make in the minor's account after the minor attains the age of 18 years are to purchase new securities, and to transfer the securities contained in the minor's account to another account in the name and SSN of the minor. The receiving account in the name and SSN of the minor may be a primary account established by the minor, or it may be another minor linked account with the same or a different custodian. The custodian may transfer one or more of the securities at a time, or the custodian may de-link the account and transfer all of the securities contained in the account to the minor's previously established primary TreasuryDirect account. The minor must establish his or her own primary TreasuryDirect account prior to transfer of his or her securities.
( 2 ) In order to gain control of the securities held in the minor's account, the minor must first open his or her own primary account.
( 3 ) The minor may gain control of the securities held in the minor's account by the custodian transferring the securities held in the minor's account to the minor's primary account, or the minor may request that Fiscal Service transfer the securities to his or her primary account.
( 4 ) The minor may gain control of his or her zero-percent certificate of indebtedness by the custodian de-linking the account and transferring the zero-percent certificate of indebtedness to the minor's primary account, or the minor may request that Fiscal Service de-link the account and transfer the zero-percent certificate of indebtedness to his or her primary account.
( g ) *Liability.* We rely on the certification of the custodian that he or she is acting on behalf of the minor. We are not liable to the minor, or any other person or party acting on behalf of the minor, for the actions of the custodian, nor are we liable for the application of any proceeds from the transfer or redemption of securities held in the minor's account. The custodian agrees to indemnify and hold harmless the United States in the event that we suffer any loss on account of any claim relating to a minor account.
[69 FR 2507, Jan. 16, 2004, as amended at 69 FR 50309, Aug. 16, 2004; 70 FR 57443, Sept. 30, 2005; 74 FR 19419, Apr. 29, 2009; 75 FR 78901, Dec. 17, 2010; 76 FR 18064, Apr. 1, 2011]