An Act to amend the act concerning gifts to minors in the District of Columbia
PL 87-821 (H.R.11018), enacted 10/15/1962

938 
PUBLIC LAW 87-821-OCT. 15, 1962 
[76 STAT. 
Public Law 87-821 
October 15, 1962 
A N A C T 
[ . R. 11018] 
^Q amend the Act concerning gifts to minors in the District of Columbia. 
DiBttict of 
Be it enacted hy the Senate and House of Representatives 
of the 
GmTt^'MiiOT^r" United'States of Ainerica in Congress assembled^ That the Act entitled 
Act. 
"An Act concerning gifts of securities to minors in the District of 
Columbia", approved August 3, 1956 (70 Stat. 1028; D.C. Code, sec. 
21-214), is amended to read as follows: 
Definitions, 
"SECTION 1. As used in this Act, the following terms shall have the 
meaning ascribed to each: 
" (1) 'Adult': one who has attained the age of twenty-one years. 
"(2) 'Bank': any person or association of persons carrying on 
the business of banKing, whether incorporated or not, in the 
District of Columbia. 
"(3) 'Broker': one who is lawfully engaged in the business of 
effecting transactions in securities lor the account of others; a 
bank which effects such transactions; and one who is lawfully 
engaged in buying and selling securities for his own account, 
through a broker or otherwise, as a part of a regular business. 
"(4) 'Court': The United States District Court for the District 
of Columbia. 
"(5) 'Custodial property': 
"(A) All securities, money, life insurance and annuity 
contracts under the supervision of the same custodian for the 
same minor as a consequence of a gift or gifts made to the 
minor in the manner prescribed in this Act; 
"(B) The income from the custodial property; and 
"(C) The proceeds, immediate and remote, from the sale, 
exchange, conversion, investment, reinvestment, or other dis-
position of such securities, money, life insurance and annuity 
contracts, and income. 
"(6) 'Custodian': one so designated in the manner prescribed 
in this Act. 
"(7) 'Guardian of a minor': the general guardian, guardian, 
tutor, or curator of the minor's property, estate or person. 
"(8) 'Issuer': one who places or authorizes the placing of his 
name on a security (other than as a transfer agent) to evidence 
that it represents a share, participation or other interest in his 
property or in an enterprise or to evidence his duty or under-
taking to perform an obligation evidenced by the security, or who 
becomes responsible for or in place of any such person. 
"(9) 'Legal representative': the executor or the administrator, 
general guardian, committee, conservator, tutor, or curator of a 
person's property or estate. 
"(10) 'Life insurance and annuity contracts': shall include 
only insurance and annuity contracts on the life of a minor or a 
member of the minor's family as herein defined. 
"(11) 'Member of a minor's family': any of the minor's par-
ents, grandparents, brothers, sisters, uncles, and aunts, whether 
of the whole blood or the half blood, or by or through legal 
adoption. 
"(12) 'Minor': one who has not attained the age of twenty-one 
years. 
"(13) 'Security': any note, stock, treasury stock, bond, deben-
ture, evidence of indebtedness, certificate of interest or participa-
tion in an oil, gas, or mining title or lease or in payments out of 
production under such a title or lease, collateral trust certificate, 
transferable share, voting trust certificate, or, in general, any in-
76 STAT.] 
PUBLIC LAW 87-821-OCT. 15, 1962 
939 
terest or instrument commonly known as a security, or any cer-
tificate of interest of participation in, anjr temporary or interim 
certificate, receipt, or certificate of deposit for, or any warrant 
or ri^ht to subscribe to or purchase, any of the foregoing. 
'Secu-
rity' does not include a security of which the donor is the issuer. 
A 'security' is in 'registered form' when it sj)ecifies a person en-
titled to it or to the right it evidences and its transfer may be 
registered upon books maintained for that purpose by or on 
behalf of the issuer. 
"(14) 'Transfer agent': one who acts as authenticating trustee, 
transfer agent, registrar, or other agent for an issuer in the regis-
tration of transfers of its securities or in the issue of new securities 
or in the cancellation of surrendered securities. 
"(15) 'Trust company': a bank authorized to exercise trust 
powers. 
"SEC. 2. (a) An adult may, during his lifetime, make a gift of a 
Registration 
security, money, life insurance or annuity contract to one who is a "" " 
minor on the date of the gift, if the subject of the gift is a security— 
"(1) in registered form, by registering it in the name of the 
donor, another adult, or a trust company, followed, in substance, 
by the words: 'as custodian for (name of minor) under the Dis-
trict of Columbia Uniform Gifts to Minors Act'; 
"(2) not in registered form, by delivering it to an adult other 
than the donor or a trust company, accompanied by a statement 
of gift in the following form, in substance, signed by the donor 
and the designated custodian: 
"GIFT UNDER THE DISTRICT OF COLUMBIA UNIFORM GIFTS 
TO MINORS ACT 
"I, (name of donor), hereby deliver to (name of custodian) as cus-
todian for (name of minor) under the District of Columbia Uniform 
(lifts to Minors Act, the following security(ies) ; (insert an appro-
priate description of the security or securities delivered suflScient to 
identify it or them). 
or delivery. 
(signature of donor) 
Dated: 
(Name of custodian) hereby acknowledges receipt of the above 
described security (ies) as custodian for the above minor under the 
above Act. 
(signuture of custodian) 
Dated: 
"(3) If the subject of the gift is a life insurance or annuity 
contract, the ownership of the contract shall be registered by 
the donor of such contract in his own name or in the name of an 
adult member of the minor's family or in the name of any 
guardian of the minor, followed by the words 'as custodian for 
(name of minor) under the District of Columbia Uniform Gifts to 
Minors Act', and such contract shall be delivered to the person in 
whose name it is thus registered as custodian. 
If the contract 
is registered in the name of the donor, as custodian, such registra-
tion shall of itself constitute the delivery required by this section. 
" (4) If the subject of the gift is money, by paying or delivering 
it to a broker or a bank for credit to an account in the name of 
the donor, another adult, or a bank with trust powers, followed, 
in substance, by the words: 'as custodian for (name of minor) 
under the District of Columbia Uniform Gifts to Minors Act'. 
"(b) Any gift made in the manner prescribed in subsection (a) 
may be made to only one minor. 
940 
PUBLIC LAW 87-821-OCT. 15, 1962 
[76 STAT. 
Irrevocability. 
Custodian, 
duties. 
"(c) A donor who makes a gift to a minor as prescribed in sub-
section (a) shall promptly do all things within his power to put the 
subject of the gift in the possession and control of the custodian, but 
neither the donor's failure to comply with this subsection, nor his 
designation of an ineligible person as custodian, nor renunciation by 
the person designated as custodian shall affect the consummation of 
the gift. 
"SEG. 3. (a) A gift made as prescribed in this Act shall be irrevo-
cable and convey to the minor indefeasibly vested legal title to the 
security, money, life insurance or annuity contract given, but no 
guardian of the minor shall have any right, power, duty, or authority 
with respect to the custodial property except as provided in this Act. 
"(b) By making a gift in the manner prescribed in this Act, the 
donor incorporates in his gift all the provisions thereof and grants 
to the custodian, and to any issuer, transfer agent, bank, broker, 
insurance company, or third person dealing with a custodian, the 
respective powers, rights, and immunities provided in this Act. 
"SEC. 4. (a) Only one person may be tl^e custodian. 
He shall 
collect, hold, manage, invest, and reinvest the custodial property. 
"(b) The custodian shall pay over to the minor for expenditure by 
him, or expend for the minor's benefit, so much of or all the custodial 
property as the custodian deems advisable for the support, mainte-
nance, education, and benefit of the minor in the manner, at the time 
or times, and to the extent that the custodian in his discretion deems 
suitable and proper, with or without court order, with or without 
regard to the duty of himself or of any other person to support the 
minor or his ability to do so, and with or without regard to any other 
income or property of the minor which may be applicable or available 
for any such purpose. 
"(c) The court, on the petition of a parent or guardian of the 
minor or of the minor, if he has attained the age of fourteen years, 
may order the custodian to pay over to the minor for expenditure by 
him or to expend so much of or all the custodial property as is 
necessary for the minor's support, maintenance, or education. 
"(d) To the extent that the custodial property is not so expended, 
the custodian shall deliver or pay it over to the minor on his attaining 
the age of twenty-one years or, if the minor dies before attaining 
that age, he shall thereupon deliver or pay it over to the estate of the 
minor. 
"(e) The custodian, notwithstanding statutes restricting invest-
ments by fiduciaries, shall invest and reinvest the custodial property 
as would a prudent person of discretion and intelligence who is seek-
ing a reasonable income and the preservation of capital, except that 
he may, in his discretion and without liability to the minor or his 
estate, retain a security given to the minor in the manner prescribed 
in this Act. 
"(f) The custodian may sell, exchange, convert, or otherwise dispose 
of custodial property in the manner, at the time or times, for the price 
or prices, and upon the terms he deems advisable. He may vote in 
person or by general or limited proxy a security which is custodial 
property. 
He may consent, directly or through a committee or other 
agent, to the reorganization, consolidation, merger, dissolution, or 
liquidation of an issuer, a security which is custodial property, and 
to the sale, lease, pledge, or mortgage of any property by or to such 
an issuer, and to any other action by such an issuer. He may execute 
and deliver any and all instruments in writing which he deems advis-
able to carry out any of his powers as custodian. 
"(g) The custodian shall register each security which is custodial 
property and in registered form in the name of the custodian, followed, 
in substance, by the words: 'as custodian for (name of minor) under 
76 STAT.] 
PUBLIC LAW 87-821-OCT. 15, 1962 
^9^ 
the District of Columbia Uniform Gifts to Minors Act'. 
He shall hold 
all money which is custodial property in an account with a broker or in 
a bank in the name of the custodian, followed, in substance, by the 
same words. He shall keep all other custodial property separate and 
distinct from his own property in a manner to identify it clearly as 
custodial property. 
"(h) The custodian shall keep records of all transactions with 
respect to the custodial property, and make them available for inspec-
tion at reasonable intervals by a parent or legal representative of the 
minor or by the minor, if he has attained the age of fourteen years. 
"(i) A custodian shall have and hold as powers in trust, with re-
spect to the custodial property, in addition to the rights and powers 
provided in this Act, all the rights and powers which a guardian has 
with respect to property not held as custodial property. 
"(j) If the subject of the gift is a life insurance or annuity con-
tract, the custodian shall have all of the incidents of ownership in 
the contract which he may hold as custodian to the same extent as if 
he were the owner thereof personally. 
The designated beneficiary of 
any such contract held by a custodian shall be the minor or, in the 
event of his death, the minor's estate. 
"SEC. 5. (a) A custodian shall be entitled to reasonable compensa- 
compensation. 
tion for his services and to reimbursement from the custodial property 
for his reasonable expenses incurred in the performance of his du-
ties: Provided^ That a custodian may act without compensation for 
his services. 
"(b) Compensation for the guardian or custodian shall be accord-
ing to: 
"(1) Any direction of the donor when the gift is made, pro-
vided that it is not in excess of any statutory limitation of the 
District of Columbia for guardians or custodians; 
"(2) Any statute of the District of Columbia applicable to 
custodians or guardians; 
" (3) Any order of the court. 
"(c) Except as otherwise provided in this Act, a custodian shall 
not be required to give a bond for the performance of his duties. 
"(d) A custodian not compensated for his services shall not be 
liable for losses to the custodial property unless they result from his 
bad faith, intentional wrongdoing, or gross negligence or from his 
failure to maintain the standard of prudence in investing the custodial 
property provided in this Act. 
"SEC. 6. (a) Onljr an adult, a guardian of the minor, or a trust com- 
successor 
pany shall be eligible to become successor custodian. A successor 
custodian shall have all the rights, powers, duties, and immunities of 
a custodian designated in the manner prescribed by this Act. 
"(b) A custodian, other than the donor, may resign and designate 
his successor by— 
"(1) executing an instrument of resignation designating the 
successor custodian; and 
"(2) causing each security which is custodial property and in 
registered form and each life insurance or annuity contract to be 
registered in the name of the successor custodian followed, in sub-
stance, hj the words: 'as custodian for (name of minor) under 
the District of Columbia Uniform Gifts to Minors Act'; and 
"(3) delivering to the successor custodian the instrument of 
resignation, each security registered in the name of the successor 
custodian, each life insurance or annuity contract registered in 
the name of the successor custodian, and all other custodial prop-
erty, together with any additional instruments required for the 
transfer thereof. 
custodian. 
942 
PUBLIC LAW 87-821-OCT. 15, 1962 
[76 STAT. 
"(c) A custodian, whether or not a donor, may petition the court for 
permission to resign and for the designation of a successor custodian. 
"(d) If the person designated as custodian is not eligible, renounces 
or dies before the minor attains the age of twenty-one years, the 
guardian of the minor shall be successor custodian. 
If the minor has 
no guardian, a donor, his legal representative, the legal representative 
of the custodian, an adult member of the minor's family, or the minor, 
if he has attained the age of fourteen years, may petition the court 
for the designation of a successor custodian. 
"(e) A donor, the legal representative of a donor, an adult member 
of the minor's family, a guardian of the minor or the minor, if he 
has attained the age of fourteen years, may petition the court that, 
for cause shown in the petition, the custodian be removed and a suc-
cessor custodian be designated or, in the alternative, that the custodian 
be required to give bond for the performance of his duties. 
"(f) Upon the filing of a petition as provided in this section, the 
court shall grant an order, directed to the persons and returnable 
on such notice as the court may require, to show cause why the relief 
prayed for in the petition should not be granted and, in due course, 
grant such relief as the court finds to be m the best interests of the 
minor. 
Accounting. 
"SEC. 7. (a) The minor, if he has attained the age of fourteen 
years, or the legal representative of the minor, an adult member of 
the minor's family, or a donor or his legal representative may petition 
the court for an accounting by the custodian or his legal representative. 
"(b) The court, in a proceeding under this Act or otherwise, may 
require or permit the custodian or his legal representative to account 
and, if the custodian is removed, shall so require and order delivery 
of all custodial property to the successor custodian and the execution 
of all instruments required for the transfer thereof. 
"SEC. 8. No issuer, transfer agent, bank, broker, insurance company, 
or other person acting on the instructions of or otherwise dealing with 
any person purporting to act as a donor or in the capacity of a cus-
todian shall be responsible for determining whether the person desig-
nated by the purported donor or purporting to act as a custodian has 
been duly designated or whether any purchase, sale, or transfer to or 
by or any other act of any person purporting to act in the capacity of 
custodian is in accordance with or authorized by this Act, and shall 
not be obliged to inquire into the validity or propriety under the pro-
visions of this Act of any instrument or instructions executed or 
given by a person purporting to act as a donor or in the capacity of a 
custodian, and shall not be bound to see to the application by any per-
son purporting to act in the capacity of a custodian of any money or 
other property paid or delivered to him. 
"SEC. 9. (a) The provisions of this Act shall be construed to effec-
tuate the general purpose thereof to make uniform the law of those 
States which enact such provisions. 
"(b) This Act shall not be construed as providing an exclusive 
method for making gifts to minors. 
"SEC. 10. If any provision of this Act or the application thereof is 
held invalid, the other provisions or applications of such provisions 
shall not be affected thereby. 
Short title. 
"SEC. 11. This Act may be cited as the 'District of Columbia Uni-
form Gifts to Minors Act'." 
Validity of in-
struments or in-
structions. 
76 STAT.] 
PUBLIC LAW 87-822-OCT. 15, 1962 
943 
SEC. 2. (a) All laws or parts of laws in conflict with any provision 
of this Act are hereby repealed. 
(b) The amendments made to the Act of August 3, 1956 (70 Stat. 
1028; D.C. Code, sees. 21-214 et seq.), by the first section of this Act 
shall not affect any right or liability under such Act of August 3,1956, 
existing on December 31, 1962. 
(c) Nothing herein shall be deemed to repeal or modify the Internal 
Revenue Code of 1954, as amended, and the District of Columbia 
Income and Franchise Tax Act of 1947, as amended. 
SEC. 3. This Act shall take effect January 1,1963. 
Approved October 15, 1962. 
Repeal. 
26 u s e 1 et 
seq. 
61 Stat. 328. 
D. C. Code 1-1 
to 1-4. 
Public Law 87-822 
AN ACT 
To amend the Mineral Leasing Act of February 25,1920. 
October 15, 1962 
[H. R. 11049] 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That section 31 of 
the Mineral Leasing Act of February 25, 1920 (41 Stat. 450), as 
amended (30 U.S.C. 188), is further amended by designating the first 
paragraph thereof as subsection "(a)", the second paragraph as sub-
section "(b)", and adding two new subsections to read as follows: 
"(c) Where any lease has been terminated automatically by opera-
tion of law under this section for failure to pay rental timely and it is 
shown to the satisfaction of the Secretary of the Interior that the 
failure to pay timely the lease rental was justifiable or not due to a 
lack of reasonable diligence, he in his judgment may reinstate the 
lease subject to the following conditions: 
"(1) A petition for reinstatement, together with the required 
rental, for any lease (a) terminated prior to the effective date of 
this Act must be filed with the Secretary of the Interior within 
one hundred and eighty days after the effective date of this Act; 
"(2) No valid lease has been issued affecting any of the lands in 
the terminated lease prior to the filing of the petition for rein-
statement. 
"(d) Where, in the judgment of the Secretary of the Interior, drill-
ing operations were being diligently conducted on the last day of the 
{)rimary term of the lease, and, except for nonpayment of rental, the 
essee would have been entitled to extension of his lease, pursuant to 
section 4(d) of the Act of September 2,1960 (74 Stat. 790), the Secre-
tary of the Interior may reinstate such lease notwithstanding the fail-
ure of the lessee to have made payment of the next year's rental, pro-
vided the conditions of subparagraphs (1) and (2) of section (c) 
are satisfied." 
SEC. 2. Nothing in this Act shall be construed as limiting the author-
ity of the Secretary of the Interior to issue, during the periods in 
which petitions for reinstatement may be filed, oil and gas leases for 
any of the lands affected. 
Approved October 15, 1962. 
Mineral Leasing 
Act, amendment. 
60 Stat. 956. 
Oil and gas 
leases, rein-
statement. 
30 u s e 226-1.