[§553A-12]  Care of custodial property. 
(a)  A custodian shall:



(1)  Take control of custodial property;



(2)  Register or record title to custodial property if
appropriate; and



(3)  Collect, hold, manage, invest, and reinvest
custodial property.



(b)  In dealing with custodial property, a
custodian shall observe the standard of care that would be observed by a
prudent person dealing with property of another and is not limited by any other
statute restricting investments by fiduciaries.  If a custodian has a special
skill or expertise or is named custodian on the basis of representations of a
special skill or expertise, the custodian shall use that skill or expertise. 
However, a custodian, in the custodian's discretion and without liability to
the minor or the minor's estate, may retain any custodial property received
from a transferor.



(c)  A custodian may invest in or pay premiums
on life insurance or endowment policies on:



(1)  The life of the minor only if the minor or the
minor's estate is the sole beneficiary; or



(2)  The life of another person in whom the minor has
an insurable interest only to the extent that the minor, the minor's estate, or
the custodian in the capacity of custodian, is the irrevocable beneficiary.



(d)  A custodian at all times shall keep
custodial property separate and distinct from all other property in a manner
sufficient to identify it clearly as custodial property of the minor. 
Custodial property consisting of an undivided interest is so identified if the
minor's interest is held as a tenant in common and is fixed.  Custodial
property subject to recordation is so identified if it is recorded, and
custodial property subject to registration is so identified if it is either
registered, or held in an account designated, in the name of the custodian,
followed in substance by the words:  "as a custodian for
____________________ (name of minor) under the Hawaii Uniform Transfers to
Minors Act."



(e)  A custodian shall keep records of all
transactions with respect to custodial property, including information
necessary for the preparation of the minor's tax returns, and shall make them
available for inspection at reasonable intervals by a parent or legal
representative of the minor or by the minor if the minor has attained the age
of fourteen years. [L 1985, c 91, pt of §1]