§ 1708. Bonding Requirements; Investment of Guardianship Funds

1. Except as provided in this section, all property of the infant
shall be secured by bond as provided in this act.

2. (a) The court may dispense with a bond wholly or partly and direct
that the guardian jointly with a person or depositary designated collect
and receive the moneys and other property of the infant as directed by
order and that such moneys and property as it directs be deposited in
the name of the guardian, subject to the order of the court, with a
bank, savings bank, trust company, safe deposit company, or state or
federal credit union designated in the order or invested in the name of
the guardian, subject to the order of the court, in the shares of a
savings and loan association or the savings account of a federal savings
and loan association designated in the order, provided that no deposit
or investment of the funds of any one infant in any single bank, savings
bank, trust company, savings and loan association, federal savings and
loan association, or state or federal credit union shall exceed the
maximum amount insured by the federal deposit insurance corporation or
the national credit union share insurance fund.

(b) The court may also dispense with a bond wholly or partly when it
authorizes the guardian to purchase and invest in United States savings
bonds, treasury bills, treasury notes, treasury bonds, or bonds of the
state of New York or bonds or other obligations of any county, city,
town, village or school district of the state of New York for the
benefit of the infant and directs the guardian to deposit such bonds,
bills, notes or other municipal obligations in joint custody with a
bank, savings bank, trust company, safe deposit company, or state or
federal credit union invested in the name of the guardian, subject to
the order of the court. The guardian shall collect and receive all
interest and income from such United States savings bonds, treasury
notes, treasury bonds or bonds of the state of New York or bonds or
other obligations of any county, city, town, village or school district
of the state of New York and deposit such interest and income in an
account in the name of the guardian, subject to the order of the court,
as authorized pursuant to this section with the bank, savings bank,
trust company, safe deposit company, or state or federal credit union
having joint custody with the guardian of such United States savings
bonds, treasury bills, treasury notes, treasury bonds, or bonds of the
state of New York or bonds or other obligations of any county, city,
town, village or school district of the state of New York.

(c) The court may also dispense with a bond wholly or partly when it
authorizes the guardian to invest the guardianship funds pursuant to an
investment advisory agreement with a bank, trust company, brokerage
house, or other financial services entity acceptable to the court. The
investment advisory agreement shall provide that the guardianship funds
will be invested in accordance with the provisions of section 11-2.3 of
the estates, powers, and trusts law and that the funds so invested shall
not be released from the custody of the custodian identified therein
except on order of the court. The petition to invest the guardianship
funds pursuant to this subdivision shall be accompanied by a copy of the
proposed investment advisory agreement. If the custodian of the funds is
not the same person or entity providing the investment advice, a
separate custodial agreement shall also accompany the petition to invest
the guardianship pursuant to this subdivision. Such custodial agreement
shall be with an institution acceptable to the court for the purpose of
retaining control of the guardianship funds and shall also provide that
the funds under the control of the custodian shall not be released from
custody except on order of the court.

(d) Such deposit or investment shall be withdrawn or removed only on
the order of the court, except that no court order shall be required to
pay over to the infant who has attained the age of eighteen years all
the moneys so held unless the depository is in receipt of an order from
a court of competent jurisdiction directing it to withhold such payment
beyond the infant's eighteenth birthday.

3. Where an infant is a beneficiary of a contract of life insurance
under which moneys are payable to the infant or under which rights may
accrue to the infant pursuant to election made by his guardian under the
terms of the contract, the court may by order dispense wholly or partly
with a bond and direct that the insurance company and the guardian shall
make no withdrawal of the funds due to the infant under the contract
except by joint check to the order of the guardian and a person
designated by the court to receive such moneys.

4. The letters issued shall contain the substance of the order.