B.  Special Rules of Gestational Surrogacy Agreement

     [§584A-907]  Termination of gestational surrogacy agreement.  (a)  A party to a gestational surrogacy agreement may terminate the surrogacy agreement, at any time before an embryo transfer, by giving notice of termination in a record to all other parties.  If an embryo transfer does not result in a pregnancy, a party may terminate the surrogacy agreement at any time before a subsequent embryo transfer.

     (b)  Unless a gestational surrogacy agreement provides otherwise, on termination of the surrogacy agreement under subsection (a), the parties shall be released from the surrogacy agreement, except that each intended parent shall remain responsible for expenses that are reimbursable under the surrogacy agreement and incurred by the gestational surrogate through the date of termination.

     (c)  Except in a case involving fraud, neither a gestational surrogate nor the surrogate's spouse or former spouse, if any, shall be liable to the intended parent or parents for a penalty or liquidated damages for terminating a gestational surrogacy agreement under this section. [L 2025, c 298, pt of §2]