PRINCIPAL AND INCOME 2877

1939, ch. 580, sec. 7.
7. (Expenses—Trust Estates.)

(1) All ordinary expenses incurred in connection with the trust estate
or with its administration and management, including regularly recurring
taxes assessed against any portion of the principal, water rates, premiums
on insurance taken upon the estates of both tenant and remainderman,
interest on mortgages on the principal, ordinary repairs, trustees' com-
pensation except commissions computed on principal, and court costs and
attorneys' and other fees on regular accountings, shall be paid out of
income.

(2) All other expenses, including trustee's commissions computed upon
principal, cost of investing or reinvesting principal, attorneys' fees and
other costs incurred in maintaining or defending any action to protect the
trust or the property or assure the title thereof, unless due to the fault or
cause of the tenant, and costs of, or assessments for, improvements to prop-
erty forming part of the principal, shall be paid out of principal. Any
tax levied by any authority, federal, state or foreign, upon profit or gain
defined as principal under the terms of Subsection (2) of Section 3 shall
be paid out of principal, notwithstanding said tax may be denominated
a tax upon income by the taxing authority.

(3) Expenses paid out of income according to Subsection (1) which
represent regularly recurring charges shall be considered to have accrued
from day to day, and shall be apportioned on that basis whenever the right
of the tenant begins or ends at some date within the period over which
such apportionment is to be made. Where the expenses to be paid out of
income are of unusual amount, the trustee may distribute them through-
out an entire year or part thereof, or throughout a series of years. After
such distribution, where the right of the tenant ends during the period,
the expenses shall be apportioned between tenant and remainderman on
the basis of such distribution.

1939, ch. 580, sec. 8.

8. (Expenses—Non-Trust Estates.) The provisions of Section 7, so
far as applicable, shall govern the apportionment of expenses between
tenants and remaindermen where no trust has been created, subject, how-
ever, to any legal agreement of the parties or any specific direction of the
taxing or other statutes; but where either tenant or remainderman has
incurred an expense for the benefit of his own estate and without the con-
sent or agreement of the other, he shall pay such expense in full.

1939, ch. 580, sec. 9.

9. (Uniformity of Interpretation.) Such of the provisions of this
Article as are uniform with similar statutes enacted in other States shall
be so construed as to effectuate its purpose to make uniform the laws of
those States which enact such provisions.

1939, ch. 580, sec. 10.

10. (Application of Article.) This Article shall not apply to succes-
sive estates or interests created by deed or other non-testamentary act,
executed prior to June 1, 1939, or by will of a testator dying prior to said
date, or by operation of law prior thereto. As to estates created by the
exercise of a power of appointment, the date of such exercise, and not the
effective date of the instrument creating such power, shall be the date of
creation for this purpose.¹

¹ Sec. 2, ch. 580, 1939, repealed all laws inconsistent therewith to extent of such in-
consistency.