J. MILLARD TAWES, Governor                      1443

title "Testamentary Law," subtitle "Wills"; and to repeal Article
75B of the said Code (1957 Edition and 1964 Supplement), title
"Principal and Income," and to enact a new Article 75B in lieu
thereof, to stand in the place of the Article 75B repealed, and to be
entitled "Principal and Income" to adopt the Revised Uniform
Principal and Income Act to provide for regulation of principal
and income under inter-vivos and testamentary trusts in this State.

Section 1. Be it enacted by the General Assembly of Maryland,
That Section 305C of Article 93 of the Annotated Code of Maryland,
(1935 Supplement), title "Testamentary Law," subtitle "Sales," as
added by Chapter 495 of the Acts of 1929 and as prospectively re-
pealed by Chapter 581 of the Acts of 1939, and Section 391 of
Article 93 of the said Code (1957 Edition), title "Testamentary Law,"
subtitle "Wills," be and they are hereby repealed.

Sec. 2. And be it further enacted, That Article 75B of the said
Code (1957 Edition and 1964 Supplement), title "Principal and In-
come," be and it is hereby repealed and that a new Article 75B be
and it is hereby enacted in lieu thereof, to stand in the place of the
Article 75B repealed, and to be entitled "Principal and Income," and
to read as follows:

Article 75B
Principal and Income
1.

As used in this Article:

(1)    "income beneficiary" means any person to whom income is
presently payable or for whom it is accumulated for distribution as
income;

(2)    "inventory value" means the cost of property purchased by
the trustee and the market value of other property at the time it
became subject to the trust, decreased by the amount of any receipts,
and increased by the amount of any disbursements, of principal
cash in connection with such item of principal. In the case of assets
subject to estate or inheritance tax the trustee may use as such
market value any value finally determined for the purposes of such
tax;

(3)    "remainderman" means any person entitled to principal, in-
cluding income which has been accumulated and added to principal;

(4) "trustee" means an original trustee and any successor or
added trustee.

2.

(a) A trust shall be administered with due regard to the respec-
tive interests of income beneficiaries and remaindermen. A trust is
so administered with respect to the allocation of receipts and expendi-
tures if a receipt is credited or an expenditure is charged to income or
principal or partly to each:

(1) in accordance with the terms of the trust instrument, not-
withstanding contrary provisions of this Article;