J. MILLARD TAWES, Governor                     1445

(2)    proceeds of property taken on eminent domain proceedings;

(3)    proceeds of insurance upon property forming part of the
principal except proceeds of insurance upon a separate interest of an
income beneficiary;

(4) stock dividends, receipts on liquidation of a corporation, and
other corporate distributions as provided in §6;

(5)    receipts from the disposition of bonds or other obligations
for the payment of money, and ground rents, as provided in §7;

(6)    royalties and other receipts from disposition of natural re
sources as provided in §9;

(7)    receipts from other principal subject to depletion as pro-
vided in §10;

(8)    any profit resulting from any change in the form of principal;

(9)    any allowances for depreciation established under §8 and
§11 (a) (2).

(c) After determining income and principal in accordance with
the terms of the trust instrument or of this Article, the trustee shall
charge to income or principal expenses and other charges as provided
in §11.

(a)    An income beneficiary is entitled to income from the date
specified in the trust instrument, or if none is specified, from the
date an asset becomes subject to the trust. In the case of an asset
becoming subject to a trust by reason of a will, it becomes subject
to the trust as of the date of death of the testator even though there
is an intervening period of administration of the testator's estate.

(b)    In the administration of a decedent's estate or an asset becom-
ing subject to a trust by reason of a will:

(1)    receipts due but not paid at the date of death of the decedent
are principal;

(2)    receipts in the form of periodic payments (other than cor-
porate distributions to stockholders), including rent, ground rents,
interest, or annuities, not due at the date of the death of the decedent
shall be treated as accruing from day to day. That portion of the
receipt accruing before the date of death is principal, and the balance
is income.

(c)    In all other cases, any receipt from an income producing
asset is income even though the receipt was earned or accrued in
whole or in part before the date when the asset became subject to
the trust.

(d)    On termination of an income interest, the income beneficiary
whose interest is terminated, or his estate, is entitled to:

(1)    income undistributed on the date of termination;

(2)    income due but not paid to the trustee on the date of termi-
nation;