MARVIN MANDEL, Governor                                    209

AS TRUSTEE.

A JUDGE OF ANY COURT ESTABLISHED UNDER THE LAWS OF
THE STATE OR THE UNITED STATES OR ANY CLERK OF COURT OR
REGISTER OF WILLS, UNLESS HE IS THE SURVIVING SPOUSE OF
THE GRANTOR OF THE TRUST, OR IS RELATED TO THE GRANTOR
WITHIN THE THIRD DEGREE, MAY NOT SERVE AS A TRUSTEE OF
ANY INTER VIVOS OR TESTAMENTARY TRUST CREATED BY AN
INSTRUMENT AND EXECUTED IN MARYLAND BY THE GRANTOR OR ANY
TRUSTEE, ADMINISTERED IN THE STATE OF GOVERNED BY THE
LAWS OF THE STATE, UNLESS HE WAS ACTUALLY SERVING AS A
TRUSTEE Of THE TRUST ON DECEMBER 31, 1969.

REVISOR'S NOTE: This section presently appears as
Art. 16, §199A. The provisions of this
section are similar to those contained in
§5-105 (a) of this revised article. The
provisions are repeated here as a useful
reference. The only other changes are in
style and language.

14-105. PROTECTION OF PERSON DEALING WITH TRUSTEE.

IN THE ABSENCE OF ACTUAL KNOWLEDGE OR OF REASONABLE
CAUSE TO INQUIRE AS TO WHETHER A TRUSTEE IS IMPROPERLY
EXERCISING HIS POWER, A PERSON DEALING WITH A TRUSTEE
NEED NOT INQUIRE WHETHER A TRUSTEE IS PROPERLY EXERCISING
HIS POWER, AND IS PROTECTED AS IF THE TRUSTEE PROPERLY
EXERCISES THE POWER. A PERSON NEED NOT SEE TO THE PROPER
APPLICATION OF TRUST ASSETS PAID OR DELIVERED TO A
TRUSTEE.

REVISOR'S NOTE: This section presently appears as
Art. 16, §199C. The only changes are in
style.

SUBTITLE 2. PRINCIPAL AND INCOME.

14-201. DEFINITIONS.

AS USED IN THIS SUBTITLE:

(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