212                                          LAWS OF MARYLAND                           [Ch. 11

(5)   RECEIPTS FROM THE DISPOSITION OF BONDS OR
OTHER OBLIGATIONS FOR THE PAYMENT OF MONEY, AND GROUND
RENTS, AS PROVIDED IN §14-206;

(6)    ROYALTIES AND OTHER RECEIPTS FROM
DISPOSITION OF NATURAL RESOURCES AS PROVIDED IN §14-208;

(7)   RECEIPTS FROM OTHER PRINCIPAL SUBJECT TO
DEPLETION AS PROVIDED IN §14-209;

(8)    ANY PROFIT RESULTING FROM ANY CHANGE IN
THE FORM OF PRINCIPAL;

(9)     ANY ALLOWANCES FOR DEPRECIATION
ESTABLISHES UNDER §§14-207 AND 14-210(A)(2).

(C) AFTER DETERMINING INCOME AND PRINCIPAL IN

ACCORDANCE WITH THE TERMS OF THE TRUST INSTRUMENT OR OF

THIS [[ARTICLE]] SUBTITLE, THE TRUSTEE SHALL CHARGE TO

INCOME OR PRINCIPAL EXPENSES AND OTHER CHARGES AS

PROVIDED IN §14-210.

14-204. WHEN INCOME BENEFICIARY ENTITLED TO INCOME;
ALLOCATION OF INCOME RECEIPTS; TERMINATION OF INCOME
INTEREST.

(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 BECOMING 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 FROM OF PERIODIC PAYMENTS
(OTHER THAN CORPORATE 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
HAS EARNED OR ACCRUED IN WHOLE OR IN PART BEFORE THE DATE
WHEN THE ASSET BECAME SUBJECT TO THE TRUST.