MARVIN MANDEL, Governor                                    213

(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 TERMINATION;

(3)    INCOME IN THE FORM OF PERIODIC PAYMENTS
(OTHER THAN CORPORATE DISTRIBUTIONS TO STOCKHOLDERS),
INCLUDING RENT, GROUND RENTS, INTEREST, OR ANNUITIES, NOT
DUE ON THE DATE OF TERMINATION, ACCRUED TO DATE OF
TERMINATION OF SUCH INCOME INTEREST.

(E)   WHEN PERIODIC PAYMENTS OF INCOME ARE PAYABLE IN
ADVANCE WITH RESPECT TO THE PERIOD FOR WHICH THEY ARE
PAYABLE, THE APPORTIONMENT HEREINBEFORE DIRECTED SHALL BE
AS IF THE PERIODIC PAYMENT IN QUESTION HAD BEEN PAYABLE
AT THE END OF SUCH PERIOD.

(F) CORPORATE DISTRIBUTIONS TO STOCKHOLDERS SHALL
BE TREATED AS DUE ON THE DAY FIXED BY THE CORPORATION FOR
DETERMINATION OF STOCKHOLDERS OF RECORD ENTITLED TO
DISTRIBUTION OR, IF NO DATE IS FIXED, ON THE DATE OF
DECLARATION OF THE DISTRIBUTION BY THE CORPORATION.

14-205. ALLOCATION OF DISTRIBUTIONS BY CORPORATIONS,
REGULATED INVESTMENT COMPANIES AND CERTAIN TRUSTS.

(A) CORPORATE DISTRIBUTIONS OF SHARES OF THE
DISTRIBUTING CORPORATION (WHETHER OR NOT OF THE SAME
CLASS), INCLUDING DISTRIBUTION IN THE FORM OF A STOCK
SPLIT OR STOCK DIVIDEND, ARE PRINCIPAL BUT THE PROVISIONS
OF THIS SUBSECTION SHALL NOT APPLY TO SUCCESSIVE ESTATES
OR INTERESTS IN EXISTENCE PRIOR TO JUNE 1, 1965, IN WHICH
THE LIFE TENANT IS ENTITLED TO STOCK DIVIDENDS
REPRESENTING EARNINGS DURING THE LIFE TENANCY. A RIGHT
TO SUBSCRIBE TO SHARES OR OTHER SECURITIES ISSUED BY THE
DISTRIBUTING CORPORATION ACCRUING TO STOCKHOLDERS ON
ACCOUNT OF THEIR STOCK OWNERSHIP AND THE PROCEEDS OF ANY
SALE OF THE RIGHT ARE PRINCIPAL.

(E) EXCEPT TO THE EXTENT THAT THE CORPORATION
INDICATES THAT SOME PART OF A CORPORATE DISTRIBUTION IS A
SETTLEMENT OF PREFERRED OR GUARANTEED DIVIDENDS ACCRUED
SINCE THE TRUSTEE BECAME A STOCKHOLDER OR IS IN LIEU OF
AN ORDINARY CASH DIVIDEND, A CORPORATE DISTRIBUTION IS
PRINCIPAL OF THE DISTRIBUTION IS PURSUANT TO:

(1)   A CALL OF SHARES;

(2)    A MERGER, CONSOLIDATION, REORGANIZATION,