214                                          LAWS OF MARYLAND                           [Ch. 11

OR OTHER PLAN BY WHICH ASSETS OF THE CORPORATION ARE
ACQUIRED BY ANOTHER CORPORATION; OR

(3) A TOTAL OR PARTIAL LIQUIDATION OF THE
CORPORATION, INCLUDING ANY DISTRIBUTION WHICH THE
CORPORATION INDICATES IS A DISTRIBUTION IN TOTAL OR
PARTIAL LIQUIDATION OR ANY DISTRIBUTION OF ASSETS, OTHER
THAN CASH, PURSUANT TO A COURT DECREE OR FINAL
ADMINISTRATIVE ORDER BY A GOVERNMENT AGENCY ORDERING
DISTRIBUTION OF THE PARTICULAR ASSETS.

(C)    DISTRIBUTIONS MADE FROM ORDINARY INCOME BY A
REGULATED INVESTMENT COMPANY OR BY A TRUST QUALIFYING AND
ELECTING TO BE TAXED UNDER FEDERAL LAW AS A REAL ESTATE
INVESTMENT TRUST ARE INCOME. ALL OTHER DISTRIBUTIONS
MADE BY THE COMPANY OR TRUST, INCLUDING DISTRIBUTIONS
FROM CAPITAL GAINS, DEPRECIATION, OR DEPLETION, WHETHER
IN THE FROM OF CASH OR AN OPTION TO TAKE NEW STOCK OR
CASH OR AN OPTION TO PURCHASE ADDITIONAL SHARES, ARE
PRINCIPAL.

(D)   EXCEPT AS PROVIDED IN SUBSECTIONS (A), (E), AND
(C), ALL CORPORATE DISTRIBUTIONS ARE INCOME, INCLUDING

CASH DIVIDENDS, DISTRIBUTIONS OF OR RIGHTS TO SUBSCRIBE
TO SHARES OR SECURITIES OR OBLIGATIONS OF CORPORATIONS
OTHER THAN THE DISTRIBUTING CORPORATION, AND THE PROCEEDS
OF THE RIGHTS OR PROPERTY DISTRIBUTIONS. EXCEPT AS
PROVIDED IN SUBSECTIONS (B) AND (C), IF THE DISTRIBUTING
CORPORATION GIVES A STOCKHOLDER AN OPTION TO RECEIVE A
DISTRIBUTION EITHER IN CASH OR IN ITS OWN SHARES, THE
DISTRIBUTION CHOSEN IS INCOME.

(E)    THE TRUSTEE MAY RELY UPON ANY STATEMENT OF THE
DISTRIBUTING CORPORATION AS TO ANY FACT RELEVANT UNDER
ANY PROVISION OF THIS [[ARTICLE]] SUBTITLE CONCERNING THE
SOURCE OR CHARACTER OF DIVIDENDS OF DISTRIBUTIONS OF
CORPORATE ASSETS.

10-206. BONDS OR OTHER OBLIGATIONS FOR PAYMENT OF MONEY.

(A) BONDS OR OTHER OBLIGATIONS FOR THE PAYMENT OF
MONEY, AND GROUND RENTS, ARE PRINCIPAL AT THEIR INVENTORY
VALUE, EXCEPT AS PROVIDED IN SUBSECTION (E) FOR DISCOUNT
BONDS. NO PROVISION SHALL BE MADE FOR AMORTIZATION OF
PREMIUMS OR FOR ACCUMULATION FOR DISCOUNT. THE PROCEEDS
OF SALE, REDEMPTION, OR OTHER DISPOSITION OF THE BONDS,
OBLIGATIONS OR GROUND RENTS, ARE PRINCIPAL.

(E) THE INCREMENT IN VALUE OF A BOND OR OTHER
OBLIGATION FOR THE PAYMENT OF MONEY PAYABLE AT A FUTURE
TIME IN ACCORDANCE WITH A FIXED SCHEDULE OF APPRECIATION
IN EXCESS OF THE PRICE AT WHICH IT WAS ISSUED IS
DISTRIBUTABLE AS INCOME. THE INCREMENT IN VALUE IS
DISTRIBUTABLE TO THE BENEFICIARY WHO WAS THE INCOME