MARVIN MANDEL, Governor                                   217

MADE FOR DEPRECIATION OF THAT PORTION OF ANY PROPERTY
USED BY A BENEFICIARY AS A RESIDENCE OR FOR DEPRECIATION
OF ANY PROPERTY, AS THEN CONSTITUTED, HELD BY THE TRUSTEE
ON JULY 1, 1965 FOR WHICH THE TRUSTEE IS NOT THEN MAKING
AN ALLOWANCE FOR DEPRECIATION;

(3)   ONE HALF OF COURT COSTS, ATTORNEY'S FEES,
AND OTHER FEES ON PERIODIC JUDICIAL ACCOUNTING, UNLESS
THE COURT DIRECTS OTHERWISE;

(4)   COURT COSTS, ATTORNEY'S FEES, AND OTHER
FEES ON OTHER ACCOUNTINGS OR JUDICIAL PROCEEDINGS IF THE
MATTER PRIMARILY CONCERNS THE INCOME INTEREST, UNLESS THE
COURT DIRECTS OTHERWISE;

(5)   COMPENSATION OF THE TRUSTEE ON INCOME AS
PROVIDED BY §14-103(B) OF THIS TITLE AND ALL EXPENSES
REASONABLY INCURRED FOR CURRENT MANAGEMENT OF PRINCIPAL
AND APPLICATION OF INCOME;

(6)    ANY TAX LEVIED UPON RECEIPTS DEFINED AS
INCOME UNDER THIS SUBTITLE OR THE TRUST INSTRUMENT AND
PAYABLE BY THE TRUSTEE.

(B) IF CHARGES AGAINST INCOME ARE OF UNUSUAL
AMOUNT, THE TRUSTEE MAY BY MEANS OF RESERVES OR OTHER
REASONABLE MEANS CHARGE THEM OVER A REASONABLE PERIOD OF
TIME AND WITHHOLD FROM DISTRIBUTION SUFFICIENT SUMS TO
REGULARIZE DISTRIBUTIONS.

(C) THE FOLLOWING CHARGES SHALL BE MADE AGAINST
PRINCIPAL:

(1)     SPECIAL COMPENSATION OF TRUSTEES,
EXPENSES REASONABLY INCURRED IN CONNECTION WITH
PRINCIPAL, COURT COSTS AND ATTORNEY'S FEES PRIMARILY
CONCERNING MATTERS OF PRINCIPAL, AND TRUSTEE'S
COMPENSATION ON PRINCIPAL AS [[PROVIDES]] PROVIDED BY
§14-103(C) OF THIS TITLE;

(2)    CHARGES NOT PROVIDED FOR IN SUBSECTION
(A), INCLUDING THE COST OF INVESTING AND REINVESTING
PRINCIPAL, THE PAYMENTS ON PRINCIPAL OF AN INDEBTEDNESS
(INCLUDING A MORTGAGE AMORTIZED BY PERIODIC PAYMENTS OF
PRINCIPAL AND MORTGAGE PREPAYMENT CHARGES), EXPENSES FOR
PREPARATION OF PROPERTY FOR RENTAL OR SALE, AND, UNLESS
THE COURT DIRECTS OTHERWISE, EXPENSES INCURRED IN
MAINTAINING OR DEFENDING ANY ACTION TO CONSTRUE THE TRUST
OR PROTECT IT OR THE PROPERTY OR ASSURE THE TITLE OF ANY
TRUST PROPERTY;

(3)     EXTRAORDINARY REPAIRS OR EXPENSES
INCURRED IN MAKING A CAPITAL IMPROVEMENT TO PRINCIPAL,
BUT, A TRUSTEE SHALL ESTABLISH AN ALLOWANCE FOR