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2000 LAWS OF MARYLAND
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Ch. 292
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(6) OTHER RECEIPTS AS PROVIDED IN PART III OF THIS SUBTITLE.
15-512. RENTAL PROPERTY.
TO THE EXTENT THAT A TRUSTEE ACCOUNTS FOR RECEIPTS FROM RENTAL
PROPERTY PURSUANT TO THIS SECTION, THE TRUSTEE SHALL ALLOCATE TO
INCOME AN AMOUNT RECEIVED AS RENT OF REAL OR PERSONAL PROPERTY,
INCLUDING AN AMOUNT RECEIVED FOR CANCELLATION OR RENEWAL OF A LEASE.
AN AMOUNT RECEIVED AS A REFUNDABLE DEPOSIT, INCLUDING A SECURITY
DEPOSIT OR A DEPOSIT THAT IS TO BE APPLIED AS RENT FOR FUTURE PERIODS,
MUST BE ADDED TO PRINCIPAL AND HELD SUBJECT TO THE TERMS OF THE LEASE
AND IS NOT AVAILABLE FOR DISTRIBUTION TO A BENEFICIARY UNTIL THE
TRUSTEE'S CONTRACTUAL OBLIGATIONS HAVE BEEN SATISFIED WITH RESPECT TO
THAT AMOUNT.
15-513. OBLIGATION TO PAY MONEY.
(A) AN AMOUNT RECEIVED AS INTEREST, WHETHER DETERMINED AT A
FIXED, VARIABLE, OR FLOATING RATE, ON AN OBLIGATION TO PAY MONEY TO THE
TRUSTEE, INCLUDING AN AMOUNT RECEIVED AS CONSIDERATION FOR PREPAYING
PRINCIPAL, MUST BE ALLOCATED TO INCOME WITHOUT ANY PROVISION FOR
AMORTIZATION OF PREMIUM.
(B) A TRUSTEE SHALL ALLOCATE TO PRINCIPAL AN AMOUNT RECEIVED FROM
THE SALE, REDEMPTION, OR OTHER DISPOSITION OF AN OBLIGATION TO PAY MONEY
TO THE TRUSTEE MORE THAN 1 YEAR AFTER IT IS PURCHASED OR ACQUIRED BY THE
TRUSTEE, INCLUDING AN OBLIGATION WHOSE PURCHASE PRICE OR VALUE WHEN IT
IS ACQUIRED IS LESS THAN ITS VALUE AT MATURITY. IF THE OBLIGATION MATURES
WITHIN 1 YEAR AFTER IT IS PURCHASED OR ACQUIRED BY THE TRUSTEE, AN
AMOUNT RECEIVED IN EXCESS OF ITS PURCHASE PRICE OR ITS VALUE WHEN
ACQUIRED BY THE TRUST MUST BE ALLOCATED TO INCOME.
(C) THIS SECTION DOES NOT APPLY TO AN OBLIGATION TO WHICH § 15-516, §
15-517, § 15-518, § 15-519, § 15-521, OR § 15-522 OF THIS SUBTITLE APPLIES.
15-514. INSURANCE POLICIES AND SIMILAR CONTRACTS.
(A) EXCEPT AS OTHERWISE PROVIDED IN SUBSECTION (B) OF THIS SECTION, A
TRUSTEE SHALL ALLOCATE TO PRINCIPAL THE PROCEEDS OF A LIFE INSURANCE
POLICY OR OTHER CONTRACT IN WHICH THE TRUST OR ITS TRUSTEE IS NAMED AS
BENEFICIARY, INCLUDING A CONTRACT THAT INSURES THE TRUST OR ITS TRUSTEE
AGAINST LOSS FOR DAMAGE TO, DESTRUCTION OF, OR LOSS OF TITLE TO A TRUST
ASSET. THE TRUSTEE SHALL ALLOCATE DIVIDENDS ON AN INSURANCE POLICY TO
INCOME IF THE PREMIUMS ON THE POLICY ARE PAID FROM INCOME, AND TO
PRINCIPAL IF THE PREMIUMS ARE PAID FROM PRINCIPAL.
(B) A TRUSTEE SHALL ALLOCATE TO INCOME PROCEEDS OF A CONTRACT
THAT INSURES THE TRUSTEE AGAINST LOSS OF OCCUPANCY OR OTHER USE BY AN
INCOME BENEFICIARY, LOSS OF INCOME, OR, SUBJECT TO § 15-510 OF THIS SUBTITLE,
LOSS OF PROFITS FROM A BUSINESS.
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- 1712 -
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