CHAPTER 206 - COURT OF CHANCERY ACCOUNTING AND DISTRIBUTION OF TRUST FUNDS

AN ACT TO AMEND CHAPTER 117 OF THE REVISED CODE OF DELAWARE, 1935, BY ADDING A NEW SECTION TO BE KNOWN AS SECTION 35A, DEFINING THE TERM "PRINCIPAL!' IN ACCOUNTING AND DISTRIBUTION OF TRUST FUNDS.

Be it hereby enacted by the Senate and House of Representatives of the State of Delaware in General Assembly met:

Section 1. That Chapter 117 of the Revised Code of Delaware, 1935, be amended, by adding a new Section thereto,' to be Section 35A thereof, and reading as follows:

Section 35A. If any part of the funds of trustees, guardians and other fiduciaries shall be invested in bonds or other obligations for the payment of money, the market value of such bonds or obligations as of the date of the acquisition of same by the trustee, guardian or other fiduciary, whether by way of purchase or by transfer from an Executor or an Administrator or otherwise, shall be deemed principal regardless of their par or maturity value; and any gain or loss realized upon the sale or other disposition thereof shall fall upon or ensure to the principal of the said trust fund. Trustees, guardians or other fiduciaries shall not be required to create or set aside any sinking fund or reserve out of the income of their trusts for depreciation, obsolescence, amortization or other waste of principal.

Section 2. That 3858 Section 60 of Chapter 98 of the Revised Code of Delaware, 1935, be and the same is hereby repealed.

Approved May 19, 1937.