CHAPTER 394

AN ACT TO AMEND TITLE 12, SECTION 3526, DELAWARE CODE, RELATING TO ALLOCATIONS OF CORPORATE DISTRIBUTIONS BETWEEN PRINCIPAL AND INCOME OF TRUSTS.

Be it enacted by the General Assembly of the State of Delaware:

Section 1. Section 3526 of Title 12 of the Delaware Code, is amended by adding thereto a new Subsection (d) to read as follows:

(d) In the case of any corporate distribution received by a trustee prior to July 2, 1959, if the instrument creating the trust does not expressly or by necessary implication provide otherwise, the trustee's allocation as trust income or trust Principal of any property, tangible or intangible, received by the trustee as a corporate distribution upon or with respect to shares of stock held in trust, including but not limited to shares of the same class or corporation, shall be conclusively presumed for all purposes to have been an allocation made in accordance with the terms of the trust instrument if, in the case of an allocation to trust income, such allocation would have satisfied the standards or requirements of paragraph (1) of Subsection (a), and, in the case of an allocation to trust principal, such allocation would have satisfied the standards or requirements of paragraph (2) of Subsection (a); provided, however, that this Subsection (d) shall not affect or apply to any allocation of a corporate distribution which was paid, delivered or distributed by the trustee to either an income beneficiary or a principal beneficiary prior to the enactment of this Subsection.

Approved May 23, 1962.