§ 11-A-2.2 Distribution to residuary and remainder beneficiaries

(a) Each beneficiary described in paragraph 11-A-2.1 (4) is entitled
to receive a portion of the net income equal to the beneficiary's
fractional interest in undistributed principal assets, using values as
of the distribution date, provided, however, that any amount allowed as
a tax deduction to the estate for income payable to a charitable
organization shall be paid, without diminution for taxes, to the
charitable organization entitled to receive such income. If a fiduciary
makes more than one distribution of assets to beneficiaries to whom this
section applies, each beneficiary, including one who does not receive
part of the distribution, is entitled, as of each distribution date, to
the net income the fiduciary has received after the date of death or
terminating event or earlier distribution date but has not distributed
as of the current distribution date.

(b) In determining a beneficiary's share of net income, the following
rules apply:

(1) The beneficiary is entitled to receive a portion of the net income
equal to the beneficiary's fractional interest in the undistributed
principal assets immediately before the distribution date, including
assets that later may be sold to meet principal obligations.

(2) The beneficiary's fractional interest in the undistributed
principal assets must be calculated without regard to property
specifically given to a beneficiary and property required to pay
pecuniary amounts not in trust.

(3) The beneficiary's fractional interest in the undistributed
principal assets must be calculated on the basis of the aggregate value
of those assets as of the distribution date without reducing the value
by any unpaid principal obligation.

(4) The distribution date for purposes of this section may be the date
as of which the fiduciary calculates the value of the assets if that
date is reasonably near the date on which assets are actually
distributed.

(c) If a fiduciary does not distribute all of the collected but
undistributed net income to each person as of a distribution date, the
fiduciary shall maintain appropriate records showing the interest of
each beneficiary in that net income.

(d) A fiduciary may apply the rules in this section, to the extent
that the fiduciary considers it appropriate, to net gain or loss
realized after the date of death or terminating event or earlier
distribution date from the disposition of a principal asset if this
section applies to the income from the asset.

(e) The portion of a beneficiary determined under paragraph (a) is
subject to the fiduciary's further power of adjustment under
subparagraph 11-2.3(b)(5), which adjustment if made shall be made to or
from the principal of such beneficiary's share. The fiduciary shall
maintain appropriate records showing the principal interest of each
beneficiary, as adjusted.