[§557A-202]  Distribution to residuary and
remainder beneficiaries.  (a)  Each beneficiary described in section
557A-201(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.  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 shall 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 shall 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; and



(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)  The rules in this section apply 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.



(d)  If a fiduciary does not distribute all of
the collected but undistributed net income or gain to each person as of a
distribution date, the fiduciary shall maintain appropriate records showing the
interest of each beneficiary in that net income or gain. [L 2000, c 191, pt of
§1]