Chap. 233.—An ACT to amend and re-enact Section 6 of an Act entitled ‘‘An Act to
prescribe the method of ascertainment of principal and income and the apportion-
ment of receipts and expenses among tenants and remaindermen, and to make
uniform the law with reference thereto’, approved March 30th, 1936, so as to
provide that increments in value of United States Savings Bonds shall be income
and to provide a method whereby the same may be made available to tenants.

[S B 202]
Approved March 26, 1940

1. Be it enacted by the General Assembly of Virginia, That
section six of an act entitled ‘‘An Act to prescribe the method of
ascertainment of principal and income and the apportionment of
receipts and expenses among tenants and remaindermen, and to
make uniform the law with reference thereto”, approved March
thirtieth, nineteen hundred and thirty-six, be amended and re-
enacted so as to read as follows:

Section 6. Premium and discount bonds.—Where any part of
the principal consists of bonds or other obligations for the payment
of money, they shall be deemed principal at their inventory value
or in default thereof at their market value at the time the principal
was established, or at their cost where purchased later, regardless of
their par or maturity value; and upon their respective maturities or
upon their sale any loss or gain realized thereon shall fall upon or
enure to the principal, provided, however, that the increments in
value, measured by redemption values of United States Savings
Bonds issued upon a discount basis and not bearing interest, pur-
suant to the Act of Congress approved September twenty-fourth,
nineteen hundred and seventeen, as amended (USCA Tit. thirty-
one, Section seven hundred and fifty-seven-c) whether or not such
increments are actually realized by maturity or redemption o1 said
bonds, shall be income. When said bonds are held as principal of a
trust, the income of which is payable at a time or times prior to the
maturity of said bonds, the trustee or other fiduciary may pay to the
tenant from any principal funds in his hands, or transfer from principal
account to income account, the amount of such increments and in
case such payment or transfer is so made, the increment in value of
said bonds shall be added to and held as a part of the principal thereof.