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Se('!$ 2/ ! ()e C!%e

SECTION 9. :er+!$a e6e"('!$. # :er+!$a e6e"('!$ '+ a$ arb'(rary a!u$( a!&e% !r "er+!$a, '*'$5, !r a'y e6"e$+e+ ! ()e (a6"ayer. I( '+ a!&e%

(! '(';e$+ ! ()e :)''""'$e+, (! re+'%e$( a'e$+, a$% (! $!$-re+'%e$( a'e$+ '$ er(a'$ a+e+. T)e "r!e%ure ! arr'*'$5 a( ()e (a6 %ue a(er 5'*'$5 ee( (! ()e e6e"('!$+a!&abe '+ +e( !r() '$ Se('!$ 4 ! ()e+e re5ua('!$+. EaT

SECTION 10. :er+!$a e6e"('!$ ! +'$5e '$%'*'%ua+. # A +'$5e '$%'*'%ua '+ e$('(e% (! a "er+!$a e6e"('!$ ! :1,00.

SECTION 11. :er+!$a e6e"('!$ ! arr'e% "er+!$+ a$% )ea%+ ! a'y. # A arr'e% "er+!$ '+ e$('(e% (! a "er+!$a e6e"('!$ ! :/,000. O$y !$e

e6e"('!$ ! :/,000 '+ a!&e% &'() re+"e( (! ()e a55re5a(e '$!e ! b!() )u+ba$% a$% &'e. C!$!r+ &'() ae$%e$(+ by R.A. 2/4/, ee('*e u$e 20, 19

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a%%'('!$+, ' a$y, re=u're% by a& (! be a%e &'()'$ ()e year (! re+er*e u$%+ a$% ()e +u+ !()er ()a$ %'*'%e$%+ "a'% &'()'$ ()e year !$ "!'y a$% a$$u'(y !$(ra(+.

:r!"!+e% by ()e >IR. I a%!"(e%, ()'+ &' +u"er+e%e Se. 124 ! e6'+('$5 re5ua('!$+.

Se('!$ 2< ! ()e C!%eSECTION 1. Ta6a('!$ ! !r"!ra('!$ !re% !r u('';e% !r a*!'%a$e ! (a6. # Se('!$ 2< '"!+e+ !r ea) year, '$ a%%'('!$ (! ()e (a6 '"!+e% by Se('!$ 24

a (a6 ! 2< "er e$( !$ ()e u$%'+(r'bu(e% "!r('!$ ! ()e "r!'(+ !r +ur"u+ ! a !r"!ra('!$ &)') '+ !re% !r a*a'e% ! !r ()e "ur"!+e ! "re*e$('$5 ()e '"!+'('!$ !

()e (a6 u"!$ '(+ +)are)!%er+ !r eber+ !r ()e +)are)!%er+ !r eber+ ! a$y !()er !r"!ra('!$ ()r!u5) ()e e%'u ! "er'(('$5 5a'$+ !r "r!'(+ (! auua(e

'$+(ea% ! %'*'%'$5 !r %'+(r'bu('$5 ()e. !&e*er, ba$+, '$+ura$e !"a$'e+, "er+!$a )!%'$5 !"a$'e+ a$% !re'5$ "er+!$a )!%'$5 !"a$'e+ a+ %e'$e% '$

C)a"(er VIII, are e6e"(e% r! (a6a('!$ u$%er Se('!$ 2.I.R. F!r N!. 1@.04 !r ()e "ur"!+e ! ur$'+)'$5 '$!ra('!$ a+ (! ()e +)are '$ ()e 5a'$+ !r "r!'(+ &)') ea) "ar($er +)a '$u%e '$ )'+ '$%'*'%ua

re(ur$. I$%'*'%ua+ arry'$5 !$ bu+'$e++ '$ 5e$era !-"ar($er+)'" are, )!&e*er, (a6abe u"!$ ()e'r %'+(r'bu('*e +)are+ ! ()e $e( '$!e ! +u) "ar($er+)'", &)e()er%'+(r'bu(e% !r $!(, a$% are re=u're% (! '$u%e +u) %'+(r'bu('*e +)are+ '$ ()e'r '$%'*'%ua re(ur$+. T)e re(ur$+ ! %uy re5'+(ere% 5e$era !-"ar($er+)'"+ +)!u% be

re$%ere% !$ !r be!re A"r' 1< ! ea) year !r &'()'$ +'6(y %ay+ a(er ()e e$% ! ()e'r '+a year %e"e$%'$5 !$ &)e()er ()e'r b!!+ are e"( !$ ()e ae$%ar !r !$ ()e

'+a year ba+'+. C!$!r+ &'() ae$%e$(+ by R.A. 2/4/, e*. u$e 20, 19

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SECTION /a+e+ ! !"u(a('!$. # A""r!*e% +(a$%ar% e()!%+ ! a!u$('$5 &' be !r%'$ar'y re5ar%e% a+ eary ree('$5 '$!e. A e()!% !

a!u$('$5 &' $!(, )!&e*er, be re5ar%e% a+ eary ree('$5 '$!e u$e++ a '(e+ ! 5r!++ '$!e a$% a %e%u('!$+ are (rea(e% &'() rea+!$abe !$+'+(e$y. A'(e+ ! 5r!++ '$!e +)a be '$u%e% '$ ()e 5r!++ '$!e !r ()e (a6abe year '$ &)') ()ey are ree'*e% by ()e (a6"ayer a$% %e%u('!$+ (ae$ a!r%'$5y, u$e++ '$

!r%er eary (! ree( '$!e +u) a!u$(+ are (! be "r!"ery a!u$(e% !r a+ ! a %'ere$( "er'!%. F!r '$+(a$e, '$ a$y a+e '$ &)') '( '+ $ee++ary (! u+e a$

'$*e$(!ry, $! a!u$('$5 '$ re5ar% (! "ur)a+e+ a$% +ae+ &' !rre(y ree( '$!e e6e"( a$ arua e()!%. A (a6"ayer '+ %eee% (! )a*e ree'*e% '(e+ ! 5r!++'$!e &)') )a*e bee$ re%'(e% (! !r +e( a"ar( !r )' &'()!u( re+(r'('!$. O$ ()e !()er )a$%, a""re'a('!$ '$ *aue ! "r!"er(y '+ $!( e*e$ a$ arua ! '$!e (! a

(a6"ayer "r'!r (! ()e rea';a('!$ ! +u) a""re'a('!$ ()r!u5) +ae !r !$*er+'!$ ! ()e "r!"er(y. F!r e()!%+ ! a!u$('$5 a$% %e(er'$a('!$ ! a!u$('$5 "er'!%, +ee

Se('!$+ 133 (! 139 ! ()e+e re5ua('!$+.

Se('!$ 29a ! ()e C!%e

SECTION /9. )a( 5r!++ '$!e '$u%e+. # Gr!++ '$!e '$u%e+, '$ 5e$era, !"e$+a('!$ !r "er+!$a a$% "r!e++'!$a +er*'e+, bu+'$e++ '$!e, "r!'(+r! +ae+ ! a$% %ea'$5+ '$ "r!"er(y, '$(ere+(+, re$(+, %'*'%e$%+, a$% 5a'$+, "r!'(+, a$% '$!e %er'*e% r! a$y +!ure &)a(e*er, u$e++ e6e"( r! (a6 by a&. I$

5e$era, '$!e '+ ()e 5a'$ %er'*e% r! a"'(a, r! ab!r, !r r! b!() !b'$e%, "r!*'%e% '( be u$%er+(!!% (! '$u%e "r!'( 5a'$e% ()r!u5) a +ae !r !$*er+'!$ !

a"'(a a++e(+. :r!'( ! '(';e$+, re+'%e$( a'e$+, !r %!e+(' !r"!ra('!$+ %er'*e% r! +ae+ '$ !re'5$ !ere u+( be '$u%e% '$ ()e'r 5r!++ '$!e. I$!e ay

be '$ ()e !r ! a+) !r ! "r!"er(y. ICT

F!r ()e (rea(e$( ! %'*'%e$%+ !r "ur"!+e+ ! ()e (a6, +ee Se('!$+ 2

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%e%u(e% r! 5r!++ '$!e. F!r !$*e$'e$e +u) a$ a!&a$e &' u+uay be reerre% (! a+ %e"re'a('!$, e6u%'$5 r! ()e (er a$y '%ea ! a ere re%u('!$ '$

are( *aue $!( re+u('$5 r! e6)au+('!$, &ear a$% (ear, !r !b+!e+e$e. T)e "r!"er a!&a$e !r +u) %e"re'a('!$ ! a$y "r!"er(y u+e% '$ ()e (ra%e !r bu+'$e++ '+

()a( a!u$( &)') +)!u% be +e( a+'%e !r ()e (a6abe year '$ a!r%a$e &'() a rea+!$abe !$+'+(e$( "a$ &)ereby ()e a55re5a(e ! ()e a!u$( +! +e( a+'%e, "u+ ()e+a*a5e *aue, &', a( ()e e$% ! ()e u+eu ' e ! ()e "r!"er(y '$ bu+'$e++, e=ua ()e ba+'+ ! ()e "r!"er(y. ue re5ar% u+( a+! be 5'*e$ (! e6"e$%'(ure+ !r urre$(

u"ee". CSTA

SECTION 103. e"re'abe "r!"er(y. # T)e $ee++'(y !r a %e"re'a('!$ a!&a$e ar'+e+ r! ()e a( ()a( er(a'$ "r!"er(y u+e% '$ ()e bu+'$e++ 5ra%uay

a""r!a)e+ a "!'$( &)ere '(+ u+eu$e++ '+ e6)au+(e%. T)e a!&a$e+ +)!u% be !$'$e% (! "r!"er(y ! ()'+ $a(ure. I$ ()e a+e ! (a$5'be "r!"er(y, '( a""'e+ (! ()a(

&)') '+ +ub7e( (! &ear a$% (ear, (! %eay !r %e'$e r! $a(ura au+e+, (! e6)au+('!$ a$% (! !b+!e+e$e %ue (! ()e $!ra "r!5re++ ! ()e ar(, a+ &)ere a)'$ery!r !()er "r!"er(y u+( be re"ae% by a $e& '$*e$('!$, !r %ue (! ()e '$a%e=uay ! ()e "r!"er(y (! ()e 5r!&'$5 $ee%+ ! ()e bu+'$e++. I( %!e+ $!( a""y (! '$*e$(!r'e+ !r

(! +(! '$ (ra%e, $!r (! a$% a"ar( r! ()e '"r!*ee$(+ !r ")y+'a %e*e!"e$( a%%e% (! '(. I( %!e+ $!( a""y (! b!%'e+ ! '$era+ &)') ()r!u5) ()e "r!e++ !

re!*a +uer %e"e('!$. :r!"er(y e"( '$ re"a'r ay, $e*er()ee++, be ()e +ub7e( ! a %e"re'a('!$ a!&a$e. T)e %e%u('!$ ! a$ a!&a$e !r %e"re'a('!$ '+ ''(e%

(! "r!"er(y u+e% '$ ()e (a6"ayerH+ (ra%e !r bu+'$e++. N! +u) a!&a$e ay be a%e '$ re+"e( (! au(!!b'e+ !r !()er (ra$+"!r(a('!$ e=u'"e$( u+e% +!ey !r ()e

"ea+ure, a bu'%'$5 u+e% by ()e (a6"ayer +!ey a+ )'+ re+'%e$e, $!r '$ re+"e( ! ur$'(ure !r ur$'+)'$5+ ()ere'$, "er+!$a ee(+, !r !()'$5D bu( "r!"er('e+ a$%!+(ue+ u+e% e6u+'*ey '$ a bu+'$e++, +u) a+ ()ea(r'a bu+'$e++, ay be ()e +ub7e( ! a %e"re'a('!$ a!&a$e.

SECTION 10@. e"re'a('!$ ! '$(a$5'be "r!"er(y. # I$(a$5'be+, ()e u+e ! &)') '$ ()e (ra%e !r bu+'$e++ '+ %e'$'(ey ''(e% '$ %ura('!$, ay be ()e +ub7e( !

a %e"re'a('!$ a!&a$e. E6a"e+ are "a(e$(+, !"yr'5)(+, a$% ra$)'+e+. I$(a$5'be+, ()e u+e ! &)') '$ ()e bu+'$e++ !r (ra%e '+ $!( +! ''(e%, &' $!( u+uay be a

"r!"er +ub7e( ! +u) a$ a!&a$e. I )!&e*er, a$ '$(a$5'be a++e( a=u're% ()r!u5) a"'(a !u(ay '+ $!&$ r! e6"er'e$e (! be ! *aue '$ ()e bu+'$e++ !r !$y a

''(e% "er'!%, ()e e$5() ! &)') a$ be e+('a(e% r! e6"er'e$e &'() rea+!$abe er(a'$(y, +u) '$(a$5'be a++e( ay be ()e +ub7e( ! a %e"re'a('!$ a!&a$e,"r!*'%e% ()e a(+ are uy +)!&$ '$ ()e re(ur$ !r "r'!r ()ere(! (! ()e +a('+a('!$ ! ()e C!'++'!$er ! I$(er$a Re*e$ue.

SECTION 10. Ca"'(a +u re!*erabe ()r!u5) %e"re'a('!$ a!&a$e+. # T)e a"'(a +u (! be re"ae% by %e"re'a('!$ a!&a$e+ '+ ()e !+( !r !()er ba+'+

! ()e "r!"er(y '$ re+"e( ! &)') ()e a!&a$e '+ a%e. T! ()'+ a!u$( +)!u% be a%%e% r! ('e (! ('e ()e !+( ! '"r!*ee$(+, a%%'('!$+, a$% be((ere$( a$%

r! '( +)!u% be %e%u(e% r! ('e (! ('e ()e a!u$( ! a$y %e'$'(e !++ !r %aa5e +u+(a'$e% by ()e "r!"er(y ()r!u5) a+ua(y, a+ %'+('$5u'+)e% r! ()e 5ra%ua

e6)au+('!$ ! '(+ u(''(y &)') '+ ()e ba+'+ ! ()e %e"re'a('!$ a!&a$e. )ere ()e e++ee ! rea "r!"er(y ere(+ bu'%'$5+, !r ae+ "era$e$( '"r!*ee$(+ &)')be!e "ar( ! ()e rea(y a$% '$!e )a+ bee$ re(ur$e% by ()e e++!r a+ a re+u( ()ere!, a+ "r!*'%e% '$ Se('!$ 49 ! ()e+e re5ua('!$+, ()e a"'(a +u (! be re"ae% by

%e"re'a('!$ a!&a$e '+ ()e +ae a+ ()!u5) $! +u) bu'%'$5+ )a% bee$ ere(e% !r +u) '"r!*ee$(+ a%e. N! %e"re'a('!$ %e%u('!$ &' be a!&e% '$ ()e a+e !

"r!"er(y &)') )a+ bee$ a!r(';e% (! '(+ +ra" *aue a$% '+ $! !$5er '$ u+e. AaSCT

SECTION 109. Me()!% ! !"u('$5 %e"re'a('!$ a!&a$e. # T)e a"'(a +u (! be re"ae% +)!u% be )ar5e% ! !*er ()e u+eu 'e ! ()e "r!"er(y, e'()er

'$ e=ua a$$ua '$+(ae$(+ !r '$ a!r%a$e &'() a$y !()er re!5$';e% (ra%e "ra('e, +u) a+ a$ a""!r('!$e$( ! ()e a"'(a +u !*er u$'(+ ! "r!%u('!$. )a(e*er"a$ !r e()!% ! a""!r('!$e$( '+ a%!"(e% u+( be rea+!$abe a$% u+( )a*e %ue re5ar% (! !"era('$5 !$%'('!$+ %ur'$5 ()e (a6abe "er'!%. )'e ()e bur%e$ ! "r!!

u+( re+( u"!$ ()e (a6"ayer (! +u+(a'$ ()e %e%u('!$+ (ae$ by )', +u) %e%u('!$+ u+( $!( be %'+a!&e% u$e++ +)!&$ by ear a$% !$*'$'$5 e*'%e$e (! beu$rea+!$abe. T)e rea+!$abe$e++ ! a$y a' !r %e"re'a('!$ +)a be %e(er'$e% u"!$ ()e !$%'('!$+ $!&$ (! e6'+( a( ()e e$% ! ()e "er'!% !r &)') ()e re(ur$ '+

a%e. I '( %e*e!"+ ()a( ()e u+eu 'e ! ()e "r!"er(y &' be !$5er !r +)!r(er ()a$ ()e u+eu 'e a+ !r'5'$ay e+('a(e% u$%er a ()e ()e$ $!&$ a(+, ()e "!r('!$ !

()e !+( !r !()er ba+'+ ! ()e "r!"er(y $!( area%y "r!*'%e% !r ()r!u5) %e"re'a('!$ a!&a$e+ +)!u% be +"rea% !*er ()e rea'$'$5 u+eu 'e ! ()e "r!"er(y a+ree+('a(e% '$ ()e '5)( ! ()e +ub+e=ue$( a(+, a$% %e"re'a('!$ %e%u('!$+ (ae$ a!r%'$5y.

SECTION 110. Ob+!e+e$e. # '() re+"e( (! ")y+'a "r!"er(y ()e &)!e !r a$y "!r('!$ ! &)') '+ eary +)!&$ by ()e (a6"ayer a+ be'$5 ae(e% by

e!$!' !$%'('!$+ ()a( &' re+u( '$ '(+ be'$5 aba$%!$e% a( a u(ure %a(e "r'!r (! ()e e$% ! '(+ $!ra u+eu 'e, +! ()a( %e"re'a('!$ %e%u('!$+ a!$e are '$+u''e$(

(! re(ur$ ()e !+( !r !()er ba+'+ a( ()e e$% ! '(+ e!$!' (er ! u+eu$e++, a rea+!$abe %e%u('!$ !r !b+!e+e$e, '$ a%%'('!$ (! %e"re'a('!$, ay be a!&e% '$

a!r%a$e &'() ()e a(+ !b(a'$'$5 &'() re+"e( (! ea) '(e ! "r!"er(y !$er$'$5 &)') a a' !r !b+!e+e$e '+ a%e. N! %e%u('!$+ !r !b+!e+e$e &' be"er'((e% erey beau+e, '$ ()e !"'$'!$ ! a (a6"ayer, ()e "r!"er(y ay be!e !b+!e(e a( +!e a(er %a(e. T)'+ a!&a$e &' be !$'$e% (! +u) "!r('!$ ! ()e

"r!"er(y !$ &)') !b+!e+e$e '+ %e'$'(ey +)!&$ (! be +u+(a'$e% a$% a$ $!( be )e% a""'abe (! a$ e$('re "r!"er(y u$e++ a "!r('!$+ ()ere! are ae(e% by ()e

!$%'('!$+ (! &)') !b+!e+e$e '+ !u$% (! be %ue.

SECTION 111. e"re'a('!$ ! "a(e$( !r !"yr'5)(. # I$ !"u('$5 %e"re'a('!$ a!&a$e '$ ()e a+e ! a "a(e$( !r !"yr'5)(, ()e a"'(a +u (! be re"ae% '+

()e !+( !r !()er ba+'+ ! ()e "a(e$( !r !"yr'5)(. T)e a!&a$e +)!u% be !"u(e% by a$ a""!r('!$e$( ! ()e !+( !r !()er ba+'+ ! ()e "a(e$( !r !"yr'5)( !*er ()e'e ! ()e "a(e$( !r !"yr'5)( +'$e '(+ 5ra$(, !r +'$e '(+ a=u'+'('!$ by ()e (a6"ayer, !r +'$e Mar) 1, 191/, a+ ()e a+e ay be. I ()e "a(e$( !r !"yr'5)( &a+ a=u're%

r! ()e G!*er$e$(, '(+ !+( !$+'+(+ ! ()e *ar'!u+ G!*er$e$( ee+, !+( ! %ra&'$5+, e6"er'e$(a !%e+, a((!r$eyH+ ee+, %e*e!"e$( !r e6"er'e$(a e6"e$+e+,

e(., a(uay "a'%. e"re'a('!$ ! a "a(e$( a$ be (ae$ !$ ()e ba+'+ ! ()e a'r are( *aue a+ ! Mar) 1, 191/, !$y &)e$ a'ra('*e a$% +a('+a(!ry e*'%e$e !+u) *aue '+ !ere%. Su) e*'%e$e +)!u% &)e$e*er "ra('abe be +ub'((e% &'() ()e re(ur$. I ()e "a(e$( be!e+ !b+!e(e "r'!r (! '(+ e6"'ra('!$, +u) "r!"!r('!$ !

()e a!u$( !$ &)') '(+ %e"re'a('!$ ay be ba+e% a+ ()e $uber ! year+ ! '(+ rea'$'$5 'e bear+ (! ()e &)!e $uber ! year+ '$(er*e$'$5 be(&ee$ ()e ba+' %a(e&)e$ '( e5ay e6"'re+ ay be %e%u(e%, ' "er'++'!$ (! %! +! '+ +"e''ay +eure% r! ()e C!'++'!$er ! I$(er$a Re*e$ue. O&'$5 (! ()e %''u(y ! a!a('$5

(! a "ar('uar year ()e !b+!e+e$e ! a "a(e$(, +u) "er'++'!$ &' be 5ra$(e% !$y ' a'ra('*e a$% +a('+a(!ry e*'%e$e ()a( ()e "a(e$( beae !b+!e(e '$ ()e year

!r &)') ()e re(ur$ '+ a%e '+ +ub'((e% (! ()e C!'++'!$er ! I$(er$a Re*e$ue. T)e a( ()a( %e"re'a('!$ )a+ $!( bee$ (ae$ '$ "r'!r year+ %!e+ $!( e$('(e ()e

(a6"ayer (! %e%u( '$ a$y (a6abe year a 5rea(er a!u$( !r %e"re'a('!$ ()a$ &!u% !()er&'+e be a!&abe. ACS

SECTION 112. e"re'a('!$ ! %ra&'$5+ a$% !%e+. # )ere a (a6"ayer )a+ '$urre% e6"e$%'(ure+ '$ )'+ bu+'$e++ !r %e+'5$+, %ra&'$5+, "a((er$+, !%e+, !r&!r ! a$ e6"er'e$(a $a(ure aua(e% (! re+u( '$ '"r!*ee$( ! )'+ a''('e+ !r )'+ "r!%u(, ' ()e "er'!% ! u+eu$e++ ! a$y +u) a++e( ay be e+('a(e% r!

e6"er'e$e &'() rea+!$abe auray, '( ay be ()e +ub7e( ! %e"re'a('!$ a!&a$e+ +"rea% !*er +u) e+('a(e% "er'!% ! u+eu$e++. T)e a(+ u+( be uy +)!&$ '$

()e re(ur$ !r "r'!r ()ere(! (! ()e +a('+a('!$ ! ()e C!'++'!$er ! I$(er$a Re*e$ue. E6e"( !r +u) %e"re'a('!$ a!&a$e+ $! %e%u('!$ +)a be a%e by ()e

(a6"ayer a5a'$+( a$y +u +! +e( u" a+ a$ a++e( e6e"( !$ ()e +ae !r !()er %'+"!+'('!$ ! +u) a++e( a( a !++ !r !$ "r!! ! a (!(a !++ ()ere!.

SECTION 11/. C)ar5'$5 ! %e"re'a('!$. # A %e"re'a('!$ a!&a$e, '$ !r%er (! !$+('(u(e a$ a!&abe %e%u('!$ r! 5r!++ '$!e, u+( be )ar5e% !.T)e "ar('uar a$$er '$ &)') '( +)a be )ar5e% ! '+ $!( a(er'a, e6e"( ()a( ()e a!u$( ea+ur'$5 a rea+!$abe a!&a$e !r %e"re'a('!$ u+( be e'()er %e%u(e%

%'re(y r! ()e b!! *aue ! ()e a++e(+ !r "reeraby re%'(e% (! a %e"re'a('!$ re+er*e a!u$(, &)') u+( be ree(e% '$ ()e a$$ua baa$e +)ee(. T)e a!&a$e+

+)!u% be !"u(e% a$% )ar5e% ! &'() e6"re++ reere$e (! +"e'' '(e+, u$'(+, !r 5r!u"+ ! "r!"er(y, ea) '(e !r u$'( be'$5 !$+'%ere% +e"ara(ey !r +"e''ay

'$u%e% '$ a 5r!u" &'() !()er+ (! &)') ()e +ae a(!r+ a""y. T)e (a6"ayer +)!u% ee" +u) re!r%+ (! ea) '(e !r u$'( ! %e"re'abe "r!"er(y a+ &' "er'( ()e

rea%y *er''a('!$ ! ()e a(!r+ u+e% '$ !"u('$5 ()e a!&a$e !r ea) year !r ea) '(e, u$'(, !r 5r!u".SECTION 114. e"re'a('!$ '$ ()e a+e ! arer+. # A rea+!$abe a!&a$e !r %e"re'a('!$ ay be a'e% !$ ar bu'%'$5+ !()er ()a$ a %&e'$5

!u"'e% by ()e !&$er, ar a)'$ery, a$% !()er ")y+'a "r!"er(y. A rea+!$abe a!&a$e !r %e"re'a('!$ ay a+! be a'e% !$ '*e +(! a=u're% !r &!r,

bree%'$5, !r %a'ry "ur"!+e+, u$e++ ()ey are '$u%e% '$ a$ '$*e$(!ry u+e% (! %e(er'$e "r!'(+ '$ a!r%a$e &'() ()e+e re5ua('!$+. Su) %e"re'a('!$ +)!u% be ba+e%

!$ ()e !+( !r !()er ba+'+ a$% ()e e+('a(e% 'e ! ()e '*e +(!. I +u) '*e +(! be '$u%e% '$ a$ '$*e$(!ry $! %e"re'a('!$ ()ere! &' be a!&e%, a+ ()e

!rre+"!$%'$5 re%u('!$ '$ ()e'r *aue &' be ree(e% '$ ()e '$*e$(!ry.SECTION 11

7/23/2019 RR 2 (1940)

13/41

a!&a$e+ ()ere!$ are re5ar%e% a+ %e+'5$e% (! "er'( (a6-ree re!*ery ! a( ea+( ()e'r a"'(a '$*e+(e$(+ '$ +u) "r!"er(y r'5)(+.

SECTION 11a+'+ !r %e"e('!$. # O$ !' !r 5a+ &e+ ()e "ere$(a5e %e"e('!$ a!&a$e '+ '6e% a( 2@ 12? ! 5r!++ '$!e &)'e !$ '$e+, ()e "ere$(a5e

%e"e('!$ a!&a$e *ar'e+ '$ a!r%a$e &'() ()e a++ ! '$era+. T)e 5r!++ '$!e ba+'+ '+ ()e a!u$( rea'$'$5 a(er %e%u('$5 ()erer! re$(+ !r r!ya('e+ "a'% !r'$urre% by ()e (a6"ayer '$ re+"e( (! ()e "r!"er(y. I$ b!() a+e+, ()e (!(a "ere$(a5e %e"e('!$ a!&a$e +)a '$ $! a+e e6ee%

7/23/2019 RR 2 (1940)

14/41

! Se. 22b a+ ae$%e% by R.A. 2/4/.

Se('!$ /07 ! ()e C!%e

SECTION 11. :aye$(+ (! e"!yee+H "e$+'!$ (ru+(+. # A$ e"!yer &)! a%!"(+ !r )a+ a%!"(e% a rea+!$abe "e$+'!$ "a$, a(uar'ay +!u$%, a$% &)!e+(ab'+)e+, !r )a+ e+(ab'+)e%, a$% a'$(a'$+ a "e$+'!$ (ru+( !r ()e "aye$( ! rea+!$abe "e$+'!$+ (! )'+ e"!yee+ +)a be a!&e% (! %e%u( r! 5r!++ '$!e

rea+!$abe a!u$(+ "a'% (! +u) (ru+(, '$ a!r%a$e &'() ()e "e$+'!$ "a$ '$u%'$5 a$y rea+!$abe ae$%e$( ()ere!, a+ !!&+8

a I ()e "a$ !$(e"a(e+ ()e "aye$( (! ()e (ru+(, '$ a%*a$e ! ()e ('e &)e$ "e$+'!$+ are 5ra$(e%, ! a!u$(+ (! "r!*'%e !r u(ure "e$+'!$+ "aye$(+, ()e$

1 rea+!$abe a!u$(+ "a'% (! ()e (ru+( %ur'$5 ()e (a6abe year re"re+e$('$5 ()e "e$+'!$ 'ab''(y a""'abe (! +u) year, %e(er'$e% '$ a!r%a$e &'() ()e "a$, +)a

be a!&e% a+ a %e%u('!$ !r +u) year a+ a$ !r%'$ary a$% $ee++ary bu+'$e++ e6"e$+e, a$% '$ a%%'('!$ 2 !$e-(e$() ! a rea+!$abe a!u$( (ra$+erre% !r "a'% (! ()e(ru+( %ur'$5 ()e (a6abe year (! !*er '$ &)!e !r '$ "ar( ()e "e$+'!$ 'ab''(y a""'abe (! ()e year+ "r'!r (! ()e (a6abe year, !r +! (ra$+erre% !r "a'% (! "ae ()e (ru+(

!$ a +!u$% '$a$'a ba+'+, +)a be a!&e% a+ a %e%u('!$ !r ()e (a6abe year a$% !r ea) ! ()e $'$e +uee%'$5 (a6abe year+.

b I ()e "a$ %!e+ $!( !$(e"a(e ()e "aye$( (! ()e (ru+(, '$ a%*a$e ! ()e ('e &)e$ "e$+'!$+ are 5ra$(e%, ! a!u$(+ (! "r!*'%e !r u(ure "e$+'!$

"aye$(+, ()e$ 1 rea+!$abe a!u$(+ "a'% (! ()e (ru+( %ur'$5 ()e (a6abe year re"re+e$('$5 ()e "re+e$( *aue ! ()e e6"e(e% u(ure "aye$(+ '$ re+"e( ! "e$+'!$+

5ra$(e% (! e"!yee+ re('re% %ur'$5 ()e (a6abe year +)a be a!&e% a+ %e%u('!$ !r +u) year a+ a$ !r%'$ary a$% $ee++ary bu+'$e++ e6"e$+e, a$% '$ a%%'('!$ 2 !$e(e$() ! a rea+!$abe a!u$( (ra$+erre% !r "a'% (! ()e (ru+( %ur'$5 ()e (a6abe year (! !*er '$ &)!e !r '$ "ar( ()e "re+e$( *aue ! ()e e6"e(e% u(ure "aye$(+ '$

re+"e( ! "e$+'!$+ 5ra$(e% (! e"!yee+ re('re% "r'!r (! ()e (a6abe year, !r +! (ra$+erre% !r "a'% (! "ae ()e (ru+( !$ a +!u$% '$a$'a ba+'+, +)a be a!&e% a+ a

%e%u('!$ !r ()e (a6abe year a$% !r ea) ! ()e $'$e +uee%'$5 (a6abe year+.

Se('!$ /0 ! ()e C!%e

SECTION 11-A. O"('!$a +(a$%ar% %e%u('!$. # I$ 'eu ! ()e %e%u('!$+ a!&e% u$%er ()'+ +e('!$ a$ '$%'*'%ua, !()er ()a$ a $!$-re+'%e$( a'e$, ay ee( a+(a$%ar% %e%u('!$. Su) !"('!$a +(a$%ar% %e%u('!$ +)a be '$ ()e a!u$( ! !$e ()!u+a$% "e+!+ !r '$ a$ a!u$( e=ua (! (e$ "er e$(u ! )'+ 5r!++ '$!e,

&)')e*er '+ ()e e++er. U$e++ ()e (a6"ayer +'5$''e+ '$ )'+ re(ur$ )'+ '$(e$('!$ (! ee( ()e !"('!$a +(a$%ar% %e%u('!$ )e +)a be !$+'%ere% a+ )a*'$5 a*a'e% )'+e

! ()e %e%u('!$+ a!&e% '$ ()e "ree%'$5 +ub+e('!$. T)e Sere(ary ! F'$a$e +)a "re+r'be ()e a$$er ! ()e ee('!$. Su) ee('!$ &)e$ a%e '$ ()e re(ur$ +)a

be 'rre*!abe !r ()e (a6abe year !r &)') ()e re(ur$ '+ a%e.

Se('!$ /1 ! ()e C!%eSECTION 119. :er+!$a, '*'$5, a$% a'y e6"e$+e+. # :er+!$a, '*'$5, a$% a'y e6"e$+e+ are $!( %e%u('be. I$+ura$e "a'% !$ a %&e'$5 !&$e% a$%

!u"'e% by a (a6"ayer '+ a "er+!$a e6"e$+e a$% $!( %e%u('be. :re'u+ "a'% !r 'e '$+ura$e by ()e '$+ure% are $!( %e%u('be. I$ ()e a+e ! a "r!e++'!$a a$

&)! re$(+ a "r!"er(y !r re+'%e$('a "ur"!+e+, bu( '$'%e$(ay ree'*e+ )'+ 'e$(+, "a('e$(+, !r aer+ '$ !$$e('!$ &'() )'+ "r!e++'!$a &!r )'+ "ae ! bu+'$e++

be'$5 e+e&)ere, $! "ar( ! ()e re$( '+ %e%u('be a+ a bu+'$e++ e6"e$+e. I )!&e*er, )e u+e+ "ar( ! ()e )!u+e !r )'+ !'e, +u) "!r('!$ ! ()e re$( a+ '+ "r!"ery

a((r'bu(abe (! +u) !'e '+ %e%u('be. )ere ()e a()er '+ e5ay e$('(e% (! ()e +er*'e+ ! )'+ '$!r )'%re$, a$y a!&a$e+ &)') )e 5'*e+ ()e, &)e()er +a'% (! be'$ !$+'%era('!$ ! +er*'e+ !r !()er&'+e, are $!( a!&abe %e%u('!$+ '$ )'+ re(ur$ ! '$!e. A'!$y, a$% a$ a!&a$e "a'% u$%er a +e"ara('!$ a5reee$( are $!(

%e%u('be r! 5r!++ '$!e.SECTION 120. Ca"'(a e6"e$%'(ure+. # N! %e%u('!$ r! 5r!++ '$!e ay be a%e !r a$y a!u$(+ "a'% !u( !r $e& bu'%'$5+ !r !r "era$e$(

'"r!*ee$(+ !r be((ere$(+ a%e (! '$rea+e ()e *aue ! ()e (a6"ayerH+ "r!"er(y, !r !r a$y a!u$( e6"e$%e% '$ re+(!r'$5 "r!"er(y !r '$ a'$5 5!!% ()e e6)au+('!$

()ere! !r &)') a$ a!&a$e !r %e"re'a('!$ !r %e"e('!$ !r !()er a!&a$e '+ !r )a+ bee$ a%e. A!u$(+ e6"e$%e% !r +eur'$5 a !"yr'5)( a$% "a(e+, &)')rea'$ ()e "r!"er(y ! ()e "er+!$ a'$5 ()e "aye$(+, are '$*e+(e$(+ ! a"'(a. T)e !+( ! %ee$%'$5 !r "ere('$5 ('(e (! "r!"er(y !$+('(u(e+ a "ar( ! ()e !+( !

()e "r!"er(y a$% '+ $!( a %e%u('be e6"e$+e. T)e a!u$( e6"e$%e% !r ar)'(e(H+ +er*'e+ '+ "ar( ! ()e !+( ! ()e bu'%'$5. C!'++'!$+ "a'% '$ "ur)a+'$5 +eur'('e+

are a "ar( ! ()e !+( ! +u) +eur'('e+. C!'++'!$+ "a'% '$ +e'$5 +eur'('e+ are a$ !+e( a5a'$+( ()e +e'$5 "r'e. E6"e$+e+ ! ()e a%'$'+(ra('!$ ! a$ e+(a(e, +u) a+

!ur( !+(+, a((!r$eyH+ ee+, a$% e6eu(!rH+ !'++'!$+, are )ar5eabe a5a'$+( ()e B!r"u+B ! ()e e+(a(e a$% are $!( a!&abe %e%u('!$+. A!u$(+ (! be a++e++e% a$%

"a'% u$%er a$ a5reee$( be(&ee$ b!$%)!%er+ !r +)are)!%er+ ! a !r"!ra('!$, (! be u+e% '$ a re!r5a$';a('!$ ! ()e !r"!ra('!$, are '$*e+(e$(+ ! a"'(a a$% $!(%e%u('be !r a$y "ur"!+e '$ re(ur$ ! '$!e. aACI

I$ ()e a+e ! a !r"!ra('!$, e6"e$+e+ !r !r5a$';a('!$, +u) a+ '$!r"!ra('!$ ee+, a((!r$eyH+ ee+ a$% a!u$(a$(+H )ar5e+, are !r%'$ar'y a"'(a e6"e$%'(ure+D bu(

&)ere +u) e6"e$%'(ure+ are ''(e% (! "urey '$'%e$(a e6"e$+e+, a (a6"ayer ay )ar5e +u) '(e+ a5a'$+( '$!e '$ ()e year '$ &)') ()ey are '$urre%. A )!%'$5

!"a$y &)') 5uara$(ee+ %'*'%e$%+ a( a +"e''e% ra(e !$ ()e +(! ! a +ub+'%'ary !r"!ra('!$ !r ()e "ur"!+e ! +eur'$5 $e& a"'(a !r ()e +ub+'%'ary a$%

'$rea+'$5 ()e *aue ! '(+ +(!)!%'$5+ '$ ()e +ub+'%'ary ay $!( %e%u( a!u$(+ "a'% '$ arry'$5 !u( ()'+ 5uara$(y '$ !"u('$5 '(+ $e( '$!e, bu( +u) "aye$(+ay be a%%e% (! ()e !+( ! '(+ +(! '$ ()e +ub+'%'ary.

SECTION 121. :re'u+ !$ 'e '$+ura$e ! e"!yee+. # A$y a!u$(+ "a'% !r "re'u+ !$ a$y 'e '$+ura$e "!'y !*er'$5 ()e 'e ! a$ !'er !r

e"!yee !r ! a$y "er+!$ '$a$'ay '$(ere+(e% '$ ()e bu+'$e++ ! ()e (a6"ayer &)e$ ()e (a6"ayer '+ %'re(y !r '$%'re(y a be$e''ary u$%er +u) "!'y are $!(%e%u('be.

SECTION 122. L!++e+ r! +ae+ !r e6)a$5e+ ! "r!"er(y. # N! %e%u('!$ '+ a!&e% '$ re+"e( ! !++e+ r! +ae+ !r e6)a$5e+ ! "r!"er(y, %'re(y !r'$%'re(y #

a >e(&ee$ eber+ ! a a'y. A+ u+e% '$ Se('!$ /1, ()e a'y ! a$ '$%'*'%ua +)a '$u%e !$y )'+ br!()er+ a$% +'+(er+ &)e()er by ()e &)!e !r )a

b!!%, +"!u+e, a$e+(!r+, a$% '$ea %e+e$%a$(+D

b E6e"( '$ ()e a+e ! %'+(r'bu('!$+ '$ '=u'%a('!$, be(&ee$ a$ '$%'*'%ua a$% a !r"!ra('!$ !re ()a$ '(y "er e$(u '$ *aue ! ()e !u(+(a$%'$5 +(! !

&)') '+ !&$e%, %'re(y !r '$%'re(y, by !r !r +u) '$%'*'%uaD E6e"( '$ ()e a+e ! %'+(r'bu('!$+ '$ '=u'%a('!$, be(&ee$ (&! !r"!ra('!$+ !re ()a$ e(&ee$ a '%u'ary ! a (ru+( a$% a be$e''ary ! +u) (ru+(.

Se('!$ /2 ! ()e C!%e

SECTION 12/. Gr!++ '$!e ! '$+ura$e !"a$'e+. # I$ 5e$era, ()e 5r!++ '$!e ! '$+ura$e !"a$'e+ !$+'+(+ ! ()e'r (!(a re*e$ue r! ()e !"era('!$

! ()e bu+'$e++ a$% ! ()e'r '$!e r! a !()er +!ure+ &'()'$ ()e (a6abe year, e6e"( a+ !()er&'+e "r!*'%e% by ()e +(a(u(e. Gr!++ '$!e '$u%e+ $e( "re'u+ ()a

'+, 5r!++ "re'u e++ re(ur$e% "re'u+ !$ "!''e+ $!( (ae$, '$*e+(e$( '$!e, "r!'(+ r! ()e +ae ! a++e(+, a$% a 5a'$+, "r!'(+, a$% '$!e re"!r(e% (! ()eI$+ura$e C!'++'!$er, e6e"( '$!e +"e''ay e6e"( r! (a6. A $e( %erea+e '$ re+er*e u$%+ re=u're% by a& &'()'$ ()e (a6abe year u+( be '$u%e% '$ ()e

5r!++ '$!e (! ()e e6(e$( ()a( +u) u$%+ are reea+e% (! ()e 5e$era u+e+ ! ()e !"a$y a$% '$rea+e '(+ ree a++e(+. A$y $e( %erea+e '$ re+er*e+ +)a be a%%e% (! ()e

5r!++ '$!e, u$e++ ()e !"a$y +)a +)!& ()a( +u) %erea+e re+u(e% r! ()e a""'a('!$ ! re+er*e+ (! ()e "ur"!+e+ !r &)') ()ey &ere e+(ab'+)e%.

SECTION 124. Gr!++ '$!e ! 'e '$+ura$e !"a$'e+. # A 'e '$+ura$e !"a$y +)a $!( '$u%e '$ 5r!++ '$!e +u) "!r('!$ ! a$y a(ua "re'u+

ree'*e% r! a$y '$%'*'%ua "!'y)!%er a+ '+ "a'% ba !r re%'(e% (! !r (rea(e% a+ a$ aba(ee$( ! "re'u ! +u) "!'y)!%er &'()'$ ()e (a6abe year. a B:a'%baB ea$+ "a'% '$ a+). b BCre%'(e% (!B ea$+ )e% (! ()e re%'( !, '$u%'$5 %'*'%e$%+ a""'e% (! "ay re$e&a "re'u+, (! "ur)a+e a%%'('!$a "a'%-u" '$+ura$e

!r a$$u'('e+, !r (! +)!r(e$ ()e e$%!&e$( !r "re'u-"ay'$5 "er'!%. I( %!e+ $!( '$u%e %'*'%e$%+ "r!*'+'!$ay a+er(a'$e% a$% a""!r('!$e% u"!$ %eerre% %'*'%e$%+

"!''e+. '*'%e$%+ "r!*'+'!$ay a+er(a'$e%, a""!r('!$e%, !r re%'(e% !$ %eerre% %'*'%e$%+ "!''e+ a$ $!( be e6u%e% !r %e%u(e% r! 5r!++ '$!e !r ()e rea+!$

()a( ()e a++ure% )a+ $! *e+(e% !r e$!reabe r'5)( '$ ()e a$% a$ $!( a( ()e ('e ! ()e a+er(a'$e$(, a""!r('!$e$(, !r re%'(, $!( u$(' ()e a(ur'(y ! ()e "!'y,

a*a' )'+e ! +u) %'*'%e$%+D a$% '$ ()e e*e$( ! ()e %ea() ! ()e a++ure% "r'!r (! ()e e6"'ra('!$ ! ()e %eerre% %'*'%e$% "er'!%, ()e a!u$( +! a+er(a'$e%,a""!r('!$e%, !r re%'(e% a"+e+. BTrea(e% a+ a$ aba(ee$( ! "re'uB ea$+ ! ()e "re'u !r ()e (a6abe year. )ere ()e %'*'%e$% "a'% ba '+ '$ e6e++ ! ()e

"re'u ree'*e% r! ()e "!'y)!%er &'()'$ ()e (a6abe year ()ere ay be e6u%e% r! 5r!++ '$!e !$y ()e a!u$( ! +u) "re'u ree'*e%, a$% &)ere $!

"re'u '+ ree'*e% r! ()e "!'y)!%er &'()'$ ()e (a6abe year ()e !"a$y '+ $!( e$('(e% (! e6u%e r! '(+ "re'u+ ree'*e% r! !()er "!'y)!%er+ a$

a!u$( '$ re+"e( (! +u) %'*'%e$% "aye$(. See )a$5e+ '$ Se. 24b, Ta6 C!%e.SECTION 12

7/23/2019 RR 2 (1940)

15/41

r! ()e !"era('!$ ! ()e bu+'$e++ a$% ! ()e'r '$!e r! a !()er +!ure+ &'()'$ ()e (a6abe year, e6e"( a+ !()er&'+e "r!*'%e% by ()e +(a(u(e. :re'u+ ree'*e% by

u(ua ar'$e '$+ura$e !"a$'e+ &)') are "a'% !u( !r re'$+ura$e +)!u% be e''$a(e% r! 5r!++ '$!e a$% ()e "aye$(+ !r re'$+ura$e, r! %'+bur+ee$(.

e"!+'( "re'u+ !$ "er"e(ua r'++ ree'*e% a$% re(ur$e% by u(ua 're '$+ura$e !"a$'e+ +)!u% be (rea(e% '$ ()e +ae a$$er, a+ $! re+er*e &' be re!5$';e%!*er'$5 'ab''(y !r +u) %e"!+'(+. T)e ear$'$5+ !$ +u) %e"!+'(+, '$u%'$5 +u) "!r('!$, ' a$y, ! ()e "re'u %e"!+'(+ a+ are $!( re(ur$e% (! ()e "!'y)!%er+ u"!$

a$ea('!$ ! ()e "!''e+, u+( be '$u%e% '$ ()e 5r!++ '$!e. AETC

SECTION 123. e%u('!$+ a!&e% '$+ura$e !"a$'e+. # I$+ura$e !"a$'e+ are e$('(e% (! ()e +ae %e%u('!$+ r! 5r!++ '$!e a+ !()er !r"!ra('!$+,

a$% a+! (! ()e %e%u('!$ ! ()e $e( a%%'('!$ re=u're% by a& (! be a%e &'()'$ ()e (a6abe year (! re+er*e u$%+ a$% ! ()e +u+ !()er ()a$ %'*'%e$%+ "a'% &'() ()e

(a6abe year !$ "!'y a$% a$$u'(y !$(ra(+. B:a'%B '$u%e+ Barue%B !r B '$urre%B !$+(rue% a!r%'$5 (! ()e e()!% ! a!u$('$5 u"!$ ()e ba+'+ ! &)') ()e $e('$!e '+ !"u(e% %ur'$5 ()e (a6abe year, bu( %!e+ $!( '$u%e a$y e+('a(e !r !++e+ '$urre% bu( $!( re"!r(e% %ur'$5 ()e (a6abe year. A+ "aye$(+ !$ "!''e+

()ere +)!u% be re"!r(e% a %ea(), %'+ab''(y a$% !()er "!'y a'+ !()er ()a$ %'*'%e$%+ a+ ab!*e +"e''e% "a'% &'()'$ ()e year, '$u%'$5 're, a'%e$( a$% 'ab''(y

!++e+, a(ure% e$%!&e$(+, a$$u'('e+, "aye$(+ !$ '$+(ae$( "!''e+ a$% +urre$%er *aue+ a(uay "a'%.

SECTION 12@. S"e'a %e%u('!$+ a!&e% u(ua '$+ura$e !"a$'e+. # Mu(ua '$+ura$e !"a$'e+ !()er ()a$ u(ua 'e a$% u(ua ar'$e '$+ura$e

!"a$'e+, &)') re=u're ()e'r eber+ (! ae "re'u %e"!+'(+ (! "r!*'%e !r !++e+ a$% e6"e$+e+, are a!&e% (! %e%u( r! 5r!++ '$!e ()e a55re5a(e a!u$(! "re'u %e"!+'(+ re(ur$e% (! ()e'r "!'y)!%er+ !r re(a'$e% !r ()e "aye$( ! !++e+, e6"e$+e+, a$% re'$+ura$e re+er*e+. I$ %e(er'$'$5 ()e a!u$( ! "re'u

%e"!+'(+ re(a'$e% by a u(ua 're !r u(ua a+ua(y '$+ura$e !"a$y !r ()e "aye$( ! !++e+, e6"e$+e+, a$% re'$+ura$e re+er*e+, '( &' be "re+ue% ()a( !++e+

a$% e6"e$+e+ )a*e bee$ "a'% !u( ! ear$'$5+ a$% "r!'(+ !()er ()a$ "re'u+ (! ()e e6(e$( ! +u) ear$'$5+ a$% "r!'(+. I, )!&e*er, a$y "!r('!$ ! +u) a!u$( '+

a""'e% %ur'$5. ()e (a6abe year (! ()e "aye$( ! !++e+, e6"e$+e+, !r re'$+ura$e re+er*e+, !r &)') a +e"ara(e a!&a$e '+ (ae$, ()e$ +u) "!r('!$ '+ $!( %e%u('beD

a$% ' a$y "!r('!$ ! +u) a!u$( !r &)') a$ a!&a$e '+ (ae$ '+ +ub+e=ue$(y a""'e% (! ()e "aye$( ! e6"e$+e+, !++e+, !r re'$+ura$e re+er*e+, ()e$ +u)"aye$( a$ $!( be +e"ara(ey %e%u(e%. T)e a!u$( ! "re'u %e"!+'(+ re(a'$e% !r ()e "aye$( ! e6"e$+e+ a$% !++e+ a$% ()e a!u$( ! +u) e6"e$+e+ a$% !++e+,

ay $!( b!() be %e%u(e%. A !"a$y &)') '$*e+(+ "ar( ! ()e "re'u %e"!+'(+ +! re(a'$e% by '( '$ '$(ere+(-bear'$5 +eur'('e+ ay, $e*er()ee++, %e%u( +u) "ar(, bu(

$!( ()e '$(ere+( ree'*e% !$ +u) +eur'('e+. A u(ua 're '$+ura$e !"a$y &)') )a+ a 5uara$(y a"'(a '+ (a6e% 'e !()er u(ua 're '$+ura$e !"a$'e+. A +(!

're '$+ura$e !"a$y !"era(e% !$ ()e u(ua "a$ (! ()e e6(e$( ! "ay'$5 %'*'%e$%+ (! er(a'$ a++e+ ! "!'y)!%er+, ay ae a re(ur$ !$ ()e +ae ba+'+ a+ a

u(ua 're '$+ura$e !"a$y &'() re+"e( (! '(+ bu+'$e++ !$%u(e% !$ ()e u(ua "a$.SECTION 12. S"e'a %e%u('!$+ a!&e% u(ua ar'$e '$+ura$e !"a$'e+. # Mu(ua ar'$e '$+ura$e !"a$'e+ +)!u% '$u%e '$ 5r!++ '$!e ()e 5r!++

"re'u+ !e(e% a$% ree'*e% by ()e e++ a!u$(+ "a'% !r re'$+ura$e. T)ey ay %e%u( r! 5r!++ '$!e a!u$(+ re"a'% (! "!'y)!%er+ !$ a!u$( !

"re'u+ "re*'!u+y "a'% by ()e (!5e()er &'() ()e '$(ere+( a(uay "a'% u"!$ +u) a!u$(+ be(&ee$ ()e %a(e ! a+er(a'$e$( a$% ()e %a(e ! "aye$( ()ere!. T)e

rea'$%er ! ()e "re'u+ a!r%'$5y !r+ "ar( ! ()e $e( '$!e ! ()e !"a$y, e6e"( (! ()e e6(e$( ()a( '( '+ +ub7e( (! ()e$ %e%u('!$+ a!&e% +u) '$+ura$e

!"a$'e+ a$% !()er !r"!ra('!$+.SECTION 129. Ne( a%%'('!$ (! re+er*e u$%+. # A "!'y "re'u+ !$ &)') $e( a%%'('!$ (! re+er*e '+ !"u(e%, u+( be '$u%e% '$ 5r!++ '$!e. I$+ura$e

!"a$'e+ ay %e%u( r! 5r!++ '$!e ()e $e( a%%'('!$ re=u're% by a& (! be a%e &'()'$ ()e (a6abe year (! re+er*e u$%+. )e$ ()e re+er*e a( ()e e$% ! ()e year'+ e++ ()a$ a( ()e be5'$$'$5 ! ()e year ()ere '+ a Breea+e% re+er*eB, a$% ()e a!u$( +! reea+e% u+( be '$u%e% '$ 5r!++ '$!e. I$ ()e a+e ! a++e++e$( '$+ura$e

!"a$'e+, &)e()er %!e+(' !r !re'5$, ()e a(ua %e"!+'( ! +u+ &'() ()e !'er+ ! ()e G!*er$e$( ! ()e :)''""'$e+, "ur+ua$( (! a&, a+ a%%'('!$ (! 5uara$(y !r

re+er*e u$%+ +)a be (rea(e% a+ be'$5 "aye$(+ re=u're% by a& (! re+er*e u$%+. I$ ()e a+e ! 'e '$+ura$e !"a$'e+, ()e $e( a%%'('!$ (! ()e Bre'$+ura$e re+er*eBa$% ()e Bre+er*e !r +u""ee$(ary !$(ra(+B, a$% '$ ()e a+e ! 're, ar'$e, a'%e$(, 'ab''(y, a$% !()er '$+ura$e !"a$'e+, ()e $e( a%%'('!$ (! ()e Bu$ear$e%

"re'u re+er*e+B, a$% !$y +u) !()er re+er*e+ a+ are +"e''ay re=u're% by ()e +(a(u(e &' be a!&e% a+ %e%u('!$+. AEaC

SECTION 1/0. C!"y ! re"!r( (! I$+ura$e C!'++'!$er (! be ur$'+)e% ()e C!'++'!$er ! I$(er$a Re*e$ue. # T! a''(a(e ()e au%'('$5 ! '$!e (a6

re(ur$+, '$+ura$e !"a$'e+ +)a +ub'( (! ()e C!'++'!$er ! I$(er$a Re*e$ue (!5e()er &'() re(ur$+ ! '$!e, &)ere*er "!++'be a !"y ! ()e'r a$$ua re"!r( (!

()e I$+ura$e C!'++'!$er.Se('!$ // ! ()e C!%e

SECTION 1/1. L!++e+ r! &a+) +ae+ ! +(! !r +eur'('e+. # a A (a6"ayer a$$!( %e%u( a$y !++ a'e% (! )a*e bee$ +u+(a'$e% r! ()e +ae !r !()er

%'+"!+'('!$ ! +(! !r +eur'('e+, ', &'()'$ a "er'!% be5'$$'$5 ()'r(y %ay+ be!re ()e %a(e ! +u) +ae !r %'+"!+'('!$ a$% e$%'$5 ()'r(y %ay+ a(er +u) %a(e reerre% (! '$

()'+ +e('!$ a+ ()e +'6(y-!$e-%ay "er'!%, )e )a+ a=u're% by "ur)a+e !r by a$ e6)a$5e u"!$ &)') ()e e$('re a!u$( ! 5a'$ !r !++ &a+ re!5$';e% by a&, !r )a+

e$(ere% '$(! a !$(ra( !r !"('!$ +! (! a=u're, +ub+(a$('ay '%e$('a +(! !r +eur'('e+. !&e*er, ()'+ "r!)'b'('!$ %!e+ $!( a""y '$ ()e a+e ! a %eaer '$ +(! !r+eur'('e+ ' ()e +ae !r !()er %'+"!+'('!$ ! +(! !r +eur'('e+ '+ a%e '$ ()e !r%'$ary !ur+e ! '(+ bu+'$e++ a+ +u) %eaer.

b )ere !re ()a$ !$e !++ '+ a'e% (! )a*e bee$ +u+(a'$e% &'()'$ ()e (a6abe year r! ()e +ae !r !()er %'+"!+'('!$ ! +(! !r +eur'('e+, ()e "r!*'+'!$+ !

()'+ +e('!$ +)a be a""'e% (! ()e !++e+ '$ ()e !r%er '$ &)') ()e +(! !r +eur'('e+ ()e %'+"!+'('!$ ! &)') re+u(e% '$ ()e re+"e('*e !++e+ &ere %'+"!+e% !be5'$$'$5 &'() ()e ear'e+( %'+"!+'('!$. I ()e !r%er ! %'+"!+'('!$ ! +(! !r +eur'('e+ %'+"!+e% ! a( a !++ !$ ()e +ae %ay a$$!( be %e(er'$e%, ()e +(! !r

+eur'('e+ &' be !$+'%ere% (! )a*e bee$ %'+"!+e% ! '$ ()e !r%er '$ &)') ()ey &ere !r'5'$ay a=u're% be5'$$'$5 &'() ear'e+( a=u'+'('!$. )ere ()e a!u$( ! +(! !r +eur'('e+ a=u're% &'()'$ ()e +'6(y-!$e %ay "er'!% '+ e++ ()a$ ()e a!u$( ! +(! !r +eur'('e+ +!% !r !()er&'+e %'+"!+e% !,

()e$ ()e "ar('uar +)are+ ! +(! !r +eur'('e+ ()e !++ r! ()e +ae !r !()er %'+"!+'('!$ ! &)') '+ $!( %e%u('be +)a be ()!+e &'() &)') ()e +(! !r +eur'('e+

a=u're% are a()e% '$ a!r%a$e &'() ()e !!&'$5 rue8

T)e +(! !r +eur'('e+ a=u're% &' be a()e% '$ a!r%a$e &'() ()e !r%er ! ()e'r a=u'+'('!$ be5'$$'$5 &'() ()e ear'e+( a=u'+'('!$ &'() a$ e=ua $uber ! ()e

+)are+ ! +(! !r +eur'('e+ +!% !r !()er&'+e %'+"!+e% !.% )ere ()e a!u$( ! +(! !r +eur'('e+ a=u're% &'()'$ ()e +'6(y- !$e-%ay "er'!% '+ $!( e++ ()a$ ()e a!u$( ! +(! !r +eur'('e+ +!% !r !()er&'+e %'+"!+e%

!, ()e$ ()e "ar('uar +)are+ ! +(! !r +eur'('e+ ()e a=u'+'('!$ ! &)') re+u(e% '$ ()e $!$%e%u('b''(y ! ()e !++ +)a be ()!+e &'() &)') ()e +(! !r +eur'('e+

%'+"!+e% ! are a()e% '$ a!r%a$e &'() ()e !!&'$5 rue8

T)e +(! !r +eur'('e+ +!% !r !()er&'+e %'+"!+e% ! &' be a()e% &'() a$ e=ua $uber ! ()e +)are+ ! +(! !r +eur'('e+ a=u're% '$ a!r%a$e &'() ()e !r%er !

a=u'+'('!$ be5'$$'$5 &'() ()e ear'e+( a=u'+'('!$ ! ()e +(! !r +eur'('e+ a=u're%.e T)e a=u'+'('!$ ! a$y +eur'(y &)') re+u(+ '$ ()e $!$-%e%u('b''(y ! a !++ u$%er ()e "r!*'+'!$+ ! ()'+ +e('!$ +)a be %'+re5ar%e% '$ %e(er'$'$5 ()e

%e%u('b''(y ! a$y !()er !++.

T)e &!r% Ba=u're%B a+ u+e% '$ ()'+ +e('!$ ea$+ a=u're% by "ur)a+e !r by a$ e6)a$5e u"!$ &)') ()e e$('re a!u$( ! 5a'$ !r !++ &a+ re!5$';e% by

a&, a$% !"re)e$%+ a+e+ &)ere ()e (a6"ayer )a+ e$(ere% '$(! a !$(ra( !r !"('!$ &'()'$ ()e +'6(y-!$e-%ay "er'!% (! a=u're by "ur)a+e !r by +u) a$ e6)a$5e.

EXAM:LE 18 A, &)!+e (a6abe year '+ ()e ae$%ar year, !$ eeber 1, 19/9, "ur)a+e% 100 +)are+ ! !!$ +(! '$ ()e M C!"a$y !r :10,000 a$% !$eeber 1eau+e !

()e "r!*'+'!$+ ! Se('!$ // $! !++ r! ()e +ae '+ a!&abe a+ a %e%u('!$.

EXAM:LE 28 A, &)!+e (a6abe year '+ ()e ae$%ar year, !$ Se"(eber 21, 19/9, "ur)a+e% 100 +)are+ ! ()e !!$ +(! ! ()e M C!"a$y !r :

7/23/2019 RR 2 (1940)

16/41

100 +)are+ ! +ub+(a$('ay '%e$('a +(!, ()e !++ '+ $!( %e%u('be. T)e "ar('uar +)are+ ! +(! ()e "ur)a+e ! &)') re+u(e% '$ ()e $!$%e%u('b''(y ! ()e !++ are

()e 'r+( 100 +)are+ "ur)a+e% &'()'$ +u) "er'!%, ()a( '+, ()e

7/23/2019 RR 2 (1940)

17/41

b!$%, %ebe$(ure, $!(e, !r er(''a(e !r !()er e*'%e$e ! '$%eb(e%$e++ '++ue% by a$y !r"!ra('!$ '$u%'$5 !$e '++ue% by a 5!*er$e$( !r "!'('a +ub%'*'+'!$ ()ere!

&'() '$(ere+( !u"!$+ !r '$ re5'+(ere% !r, a$y !++ re+u('$5 r! +u) +ae +)a $!( be +ub7e( (! ()e ''(a('!$ !$(a'$e% '$ Se('!$ /4 a$% +)a $!( be '$u%e% '$

%e(er'$'$5 ()e a""'ab''(y ! +u) ''(a('!$ (! !()er !++e+.SECTION 1/a+'+ !r %e(er'$'$5 5a'$ !r !++ r! +ae ! "r!"er(y. # F!r ()e "ur"!+e ! a+er(a'$'$5 ()e 5a'$ !r !++ r! ()e +ae !r e6)a$5e ! "r!"er(y,()e ba+'+ '+ ()e !+( ! +u) "r!"er(y, !r '$ ()e a+e ! "r!"er(y &)') +)!u% be '$u%e% '$ ()e '$*e$(!ry, '(+ a(e+( '$*e$(!ry *aue. >u( '$ ()e a+e ! "r!"er(y a=u're%

be!re Mar) 1, 191/, &)e$ '(+ a'r are( *aue a+ ! ()a( %a(e '+ '$ e6e++ ! '(+ !+(, ()e 5a'$ (! be '$u%e% '$ 5r!++ '$!e '+ ()e e6e++ ! ()e a!u$( rea';e%

()ere!r !*er +u) a'r are( *aue. See 'u+(ra('!$ I, Se('!$ 1/@ ! ()e+e re5ua('!$+. A+! '$ ()e a+e ! "r!"er(y a=u're% be!re Mar) 1, 191/, &)e$ '(+ a'r

are( *aue a+ ! ()a( %a(e '+ !&er ()a$ '(+ !+( ()e %e%u('be !++ '+ ()e e6e++ ! +u) a'r are( *aue !*er ()e a!u$( rea';e% ()ere!r. See Iu+(ra('!$ II, I%..

N! 5a'$ !r !++ '+ re!5$';e% '$ ()e a+e ! "r!"er(y +!% !r e6)a$5e% a a( !re ()a$ !+( bu( e++ ()a$ '(+ a'r are( *aue a+ ! Mar) 1, 191/ See Iu+(ra('!$ III,I%., !r b a( e++ ()a$ !+( bu( a( !re ()a$ '(+ a'r are( *aue a+ ! Mar) 1, 191/. See Iu+(ra('!$ IV, I%., I%., I%. I$ a$y a+e "r!"er a%7u+(e$( u+( be a%e '$

!"u('$5 5a'$ !r !++ r! ()e e6)a$5e !r +ae ! "r!"er(y !r a$y %e"re'a('!$ !r %e"e('!$ +u+(a'$e% a$% a!&abe a+ %e%u('!$ '$ !"u('$5 $e( '$!eD ()e

a!u$( ! %e"re'a('!$ "re*'!u+y )ar5e% ! by ()e (a6"ayer +)a be %eee% (! be (rue %e"re'a('!$ +u+(a'$e% u$e++ +)!&$ by ear a$% !$*'$'$5 e*'%e$e (! be

'$!rre(. )a( ()e a'r are( *aue ! "r!"er(y &a+ a+ ! Mar) 1, 191/, '+ a =ue+('!$ ! a( (! be e+(ab'+)e% by e*'%e$e &)') &' rea+!$aby a$% a%e=ua(ey

ae '( a""ear. T)e $a(ure a$% e6(e$( ! ()e +ae+ a$% ()e 'ru+(a$e+ u$%er &)') ()ey &ere a%e +)!u% be !$+'%ere%. :r'e+ ree'*e% a( !re% +ae+ !r !r +a!(+ ! "r!"er(y ay be a$% !(e$ are $! rea '$%'a('!$ ! ()e *aue ! ()e a!u$( ! "r!"er(y '$ =ue+('!$. F!r '$+(a$e, +ae+ r! ('e (! ('e ! a +a $uber !

+)are+ ! +(! '+ '((e '$%'a('!$ ! ()e *aue ! a ar5e !r !$(r!'$5 '$(ere+( '$ ()e !r"!ra('!$. I ()e (a6"ayer a$ $!( %e(er'$e ()e !+( ! +eur'('e+ "ur)a+e% "r'!r

(! Mar) 1, 191/, beau+e ! ()e !++, %e+(ru('!$, !r a'ure (! ee" re!r%+, ()e *aue ! ()e +eur'('e+ a( ()e %a(e ! a""r!6'a(e %a(e ! a=u'+'('!$ ay be u+e% '$

%e(er'$'$5 ()e !+( ba+'+ !r "ur"!+e+ ! !"u('$5 ()e 5a'$ !r !++ r! ()e +ae ! ()e +eur'('e+. )e$ ()e %a(e !r a""r!6'a(e %a(e ! a=u'+'('!$ '+ u$$!&$, $!

5e$era rue a$ be +(a(e% !r %e(er'$'$5 ()e !+( *aue ! +u) +eur'('e+. Ea) a+e u+( be !$+'%ere% +e"ara(ey u"!$ '(+ !&$ a(+. ISTESECTION 1/@. Iu+(ra('!$+ ! ()e !"u(a('!$ ! 5a'$ !r !++ r! ()e +ae !r e6)a$5e ! "r!"er(y a=u're% "r'!r (! Mar) 1, 191/. # T! a*!'% !"e6'(y $!

a%7u+(e$( )a+ bee$ a%e '$ ()e+e e6a"e+ !r %e"re'a('!$ !r %e"e('!$.

I$ ()e a+e ! "r!"er(y a=u're% be!re Mar) 1, 191/, &)e$ '(+ a'r are( *aue a+ ! ()a( %a(e '+ '$ e6e++ ! '(+ !+(, ()e (a6abe 5a'$ '+ ()e e6e++ ! ()e a!u$(

rea';e% ()ere!r !*er +u) a'r are( *aue.

ILLUSTRATION IFa'r Mare(

C!+( Vaue Sae :r'e Ta6abe 5a'$Mar. 1, 191/

:20,000 :/0,000 :40,000 :10,000

E6e++ ! a!u$( rea';e% !*er a'rare( *aue a+ ! Mar) 1, 191/.

Ga'$ a((r'bu(e% (! ()e "er'!% "r'!r

(! Mar) 1, 191/ $!( (a6abe.

I$ ()e a+e ! "r!"er(y a=u're% be!re Mar) 1, 191/, &)e$ '(+ a'r are( *aue a+ ! ()a( %a(e '+ !&er ()a$ '(+ !+(, ()e %e%u('be !++ '+ ()e e6e++ ! +u) a'r

are( *aue !*er ()e a!u$( rea';e% ()ere!r.ILLUSTRATION II

Fa'r Mare(

C!+( Vaue Sae :r'e Ta6abe 5a'$

Mar. 1, 191/

:20,000 :10,000 :3,000 :4,000E6e++ ! a'r are( *aue !*er

a!u$( rea';e%. L!++ a((r'bu(abe (!

()e "er'!% "r'!r (! Mar) 1, 191/, $!(%e%u('be.

N! 5a'$ !r !++ '+ re!5$';e% '$ ()e a+e ! "r!"er(y a=u're% be!re Mar) 1, 191/, a$% +!% !r %'+"!+e% ! a( !re ()a$ !+( bu( a( e++ ()a$ '(+ a'r are( *aue a+ !()a( %a(e.

ILLUSTRATION III

Fa'r Mare(

C!+( Vaue Sae :r'e Ta6abe 5a'$

Mar. 1, 191/:20,000 :30,000 :40,000 N! (a6abe 5a'$ !r %e%u('be !++.

Rea+!$8 A 5a'$ !$ &)!e (ra$+a('!$,

&)') 5a'$ '+ a((r'bu(e% (! "er'!% "r'!r

(! Mar) 1,191/.

N! 5a'$ !r !++ '+ re!5$';e% '$ ()e a+e ! "r!"er(y a=u're% be!re Mar) 1, 191/, a$% +!% !r %'+"!+e% ! a( e++ ()a$ !+( bu( a( !re ()a$ '(+ a'r are( *aue a+ !()a( %a(e.

ILLUSTRATION IV

Fa'r Mare(

C!+( Vaue Sae :r'e Ta6abe 5a'$

Mar. 1, 191/:20,000 :3,000 :10,000 N! (a6abe 5a'$ !r %e%u('be !++.

Rea+!$8 A !++ !$ &)!e (ra$+a('!$,

&)') !++ '+ a((r'bu(abe (! "er'!%

"r'!r (! Mar) 1, 191/.

)ere ()e !+( '+ e=ua (! !r 5rea(er ()a$ ()e a'r are( *aue a+ ! Mar) 1, 191/, a$% ()e +e'$5 "r'e e6ee%+ ()e !+(, ()e 5a'$ (! be '$u%e% '$ 5r!++ '$!e '+ ()ee6e++ ! ()e +e'$5 "r'e !*er ()e !+(.

ILLUSTRATION V

Fa'r Mare(

C!+( Vaue Sae :r'e Ta6abe 5a'$

Mar. 1, 191/:20,000 :10,000 :40,000 :20,000

Rea+!$8 Ga'$ !$ &)!e (ra$+a('!$,

a ! &)') '+ a((r'bu(abe (! "er'!%

+ub+e=ue$( (! Mar) 1, 191/.)ere ()e a'r are( *aue a+ ! Mar) 1, 191/, '+ e=ua (! !r 5rea(er ()a$ ()e !+( a$% ()e +e'$5 "r'e '+ e++ ()a$ ()e !+(, ()e %e%u('be !++ '+ ()e a!u$( by &)')

7/23/2019 RR 2 (1940)

18/41

()e !+( e6ee%+ ()e +e'$5 "r'e.

ILLUSTRATION VI

Fa'r Mare(C!+( Vaue Sae :r'e Ta6abe 5a'$

Mar. 1, 191/

:20,000 :/0,000 :10,000 :10,000

Rea+!$8 L!++ !$ &)!e (ra$+a('!$, a

! &)') '+ a((r'bu(abe (! "er'!%+ub+e=ue$( (! Mar) 1, 191/. O$y

a(ua !++ +u+(a'$e% %e%u('be.

SECTION 1/. Sae ! "r!"er(y a=u're% by 5'(. # I$ !"u('$5 ()e 5a'$ !r !++ r! ()e +ae !r !()er %'+"!+'('!$ ! "r!"er(y a=u're% by 5'(, ()e ba+'+ +)a be

()e +e'$5 "r'e a$% ()e a'r are( *aue ! ()e "r!"er(y a( ()e ('e ()e 5'( &a+ a%e, !r '(+ a'r are( *aue a+ ! Mar) 1, 191/, ' a=u're% "r'!r ()ere(!,

%e(er'$e% '$ a!r%a$e &'() ()e $e6( (&! "ree%'$5 +e('!$+. I$ ()e a+e ! 5'(+ a%e !$ !r a(er uy 1, 19/9, ()e *aue (ae$ a+ a ba+'+ !r 5'( (a6 "ur"!+e+ +)a be!$+'%ere% a+ ()e a'r are( *aue '$ !"u('$5 5a'$ !r !++ r! ()e +ae !r !()er %'+"!+'('!$ ! ()e "r!"er(y.

SECTION 1/9. Sae ! "r!"er(y a=u're% by %e*'+e, be=ue+(+, !r '$)er'(a$e. # I$ !"u('$5 ()e 5a'$ !r !++ r! ()e +ae !r !()er %'+"!+'('!$ ! "r!"er(y

a=u're% by %e*'+e, be=ue+(, !r '$)er'(a$e, ()e ba+'+ +)a be ()e a'r are( "r'e !r *aue ! +u) "r!"er(y a( ()e ('e ! ()e %ea() ! ()e %ee%e$(. T)e (er B"r!"er(y

a=u're% by be=ue+(, %e*'+e, !r '$)er'(a$eB a+ u+e% )ere'$ '$u%e+ a +u) "r!"er(y '$(ere+(+ a+ ()e (a6"ayer )a+ ree'*e% a+ ()e re+u( ! a (ra$+er, !r rea('!$ ! a

(ru+(, '$ !$(e"a('!$ ! !r '$(e$%e% (! (ae ee( '$ "!++e++'!$ !r e$7!ye$( a( !r a(er %ea(), a$% b +u) "r!"er(y '$(ere+( a+ ()e (a6"ayer )a+ ree'*e% a+ ()e re+u(! ()e e6er'+e by a "er+!$ ! a 5e$era "!&er ! a""!'$(e$( 1 by &', !r 2 by %ee% e6eu(e% '$ !$(e"a('!$ ! !r '$(e$%e% (! (ae ee( '$ "!++e++'!$ !r

e$7!ye$( a( !r a(er %ea(). I$ ()e a+e ! "r!"er(y a=u're% by 5'(, be=ue+(, %e*'+e, !r '$)er'(a$e, "r'!r (! Mar) 1, 191/, ()e (a6abe 5a'$ !r %e%u('be !++ r! ()e

+ae !r !()er %'+"!+'('!$ ()ere! +)a be !"u(e% '$ a!r%a$e &'() +e('!$+ 1/3 a$% 1/@ ! ()e+e re5ua('!$+. I$ ()e a+e ! "r!"er(y a=u're% by be=ue+(, %e*'+e !r

'$)er'(a$e, '(+ *aue a+ a""ra'+e% !r ()e "ur"!+e ! ()e '$)er'(a$e (a6 +)a be %eee% (! be '(+ a'r are( *aue &)e$ a=u're%. aIACS

SECTION 140. E6)a$5e ! "r!"er(y. # Ga'$ !r !++ ar'+'$5 r! ()e a=u'+'('!$ a$% +ub+e=ue$( %'+"!+'('!$ ! "r!"er(y '+ rea';e% !$y &)e$ a+ ()e re+u( ! a(ra$+a('!$ be(&ee$ ()e !&$er a$% a$!()er "er+!$ ()e "r!"er(y '+ !$*er(e% '$(! !()er "r!"er(y a ()a( '+ e++e$('ay %'ere$( r! ()e "r!"er(y %'+"!+e% !, a$% b ()a

)a+ a are( *aue. T)e re=u'ree$( ()a( ()e "r!"er(y ree'*e% '$ e6)a$5e u+( be Be++e$('ay %'ere$( r! ()e "r!"er(y %'+"!+e% !B '"'e+ ()a( ()ere u+( be a

)a$5e '$ +ub+(a$e a$% $!( erey a )a$5e '$ !r. >y &ay ! 'u+(ra('!$, ' a (a6"ayer !&$'$5 (e$ +)are+ ! +(! e6)a$5e+ )'+ +(! er(''a(e !r a *!('$5 (ru+(

er(''a(e, $! '$!e '+ rea';e%. T)e (er Bare( *aueB ea$+ ()e a'r *aue ! ()e "r!"er(y '$ !$ey a+ be(&ee$ !$e &)! &'+)e+ (! "ur)a+e a$% !$e &)! &'+)e+ (!

+e. I( '+ $!(, )!&e*er, &)a( a$ be !b(a'$e% !r ()e "r!"er(y &)e$ ()e !&$er '+ u$%er "eu'ar !"u+'!$ (! +e !r ()e "ur)a+er (! buyD $!r '+ '( a "urey +"eua('*e*aue &)') a$ !&$er !u% $!( rea+!$aby e6"e( (! !b(a'$ !r ()e "r!"er(y a()!u5) )e '5)( "!++'by be !r(u$a(e e$!u5) (! %! +!. BMare( *aueB '+ ()e "r'e a(

&)') a +eer &''$5 (! +e a( a a'r "r'e a$% a buyer &''$5 (! buy a( a a'r "r'e, b!() )a*'$5 rea+!$abe $!&e%5e ! ()e a(+, &' (ra%e. E*'%e$e a+ (! ()e a++e(+a$% 'ab''('e+ ! a !r"!ra('!$ a$% a+ (! '(+ ear$'$5+ ay ur$'+) %e'$'(e '$%'a('!$+ ! ()e are( *aue ! '(+ +(!.

SECTION 141. e(er'$a('!$ ! 5a'$ !r !++ r! ()e e6)a$5e ! "r!"er(y. # T)e a!u$( ! '$!e %er'*e% !r !++ +u+(a'$e% r! a$ e6)a$5e ! "r!"er(y '+

()e %'ere$e be(&ee$ ()e are( *aue a( ()e ('e ! ()e e6)a$5e ! ()e "r!"er(y ree'*e% '$ e6)a$5e a$% ()e !r'5'$a !+(, !r !()er ba+'+, ! ()e "r!"er(y e6)a$5e.I ()e "r!"er(y e6)a$5e% &a+ a=u're% "r'!r (! Mar) 1, 191/, +ee Se('!$+ 1/3 a$% 1/@ ! ()e+e re5ua('!$+.

SECTION 142. Rea%7u+(e$( ! '$(ere+( '$ a re5'+(ere% !"ar($er+)'". # )e$ a "ar($er re('re+ r! a %uy re5'+(ere% !"ar($er+)'", !r ()e "ar($er+)'" '+

%'++!*e%, )e rea';e+ a 5a'$ !r !++ ea+ure% by ()e %'ere$e be(&ee$ ()e "r'e ree'*e% !r )'+ '$(ere+( a$% ()e !+( (! )' ! )'+ '$(ere+( '$ ()e "ar($er+)'" '$u%'$5

'$ +u) !+( ()e a!u$( ! )'+ +)are '$ a$y u$%'+(r'bu(e% "ar($er+)'" $e( '$!e ear$e% +'$e )e beae a "ar($er !$ &)') ()e '$!e (a6 )a+ bee$ "a'%. !&e*er, '

+u) '$(ere+( '$ ()e "ar($er+)'" &a+ a=u're% "r'!r (! Mar) 1, 191/, b!() ()e !+( a+ )ere'$be!re "r!*'%e% a$% ()e a!u$( ! +u) '$(ere+( a+ ! %a(e, "u+ ()e a!u$(! ()e +)are+ '$ a$y u$%'+(r'bu(e% "ar($er+)'" $e( '$!e ear$e% +'$e Mar) 1, 191/, !$ &)') ()e '$!e (a6 )a+ bee$ "a'%, +)a be a+er(a'$e% a$% ()e (a6abe 5a'$

%er'*e% !r ()e %e%u('be !++ +u+(a'$e% +)a be !"u(e% a+ "r!*'%e% '$ Se('!$+ 1/3 a$% 1/@ ! ()e+e re5ua('!$+. I ()e "ar($er+)'" %'+(r'bu(e+ '(+ a++e(+ '$ '$% a$%

$!( '$ a+), ()e "ar($er rea';e+ 5a'$ !r +uer+ !++ a!r%'$5 (! ()e are( *aue ! ()e "r!"er(y ree'*e% '$ '=u'%a('!$. )e$e*er a $e& "ar($er '+ a%'((e%, (! a

"ar($er+)'", !r a$y e6'+('$5 "ar($er+)'" '+ re!r5a$';e%, ()e a(+ a+ (! +u) )a$5e !r re!r5a$';a('!$ +)!u% be uy +e( !r() '$ ()e $e6( re(ur$ ! '$!e, '$ !r%er ()a(

()e C!'++'!$er ! I$(er$a Re*e$ue ay %e(er'$e &)e()er a$y 5a'$ !r !++ )a+ bee$ rea';e% by a$y "ar($er. ATCaISECTION 14/. >a+'+ ! +(! !r +eur'('e+ a=u're% '$ B&a+) +ae+B. # I$ ()e +ae !r !()er %'+"!+'('!$ ! +(!+ !r +eur'('e+ ()e a=u'+'('!$ ! &)') !r ()e

!$(ra( !r !"('!$ (! a=u're &)') re+u(e% '$ ()e $!$ %e%u('b''(y ! ()e !++ r! ()e +ae !r !()er %'+"!+'('!$ ! +ub+(a$('ay '%e$('a +(! !r +eur'('e+ ()e ba+'+

+)a be ()e ba+'+ ! ()e +ub+(a$('ay '%e$('a +(! +! +!% !r %'+"!+e% !, '$rea+e% !r %erea+e%, a+ ()e a+e ay be, by ()e %'ere$e, ' a$y, be(&ee$ ()e "r'e a(&)') ()e +(! !r +eur'('e+ &a+ a=u're% a$% ()e "r'e a( &)') +u) +ub+(a$('ay '%e$('a +(! !r +eur'('e+ &ere +!% !r !()er&'+e %'+"!+e% !. T)e a""'a('!$ !

()'+ rue ay be 'u+(ra(e% by ()e !!&'$5 e6a"e+8EXAM:LE 18 A "ur)a+e% a +)are ! !!$ +(! ! ()e X C!r"!ra('!$ !r :100 '$ 19/3, &)') )e +!% a$uary 1.I.R. Ge$era C'ruar N!. V-2y a +)are)!%er8 A +)are)!%er &)! e6)a$5e+ )'+ +(! '$ a !r"!ra('!$ &)') '+ a "ar(y (! ()e er5er !r !$+!'%a('!$ +!ey !r +(! ! a$!()er

!r"!ra('!$, a+! a "ar(y (! ()e er5er !r !$+!'%a('!$.

>y a +eur'(y )!%er8 A +eur'(y )!%er ! a !r"!ra('!$ &)') '+ a "ar(y (! ()e er5er !r !$+!'%a('!$, &)! e6)a$5e+ )'+ +eur'('e+ '$ +u) !r"!ra('!$

+!ey !r +(! !r +eur'('e+ '$ a$!()er !r"!ra('!$, a "ar(y (! ()e er5er !r !$+!'%a('!$./. Re!5$'('!$ ! 5a'$ '$ "ar( bu( $!( !++, &)ere e6)a$5e+ are $!( +!ey '$ '$%.

a >y a +)are)!%er !r +eur'(y )!%er. # I '$ !$$e('!$ &'() a$ e6)a$5e a%e by a +)are)!%er !r +eur'(y )!%er %e+r'be% '$ ()e ab!*e e6e"('!$+, )e

ree'*e+ $!( !$y +(! !r +eur'('e+, "er'((e% (! be ree'*e% &'()!u( re!5$'('!$ ! !++ !r 5a'$, bu( a+! !$ey a$%!r !()er "r!"er(y, ()e$ ()e 5a'$, ' a$y, (! ()e

re'"'e$( +)a be re!5$';e%, bu( '$ a$ a!u$( $!( '$ e6e++ ! ()e +u ! !$ey a$% ()e a'r are( *aue ! +u) !()er "r!"er(y. T)e !++, ' a$y, (! ()e +)are)!%er !r+eur'(y )!%er r! +u) a$ e6)a$5e '+ $!( (! be re!5$';e% (! a$y e6(e$(. !&e*er, ' ()e %'+(r'bu('!$ ! +u) !()er "r!"er(y a$%!r !$ey (! a +)are)!%er '$ ()e

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!ur+e ! a er5er !r !$+!'%a('!$ )a+ ()e ee( ! ()e %'+(r'bu('!$ ! a (a6abe %'*'%e$%, ()ere +)a be (a6e% (! ()e %'+(r'bu(ee a+ a (a6abe %'*'%e$% +u) a$ a!u$( !

()e 5a'$ re!5$';e% !$ ()e e6)a$5e a+ '+ $!( '$ e6e++ ! ()e %'+(r'bu(eeH+ ra(abe +)are ! ()e u$%'+(r'bu(e% ear$'$5+ a$% "r!'(+ ! ()e !r"!ra('!$, a$% a+ a a"'(a 5a'$

()e rea'$%er, ' a$y, ! ()e 5a'$ +! re!5$';e%.E6a"e8 A, '$ !$$e('!$ &'() a er5er !r !$+!'%a('!$ '$ 19y a !r"!ra('!$. # I, '$ "ur+ua$e ! a "a$ ! er5er !r !$+!'%a('!$ ab!*e %e+r'be%, ()e (ra$+er!r !r"!ra('!$ ree'*e+ $!( !$y +(! "er'((e% (! beree'*e% &'()!u( ()e re!5$'('!$ ! 5a'$ !r !++, bu( a+! !$ey a$%!r !()er "r!"er(y, ()e$, ' +u) !$ey a$%!r !()er "r!"er(y ree'*e% by ()e !r"!ra('!$ '+

%'+(r'bu(e% by '( "ur+ua$( (! ()e "a$ ! er5er !r !$+!'%a('!$, $! 5a'$ (! ()e +a'% !r"!ra('!$ &' be re!5$';e%. I ()e !()er "r!"er(y a$%!r !$ey ree'*e% by ()e

!r"!ra('!$ '+ $!( %'+(r'bu(e% by '( "ur+ua$( (! ()e "a$ ! er5er a$% !$+!'%a('!$, ()e 5a'$, ' a$y, (! ()e !r"!ra('!$ r! ()e e6)a$5e &' be re!5$';e% '$ a$

a!u$( $!( '$ e6e++ ! ()e +u ! !$ey a$% ()e a'r are( *aue ! ()e !()er "r!"er(y +! ree'*e% &)') '+ $!( %'+(r'bu(e%. I$ e'()er a+e $! !++ r! ()e e6)a$5e

&' be re!5$';e%.4. A++u"('!$ ! 'ab''(y. # )ere u"!$ a$ e6)a$5e %e+r'be% '$ ()e !re5!'$5 e6e"('!$+, a (a6"ayer ree'*e+ +(! !r +eur'('e+ &)') &!u% be "er'((e%

(! be ree'*e% &'()!u( ()e re!5$'('!$ ! 5a'$ ' '( &ere ()e +!e !$+'%era('!$, a$% a+ "ar( ! ()e !$+'%era('!$, a$!()er "ar(y (! ()e e6)a$5e a++ue+ a 'ab''(y ! ()e

(a6"ayer, !r a=u're+ r! ()e (a6"ayer "r!"er(y +ub7e( (! a 'ab''(y, +u) a++u"('!$ !r a=u'+'('!$ +)a $!( be !$+'%ere% a+ !$ey a$%!r !()er "r!"er(y, a$% +)a

$!( "re*e$( ()e e6)a$5e r! be'$5 &'()'$ ()e e6e"('!$+. A!r%'$5y, ()e a++u"('!$ ! ()e a!re+a'% 'ab''('e+ '+ $!( (! be (rea(e% a+ !()er "r!"er(y !r !$ey !r ()e

"ur"!+e ! %e(er'$'$5 ()e a!u$( ! rea';e% 5a'$.a+'+ ! +(! !r +eur'('e+ !r ()e "ur"!+e ! %e(er'$'$5 5a'$ !r !++ u"!$ +ub+e=ue$( +ae.

a >y ()e (ra$+er!r !r"!ra('!$, !r '(+ +)are)!%er !r +eur'(y )!%er. # T)e ba+'+ ! ()e +(! !r +eur'('e+ ree'*e% by ()e (ra$+er!r !r"!ra('!$ !r '(+

+)are)!%er !r +eur'(y )!%er u"!$ ()e e6)a$5e +"e''e% '$ ()e ab!*e e6e"('!$+ +)a be ()e +ae a+ ()e ba+'+ ! ()e "r!"er(y, +(! !r +eur'('e+ e6)a$5e%

%erea+e% by ()e !$ey ree'*e% a$% ()e a'r are( *aue ! ()e !()er "r!"er(y ree'*e%, a$% '$rea+e% by ()e a!u$( (rea(e% a+ %'*'%e$% ! ()e +)are)!%er a$% ()e

a!u$( ! a$y 5a'$ ()a( &a+ re!5$';e% !$ ()e e6)a$5e. T)e !()er "r!"er(y !r Bb!!(B ree'*e% '$ e6)a$5e +)a )a*e a+ ba+'+ '(+ a'r are( *aue.E6a"e+8 1. A "ur)a+e% a +)are ! +(! '$ ()e X C!r"!ra('!$ '$ 19/9 !r :100. :ur+ua$( (! a "a$ ! er5er !r !$+!'%a('!$, A '$ 19!$% &!r() : !r"!ra('!$, (!5e()er &!r() :100 :100 ea), a$% :

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%eee% (! be e'()er a ()e 5!!%+ !+( ree$(y "ur)a+e% !r "r!%ue% a$% ()e !+( ()ere! &' be ()e a(ua !+( ! ()e 5!!%+ "ur)a+e% !r "r!%ue% %ur'$5 ()e "er'!%

'$ &)') ()e =ua$('(y ! 5!!%+ '$ ()e '$*e$(!ry )a+ bee$ a=u're%, !r b &)ere ()e (a6"ayer a'$(a'$+ b!! '$*e$(!r'e+ '$ a!r%a$e &'() a +!u$% a!u$('$5 +y+(e

'$ &)') ()e re+"e('*e '$*e$(!ry a!u$(+ are )ar5e% &'() ()e a(ua !+( ! ()e 5!!%+ "ur)a+e% !r "r!%ue% a$% re%'(e% &'() ()e *aue ! ()e 5!!%+ u+e%,(ra$+erre%, !r +!%, aua(e% u"!$ ()e ba+'+ ! ()e a(ua !+( ! ()e 5!!%+ a=u're% %ur'$5 ()e (a6abe year '$u%'$5 ()e '$*e$(!ry a( ()e be5'$$'$5 ! ()e year ()e

$e( *aue a+ +)!&$ by +u) '$*e$(!ry a!u$(+ &' be %eee% (! be ()e !+( ! ()e 5!!%+ !$ )a$%. T)e baa$e+ +)!&$ by +u) '$*e$(!r'e+ +)!u% be *er''e% by

")y+'a '$*e$(!r'e+ a( rea+!$abe '$(er*a+ a$% a%7u+(e% (! !$!r ()ere&'().

I$*e$(!r'e+ +)!u% be re!r%e% '$ a e5'be a$$er, "r!"ery !"u(e% a$% +uar';e%, a$% +)!u% be "re+er*e% a+ a "ar( ! ()e a!u$('$5 re!r% ! ()e (a6"ayer. T)e

'$*e$(!r'e+ ! (a6"ayer+ !$ &)a(e*er ba+'+ (ae$ &' be +ub7e( (! '$*e+('5a('!$ by ()e C!'++'!$er ! I$(er$a Re*e$ue a$% ()e (a6"ayer u+( +a('+y ()eC!'++'!$er ! I$(er$a Re*e$ue ! ()e !rre($e++ ! ()e "r'e a%!"(e%.

T)e !!&'$5 e()!%+, a!$5 !()er+, ()a( are +!e('e+ u+e% '$ (a'$5 !r *au'$5 '$*e$(!r'e+, are $!( '$ a!r% &'() ()e+e re5ua('!$+ a$% ()ere!re ()e'r u+e !r

'$!e (a6 "ur"!+e+ '+ "r!)'b'(e%, *';.8

1 e%u('$5 r! ()e '$*e$(!ry a re+er*e !r "r'e )a$5e+, !r a$ e+('a(e% %e"re'a('!$ '$ ()e *aue ()ere!.

2 Ta'$5 &!r '$ "r!e++, !r !()er "ar(+ ! ()e '$*e$(!ry, a( a $!'$a "r'e !r a( e++ ()a$ '(+ "r!"er *aue./ O'(('$5 "!r('!$+ ! ()e +(! !$ )a$%.

4 U+'$5 a !$+(a$( "r'e !r $!'$a *aue !r a +! ae% $!ra =ua$('(y ! a(er'a+ !r 5!!%+ '$ +(!.

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"r!'( ba+e% u"!$ a$ a*era5e ! )'+ e$('re bu+'$e++ bu( +)!u% !"u(e a$% u+e '$ *au'$5 )'+ '$*e$(!ry ()e "r!"er "ere$(a5e+ !r ()e re+"e('*e %e"ar(e$(+ !r a++e+

! 5!!%+.

Se('!$ /@ ! ()e C!%eSECTION 1.

SECTION 1

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SECTION 132. I$!e r! ()e +ae ! "er+!$a "r!"er(y %er'*e% r! +!ure+ "ar(y &'()'$ a$% "ar(y &'()!u( ()e :)''""'$e+. # I(e+ ! 5r!++ '$!e $!(

a!a(e% by Se('!$+ 1'+ a$% a!u$(+ ree'*abe +)a u$e++ +a('+a(!ry rea+!$ !r a

%'ere$( (rea(e$( '+ +)!&$ be a++'5$e% !r a!a(e% (! ()e :)''""'$e+ &)e$ ()e %eb(!r re+'%e+ '$ ()e :)''""'$e+. CIaT

CASE /. A""'a('!$+ !r "er'++'!$ (! ba+e ()e re(ur$ u"!$ ()e (a6"ayerH+ b!!+ ! a!u$( &' be !$+'%ere% by ()e C!'++'!$er ! I$(er$a Re*e$ue '$ ()e a+e

! a$y (a6"ayer &)!, '$ 5!!% a'() a$% u$ae(e% by !$+'%era('!$+ ! (a6 'ab''(y, re5uary e"!y+ '$ )'+ b!!+ ! a!u$( a %e(a'e% a!a('!$ ! ree'"(+ a$%e6"e$%'(ure+ &)') ree(+ !re eary ()a$ ()e "r!e++e+ !r !rua+ )ere'$ "re+r'be%, ()e '$!e %er'*e% r! +!ure+ &'()'$ ()e :)''""'$e+.

SECTION 13/. F!re'5$ +(ea+)'" !"a$'e+. # T)e re(ur$+ ! !re'5$ +(ea+)'" !"a$'e+ &)!+e *e++e+ (!u) "!r(+ ! ()e :)''""'$e+ +)!u% '$u%e a+

5r!++ '$!e, ()e (!(a ree'"(+ ! a !u(-5!'$5 bu+'$e++ &)e()er re'5)( !r "a++e$5er+. '() ()e 5r!++ '$!e ()u+ a+er(a'$e%, ()e ra('! e6'+('$5 be(&ee$ '( a$% ()e

5r!++ '$!e r! a "ar(+, b!() &'()'$ a$% &'()!u( ()e :)''""'$e+ ! a *e++e+, &)e()er (!u)'$5 "!r(+ ! ()e :)''""'$e+ !r $!(, +)!u% be %e(er'$e% a+ ()e ba+'+

u"!$ &)') a!&abe %e%u('!$+ ay be !"u(e%, ()e "r'$'"e be'$5 ()a( a!&abe %e%u('!$+ +)a be !"u(e% u"!$ a ba+'+ &)') re!5$';e+ ()a( ()e '$!ear'+'$5 a$% aru'$5 r! bu+'$e++ %!$e ' a$y r! ()'+ !u$(ry +)a bear '(+ +)are, a$% $! !re, ! e6"e$+e, '$'%e$( (! ()e ear$'$5 !r rea('!$ ! +u) '$!e, '$ ()e

ra('! ()a( ()e 5r!++ '$!e ar'+'$5 '$ a$% r! ()'+ !u$(ry bear+ (! ()e e$('re 5r!++ '$!e ar'+'$5 r! bu+'$e++ %!$e b!() &'()'$ a$% &'()!u( ()'+ !u$(ry. I$ !()er

&!r%+, ()e $e( '$!e ! a !re'5$ +(ea+)'" !"a$y %!'$5 bu+'$e++ '$ !r r! ()'+ !u$(ry '+ a+er(a'$e% !r ()e "ur"!+e ! ()e '$!e (a6, by %e%u('$5 r! ()e5r!++ ree'"(+ r! !u(5!'$5 bu+'$e++ +u) a "!r('!$ ! ()e a55re5a(e e6"e$+e+, !++e+, e(., a+ +u) ree'"(+ bear (! ()e a55re5a(e ree'"(+ r! a "!r(+ ! a *e++e+,

'$u%'$5 '$ ea) a+e '$!'$5 ! a $!$+)'""'$5 )ara(er bu( '$'%e$(a, (! ()e +)'""'$5 bu+'$e++ +u) a+ %'*'%e$%+ r! '$*e+(e$(+, '$(ere+(+ !$ %e"!+'(+, e(. F!re6a"e #

G'*e$

a Gr!++ ree'"(+ r! !u(5!'$5 re'5)(+ a$% "a++e$5er+

r! :.I. "!r(+ :20,000

b Gr!++ ree'"(+ r! !u(5!'$5 re'5)(+ a$% "a++e$5er+r! a "!r(+ !()er ()a$ ()!+e ! :. I 200,000

I$(ere+(+ a$% !()er $!$+)'""'$5 '$!e ree'*e% by :.I.

!'e

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:2

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%e+'5$a('$5 ()e "r!"!+e% %a(e !r ()e !+'$5 ! '(+ $e& (a6abe year, (!5e()er &'() a +(a(ee$( ! ()e %a(e !$ &)') ()e b!!+ ! a!u$( &ere !"e$e% a$% !+e% ea)

year !r ()e "a+( ()ree year+, ()e %a(e !$ &)') ()e (a6abe year be5a$ a$% e$%e% a+ +)!&$ !$ ()e re(ur$+ 'e% !r ()e "a+( ()ree year+, a$% ()e rea+!$+ &)y ()e )a$5e

'$ a!u$('$5 "er'!% '+ %e+'re%. See a+! Se('!$ 43% ! ()e C!%e.Se('!$ 42 ! ()e C!%e

SECTION 1@/. Re(ur$+ !r "er'!%+ ! e++ ()a$ (&e*e !$()+. # N! re(ur$ a$ be a%e !r a "er'!% ! !re ()a$ (&e*e !$()+. A +e"ara(e re(ur$ !r a

ra('!$a "ar( ! a year '+ ()ere!re re=u're% &)e$e*er ()ere '+ a )a$5e, &'() ()e a""r!*a ! ()e C!'++'!$er ! I$(er$a Re*e$ue, '$ ()e ba+'+ ! !"u('$5 $e(

'$!e r! !$e (a6abe year (! a$!()er (a6abe year. T)e "er'!%+ (! be !*ere% by +u) +e"ara(e re(ur$+ '$ ()e +e*era a+e+ are +(a(e% '$ Se('!$ 42a. T)e

re=u'ree$(+ &'() re+"e( (! ()e ''$5 ! a +e"ara(e re(ur$ a$% ()e "aye$( ! (a6 !r a "ar( ! a year are ()e +ae a+ !r ()e ''$5 ! a re(ur$ a$% ()e "aye$( ! (a6 !ra u (a6abe year !+'$5 a( ()e +ae ('e. AETC

Se('!$ 4/ ! ()e C!%e

SECTION 1@4. Sae ! "er+!$a "r!"er(y !$ '$+(ae$( "a$. # eaer+ '$ "er+!$a "r!"er(y !r%'$ar'y +e e'()er !r a+) !r !$ ()e "er+!$a re%'( ! ()e

"ur)a+er !r !$ ()e '$+(ae$( "a$. eaer+ &)! +e !$ ()e '$+(ae$( "a$ u+uay a%!"( !$e ! !ur &ay+ ! "r!(e('$5 ()e+e*e+ '$ a+e ! %eau( #

a >y a$ a5reee$( ()a( ('(e '+ (! rea'$ '$ ()e *e$%!r u$(' ()e "ur)a+er )a+ !"e(ey "er!re% )'+ "ar( ! ()e (ra$+a('!$Db >y a !r ! !$(ra( '$ &)') ('(e '+ !$*eye% (! ()e "ur)a+er 'e%'a(ey, bu( +ub7e( (! a 'e$ !r ()e u$"a'% "!r('!$ ! ()e +e'$5 "r'eD

>y a "re+e$( (ra$+er ! ('(e (! ()e "ur)a+er, &)! a( ()e +ae ('e e6eu(e+ a re!$*eya$e '$ ()e !r ! a )a((e !r(5a5e (! ()e *e$%!rD !r

% >y !$*eya$e (! a (ru+(ee "e$%'$5 "er!ra$e ! ()e !$(ra( a$% +ub7e( (! '(+ "r!*'+'!$+.

T)e 5e$era "ur"!+e a$% ee( be'$5 ()e +ae '$ a ! ()e+e a+e+, ()e +ae rue '+ u$'!ry a""'abe. T)e 5e$era rue "re+r'be% '+ ()a( a "er+!$ &)! re5uary

+e+ !r !()er&'+e %'+"!+e+ ! "er+!$a "r!"er(y !$ ()e '$+(ae$( "a$, &)e()er !r $!( ('(e rea'$+ '$ ()e *e$%!r u$(' ()e "r!"er(y '+ uy "a'% !r, ay re(ur$ a+'$!e ()erer! '$ a$y (a6abe year ()a( "r!"!r('!$ ! ()e '$+(ae$( "aye$(+ a(uay ree'*e% '$ ()a( year &)') ()e (!(a !r 5r!++ "r!'( ()a( '+, +ae+ e++ !+( !

5!!%+ +!% rea';e% !r (! be rea';e% &)e$ ()e "r!"er(y '+ "a'% !r, bear+ (! ()e (!(a !$(ra( "r'e. T)u+ ()e '$!e ! a %eaer '$ "er+!$a "r!"er(y !$ ()e '$+(ae$(

"a$ ay be a+er(a'$e% by (a'$5 a+ '$!e ()a( "r!"!r('!$ ! ()e (!(a "aye$(+ ree'*e% '$ ()e (a6abe year r! '$+(ae$( +ae+ +u) "aye$(+ be'$5 a!a(e% (!

()e year a5a'$+( ()e +ae+ ! &)') ()ey a""y &)') ()e (!(a !r 5r!++ "r!'( rea';e% !r (! be rea';e% !$ ()e (!(a '$+(ae$( +ae+ a%e %ur'$5 ea) year bear+ (! ()e

(!(a !$(ra( "r'e ! a +u) +ae+ a%e %ur'$5 ()a( re+"e('*e year. N! "aye$(+ ree'*e% '$ ()e (a6abe year +)a be e6u%e% '$ !"u('$5 ()e a!u$( ! '$!e (!be re(ur$e% !$ ()e 5r!u$% ()a( ()ey &ere ree'*e% u$%er a +ae ()e (!(a "r!'( r! &)') &a+ re(ur$e% a+ '$!e %ur'$5 a (a6abe year !r year+ "r'!r (! ()e )a$5e by

()e (a6"ayer (! ()e '$+(ae$( ba+'+ ! re(ur$'$5 '$!e. e%u('be '(e+ are $!( (! be a!a(e% (! ()e year+ '$ &)') ()e "r!'(+ r! ()e +ae+ ! a "ar('uar year are

(! be re(ur$e% a+ '$!e, bu( u+( be %e%u(e% !r ()e (a6abe year '$ &)') ()e '(e+ are B"a'% !r '$urre%B !r B"a'% !r arue%B, a+ "r!*'%e% by Se('!$ 40 a$% 4=

! ()e C!%e. A %eaer &)! %e+'re+ (! !"u(e )'+ '$!e !$ ()e '$+(ae$( ba+'+ +)a a'$(a'$ b!!+ ! a!u$( '$ +u) a a$$er a+ (! e$abe a$ aura(e !"u(a('!$

(! be a%e !$ +u) ba+'+ '$ a!r%a$e &'() ()e "r!*'+'!$+ ! ()'+ +e('!$.T)e '$!e r! a a+ua +ae !r !()er a+ua %'+"!+'('!$ ! "er+!$a "r!"er(y !()er ()a$ "r!"er(y ! a '$% &)') +)!u% "r!"ery be '$u%e% '$ '$*e$(!ry ay be

re"!r(e% !$ ()e '$+(ae$( ba+'+ !$y ' 1 ()e +ae "r'e e6ee%+ :1,000 a$% 2 ()e '$'('a "aye$(+ %! $!( e6ee% 2< "er e$( ! ()e +e'$5 "r'e. SCEIAI !r a$y rea+!$ ()e "ur)a+er %eau(+ '$ a$y ! )'+ "aye$(+, a$% ()e *e$%!r re(ur$'$5 '$!e !$ ()e '$+(ae$( ba+'+ re"!++e++e+ ()e "r!"er(y +!% &)e()er ('(e

()ere(! )a% bee$ re(a'$e% by ()e *e$%!r !r (ra$+erre% (! ()e "ur)a+er, 5a'$ !r !++ !r ()e year '$ &)') ()e re"!++e++'!$ !ur+ '+ (! be !"u(e% u"!$ a$y '$+(ae$(

!b'5a('!$+ ! ()e "ur)a+er &)') are +a('+'e% !r %'+)ar5e% u"!$ ()e re"!++e++'!$ !r are a""'e% by ()e *e$%!r (! ()e "ur)a+e !r b'% "r'e ! ()e "r!"er(y. Su) 5a'$!r !++ '+ (! be ea+ure% by ()e %'ere$e be(&ee$ ()e a'r are( *aue ! ()e "r!"er(y re"!++e++e% a$% ()e ba+'+ '$ ()e )a$%+ ! ()e *e$%!r ! ()e !b'5a('!$+ ! ()e

"ur)a+er &)') are +! +a('+'e%, %'+)ar5e%, !r a""'e%, &'() "r!"er a%7u+(e$( !r a$y !()er a!u$(+ rea';e% !r !+(+ '$urre% '$ !$$e('!$ &'() ()e re"!++e++'!$.

T)e ba+'+ '$ ()e )a$%+ ! ()e *e$%!r ! ()e !b'5a('!$+ ! ()e "ur)a+er +a('+'e%, %'+)ar5e%, !r a""'e% u"!$ ()e re"!++e++'!$ ! ()e "r!"er(y +)a be ()e e6e++ ! ()e

ae *aue ! +u) !b'5a('!$+ !*er a$ a!u$( e=ua (! ()e '$!e &)') &!u% be re(ur$abe &ere ()e !b'5a('!$+ "a'% '$ u. N! %e%u('!$ !r a ba% %eb( +)a '$ a$y

a+e be (ae$ !$ a!u$( ! a$y "!r('!$ ! ()e !b'5a('!$+ ! ()e "ur)a+er &)') are (rea(e% by ()e *e$%!r a+ $!( )a*'$5 bee$ +a('+'e%, %'+)ar5e%, !r a""'e% u"!$ ()ere"!++e++'!$, u$e++ '( '+ eary +)!&$ ()a( a(er ()e "r!"er(y &a+ re"!++e++e% ()e "ur)a+er rea'$e% 'abe !r +u) "!r('!$D a$% '$ $! e*e$( +)a ()e a!u$( ! ()e

%e%u('!$ e6ee% ()e ba+'+ '$ ()e )a$%+ ! ()e *e$%!r ! ()e "!r('!$ ! ()e !b'5a('!$+ &'() re+"e( (! &)') ()e "ur)a+er rea'$e% 'abe a(er ()e re"!++e++'!$. I ()e

"r!"er(y re"!++e++e% '+ b'% '$ by ()e *e$%!r a( a a&u "ub' au('!$ !r 7u%''a +ae, ()e a'r are( *aue ! ()e "r!"er(y +)a be "re+ue% (! be ()e "ur)a+e !r b'%

"r'e ()ere! '$ ()e ab+e$e ! ear a$% !$*'$'$5 "r!! (! ()e !$(rary. T)e "r!"er(y re"!++e++e% +)a be arr'e% !$ ()e b!!+ ! ()e *e$%!r a( '(+ a'r are( *aue a(

()e ('e ! ()e re"!++e++'!$.I ()e *e$%!r )!!+e+ a+ a a((er ! !$+'+(e$( "ra('e (! re(ur$ ()e '$!e r! '$+(ae$( +ae+ !$ ()e +(ra'5)( arua !r a+) ree'"(+ a$% %'+bur+ee$( ba+'+, +u) a

!ur+e '+ "er'++'be.

SECTION 1@

7/23/2019 RR 2 (1940)

25/41

rea=u're% '+ +ub+e=ue$(y +!%, ()e ba+'+ !r %e(er'$'$5 5a'$ !r !++ '+ ()e a'r are( *aue ! ()e "r!"er(y a( ()e %a(e ! rea=u'+'('!$ '$u%'$5 ()e a'r are( *aue

! a$y '6e% '"r!*ee$(+ "ae% !$ ()e "r!"er(y by ()e "ur)a+er.

I ()e *e$%!r )!!+e+ a+ a a((er ! !$+'+(e$( "ra('e (! (ur$ ()e '$!e r! '$+(ae$( +ae+ !$ ()e +(ra'5)( arua !r a+) ree'"(+ a$% %'+bur+ee$(+ ba+'+, +u) a!ur+e '+ "er'++'be, a$% ()e +ae+ &' be (rea(e% a+ %eerre%-"aye$( +ae+ $!( !$ ()e '$+(ae$( "a$.

SECTION 1@@. eerre%-"aye$( +ae ! rea "r!"er(y $!( !$ '$+(ae$( "a$. # I$ (ra$+a('!$+ '$u%e% '$ a++ 2 '$ Se('!$ 1@< ! ()e+e re5ua('!$+, ()e

!b'5a('!$+ ! ()e "ur)a+er ree'*e% by ()e *e$%!r are (! be !$+'%ere% a+ ()e e=u'*ae$( ! a+).

I ()e *e$%!r )a+ re(a'$e% ('(e (! ()e "r!"er(y a$% ()e "ur)a+er %eau(+ '$ a$y ! )'+ "aye$(+, a$% ()e *e$%!r re"!++e++e+ ()e "r!"er(y, ()e %'ere$e be(&ee$ 1 ()e

e$('re a!u$( ! ()e "aye$(+ a(uay ree'*e% !$ ()e !$(ra( a$% re(a'$e% by ()e *e$%!r "u+ ()e a'r-are( *aue a( ()e ('e ! re"!++e++'!$ ! '6e% '"r!*ee$(+"ae% !$ ()e "r!"er(y by ()e "ur)a+er a$% 2 ()e +u ! ()e "r!'(+ "re*'!u+y re(ur$e% a+ '$!e '$ !$$e('!$ ()ere&'() a$% a$ a!u$( re"re+e$('$5 &)a( &!u%

)a*e bee$ a "r!"er a%7u+(e$( !r e6)au+('!$, &ear a$% (ear, !b+!e+e$e, a!r(';a('!$, a$% %e"e('!$ ! ()e "r!"er(y %ur'$5 ()e "er'!% ()e "r!"er(y &a+ '$ ()e )a$%+

! ()e "ur)a+er )a% ()e +ae $!( bee$ a%e &' !$+('(u(e 5a'$ !r !++, a+ ()e a+e ay be (! ()e *e$%!r !r ()e year '$ &)') ()e "r!"er(y '+ re"!++e++e%, a$% ()e ba+'+

! ()e "r!"er(y '$ ()e )a$%+ ! ()e *e$%!r &' be ()e !r'5'$a ba+'+ a( ()e ('e ! ()e +ae "u+ ()e a'r are( *aue a( ()e ('e ! re"!++e++'!$, ! '6e% '"r!*ee$(+

"ae% !$ ()e "r!"er(y by ()e "ur)a+er. I ()e *e$%!r )a+ "re*'!u+y (ra$+erre% ('(e (! ()e "ur)a+er, a$% ()e "ur)a+er %eau(+ '$ a$y ! )'+ "aye$(+ a$% ()e *e$%!rrea=u're% ()e "r!"er(y, +u) rea=u'+'('!$ +)a be re5ar%e% a+ a (ra$+er by ()e *e$%!r, '$ e6)a$5e !r ()e "r!"er(y !r +u) ! ()e "ur)a+erH+ !b'5a('!$+ a+ are

a""'e% by ()e *e$%!r (! ()e "ur)a+e !r b'% "r'e ! ()e "r!"er(y. Su) a$ e6)a$5e &' be re5ar%e% a+ )a*'$5 re+u(e% '$ ()e rea';a('!$ by ()e *e$%!r ! 5a'$ !r !++,

a+ ()e a+e ay be !r ()e year ! rea=u'+'('!$, ea+ure% by ()e %'ere$e be(&ee$ ()e a'r are( *aue ! ()e "r!"er(y '$u%'$5 '6e% '"r!*ee$(+ "ae% by ()e

"ur)a+er !$ ()e "r!"er(y, a$% ()e a!u$( ! ()e !b'5a('!$+ ! ()e "ur)a+er &)') &ere a""'e% by ()e *e$%!r (! ()e "ur)a+e !r b'% "r'e ! ()e "r!"er(y. T)e a'r

are( *aue ! ()e "r!"er(y rea=u're% +)a be "re+ue% (! be ()e a!u$( !r &)') '( '+ b'% '$ by ()e *e$%!r '$ ()e ab+e$e ! ear a$% !$*'$'$5 "r!! (! ()e!$(rary. I ()e "r!"er(y rea=u're% '+ +ub+e=ue$(y +!% ()e ba+'+ !r %e(er'$'$5 5a'$ !r !++ '+ ()e a'r are( *aue ! ()e "r!"er(y a( ()e %a(e ! rea=u'+'('!$

'$u%'$5 ()e a'r are( *aue ! ()e '6e% '"r!*ee$(+ "ae% !$ ()e "r!"er(y by ()e "ur)a+er. ITASa

SECTION 1@. Sae ! rea e+(a(e '$ !(+. # )ere a (ra( ! a$% '+ "ur)a+e% &'() a *'e& (! %'*'%'$5 '( '$(! !(+ !r "are+ ! 5r!u$% (! be +!% a+ +u), ()e

e$('re a'r are( *aue a+ ! Mar) 1, 191/, !r ()e !+(, ' a=u're% +ub+e=ue$(y (! ()a( %a(e, +)a be e=u'(aby a""!r('!$e% (! ()e +e*era !(+ !r "are+ a$% a%e a

a((er ! re!r% !$ ()e b!!+ ! ()e (a6"ayer, (! ()e e$% ()a( a$y 5a'$ %er'*e% r! ()e +ae ! a$y +u) !(+ !r "are+ ay be re(ur$e% a+ '$!e !r ()e year '$ &)')()e +ae &a+ a%e. T)'+ rue !$(e"a(e+ ()a( ()ere &' be a ea+ure ! 5a'$ !r !++ !$ e*ery !( !r "are +!%, a$% $!( ()a( ()e a"'(a '$*e+(e% '$ ()e e$('re (ra( +)a

be e6('$5u'+)e% be!re a$y (a6abe '$!e +)a be re(ur$e%. T)e +ae ! ea) !( !r "are &' be (rea(e% a+ a +e"ara(e (ra$+a('!$ a$% ()e 5a'$ !r !++ &' be a!u$(e%

!r a!r%'$5y.

SECTION 1@a. I$ a a+e+ &)ere a (a6"ayer +e+ %ur'$5 ()e year rea !r "er+!$a "r!"er(y !$ ()e '$+(ae$( ba+'+, ()ere +)!u% be a((a)e% (! ()e '$!e (a6

re(ur$ a +(a(ee$( ! ea) +ae a%e %ur'$5 ()e year !$(a'$'$5 ()e !!&'$5 '$!ra('!$8a Nae ! buyer

b A%%re++ ! buyer a(e ! +ae

% Se'$5 "r'e

e :aye$(+ ree'*e% %ur'$5 ()e year !rre+"!$%'$5 (! ea) +ae.T)'+ $e& +e('!$ )a+ bee$ '$+er(e% '$ Re*e$ue Re5ua('!$+ N!. 2 by Re*e$ue Re5ua('!$+ N!. -3< %a(e% u$e 1, 193

7/23/2019 RR 2 (1940)

26/41

T)e a& re=u're+ ()a( ()e '$!e ! u$arr'e% '$!r+ %er'*e% r! "r!"er(y ree'*e% r! a '*'$5 "are$( +)a be '$u%e% '$ ()e re(ur$ ! ()e "are$(, e6e"( 1 &)e$

()e 5'( (a6 '"!+e% u$%er C)a"(er II ! T'(e III ! ()e C!%e )a+ bee$ "a'% !$ +u) "r!"er(y, !r 2 &)ere ()e (ra$+er ! +u) "r!"er(y '+ e6e"( r! ()e 5'( (a6.

A +'5$a(ure a'6e% (! a re(ur$ '+ "re+ue% (! be 5e$u'$e.SECTION 11. )e$ a$% &)ere (! 'e '$%'*'%ua re(ur$+. # T)e re(ur$ u+( be 'e% &'() ()e C!'++'!$er ! I$(er$a Re*e$ue, "r!*'$'a re*e$ue a5e$(, !r

(rea+urer ! ()e "r!*'$e, '(y !r u$''"a'(y '$ &)') ()e (a6"ayer )a+ )'+ e5a re+'%e$e !r "r'$'"a "ae ! bu+'$e++, !$ !r be!re A"r' 1.I.R. F!r N!. 1@.01. T)e !r+ ay be )a% r! ()e !'e ! ()e C!'++'!$er !

I$(er$a Re*e$ue '$ Ma$'a, !r '$ ()e !'e ! ()e "r!*'$'a (rea+urer+ !r ()e'r %e"u('e+.

A (a6"ayer &' $!( be e6u+e% r! a'$5 a re(ur$ by ()e a( ()a( $! re(ur$ !r )a+ bee$ ur$'+)e% )'. Ta6"ayer+ $!( +u""'e% &'() ()e "r!"er !r+ +)!u% aea""'a('!$ ()ere!r (! ()e C!'++'!$er ! I$(er$a Re*e$ue !r (! ()e "r!*'$'a (rea+urer+, !r ()e'r %e"u('e+ '$ a"e ('e (! )a*e ()e'r re(ur$+ "re"are%, *er''e%, a$%

'e% &'() ()e "r!"er !''a !$ !r be!re ()e %ue %a(e. Ea) (a6"ayer +)!u% areuy "re"are )'+ re(ur$ +! a+ (! uy a$% eary +e( !r() ()e %a(a ()ere'$ ae% !r.

I"ere( !r '$!rre( re(ur$+ &' $!( be ae"(e% a+ ee('$5 ()e re=u'ree$(+ ! ()e +(a(u(e. T)ere are $!& >IR :r!*'$'a Re*e$ue O'er+.

Se('!$ 43 ! ()e C!%e

SECTION 14. C!r"!ra('!$ re(ur$+. # C!r"!ra('!$+ are re=u're% (! ae re(ur$+ ! '$!e '$ %u"'a(e, re5ar%e++ ! ()e a!u$( ! ()e'r $e( '$!e.A !r"!ra('!$ a''$5 e6e"('!$ r! (a6 a$% r! ()e ''$5 ! re(ur$+ u+( e+(ab'+) '(+ r'5)( (! e6e"('!$ '$ a!r%a$e &'() ()e "r!e%ure +e( !r() '$ Se('!$ 24

! ()e+e re5ua('!$+, !()er&'+e '( &' be ae$abe (! ()e "e$a('e+ !r a'ure (! 'e re(ur$+.

I$ ()e a+e ! !r%'$ary !r"!ra('!$+, "ar($er+)'"+, a$% 7!'$( a!u$(+ ue$(a+ e$ "ar(''"a'!$, ()e re(ur$ +)a be !$ ()e !r "re+r'be% !r !r"!ra('!$+ >.I.R F!r

N!. 1@.02, a$% ()e re(ur$+ ! '$+ura$e !"a$'e+, !$ ()e "re+r'be% !r >.I.R. F!r N!. 1@.0/. A !r"!ra('!$ )a*'$5 a$ e6'+(e$e %ur'$5 a$y "!r('!$ ! a (a6abe

year '+ re=u're% (! ae a re(ur$. A !r"!ra('!$ &)') )a+ ree'*e% a )ar(er, bu( )a+ $e*er "ere(e% '(+ !r5a$';a('!$, a$% &)') )a+ (ra$+a(e% $! bu+'$e++ a$% )a% $!'$!e r! a$y +!ure, ay u"!$ "re+e$(a('!$ ! ()e a(+ (! ()e C!'++'!$er ! I$(er$a Re*e$ue be re'e*e% r! ()e $ee++'(y ! a'$5 a re(ur$ +! !$5 a+ '(

rea'$+ '$ a$ u$!r5a$';e% !$%'('!$. I$ ()e ab+e$e ! a "r!"er +)!&'$5 (! ()e C!'++'!$er ! I$(er$a Re*e$ue +u) !r"!ra('!$ u+( 'e ()e $ee++ary re(ur$.A !r"!ra('!$ %e+'r'$5 (! )a$5e '(+ a!u$('$5 "er'!% r! ae$%ar year (! '+a year u+( !"y &'() ()e "r!e%ure +e( !r() '$ Se('!$ 1@2 ! ()e+e re5ua('!$+

rea('*e (! ()e )a$5e '$ a!u$('$5 "er'!% ! !r"!ra('!$+.

SECTION 1

7/23/2019 RR 2 (1940)

27/41

be!re ()e %a(e "re+r'be% '$ +e('!$ .I.R. F!r N!. 2.I.R. F!r N!. 1@.1/, !r ea) '++ue ! b!$%+, +)!&'$5 ()e $ae a$% a%%re++ ! ()e %eb(!r !r"!ra('!$, ()e $ae a$% a%%re++ ! ()e !&$er ! ()e b!$%+,

()e $a(ure ! ()e !b'5a('!$+, ()e a!u$( ! '$(ere+( a$% '(+ %ue %a(e, a$% ()e a!u$( ! a$y (a6 &'())e%. I$ ()e a+e ! !r"!ra(e b!$%+ !r +''ar !b'5a('!$+ $!(

!$(a'$'$5 a (a6-ree !*e$a$( au+e, $! !&$er+)'" er(''a(e+ are re=u're%. >u( !&$er+)'" er(''a(e+ are re=u're% '$ ()e a+e ! +u) b!$%+ ' ()e !&$er '+ u$$!&$

(! ()e &'())!%'$5 a5e$(. O&$er+)'" er(''a(e+ $ee% $!( be 'e% '$ ()e a+e ! '$(ere+( "aye$(+ !$ b!$% !r +''ar !b'5a('!$+ ! ()e U$'(e% S(a(e+ !r ! ()eG!*er$e$( ! ()e :)''""'$e+ !r ! a$y "!'('a +ub%'*'+'!$ ()ere!.

)ere '$ !$$e('!$ &'() ()e +ae ! '(+ "r!"er(y "aye$( ! ()e b!$%+ !r !()er !b'5a('!$+ ! a !r"!ra('!$ '+ a++ue% by ()e a++'5$ee, +u) a++'5$ee, &)e()er a$

'$%'*'%ua, "ar($er+)'", !r"!ra('!$, "r!*'$e, '(y !r u$''"a'(y, u+( %e%u( a$% &'())!% +u) (a6e+ a+ &!u% )a*e bee$ re=u're% (! be &'())e% by ()e a++'5$!r )a%

$!( +u) +ae+ a$% (ra$+er bee$ a%e.

SECTION 20/. Re(ur$ a$% "aye$( ! (a6 &'())e%. # a E*ery &'())!%'$5 a5e$( +)a ae a$ a$$ua re(ur$ '$ %u"'a(e, !$ >.I.R. F!r N!. 1@.4/ ! ()e (a6&'())e% r! '$(ere+( !$ !r"!ra(e b!$%+ !r !()er !b'5a('!$+ !$ !r be!re ()e 1.I.R. F!r N!. 1@.4/,

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a$% "ay ()e (a6 &'())e%, '$ a!r%a$e &'() ()e "r!*'+'!$+ ! +e('!$+ 19 (! 204 ! ()e+e re5ua('!$+. T)e &'())!%'$5 "r!*'+'!$+ ! ()e a& are 'e&'+e a""'abe (!

()e '$!e %er'*e% r! '$(ere+( u"!$ b!$%+, !r(5a5e+, !r %ee%+ ! (ru+(, !r !()er '$(ere+(-bear'$5 !b'5a('!$+ ! a %!e+(' !r re+'%e$( !re'5$ !r"!ra('!$, 'r !r

a++!'a('!$, &)e()er !r $!( ()e b!$%+ a$% !()er +u) !b'5a('!$+, !r +eur'('e+ !$(a'$ ()e +!-ae% (a6-ree !*e$a$( au+e, a$% re5ar%e++ ! ()e "ae &)ere +u)b!$%+, !b'5a('!$+, !r +eur'('e+ are '++ue%, $e5!('a(e%, !r are(e% a$% ()e '$(ere+( ()ere!$ "a'%, '$ a+e &)ere +u) '$(ere+(-'$!e '+ ree'*e% !r !b(a'$e% by, !r "a'%

(!, a $!$-re+'%e$( a'e$ 'r, !r"!ra('!$, a++!'a('!$, (ru+( !"a$y, !r (ru+(ee, $!( e$5a5e% '$ bu+'$e++ !r (ra%e &'()'$ ()e :)''""'$e+ a$% $!( )a*'$5 a$ !'e !r "ae

! bu+'$e++ ()ere'$. C!$!r+ &'() ae$%e$(+ by R.A. 2/4/, e*. u$e 20, 19u( &)ere a "er+!$ rea(e+ (&! !r

!re (ru+(+ '$ a*!r ! ()e +ae be$e''ary JSe('!$ .I.R. F!r N!.1@.02.

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Se('!$ 32 ! ()e C!%e

SECTION 21@. F'%u'ar'e+ '$%e$''e% a5a'$+( a'+ !r (a6e+ "a'%. # F'%u'ar'e+ are '$%e$''e% a5a'$+( ()e a'+ !r %ea$%+ ! e*ery be$e''ary !r a

"aye$(+ ! (a6e+ &)') ()ey +)a be re=u're% (! ae a$% ()ey +)a )a*e re%'( !r +u) "aye$(+ '$ a$y a!u$('$5 &)') ()ey ae a+ +u) '%u'ar'e+.Se('!$ 3/ ! ()e C!%e

SECTION 21. Ta6 !$ "er+!$a )!%'$5 !"a$'e+. # Se('!$ 3/ '"!+e+ !r +u) (a6abe year be5'$$'$5 a(er eeber /1, 19/ '$ a%%'('!$ (! ()e (a6

'"!+e% by Se('!$ 24 ! ()e C!%e, a (a6 u"!$ !r"!ra('!$+ a++''e% a+ "er+!$a )!%'$5 !"a$'e+. C!r"!ra('!$+ +! a++''e% are e6e"( r! ()e a%%'('!$a (a6 !$

!r"!ra('!$ '"r!"ery auua('$5 +ur"u+ '"!+e% by Se('!$ 2

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u$%er "er+!$a +er*'e !$(ra(+ !$+'+( ! a!u$(+ ree'*e% "ur+ua$( (! a !$(ra( u$%er &)') ()e !r"!ra('!$ '+ (! ur$'+) "er+!$a +er*'e+, a$% a!u$(+ ree'*e%

r! a +ae !r !()er %'+"!+'('!$ ! +u) a !$(ra(, ' #

a S!e "er+!$ !()er ()a$ ()e !r"!ra('!$ )a+ ()e r'5)( (! %e+'5$a(e by $ae !r by %e+r'"('!$ ()e '$%'*'%ua &)! '+ (! "er!r ()e +er*'e+ !r ' ()e'$%'*'%ua &)! '+ (! "er!r ()e +er*'e+ '+ %e+'5$a(e% by $ae !r by %e+r'"('!$ '$ ()e !$(ra(D a$%

b A( +!e ('e %ur'$5 ()e (a6abe year 2< "er e$( !r !re '$ *aue ! ()e !u(+(a$%'$5 +(! ! ()e !r"!ra('!$ '+ !&$e%, %'re(y !r '$%'re(y, by !r !r ()e

'$%'*'%ua &)! )a+ "er!re%, '+ (! "er!r, !r ay be %e+'5$a(e% by $ae !r by %e+r'"('!$, a+ ()e !$e (! "er!r +u) +er*'e+. F!r ()'+ "ur"!+e ()e +(!

!&$er+)'" u+( be %e(er'$e% a+ "r!*'%e% '$ Se('!$ 33 ! ()e C!%e.

T)e a""'a('!$ ! Se('!$ 3 ()e a55re5a(e a!u$( !%e%u('!$+ a!&abe !r e6"e$+e+ u$%er Se('!$ /0 a ! ()e C!%e !()er ()a$ !"e$+a('!$ !r "er+!$a +er*'e+ re$%ere% by ()e +)are)!%er+ ! ()e !r"!ra('!$

e=ua+ 1< "er e$( !r !re ! ()e 5r!++ '$!e ! ()e !r"!ra('!$ !r ()e (a6abe year.

T)e (er B'$era, !', !r 5a+ r!ya('e+B ea$+ a r!ya('e+, e6e"( B!*err'%'$5 r!ya('e+B, ree'*e% r! a$y '$(ere+( '$ '$era, !', !r 5a+ r!ya('e+. A+ u+e% '$ ()'+"ara5ra") ()e (er B!*err'%'$5 r!ya('e+B ea$+ a!u$(+ ree'*e% r! ()e +ubea+e by ()e !"era('$5 !"a$y &)') !r'5'$ay ea+e% a$% %e*e!"e% ()e $a(ura

re+!ure+ "r!"er(y '$ re+"e( ! &)') +u) !*err'%'$5 r!ya('e+ are b'%.

Se('!$ 33 ! ()e C!%e

SECTION 22/. S(! !&$er+)'". # F!r ()e "ur"!+e ! %e(er'$'$5 &)e()er #

a A !r"!ra('!$ '+ a "er+!$a )!%'$5 !"a$y '$ +! ar a+ +u) %e(er'$a('!$ '+ ba+e% !$ ()e +(! !&$er+)'" re=u'ree$( +"e''e% '$ Se('!$ 34a 2, !rb A!u$(+ ree'*e% u$%er a "er+!$a +er*'e !$(ra( !r r! ()e +ae ! +u) a !$(ra( !$+('(u(e "er+!$a )!%'$5 !"a$y '$!e '$ +! ar a+ +u)

%e(er'$a('!$ '+ ba+e% !$ ()e +(! !&$er+)'" re=u'ree$( +"e''e% '$ Se('!$ 3< e, !r

C!"e$+a('!$ !r ()e u+e ! "r!"er(y !$+('(u(e+ "er+!$a )!%'$5 !"a$y '$!e '$ +! ar a+ +u) %e(er'$a('!$ '+ ba+e% !$ ()e +(! !&$er-+)'"

re=u'ree$( +"e''e% '$ Se('!$ 3, (&! '$%'*'%ua+, are ()e e6u+'*e a$% e=ua be$e''ar'e+ ! a (ru+( !r e+(a(e, a$% ' +u) (ru+( !r e+(a(e !&$+ ()e e$('re a"'(a+(! ! ()e M C!r"!ra('!$, a$% ' ()e M C!r"!ra('!$ '$ (ur$ !&$+ ()e e$('re a"'(a +(! ! ()e N C!r"!ra('!$, ()e$ ()e +(! ! b!() ()e M C!r"!ra('!$ a$% ()e N

C!r"!ra('!$ +)a be !$+'%ere% a+ be'$5 !&$e% e=uay by A a$% > a+ ()e '$%'*'%ua+ !&$'$5 ()e be$e''a '$(ere+( ()ere'$.SECTION 22 20 C 20 20 E 20

'+ a()er AF 10 >F 10 CF 10 F 10 EF 10'+ &'e A 10 > 40 C 40 40 E 40

'+ br!()er A> 10 >> 10 C> 10 > 10 E> 10

'+ +!$ AS 10 >S 40 CS 40 S 40 ES 40

'+ %au5)(er by

!rer arr'a5e+!$H+ )a +'+(er ASS 10 >SS 40 CSS 40 SS 40 ESS 40

'+ br!()erH+ &'e A> 10 >> 10 C> 10 > 130 E> 10

'+ &'eH+ a()er AF 10 >F 10 CF 110 F 10 EF 10

'+ &'eH+ br!()er A> 10 >> 10 C> 10 > 10 E> 10

'+ &'eH+ br!()erH+&'e A> 10 >> 10 C> 10 > 10 E> 110

I$%'*'%uaH+ "ar($er A: 10 - - - - - - - -

>y a""y'$5 ()e +(a(u(!ry rue "r!*'%e% '$ Se('!$ 33a '*e '$%'*'%ua+ !&$ !re ()a$

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I$%'*'%ua A re"re+e$(+ ()e !b*'!u+ a+e &)ere ()e )ea% ! ()e a'y !&$+ ()e bu ! ()e a'y +(! a$% $a(uray '+ ()e )ea% ! ()e 5r!u". AH+ "ar($er !&$+ (!

+)are+ ! ()e +(!. I$%'*'%ua > re"re+e$(+ ()e a+e &)ere )e '+ +(' )ea% ! ()e 5r!u" beau+e ! ()e !&$er+)'" ! +(! by )'+ 'e%'a(e a'y. I$%'*'%ua+ C a$%

re"re+e$( a+e+ &)ere ()e '$%'*'%ua+ a '$ 5r!u"+ )ea%e% '$ CH+ a+e by )'+ &'e a$% '$ H+ a+e by )'+ br!()er beau+e ! ()e "re"!$%era$e ! )!%'$5+ !$ ()e "ar( !rea('*e+ by arr'a5e. I$%'*'%ua E re"re+e$(+ ()e a+e &)ere ()e "re"!$%era$( )!%'$5 ! !()er+ e''$a(e ()a( '$%'*'%ua r! ()e 5r!u". CAa

T)e e()!% ! a""y'$5 ()e a'y a$% "ar($er+)'" rue a+ 'u+(ra(e% '$ ()e !re5!'$5 e6a"e a+! a""'e+ '$ %e(er'$'$5 ()e !&$er+)'" ! +(! !r ()e "ur"!+e+

+(a(e% '$ b a$% ! Se('!$ 22/ ! ()e+e re5ua('!$+.

SECTION 223. O"('!$+. # I$ %e(er'$'$5 ()e !&$er+)'" ! +(! !r a$y ! ()e "ur"!+e+ +e( !r() '$ Se('!$ 22/ ! ()e+e re5ua('!$+ ' a$y "er+!$ )a+ a$ !"('!$

(! a=u're +(!, +u) +(! ay be !$+'%ere% a+ !&$e% by "er+!$. T)e (er B!"('!$B a+ u+e% '$ ()'+ +e('!$ '$u%e+ a$ !"('!$ (! a=u're +u) a$ !"('!$ a$% ea) !$e! a +er'e+ ! +u) !"('!$+, +! ()a( ()e "er+!$ &)! )a+ a$ !"('!$ !$ a$ !"('!$ (! a=u're +(! ay be !$+'%ere% a+ ()e !&$er ! ()e +(!.

Se('!$ 3@ ! ()e C!%e

SECTION 22@. e'$'('!$ ! !re'5$ "er+!$a )!%'$5 !"a$y. # A !re'5$ "er+!$a )!%'$5 !"a$y '+ a$y !re'5$ !r"!ra('!$ !()er ()a$ a !r"!ra('!$

e6e"( r! (a6a('!$ u$%er Se('!$ 2@ ! ()e C!%e &)') !r ()e (a6abe year ee(+ a ()e 5r!++ '$!e re=u'ree$(+ +"e''e% '$ Se('!$ 3@ a 1, a$% b ()e +(!

!&$er+)'" re=u'ree$( +"e''e% '$ Se('!$ 3@a 2. >!() re=u'ree$(+ u+( be +a('+'e% a$% b!() u+( be e( &'() re+"e( (! ea) (a6abe year.A !re'5$ !r"!ra('!$ &)') !e+ &'()'$ ()e a++''a('!$ ! a !re'5$ "er+!$a )!%'$5 !"a$y !r a$y (a6abe year be5'$$'$5 a(er eeber /1, 19/, '+ $!(

+ub7e( (! (a6a('!$ !r +u) (a6abe year u$%er Se('!$ 2< ! ()e C!%e bu( ay be +ub7e( (! (a6a('!$ u$%er ()a( +e('!$ !r !()er (a6abe year+. T)e a( ()a( a !re'5$

!r"!ra('!$ '+ a !re'5$ "er+!$a )!%'$5 !"a$y %!e+ $!( re'e*e ()e !r"!ra('!$ r! 'ab''(y !r ()e (a6 '"!+e% 5e$eray u$%er Se('!$ 24 u"!$ !re'5$

!r"!ra('!$+, +'$e +u) (a6 a""'e+ re5ar%e++ ! ()e a++''a('!$ ! ()e !re'5$ !r"!ra('!$ a+ a-!re'5$ "er+!$a )!%'$5 !"a$y.

SECTION 22. Gr!++ '$!e re=u'ree$(. # T! ee( ()e 5r!++ '$!e re=u'ree$(, '( '+ $ee++ary ()a( e'()er ! ()e !!&'$5 "ere$(a5e+ ! 5r!++ '$!e !()e !r"!ra('!$ !r ()e (a6abe year be !re'5$ "er+!$a )!%'$5 !"a$y '$!e '$ a!r%a$e &'() Se('!$ 3 '$ rea('!$ (! Se('!$ 3< ! ()e C!%e8

a S'6(y "er e$( ! !reD !r

b F'(y "er e$( !r !re ' ()e !re'5$ !r"!ra('!$ )a+ bee$ a++''e% a+ a !re'5$ "er+!$a )!%'$5 !"a$y !r ()e (a6abe year e$%'$5 a(er eeber /1,

19/, u$e++ #

1 A (a6abe year )a+ '$(er*e$e% +'$e ()e a+( (a6abe year !r &)') '( &a+ +! a++''e%, %ur'$5 $! "ar( ! &)') ()e +(! !&$er+)'" re=u'ree$( +"e''e% '$Se('!$ 3@ a ; e6'+(D !r

2 T)ree !$+eu('*e year+ )a*e '$(er*e$e% +'$e ()e a+( (a6abe year !r &)') '( &a+ +! a++''e%, %ur'$5 ea) ! &)') '(+ !re'5$ "er+!$a )!%'$5 !"a$y

'$!e &a+ e++ ()a$

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# U$%er Se('!$ @0 a, !$ ()e 1

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()e (a6abe year ! ()e !re'5$ "er+!$a )!%'$5 !"a$y ()e +ae '$!ra('!$ &)') '+ re=u're% u$%er Se('!$ @1a, "ara5ra") ! Se('!$ 2/2 ! ()e+e re5ua('!$+

a$% "ara5ra") ! ()e "ree%'$5 +e('!$, e6e"( ()a( ' a ()e re=u're% re(ur$+ &'() re+"e( (! +u) year )a*e bee$ 'e% u$%er Se('!$ @1a, $! re(ur$ u$%er Se('!$

@1b '+ re=u're%.I a "er+!$ '+ re=u're% (! 'e a$ a$$ua re(ur$ u$%er Se('!$ @1b &'() re+"e( (! !re ()a$ !$e !re'5$ "er+!$a )!%'$5 !"a$y, a +e"ara(e re(ur$ u+( be 'e% &'()

re+"e( (! ea) !re'5$ "er+!$a )!%'$5 !"a$y.

% VERIFICATION OF RETURNS. # A re(ur$+ re=u're% by Se('!$ @1b a$% ()'+ +e('!$ +)a be *er''e% u$%er !a() !r a'ra('!$ ! ()e "ar('e+ re$%er'$5

()e +ae.

Se('!$ @2 ! ()e C!%eSECTION 2/3. A% *a!re "e$a(y !r a'ure (! 'e re(ur$. # I$ a+e ! a a'ure (! ae a$% 'e a re(ur$ !r '+( &'()'$ ()e ('e "re+r'be% by a&, $!( %ue (!

&'u $e5e(, &)ere +u) re(ur$ !r '+( '+ *!u$(ar'y 'e% by ()e (a6"ayer &'()!u( $!('e r! ()e C!'++'!$er ! I$(er$a Re*e$ue !r !()er !'er a$% ' ( '+ +)!&$

()a( ()e a'ure (! 'e '( '$ %ue ('e &a+ %ue (! a rea+!$abe au+e, $! +ur)ar5e &' be a%%e% (! ()e a!u$( ! (a6 %ue !$ ()e re(ur$. I$ +u) a+e+, '$ !r%er (! a*!'% ()e

'"!+'('!$ ! ()e +ur)ar5e, ()e (a6"ayer u+( ae a +(a(ee$( +)!&'$5 a ()e a(+ ae5e% a+ a rea+!$abe au+e !r a'ure (! 'e ()e re(ur$ !$ ('e '$ ()e !r ! a$

a'%a*'( &)') +)!u% be a((a)e% (! ()e re(ur$. I ()e C!'++'!$er ! I$(er$a Re*e$ue '+ +a('+'e% ()a( ()e %e'$=ue$y &a+ %ue (! a rea+!$abe au+e, $! +ur)ar5e&' be a%%e% (! ()e (a6 %ue !$ ()e re(ur$. )e()er !r $!( rea+!$abe au+e e6'+(+ &' %e"e$% u"!$ ()e 'ru+(a$e+ ! ea) a+e. A+ a 5e$era rue, ' ()e (a6"ayer

e6er'+e% !r%'$ary bu+'$e++ are a$% "ru%e$e a$% &a+ $e*er()ee++ u$abe (! 'e ()e re(ur$ &'()'$ ()e "re+r'be% ('e, ()e %eay &' be !$+'%ere% a+ be'$5 %ue (! a

rea+!$abe au+e.

I$ a+e ! a a'ure (! ae a$% 'e a re(ur$ !r '+( &'()'$ ()e ('e "re+r'be% by a&, $!( %ue (! &'u $e5e(, &)ere ()e (a6"ayer *!u$(ar'y 'e+ ()e re(ur$ &'()!u(

$!('e r! ()e C!'++'!$er ! I$(er$a Re*e$ue !r !()er !'er a$% a((a)e+ (! +u) re(ur$ ()e a'%a*'( e$('!$e% '$ ()e "ree%'$5 "ara5ra") bu( &)ere ()eC!'++'!$er ! I$(er$a Re*e$ue '+ $!( +a('+'e% a+ (! ()e rea+!$abe$e++ ! ()e au+e ! ()e %e'$=ue$y, a +ur)ar5e ! 2< "er e$( &' be a%%e% (! ()e a!u$( ! (a6

%ue !$ ()e re(ur$.

I$ a+e ()e a'ure (! ae a$% 'e a re(ur$ !r '+( &'()'$ ()e ('e "re+r'be% by a& '+ %ue (! &'u $e5e( a +ur)ar5e !

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SECTION 244. Re(ur$ ! !r"!ra('!$ !$(e"a('$5 %'++!u('!$ !r re('r'$5 r! bu+'$e++. # A !r"!ra('!$+, "ar($er+)'", 7!'$( a!u$(+ a$% a++!'a('!$+,

!$(e"a('$5 %'++!u('!$ !r re('r'$5 r! bu+'$e++ &'()!u( !ra %'++!u('!$ +)a, &'()'$ /0 %ay+ a(er ()e a""r!*a ! +u) re+!u('!$ au()!r';'$5 ()e'r %'++!u('!$,

a$% &'()'$ ()e +ae "er'!% a(er ()e'r re('ree$( r! bu+'$e++, 'e ()e'r '$!e (a6 re(ur$+ !*er'$5 ()e "r!'( ear$e% !r bu+'$e++ %!$e by ()e r! ()e be5'$$'$5 !()e year u" (! ()e %a(e ! +u) %'++!u('!$ !r re('ree$( a$% "ay ()e !rre+"!$%'$5 '$!e (a6 %ue ()ere!$ u"!$ %ea$% by ()e C!'++'!$er ! I$(er$a Re*e$ue (!

a%%'('!$ (! ()e '$!e (a6 re(ur$ re=u're% (! be 'e% ()ey +)a a+! +ub'( &'()'$ ()e +ae "er'!% ()e !!&'$58

a C!"y ! ()e re+!u('!$ au()!r';'$5 +u) %'++!u('!$D

b >aa$e +)ee( a( ()e %a(e ! %'++!u('!$ !r re('ree$( a$% a "r!'( a$% !++ +(a(ee$( !*er'$5 ()e "er'!% r! ()e be5'$$'$5 ! ()e (a6abe year (! ()e %a(e !

%'++!u('!$ !r re('ree$(D I$ ()e a+e ! a !r"!ra('!$, ()e $ae+ e$% a%%re++e+ ! ()e +)are)!%er+ a$% ()e $uber a$% "ar *aue ! ()e +)are+ )e% by ea)D a$% '$ ()e a+e ! a

"ar($er+)'", 7!'$(-a!u$( !r a++!'a('!$, ()e $ae ! ()e "ar($er+ !r eber+ a$% ()e a"'(a !$(r'bu(e% by ea)D

% T)e *aue a$% a %e+r'"('!$ !, ()e a++e(+ ree'*e% '$ '=u'%a('!$ by ea) +)are)!%erD

e T)e $ae a$% a%%re++ ! ea) '$%'*'%ua !r !r"!ra('!$, !()er ()a$ +)are)!%er+, ' a$y, ree'*'$5 a++e(+ a( ()e ('e ! %'++!u('!$ (!5e()er &'() a %e+r'"('!$

a$% ()e *aue ! ()e a++e(+ ree'*e% by +u) '$%'*'%ua+ !r !r"!ra('!$+D a$% ()e !$+'%era('!$, ' a$y, "a'% by ea) ! ()e !r ()e a++e(+ ree'*e%.Se('!$ @9 ! ()e C!%e

SECTION 24

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'$ 5!!% a'() re5ar%'$5 a$$ua %e"re'a('!$ ! !' !r 5a+ &e+ a$% '$e+.

Se('!$ / ! ()e C!%e

SECTION 2

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A::ENIX CCC

Sub7e( 8 Ta6 e6e"('!$+ ! 1 a %!$a('!$+ a$% 5ra$(+ (! ()e :)''""'$e I$*e$(!r+ C!'++'!$ a$% 2 ()e a$ua(ure ! !a '$*e$('!$+

T)e La& 8 Re"ub' A( N!. /

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