712. Distribution of surplus income.

712.     Distribution of surplus income.

Even where the annuity1 is a charge on the capital of a fund, it seems that where there is a surplus of income, this may be distributed to the persons entitled subject to the annuity2. When a deficiency of income to pay an annuity has been met out of capital, there is no right to use a subsequent surplus of income to recoup that capital3.

Where an annuity charged on capital is in arrears, the available income should first be applied towards the payment of the current year's annuity