1. (1) To the extent a powerholder releases, ineffectively exercises, or fails to exercise a nongeneral power of appointment:

   1. (a) The gift-in-default clause controls the disposition of the unappointed property; or

   2. (b) If there is no gift-in-default clause, or to the extent the clause is ineffective, the unappointed property:

      1. (I) Passes to the permissible appointees if:

         1. (A) The permissible appointees are defined and limited; and
         2. (B) The terms of the instrument creating the power do not manifest a contrary intent; or
      2. (II) If there is no taker under subparagraph (I) of this paragraph (b), passes under a reversionary interest to the donor or the donor's transferee or successor in interest.

Source: L. 2014: Entire article added, (HB 14-1353), ch. 209, p. 779, § 1, effective July 1, 2015.