§ 1013. Distribution; persons entitled; considerations; tax exemption
The Secretary shall distribute shares payable to living persons enrolled pursuant to section
1011 of this title and shares payable to the heirs or legatees of deceased persons enrolled pursuant to section
1011 of this title according to rules and regulations which he shall prescribe, taking into account that in some instances a planned individual or group program for the use of shares may more properly serve the long-term interest of the enrollees than would direct, unsupervised per capita payment. The funds so distributed shall not be subject to Federal or State income tax.