(a) A power of appointment is exercised only:
(1) If the instrument exercising the power is valid under applicable law;

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(2) If the terms of the instrument exercising the power:
(A) Manifest the powerholder’s intent to exercise the power; and
(B) Subject to subsection (b), satisfy any requirements that the terms of the trust may impose on the exercise of the power; and
(3) To the extent that the appointment is a permissible exercise of the power.
(b) A powerholder’s substantial compliance with a formal requirement of appointment imposed by the terms of the trust, including a requirement that the instrument exercising the power of appointment make reference or specific reference to the power, is sufficient if:
(1) The powerholder knows of and intends to exercise the power;
(2) The terms of the trust do not require strict compliance with the formal requirement of appointment imposed by the settlor; and
(3) The powerholder’s manner of attempted exercise of the power does not impair a material purpose of the trust.