PROBATE COURTS AND DECEDENTS' ESTATES
UNIFORM PRINCIPAL AND INCOME ACT
ALLOCATION OF RECEIPTS DURING ADMINISTRATION OF TRUST
Receipts Not Normally Apportioned
564-C:4-406 Obligation to Pay Money.
(a) An amount received as interest, whether determined at a fixed, variable, or floating rate, on an obligation to pay money to the trustee, including an amount received as consideration for prepaying principal, must be allocated to income without any provision for amortization of premium.
(b) An amount received from the sale, redemption, or other disposition of an obligation to pay money to the trustee more than one year after it is purchased or acquired by the trustee, including an obligation whose purchase price or value when it is acquired is less than its value at maturity, must be allocated to principal. If the obligation matures within one year after it is purchased or acquired by the trustee, an amount received in excess of its purchase price or its value when acquired by the trust must be allocated to income.
(c) This section does not apply to an obligation to which RSA 564-C:4-409, 410, 411, 412, 414, or 415 applies.
Source. 2006, 320:68, eff. Aug. 19, 2006.