Principal receipts.

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§557A-404 Principal receipts. The following shall be allocated to principal:

(1) To the extent not allocated to income under this chapter, assets received from a:

(A) Transferor during the transferor's lifetime;

(B) Decedent's estate;

(C) Trust with a terminating income interest; or

(D) Payor pursuant to a contract naming the trust or its trustee as beneficiary;

(2) Money or other property received from the sale, exchange, liquidation, or change in form of a principal asset, including realized profit, subject to this article;

(3) Amounts recovered from third parties to reimburse the trust because of disbursements described in section 557A-502(a)(7) or for other reasons to the extent not based on the loss of income;

(4) Proceeds of property taken by eminent domain, but a separate award made for the loss of income with respect to an accounting period during which a current income beneficiary had a mandatory income interest shall be classified as income;

(5) Net income received in an accounting period during which there is no beneficiary to whom a trustee may or shall distribute income; and

(6) Other receipts as provided in part III. [L 2000, c 191, pt of §1]


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