14-7415. 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. A trustee shall allocate to principal 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. 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 section 14-7418, 14-7419, 14-7420, 14-7421, 14-7423 or 14-7424 applies.
Section: Previous 14-7408 14-7409 14-7410 14-7411 14-7412 14-7413 14-7414 14-7415 14-7416 14-7417 14-7418 14-7419 14-7420 14-7421 14-7422 NextLast modified: October 13, 2016