(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, shall 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 shall be allocated to income.
(c) This Code section shall not apply to an obligation to which Code Section 53-12-425 through 53-12-428, 53-12-430, or 53-12-431 applies.
Section: Previous 53-12-420 53-12-421 53-12-422 53-12-423 53-12-424 53-12-425 53-12-426 53-12-427 53-12-428 53-12-429 53-12-430 53-12-431 NextLast modified: October 14, 2016