S 11-A-4.4  Principal receipts

A trustee shall allocate to principal:

(1)   to the extent not allocated to income under this article, assets received from a transferor during the transferor`s lifetime, a decedent`s estate, a trust with a terminating income interest, or a payer under 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 part;

(3)   amounts recovered from third parties to reimburse the trust because of disbursements described in subparagraph 11-A-5.2 (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 is income;

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

(6)   other receipts as provided in subpart 3.