58-9-406. Obligation to pay money. - Kansas Statutes

58-9-406

Chapter 58.--PERSONAL AND REAL PROPERTY Part 4.--ALLOCATION OF RECEIPTS DURING ADMINISTRATION OF TRUST Article 9.--UNIFORM PRINCIPAL AND INCOME ACT (1997)

      58-9-406.   Obligation to pay money.(a) An amount received as interest, whether determined at afixed,variable,or floating rate, on an obligation to pay money to the trustee, including anamountreceived as consideration for prepaying principal, must be allocated to incomewithout any provision for amortization of premium.

      (b)   A trustee shall allocate to principal an amount received from thesale,redemption, or other disposition of an obligation to pay money to the trusteemorethan one year after it is purchased or acquired by the trustee, including anobligationwhose purchase price or value when it is acquired is less than its value atmaturity.If the obligation matures within one year after it is purchased or acquired bythetrustee, an amount received in excess of its purchase price or its value whenacquired by the trust must be allocated to income.

      (c)   This section does not apply to an obligation to which K.S.A. 58-9-409,58-9-410, 58-9-411, 58-9-412, 58-9-414 or 58-9-415 and amendments theretoapplies.

      History:   L. 2000, ch. 61, § 15; July 1.