§ 37A-4-405. Rental property. - North Carolina Statutes

§ 37A‑4‑405. Rental property.

To the extent that a trusteeaccounts for receipts from rental property under this section, the trusteeshall allocate to income an amount received as rent of real or personalproperty, including an amount received for cancellation or renewal of a lease.An amount received as a refundable deposit, including a security deposit or adeposit that is to be applied as rent for future periods, shall be added toprincipal and held subject to the terms of the lease and is not available fordistribution to a beneficiary until the trustee's contractual obligations havebeen satisfied with respect to that amount. (2003‑232, s. 2.)