22-3-406 - Receipts not normally apportioned -- Obligation to pay money. - Utah Statutes

22-3-406. Receipts not normally apportioned -- Obligation to pay money.
(1) An amount received as interest, whether determined at a fixed, variable, or floatingrate, on an obligation to pay money to the trustee, including an amount received as considerationfor prepaying principal, must be allocated to income without any provision for amortization ofpremium.
(2) A trustee shall allocate to principal an amount received from the sale, redemption, orother disposition of an obligation to pay money to the trustee more than one year after it ispurchased or acquired by the trustee, including an obligation whose purchase price or value whenit is acquired is less than its value at maturity. If the obligation matures within one year after it ispurchased or acquired by the trustee, an amount received in excess of its purchase price or itsvalue when acquired by the trust must be allocated to income.
(3) This section does not apply to an obligation to which Section 22-3-409, 22-3-410,22-3-411, 22-3-412, 22-3-414, or 22-3-415 applies.

Enacted by Chapter 285, 2004 General Session