§ 11-A-4.6 Obligation to pay money

(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, must 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. The increment in value of a bond or other obligation for
the payment of money bearing no stated interest but payable or
redeemable at maturity or at a future time at an amount in excess of the
amount in consideration of which it was issued is income. If the income
accrues pursuant to a fixed schedule of appreciation, such income is
distributable to the beneficiary at the time the increment occurs, and
the trustee may transfer the amount thereof from principal to income on
each such date. Whenever unrealized increment is distributed as income
but out of principal the principal shall be reimbursed from the income
when realized.

(c) This section does not apply to an obligation to which 11-A-4.9,
11-A-4.10, 11-A-4.11, 11-A-4.12, 11-A-4.14, or 11-A-4.15 applies.