469.432. Interest allocated to income--amounts received from sale, redemption or disposition of an obligation to pay money to principal.
Interest allocated to income--amounts received from sale, redemptionor disposition of an obligation to pay money to principal.
469.432. 1. An amount received as interest, whether determined at afixed, variable or floating rate, on an obligation to pay money to thetrustee, including an amount received as consideration for prepayingprincipal, shall be allocated to income without any provision foramortization of premium.
2. A trustee shall allocate to principal an amount received from thesale, redemption or other disposition of an obligation to pay money to thetrustee more than one year after it is purchased or acquired by thetrustee, including an obligation whose purchase price or value when it isacquired is less than its value at maturity. If the obligation matureswithin one year after it is purchased or acquired by the trustee, an amountreceived in excess of its purchase price or its value when acquired by thetrust shall be allocated to income.
3. This section does not apply to an obligation to which section469.437, 469.439, 469.441, 469.443, 469.447 or 469.449 applies.
(L. 2001 H.B. 241)