469.457. Principal disbursement, permitted transfers.
Principal disbursement, permitted transfers.
469.457. 1. If a trustee makes or expects to make a principaldisbursement described in this section, the trustee may transfer anappropriate amount from income to principal in one or more accountingperiods to reimburse principal or to provide a reserve for future principaldisbursements.
2. Principal disbursements to which subsection 1 of this sectionapplies include the following, but only to the extent that the trustee hasnot been and does not expect to be reimbursed by a third party:
(1) An amount chargeable to income but paid from principal because itis unusually large, including extraordinary repairs;
(2) Disbursements made to prepare property for rental, includingtenant allowances, leasehold improvements, and broker's commissions;
(3) Periodic payments on an obligation secured by a principal assetto the extent that the amount transferred from income to principal fordepreciation is less than the periodic payments; and
(4) Disbursements described in subdivision (7) of subsection 1 ofsection 469.453.
3. If the asset whose ownership gives rise to the disbursementsbecomes subject to a successive income interest after an income interestends, a trustee may continue to transfer amounts from income to principalas provided in subsection 1 of this section.
(L. 2001 H.B. 241)