§ 37A-5-501. Disbursements from income.
Article 5.
Allocation ofDisbursements During Administration of Trust.
§ 37A‑5‑501. Disbursements from income.
A trustee shall make thefollowing disbursements from income to the extent that they are notdisbursements to which G.S. 37A‑2‑201(2)b. or G.S. 37A‑2‑201(2)c.applies:
(1) One‑half ofthe regular compensation of the trustee and of any person providing investmentadvisory or custodial services to the trustee;
(2) One‑half ofall expenses for accountings, judicial proceedings, or other matters that involveboth the income and remainder interests;
(3) All of the otherordinary expenses incurred in connection with the administration, management,or preservation of trust property and the distribution of income, includinginterest, ordinary repairs, regularly recurring taxes assessed againstprincipal, and expenses of a proceeding or other matter that concerns primarilythe income interest; and
(4) Recurring premiumson insurance covering the loss of a principal asset or the loss of income fromor use of the asset. (2003‑232, s. 2.)