Uniform Principal and Income Act

ORS 129.320
UPIA 406. Obligation to pay money


(1)

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.

(2)

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 more than one year after it is purchased or acquired by the trustee, including an obligation whose purchase price or value when it is acquired is less than its value at maturity. If the obligation matures within one year after it is purchased or acquired by the trustee, an amount received in excess of its purchase price or its value when acquired by the trust must be allocated to income.

(3)

This section does not apply to an obligation to which ORS 129.355 (UPIA 409. Deferred compensation, annuities and similar payments), 129.360 (UPIA 410. Liquidating asset), 129.365 (UPIA 411. Minerals, water and other natural resources), 129.370 (UPIA 412. Timber), 129.380 (UPIA 414. Derivatives and options) or 129.385 (UPIA 415. Asset-backed securities) applies. [2003 c.279 §15]

Source

Last accessed
Jun. 26, 2021