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DIVISION 9. TRUST LAW 15000-19530›PART 4. TRUST ADMINISTRATION 16000-16504›CHAPTER 3. Uniform Principal and Income Act 16320-16375›ARTICLE 5.2. Allocation of Receipts During Administration of Trust: Receipts Not Normally Apportioned 16355-16358

§ 16357

California Probate Code · 2020-11 edition · updated 2026-10-04 · California

(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, shall be allocated to income without any provision for amortization of premium.

(b) 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 its value when it is otherwise acquired, is less than its value at maturity, shall be allocated to principal. 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 it is otherwise acquired, shall be allocated to income.

(c) This section does not apply to an obligation to which Section 16361, 16362, 16363, 16364, 16366, or 16367 applies.

(Added by Stats. 1999, Ch. 145, Sec. 5. Effective January 1, 2000.)

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California Probate Code

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