Section 16357 Of Article 5.2. Allocation Of Receipts During Administration Of Trust: Receipts Not Normally Apportioned From California Probate Code >> Division 9. >> Part 4. >> Chapter 3. >> Article 5.2.
16357
. (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.