PART II.  RECEIPTS NOT NORMALLY APPORTIONED

     [§557A-404]  Principal receipts.  The following shall be allocated to principal:

     (1)  To the extent not allocated to income under this chapter, assets received from a:

          (A)  Transferor during the transferor's lifetime;

          (B)  Decedent's estate;

          (C)  Trust with a terminating income interest; or

          (D)  Payor pursuant to a contract naming the trust or its trustee as beneficiary;

     (2)  Money or other property received from the sale, exchange, liquidation, or change in form of a principal asset, including realized profit, subject to this article;

     (3)  Amounts recovered from third parties to reimburse the trust because of disbursements described in section 557A-502(a)(7) or for other reasons to the extent not based on the loss of income;

     (4)  Proceeds of property taken by eminent domain, but a separate award made for the loss of income with respect to an accounting period during which a current income beneficiary had a mandatory income interest shall be classified as income;

     (5)  Net income received in an accounting period during which there is no beneficiary to whom a trustee may or shall distribute income; and

     (6)  Other receipts as provided in part III. [L 2000, c 191, pt of §1]