386.474 Receipts from obligation to pay money -- Exceptions.
162 words·~1 min read·
/ky/chapter-386/386-474A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(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, shall 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
(1)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 shall be allocated to income.
(3)This section shall not apply to an obligation to which KRS 386.472, 386.480,
386.482, 386.484, or 386.486 applies.