1. (1) A fiduciary shall allocate to principal:

   1. (a) To the extent not allocated to income under this article 1.2, an asset received from:

      1. (I) An individual during the individual's lifetime;
      2. (II) An estate;
      3. (III) A trust on termination of an income interest; or
      4. (IV) A payor under a contract naming the fiduciary as beneficiary;
   2. (b) Except as otherwise provided in this part 4, money or other property received from the sale, exchange, liquidation, or change in form of a principal asset;
   3. (c) An amount recovered from a third party to reimburse the fiduciary because of a disbursement described in section 15-1.2-502 (1) or for another reason to the extent not based on loss of income;
   4. (d) Proceeds of property taken by eminent domain; except that proceeds awarded for loss of income in an accounting period are income if a current income beneficiary had a mandatory income interest during the period;
   5. (e) Net income received in an accounting period during which there is no beneficiary to which a fiduciary may or must distribute income; and
   6. (f) Other receipts as provided in sections 15-1.2-408 through 15-1.2-416.

Source: L. 2021: Entire article added, (SB 21-171), ch. 143, p. 823, § 1, effective January 1, 2022.