1. (1) To the extent a fiduciary does not account for the management of rental property as a business under section 15-1.2-403, the fiduciary shall allocate to income an amount received as rent of real or personal property, including an amount received for cancellation or renewal of a lease. An amount received as a refundable deposit, including a security deposit or a deposit that is to be applied as rent for future periods:

   1. (a) Must be added to principal and held subject to the terms of the lease, except as otherwise provided by law other than this article 1.2; and
   2. (b) Is not allocated to income or available for distribution to a beneficiary until the fiduciary's contractual obligations have been satisfied with respect to that amount.

Source: L. 2021: Entire article added, (SB 21-171), ch. 143, p. 824, § 1, effective January 1, 2022.