The following shall be allocated to principal:

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

   1. (A) Transferor during the transferor's lifetime;
   2. (B) Decedent's estate;
   3. (C) Trust with a terminating income interest; or
   4. (D) Payor pursuant to a contract naming the trust or its trustee as beneficiary;
2. (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. (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. (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. (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. (6) Other receipts as provided in part III.

[L 2000, c 191, pt of §1]