(a) An income receipt or disbursement other than one to which section 557A-201(1) applies shall be allocated to principal if its due date occurs before a decedent
dies in the case of an estate or before an income interest begins in the case of a
trust or successive income interest.
(b) An income receipt or disbursement shall be allocated to income if its due date
occurs on or after the date on which a decedent dies or an income interest begins
and it is a periodic due date. An income receipt or disbursement shall be treated as accruing from day to day if
its due date is not periodic or it has no due date. The portion of the receipt or disbursement accruing before the date on which a decedent
dies or an income interest begins shall be allocated to principal and the balance
shall be allocated to income.
(c) An item of income or an obligation is due on the date on which the payor is required
to make a payment. If there is no stated payment date, there is no due date for the purposes of this
chapter. Distributions to shareholders or other owners from an entity to which section 557A-401 applies are deemed to be due on the date fixed by the entity for determining who
is entitled to receive the distribution or, if no date is fixed, on the declaration
date for the distribution. A due date is periodic for receipts or disbursements that shall be paid at regular
intervals under a lease or an obligation to pay interest or if an entity customarily
makes distributions at regular intervals.
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