(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, must 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 year after the trustee purchases or acquires
it, an amount received in excess of its purchase price or its value when the trust
acquires it must be allocated to income.
(3) This section does not apply to an obligation to which s. 701.1123, 701. 1124, 701.1125, 701.1126, 701.1128, or 701.1129 applies.
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