(406) Obligation to pay money
N.D. Cent. Code § 59-04.2-14
in effect59-04.2-14. (406) Obligation to pay money
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 it is purchased or acquired by the trustee, an amount
received in excess of its purchase price or its value when acquired by the trust must
be allocated to income.
3. This section does not apply to an obligation to which section 59-04.2-17, 59-04.2-18,
59-04.2-19, 59-04.2-20, 59-04.2-22, or 59-04.2-23 applies.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://ndlegis.gov/cencode/t59c04-2.pdf#nameddest=59-04p2-14Fetched: 10/16/2026