(404) Principal receipts
N.D. Cent. Code § 59-04.2-12
in effect59-04.2-12. (404) Principal receipts
A trustee shall allocate to principal:
1. To the extent not allocated to income under this chapter, assets received from a
transferor during the transferor's lifetime, a decedent's estate, a trust with a terminating
income interest, or a payer under a contract naming the trust or its trustee as
beneficiary.
2. Money or other property received from the sale, exchange, liquidation, or change in
form of a principal asset, including realized profit, subject to sections 59-04.2-09
through 59-04.2-23.
3. Amounts recovered from third parties to reimburse the trust because of disbursements
described in subdivision g of subsection 1 of section 59-04.2-25 or for other reasons to
the extent not based on the loss of income.
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 is income.
5. Net income received in an accounting period during which there is no beneficiary to
whom a trustee may or must distribute income.
6. Other receipts as provided in sections 59-04.2-16 through 59-04.2-23.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://ndlegis.gov/cencode/t59c04-2.pdf#nameddest=59-04p2-12Fetched: 10/16/2026