637.412 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 considerationfor prepaying principal, must be allocated to income without any provision for amortizationof premium. 2. 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 valueat maturity, must be allocated to principal. If the obligation matures within one year after itis purchased or acquired by the trustee, an amount received in excess of its purchase priceor its value when acquired by the trust must be allocated to income. 3. This section does not apply to obligations to which sections 637.421 through 637.424, 637.426, and 637.427 apply. 99 Acts, ch 124, §14 Sat Dec 23 12:19:11 2023 Iowa Code 2024, Section 637.412 (16, 0)
Iowa Legal Code