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.
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 (1) 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 (1) 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.
This section does not apply to an obligation to which Section 91-17-409, 91-17-410, 91-17-411, 91-17-412, 91-17-414, or 91-17-415 applies.
Structure Mississippi Code
Chapter 17 - Mississippi Principal and Income Act of 2013
Article 4 - Allocation of Receipts During Administration of Trust
§ 91-17-401. Character of receipt
§ 91-17-402. Distribution from trust or estate
§ 91-17-403. Business and other activities conducted by trustee
§ 91-17-404. Principal receipts
§ 91-17-406. Obligation to pay money
§ 91-17-407. Insurance policies and similar contracts
§ 91-17-408. Insubstantial allocations not required
§ 91-17-409. Deferred compensation, annuities, and similar payments
§ 91-17-410. Liquidating asset
§ 91-17-411. Minerals, water, and other natural resources
§ 91-17-413. Property not productive of income