Section 11-A-4.6. Obligation to pay money

(a)  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.
    (b)  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.  The  increment in value of a bond or other obligation for
  the  payment  of  money  bearing  no  stated  interest  but  payable  or
  redeemable at maturity or at a future time at an amount in excess of the
  amount  in consideration of which it was issued is income. If the income
  accrues pursuant to a fixed schedule of  appreciation,  such  income  is
  distributable  to  the beneficiary at the time the increment occurs, and
  the trustee may transfer the amount thereof from principal to income  on
  each  such  date. Whenever unrealized increment is distributed as income
  but out of principal the principal shall be reimbursed from  the  income
  when realized.
    (c)  This  section  does not apply to an obligation to which 11-A-4.9,
  11-A-4.10, 11-A-4.11, 11-A-4.12, 11-A-4.14, or 11-A-4.15 applies.