{"data":{"id":"us-nc/n.c.-gen.-stat.-37a-4-404","jurisdiction":"us-nc","citation":"N.C. Gen. Stat. § 37A-4-404","heading":"Principal receipts.","body":"A trustee shall allocate to principal:\n(1)\tTo 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;\n(2)\tMoney or other property received from the sale, exchange, liquidation, or change in form of a principal asset, including realized profit, subject to this Article;\n(3)\tAmounts recovered from third parties to reimburse the trust because of disbursements described in G.S. 37A-5-502(a)(7) or for other reasons to the extent not based on the loss of income;\n(4)\tProceeds 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;\n(5)\tNet income received in an accounting period during which there is no beneficiary to whom a trustee may or shall distribute income; and\n(6)\tOther receipts as provided in Part 3 of this Article. (2003-232, s. 2.)","path":["Chapter 37A. Uniform Principal and Income Act.","Article 4. Allocation of Receipts During Administration of Trust.","Part 2. Receipts Not Normally Apportioned."],"source_url":"https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_37A/GS_37A-4-404.html","current_through":"S.L. 2026-30","vintage":"","retrieved_at":"2026-08-27T18:01:42Z","sha256":"7e00d052f006993b9b887e0a666f6f09afab8d6665113a9baf8c33e121f6dfd1","source_id":"us-nc","stale":false,"prev":"us-nc/n.c.-gen.-stat.-37a-4-403","next":"us-nc/n.c.-gen.-stat.-37a-4-405"},"notice":"GroundRules: Original legal text. Not legal advice."}