55-13-3. Income--Principal--Charges. (a) Income is the return in money or property derived from the use of principal, including return received as

(1) rent of real or personal property, including sums received for cancellation or renewal of a lease;

(2) interest on money lent, including sums received as consideration for the privilege of prepayment of principal except as provided in § 55-13-7 on bond premium and bond discount;

(3) income earned during administration of a decedent's estate as provided in § 55-13-5;

(4) corporate distributions as provided in § 55-13-6;

(5) accrued increment on bonds or other obligations issued at discount as provided in § 55-13-7;

(6) receipts from business and farming operations as provided in § 55-13-8;

(7) receipts from disposition of natural resources as provided in §§ 55-13-9 and 55-13-10;

(8) receipts from other principal subject to depletion as provided in § 55-13-11;

(9) receipts from disposition of underproductive property as provided in § 55-13-12.

(b) Principal is the property which has been set aside by the owner or the person legally empowered so that it is held in trust eventually to be delivered to a remainderman while the return or use of the principal is in the meantime taken or received by or held for accumulation for an income beneficiary. Principal includes

(1) consideration received by the trustee on the sale or other transfer of principal or on repayment of a loan or as a refund or replacement or change in the form of principal;

(2) proceeds of property taken on eminent domain proceedings;

(3) proceeds of insurance upon property forming part of the principal except proceeds of insurance upon a separate interest of an income beneficiary;

(4) stock dividends, receipts on liquidation of a corporation, and other corporate distributions as provided in § 55-13-6;

(5) receipts from the disposition of corporate securities as provided in § 55-13-7;

(6) royalties and other receipts from disposition of natural resources as provided in §§ 55-13-9 and 55-13-10;

(7) receipts from other principal subject to depletion as provided in § 55-13-11;

(8) any profit resulting from any change in the form of principal except as provided in § 55-13-12 on underproductive property;

(9) receipts from disposition of underproductive property as provided in § 55-13-12;

(10) any allowances for depreciation established under §§ 55-13-8 and 55-13-13(a)(2).

(c) After determining income and principal in accordance with the terms of the trust instrument or of this chapter, the trustee shall charge to income or principal expenses and other charges as provided in § 55-13-13.Source: SL 1984, ch 323, § 3.