reglab/housing_qa huggingface dataset:
IA Code § 637.303 (2021)
2021 Iowa Code|Title XV - JUDICIAL BRANCH AND JUDICIAL PROCEDURES|Chapter 637 - UNIFORM PRINCIPAL AND INCOME ACT|Section 637.303 - Apportionment when income interest ends.

637.303 Apportionment when income interest ends.   1. For purposes of this section, “undistributed income” means net income received before the date on which an income interest ends. The term does not include an item of income or expense that is due or accrued or net income that has been added or is required to be added to principal pursuant to the terms of the trust.   2. When a mandatory income interest ends, the trustee shall pay to a mandatory income beneficiary who survives that date, or the estate of a deceased mandatory income beneficiary whose death causes the interest to end, the beneficiary’s share of the undistributed income that is not disposed of pursuant to the terms of the trust unless the beneficiary has an unqualified power to revoke more than five percent of the trust immediately before the income interest ends. In the latter case, the undistributed income from the portion of the trust that may be revoked must be added to principal.   3. When a trustee’s obligation to pay a fixed annuity or a fixed fraction of the value of the trust’s assets ends, the trustee shall prorate the final payment if and to the extent required by applicable law to accomplish a purpose of the trust or its settlor relating to income, gift, estate, or other tax requirements.  99 Acts, ch 124, §8
IA Code § 637.401 (2021)
2021 Iowa Code|Title XV - JUDICIAL BRANCH AND JUDICIAL PROCEDURES|Chapter 637 - UNIFORM PRINCIPAL AND INCOME ACT|Section 637.401 - Character of receipts.

637.401 Character of receipts.   1. For purposes of this section, “entity” means a corporation, partnership, joint venture, limited liability company, regulated investment company, real estate investment trust, common trust fund, and any other organization in which a trustee has an interest other than a trust or estate to which section 637.402 applies or a business or activity to which section 637.403 applies.   2. Except as otherwise provided in this section, cash received by a trustee from an entity must be allocated to income.   3. Receipts from an entity which must be allocated to principal include the following items:   a. Property other than cash, except as otherwise provided in paragraph “d”.   b. Cash or property received in one distribution or a series of related distributions in exchange for part or all of a trust’s interest in the entity.   c. Cash or property received in total or partial liquidation of the entity.   d. Cash or property received from an entity that is a regulated investment company or a real estate investment trust if the distribution is a capital gain dividend for federal income tax purposes.   4. Cash or property is received in partial liquidation according to one of the following principles:   a. To the extent that the entity, at or near the time of a distribution, indicates that it is a distribution in partial liquidation.   b. If the total amount received in a distribution or series of related distributions is greater than twenty percent of the entity’s gross assets, as shown by the entity’s year-end financial statements immediately preceding the initial receipt.   5. Cash shall not be received in partial liquidation, nor shall it be taken into account under subsection 4, paragraph “b”, to the extent that it does not exceed the amount of income tax that a trustee or beneficiary must pay on taxable income of the entity that distributes the cash.   6. A trustee may rely upon a statement made by an entity about the source or character of a distribution if the statement is made at or near the time of distribution by the entity’s board of directors or other person or group of persons authorized to exercise powers to pay money or transfer property comparable to those of a corporation’s board of directors.  99 Acts, ch 124, §9  Referred to in §637.302, 637.402, 637.427
IA Code § 637.402 (2021)
2021 Iowa Code|Title XV - JUDICIAL BRANCH AND JUDICIAL PROCEDURES|Chapter 637 - UNIFORM PRINCIPAL AND INCOME ACT|Section 637.402 - Distribution from trust or estate.

637.402 Distribution from trust or estate.   1. Subject to the terms of a recipient trust, an amount received as a distribution of income from a trust or an estate in which the trust has an interest other than a purchased interest shall be allocated to income.   2. An amount received as a distribution of principal from such a trust or estate shall be allocated to principal.   3. If a trustee purchases an interest in a trust that is an investment entity, or a decedent or donor transfers an interest in such a trust to a trustee, section 637.401 applies to a receipt from the trust.  99 Acts, ch 124, §10  Referred to in §637.401
IA Code § 637.403 (2021)
2021 Iowa Code|Title XV - JUDICIAL BRANCH AND JUDICIAL PROCEDURES|Chapter 637 - UNIFORM PRINCIPAL AND INCOME ACT|Section 637.403 - Business and other activities conducted by trustee.

637.403 Business and other activities conducted by trustee.   1. If a trustee who conducts a business or other activity determines that it is in the best interest of all the beneficiaries to account separately for the business or activity instead of accounting for it as part of the trust’s general accounting records, the trustee may maintain separate accounting records for its transactions, whether or not its assets are segregated from other trust assets.   2. A trustee who accounts separately for a business or other activity shall determine the extent to which its net cash receipts must be retained for working capital, the acquisition or replacement of fixed assets, and other reasonably foreseeable needs of the business or activity, and the extent to which the remaining net cash receipts are accounted for as principal or income in the trust’s general accounting records. If a trustee sells assets of the business or other activity, other than in the ordinary course of the business or activity, the trustee shall account for the net amount received as principal in the trust’s general accounting records to the extent the trustee determines that the amount received is no longer required in the conduct of the business.   3. The trustee may maintain separate accounting records for any of the following activities:   a. Retail, manufacturing, service, and other traditional business activities.   b. Farming.   c. Raising and selling livestock and other animals.   d. Management of rental properties.   e. Extraction of minerals and other natural resources.   f. Timber operations.   g. Activities to which section 637.426 applies.  99 Acts, ch 124, §11  Referred to in §637.401, 637.413, 637.424, 637.426, 637.503
IA Code § 637.410 (2021)
2021 Iowa Code|Title XV - JUDICIAL BRANCH AND JUDICIAL PROCEDURES|Chapter 637 - UNIFORM PRINCIPAL AND INCOME ACT|Section 637.410 - Principal receipts.

637.410 Principal receipts.   The following items must be allocated to principal:   1. To the extent not allocated to income under this chapter, assets received from any of the following sources:   a. A transferor during the transferor’s lifetime.   b. A decedent’s estate.   c. A trust with a terminating income interest.   d. A payor pursuant to a contract naming the trust or its trustee as beneficiary.   2. Cash or other property received from the sale, exchange, liquidation, or change in form of a principal asset, including realized profit, subject to this subchapter.   3. Amounts recovered from third parties to reimburse the trust because of disbursements described in section 637.502, subsection 1, paragraph “g”, or for other reasons to the extent not based on the loss of income.   4. Proceeds 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.   5. Net income received in a period during which there is no beneficiary to whom a trustee may or must distribute income.   6. Other receipts, as provided in part 3.  99 Acts, ch 124, §12
IA Code § 637.411 (2021)
2021 Iowa Code|Title XV - JUDICIAL BRANCH AND JUDICIAL PROCEDURES|Chapter 637 - UNIFORM PRINCIPAL AND INCOME ACT|Section 637.411 - Rental property.

637.411 Rental property.   1. An amount received as rent of real or personal property, including an amount received for cancellation or renewal of a lease, must be allocated to income.   2. An amount received as a refundable deposit, including a security deposit or a deposit that is to be applied as rent for future periods, must be added to principal and held subject to the terms of the lease and is not available for distribution to a beneficiary until the trustee’s contractual obligations have been satisfied with respect to that amount.  99 Acts, ch 124, §13
IA Code § 637.412 (2021)
2021 Iowa Code|Title XV - JUDICIAL BRANCH AND JUDICIAL PROCEDURES|Chapter 637 - UNIFORM PRINCIPAL AND INCOME ACT|Section 637.412 - Obligation to pay money.

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 consideration for prepaying principal, must be allocated to income without any provision for amortization of 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 value at maturity, must be allocated to principal. If the obligation matures within one 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.   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
IA Code § 637.413 (2021)
2021 Iowa Code|Title XV - JUDICIAL BRANCH AND JUDICIAL PROCEDURES|Chapter 637 - UNIFORM PRINCIPAL AND INCOME ACT|Section 637.413 - Insurance policies and similar contracts.

637.413 Insurance policies and similar contracts.   1. Proceeds from a life insurance policy whose beneficiary is the trust or its trustee or a policy that insures the trust or its trustee against loss for the damage or destruction of, or loss of title to, a principal asset must be allocated to principal. Dividends received from an insurance policy and the proceeds of any other contract in which the trust or its trustee is named as beneficiary must also be allocated to principal.   2. Insurance proceeds must be allocated to income if they are from a policy that insures the trustee against the loss of occupancy or other use by an income beneficiary, the loss of income, or, subject to section 637.403, the loss of profits from a business.   3. This section does not apply to a contract to which section 637.421 applies.  99 Acts, ch 124, §15
IA Code § 637.420 (2021)
2021 Iowa Code|Title XV - JUDICIAL BRANCH AND JUDICIAL PROCEDURES|Chapter 637 - UNIFORM PRINCIPAL AND INCOME ACT|Section 637.420 - Insubstantial allocations not required.

637.420 Insubstantial allocations not required.   1. If a trustee determines that an allocation between principal and income required by sections 637.421 through 637.424 or section 637.427 is insubstantial, the trustee may allocate the entire receipt to principal.   2. An allocation is presumed to be insubstantial if either of the following would be true if an allocation was made:   a. The amount of the allocation would increase or decrease an accounting period’s net income, as determined before the allocation, by less than ten percent.   b. The value of the asset producing the receipt for which the allocation would be made is less than ten percent of the total value of the trust’s assets at the beginning of the accounting period.  99 Acts, ch 124, §16  Referred to in §637.424
IA Code § 637.422 (2021)
2021 Iowa Code|Title XV - JUDICIAL BRANCH AND JUDICIAL PROCEDURES|Chapter 637 - UNIFORM PRINCIPAL AND INCOME ACT|Section 637.422 - Liquidating asset.

637.422 Liquidating asset.   1. In this section, “liquidating asset” means an asset whose value will diminish or terminate because the asset is expected to produce receipts for a period of limited duration. The term includes leaseholds, patents, trademarks, copyrights, royalty rights, and rights to receive payments during a period of more than one year under an arrangement that does not provide for the payment of interest on the unpaid balance. The term does not include deferred compensation that is subject to section 637.421, natural resources that are subject to section 637.423, timber that is subject to section 637.424, an activity that is subject to section 637.426, or any asset for which the trustee establishes a reserve for depreciation under section 637.503.   2. A trustee shall allocate to income ten percent of the receipts from a liquidating asset and the balance to principal.  99 Acts, ch 124, §18  Referred to in §637.412, 637.420, 637.421
IA Code § 637.423 (2021)
2021 Iowa Code|Title XV - JUDICIAL BRANCH AND JUDICIAL PROCEDURES|Chapter 637 - UNIFORM PRINCIPAL AND INCOME ACT|Section 637.423 - Minerals, water, and other natural resources.

637.423 Minerals, water, and other natural resources.   1. Receipts from an interest in minerals or other natural resources must be allocated according to the type of payment, as follows:   a. If received as nominal delay rental or annual rent on a lease, a receipt must be allocated to income.   b. If received from a production payment, a receipt must be allocated to income to the extent that the agreement creating the production payment provides a factor for interest or its equivalent. The balance must be allocated to principal.   c. If an amount received as a royalty, bonus, or delay rental is more than nominal, ninety percent must be allocated to principal and the balance to income.   d. If an amount is received from a working interest or any other interest not provided for in paragraph “a”, “b”, or “c”, ninety percent of the net amount received must be allocated to principal and the balance to income.   2. An amount received on account of an interest in water that is renewable must be allocated to income. If the water is not renewable, ninety percent of the amount must be allocated to principal and the balance to income.   3. This chapter applies without regard to whether a decedent or donor was extracting minerals, water, or other natural resources before the interest became subject to the trust.   4. If a trust owns an interest in minerals, water, or other natural resources on or before July 1, 2000, the trustee may allocate receipts from the interest as provided in this section or in the manner used by the trustee before July 1, 2000. If the trust acquires an interest in minerals, water, or other natural resources after July 1, 2000, the trustee shall allocate receipts from the interest as provided in this section.  99 Acts, ch 124, §19; 2000 Acts, ch 1154, §39  Referred to in §637.412, 637.420, 637.422
IA Code § 637.424 (2021)
2021 Iowa Code|Title XV - JUDICIAL BRANCH AND JUDICIAL PROCEDURES|Chapter 637 - UNIFORM PRINCIPAL AND INCOME ACT|Section 637.424 - Timber.

637.424 Timber.   1. A trustee may account for net receipts from the sale of timber and related products under subsection 2 or section 637.403 or, if the trustee determines that net receipts are insubstantial, may allocate the net receipts to principal. The presumptions in section 637.420 apply in determining whether net receipts are insubstantial. If a trust owns more than one block of timberland, the trustee may use different methods to account for net receipts from different blocks.   2. If a trustee does not account under section 637.403 for net receipts from the sale of timber and related products or allocate the net receipts to principal because they are insubstantial, the trustee shall allocate the net receipts according to one of the following rules:   a. Allocate the net receipts to income to the extent that the amount of timber removed from the land does not exceed the rate of growth of the block as a whole during the accounting periods in which a beneficiary has a mandatory income interest.   b. Allocate the net receipts to principal to the extent that the amount of timber removed from the land exceeds the block’s rate of growth or the net receipts are from the sale of standing timber.   c. Allocate the net receipts to or between income and principal if the net receipts are from the lease of timberland or from a contract to cut timber from land owned by a trust, by determining the amount of timber removed from the land under the lease or contract and applying the rules in paragraphs “a” and “b”.   d. Allocate the net receipts to principal to the extent that advance payments, bonuses, and other payments are not allocated pursuant to paragraph “a”, “b”, or “c”.   3. In determining the net receipts from the sale of timber, a trustee shall deduct and transfer to principal a reasonable amount for depletion.   4. This chapter applies regardless of whether a decedent or transferor was harvesting timber from the property before it became subject to the trust.   5. If a trust owns an interest in timberland on or before July 1, 2000, the trustee may allocate net receipts from the sale of timber and related products as provided in this section or in the manner used by the trustee before July 1, 2000. If the trust acquires an interest in timberland after July 1, 2000, the trustee shall allocate net receipts from the sale of timber and related products as provided in this section.  99 Acts, ch 124, §20; 2000 Acts, ch 1154, §40  Referred to in §637.412, 637.420, 637.422
IA Code § 637.425 (2021)
2021 Iowa Code|Title XV - JUDICIAL BRANCH AND JUDICIAL PROCEDURES|Chapter 637 - UNIFORM PRINCIPAL AND INCOME ACT|Section 637.425 - Property not productive of income.

637.425 Property not productive of income.   1. If a marital deduction is allowed for all or part of a trust whose assets consist substantially of property that does not provide the surviving spouse with sufficient income from or use of the trust assets, the spouse may require the trustee to make property productive of income or convert property within a reasonable time. The trustee may decide which action or combination of actions to take.   2. In all other cases, proceeds from the sale or other disposition of an asset are principal without regard to the amount of income the asset produces during any accounting period.  99 Acts, ch 124, §21
IA Code § 637.426 (2021)
2021 Iowa Code|Title XV - JUDICIAL BRANCH AND JUDICIAL PROCEDURES|Chapter 637 - UNIFORM PRINCIPAL AND INCOME ACT|Section 637.426 - Derivatives and options.

637.426 Derivatives and options.   1. For purposes of this section, “derivative” means a contract or financial instrument or a combination of contracts and financial instruments which gives a trust the right or obligation to participate in some or all changes in the price of a tangible or intangible asset or group of assets, or changes in a rate, an index of prices or rates, or other market indicator for an asset or a group of assets.   2. To the extent that a trustee does not account under section 637.403 for transactions in derivatives, receipts from and disbursements made in connection with those transactions must be allocated to principal.   3. If a trustee grants an option to buy property from the trust, whether or not the trust owns the property when the option is granted, grants an option that permits another person to sell property to the trust, or acquires an option to buy property for the trust or an option to sell an asset owned by the trust, and the trustee or other owner of the asset is required to deliver the asset if the option is exercised, an amount received for granting the option must be allocated to principal, and an amount paid to acquire the option must be paid from principal. A gain or loss realized upon the exercise of an option, including an option granted to a settlor of the trust for services rendered, must be allocated to principal.  99 Acts, ch 124, §22  Referred to in §637.403, 637.412, 637.422
IA Code § 637.427 (2021)
2021 Iowa Code|Title XV - JUDICIAL BRANCH AND JUDICIAL PROCEDURES|Chapter 637 - UNIFORM PRINCIPAL AND INCOME ACT|Section 637.427 - Asset-backed securities.

637.427 Asset-backed securities.   1. For purposes of this section, “asset-backed security” means an asset whose value is based upon the right it gives the owner to receive distributions from the proceeds of financial assets that provide collateral for the security. The term includes an asset that gives the owner the right to receive only the interest or other current return from the collateral financial assets or only the proceeds from the capital investment in the collateral financial assets. It does not include an asset to which section 637.401 or 637.421 applies.   2. If a trust receives a payment from the interest or other current return and the capital investment of the collateral financial assets, the trustee shall allocate to income the portion of a payment that the payor identifies as being from the interest or other current return, and shall allocate the balance of the payment to principal.   3. If a trust receives one or more payments in exchange for the trust’s entire interest in an asset-backed security in one accounting period, the trustee shall allocate the payments to principal. If a payment is one of a series of payments that will result in the liquidation of the trust’s interest in the security over more than one accounting period, the trustee shall allocate ten percent of the payment to income and the balance to principal.  99 Acts, ch 124, §23  Referred to in §637.412, 637.420
IA Code § 637.501 (2021)
2021 Iowa Code|Title XV - JUDICIAL BRANCH AND JUDICIAL PROCEDURES|Chapter 637 - UNIFORM PRINCIPAL AND INCOME ACT|Section 637.501 - Disbursements from income.

637.501 Disbursements from income.   A trustee shall make disbursements from income, to the extent that they are not disbursements to which section 637.201, subsection 2, paragraph “b” or “c”, applies, according to the following:   1. One-half of the regular compensation of the trustee and of any person providing investment advisory or custodial services to the trustee.   2. One-half of all expenses for accountings, judicial proceedings, or other matters that involve both the income and remainder interests.   3. All of the other ordinary expenses incurred in connection with the administration, management, or preservation of trust property and the distribution of income, including interest, ordinary repairs, regularly recurring taxes assessed against principal, and expenses of a proceeding or other matter that concerns primarily the income interest.   4. Recurring premiums on insurance covering the loss of a principal asset or the loss of income from or use of the asset.  99 Acts, ch 124, §24  Referred to in §637.201, 637.502