§ 59-04.2-25 — (502) Disbursements from principal

North Dakota § 59-04.2-25

• Jurisdiction: North Dakota
• Title 59: Trusts, Uses, and Powers
• Ch. 59-04.2: Uniform Principal and Income Act (1997)

Text

1. A trustee shall make the following disbursements from principal:
a. The remaining one-half of the disbursements described in subsections 1 and 2 of
section 59-04.2-24;
b. All of the trustee's compensation calculated on principal as a fee for acceptance,
distribution, or termination, and disbursements made to prepare property for sale;
c. Payments on the principal of a trust debt;
d. Expenses of a proceeding that concerns primarily principal, including a
proceeding to construe the trust or to protect the trust or its property;
e. Premiums paid on a policy of insurance not described in subsection 4 of section
59-04.2-24 of which the trust is the owner and beneficiary;
f. Estate, inheritance, and other transfer taxes, including penalties, apportioned to
the trust; and
g. Disbursements related to environmental matters, including reclamation,
assessing environmental conditions, remedying and removing environmental
contamination, monitoring remedial activities and the release of substances,
preventing future releases of substances, collecting amounts from persons liable
or potentially liable for the costs of those activities, penalties imposed under
environmental laws or regulations and other payments made to comply with those
laws or regulations, statutory or common-law claims by third parties, and
defending claims based on environmental matters.
2. If a principal asset is encumbered with an obligation that requires income from that
asset to be paid directly to the creditor, the trustee shall transfer from principal to

income an amount equal to the income paid to the creditor in reduction of the principal
balance of the obligation.