2010 New York Code
EPT - Estates, Powers & Trusts
Article 11-A - UNIFORM PRINCIPAL AND INCOME ACT
Part 5 - (11-A-5.1 - 11-A-5.6) ALLOCATION OF DISBURSEMENTS DURING ADMINISTRATION OF TRUST
11-A-5.4 - Transfers from income to reimburse principal

§ 11-A-5.4 Transfers from income to reimburse principal
    (a)  If  a  trustee  makes or expects to make a principal disbursement
  described in this section,  the  trustee  may  transfer  an  appropriate
  amount  from  income  to  principal in one or more accounting periods to
  reimburse principal  or  to  provide  a  reserve  for  future  principal
  disbursements.
    (b) Principal disbursements to which paragraph (a) applies include the
  following, but only to the extent that the trustee has not been and does
  not expect to be reimbursed by a third party:
    (1)  an amount chargeable to income but paid from principal because it
  is unusually large, including extraordinary repairs;
    (2) a capital improvement to a principal asset, whether in the form of
  changes to an existing  asset  or  the  construction  of  a  new  asset,
  including special assessments;
    (3)  disbursements  made  to  prepare  property  for rental, including
  tenant allowances, leasehold improvements, and broker's commissions;
    (4) periodic payments on an obligation secured by a principal asset to
  the extent that the amount transferred  from  income  to  principal  for
  depreciation is less than the periodic payments; and
    (5) disbursements described in subparagraph 11-A-5.2 (a)(7).
    (c)  If  the  asset  whose  ownership  gives rise to the disbursements
  becomes subject to a successive income interest after an income interest
  ends, a  trustee  may  continue  to  transfer  amounts  from  income  to
  principal as provided in paragraph (a).