There is a newer version of the South Dakota Codified Laws
2006 South Dakota Code - 55-13-3 — Income--Principal--Charges.
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.
Source: SL 1984, ch 323, § 3.
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