New Mexico § 46-3A-406 - Obligation to pay money

§ 46-3A-406. Obligation to pay money

(a) 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. (b) A trustee shall allocate to principal 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. 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. (c) This section does not apply to an obligation to which Section 409, 410, 411, 412,

414 or 415 applies.