Oklahoma § 60-175.502

§ 60-175.502.

Disbursements from principal.

DISBURSEMENTS FROM PRINCIPAL

A. A trustee shall make the following disbursements from

principal:

1. The remaining one-half of the disbursements described in

paragraph 1 and 2 of Section 25 of this act;

2. 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;

3. Payments on the principal of a trust debt;

4. Expenses of a proceeding that concerns primarily principal,

including a proceeding to construe the trust or to protect the trust

or its property;

5. Premiums paid on a policy of insurance not described in

paragraph 4 of Section 25 of this act of which the trust is the

owner and beneficiary;

6. Estate, inheritance, and other transfer taxes, including

penalties, apportioned to the trust; and

7. 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

Oklahoma Statutes - Title 60. Property

with those laws or regulations, statutory or common law claims by

third parties, and defending claims based on environmental matters.

B. 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.

Added by Laws 1998, c. 115, § 26, eff. Nov. 1, 1998.