(a) Subject to § 28-77-505, and except as otherwise provided in § 28-77-601(c)(2), a fiduciary shall disburse from principal:(1) the balance of the disbursements described in § 28-77-501(1) and § 28-77-501(3), after application of § 28-77-501(2);(2) the fiduciary's compensation calculated on principal as a fee for acceptance, distribution, or termination;(3) a payment of an expense to prepare for or execute a sale or other disposition of property;(4) a payment on the principal of a trust debt;(5) a payment of an expense of an accounting, judicial or nonjudicial proceeding, or other matter that involves primarily principal, including a proceeding to construe the terms of the trust or protect property;(6) a payment of a premium for insurance, including title insurance, not described in § 28-77-501(4), of which the fiduciary is the owner and beneficiary;(7) a payment of an estate or inheritance tax or other tax imposed because of the death of a decedent, including penalties, apportioned to the trust; and(8) a payment:(A) related to environmental matters, including:(i) reclamation;(ii) assessing environmental conditions;(iii) remedying and removing environmental contamination;(iv) monitoring remedial activities and the release of substances;(v) preventing future releases of substances;(vi) collecting amounts from persons liable or potentially liable for the costs of activities described in clauses (i) through (v);(vii) penalties imposed under environmental laws or regulations;(viii) other actions to comply with environmental laws or regulations;(ix) statutory or common law claims by third parties; and(x) defending claims based on environmental matters; and(B) for a premium for insurance for matters described in subparagraph (A).
(1) the balance of the disbursements described in § 28-77-501(1) and § 28-77-501(3), after application of § 28-77-501(2);
(2) the fiduciary's compensation calculated on principal as a fee for acceptance, distribution, or termination;
(3) a payment of an expense to prepare for or execute a sale or other disposition of property;
(4) a payment on the principal of a trust debt;
(5) a payment of an expense of an accounting, judicial or nonjudicial proceeding, or other matter that involves primarily principal, including a proceeding to construe the terms of the trust or protect property;
(6) a payment of a premium for insurance, including title insurance, not described in § 28-77-501(4), of which the fiduciary is the owner and beneficiary;
(7) a payment of an estate or inheritance tax or other tax imposed because of the death of a decedent, including penalties, apportioned to the trust; and
(8) a payment:(A) related to environmental matters, including:(i) reclamation;(ii) assessing environmental conditions;(iii) remedying and removing environmental contamination;(iv) monitoring remedial activities and the release of substances;(v) preventing future releases of substances;(vi) collecting amounts from persons liable or potentially liable for the costs of activities described in clauses (i) through (v);(vii) penalties imposed under environmental laws or regulations;(viii) other actions to comply with environmental laws or regulations;(ix) statutory or common law claims by third parties; and(x) defending claims based on environmental matters; and(B) for a premium for insurance for matters described in subparagraph (A).
(A) related to environmental matters, including:(i) reclamation;(ii) assessing environmental conditions;(iii) remedying and removing environmental contamination;(iv) monitoring remedial activities and the release of substances;(v) preventing future releases of substances;(vi) collecting amounts from persons liable or potentially liable for the costs of activities described in clauses (i) through (v);(vii) penalties imposed under environmental laws or regulations;(viii) other actions to comply with environmental laws or regulations;(ix) statutory or common law claims by third parties; and(x) defending claims based on environmental matters; and
(i) reclamation;
(ii) assessing environmental conditions;
(iii) remedying and removing environmental contamination;
(iv) monitoring remedial activities and the release of substances;
(v) preventing future releases of substances;
(vi) collecting amounts from persons liable or potentially liable for the costs of activities described in clauses (i) through (v);
(vii) penalties imposed under environmental laws or regulations;
(viii) other actions to comply with environmental laws or regulations;
(ix) statutory or common law claims by third parties; and
(x) defending claims based on environmental matters; and
(B) for a premium for insurance for matters described in subparagraph (A).
(b) If a principal asset is encumbered with an obligation that requires income from the asset to be paid directly to a creditor, the fiduciary 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.