Section 22-3-502 - [Renumbered Effective 9/1/2024] Disbursement from principal(1) Subject to Section 22-3-505, and except as otherwise provided in Subsection 22-3-601(3)(b) or (c), a fiduciary shall disburse from principal: (a) the balance of the disbursements described in Subsections 22-3-501(1) and (3), after application of Subsection 22-3-501(2);(b) the fiduciary's compensation calculated on principal as a fee for acceptance, distribution, or termination;(c) a payment of an expense to prepare for or execute a sale or other disposition of property;(d) a payment on the principal of a trust debt;(e) 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;(f) a payment of a premium for insurance, including title insurance, not described in Subsection 22-3-501(4), of which the fiduciary is the owner and beneficiary;(g) 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(h) a payment:(i) related to environmental matters, including: (B) assessing environmental conditions;(C) remedying and removing environmental contamination;(D) monitoring remedial activities and the release of substances;(E) preventing future releases of substances;(F) collecting amounts from persons liable or potentially liable for the costs of activities described in Subsections (1)(h)(i)(A) through (E);(G) penalties imposed under environmental laws or regulations;(H) other actions to comply with environmental laws or regulations;(I) statutory or common law claims by third parties; and(J) defending claims based on environmental matters; and(ii) for a premium for insurance for matters described in Subsection (1)(h)(i).(2) 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.Renumbered as § 75A-5-502 by Chapter (number not assigned at time of publication), 2024 General Session ,§ 163, eff. 9/1/2024.Repealed and reenacted by Chapter 495, 2019 General Session ,§ 34, eff. 7/1/2020.Enacted by Chapter 285, 2004 General Session.