§ 11-A-5.2 Disbursements from principal\n (a) A trustee shall make the following disbursements from principal:\n (1) the remaining two-thirds of the disbursements described in\nparagraph 11-A-5.1 (1);\n (2) all of the trustee's compensation calculated on principal as a fee\nfor acceptance, distribution, or termination, and disbursements made to\nprepare property for sale;\n (3) payments on the principal of a trust debt;\n (4) except as provided in paragraph 11-A-5.1 (2), all expenses for\naccountings, judicial proceedings or other matters that involve both the\nincome and remainder interests or that concern primarily principal,\nincluding a proceeding to construe the trust or to protect the trust or\nits property;\n (5) premiums paid on a policy of insurance not described in paragraph\n11-A-5.1 (4) of which the trust is the owner and beneficiary;\n (6) estate, inheritance, and other transfer taxes, including\npenalties, apportioned to the trust; and\n (7) disbursements related to environmental matters, including\nreclamation, assessing environmental conditions, remedying and removing\nenvironmental contamination, monitoring remedial activities and the\nrelease of substances, preventing future releases of substances\ncollecting amounts from persons liable or potentially liable for the\ncosts of those activities, penalties imposed under environmental laws or\nregulations and other payments made to comply with those laws or\nregulations, statutory or common law claims by third parties, and\ndefending claims based on environmental matters.\n (b) If a principal asset is encumbered with an obligation that\nrequires income from that asset to be paid directly to the creditor, the\ntrustee shall transfer from principal to income an amount equal to the\nincome paid to the creditor in reduction of the principal balance of the\nobligation.\n
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