(a) For the purposes of this section, the term:

(c) If no part of a payment is characterized as interest, a dividend, or an equivalent payment, and all or part of the payment is required to be made, a trustee shall allocate to income 10 percent of the part that is required to be made during the accounting period and the balance to principal. If no part of a payment is required to be made or the payment received is the entire amount to which the trustee is entitled, the trustee shall allocate the entire payment to principal. For purposes of this subsection, a payment is not required to be made to the extent that it is made because the trustee exercises a right of withdrawal.

(d-1) Subsections (d), (d-2), and (d-3) of this section do not apply if and to the extent that the series of payments would, without the application of subsection (d) of this section, qualify for the marital deduction under section 2056(b)(7)(C) of the Internal Revenue Code of 1986, approved August 5, 1997 (68A Stat. 392; 26 U.S.C. § 2056(b)(7)(C)).

(d-3) If a trustee cannot determine the internal income of a separate fund but can determine the value of the separate fund, the internal income of the separate fund is deemed to equal 4 % of the fund's value, according to the most recent statement of value preceding the beginning of the accounting period. If the trustee can determine neither the internal income of the separate fund nor the fund's value, the internal income of the fund is deemed to equal the product of the interest rate and the present value of the expected future payments, as determined under section 7520 of the Internal Revenue Code of 1986, approved November 10, 1988 (102 Stat. 3668; 26 U.S.C. § 7520), for the month preceding the accounting period for which the computation is made.

(a) For the purposes of this section, the term "liquidating asset" means an asset whose value will diminish or terminate because the asset is expected to produce receipts for a period of limited duration. The term "liquidating asset" includes a leasehold, patent, copyright, royalty right, and right to receive payments during a period of more than one year under an arrangement that does not provide for the payment of interest on the unpaid balance. The term "liquidating asset" does not include a payment subject to § 28-4804.09, resources subject to § 28-4804.11, timber subject to § 28-4804.12, an activity subject to § 28-4804.14, an asset subject to § 28-4804.15, or any asset for which the trustee establishes a reserve for depreciation under § 28-4805.03.

(a) To the extent that a trustee accounts for receipts from an interest in minerals or other natural resources pursuant to this section, the trustee shall allocate them as follows:

(c) This chapter applies whether or not a decedent or donor was extracting minerals, water, or other natural resources before the interest became subject to the trust.

(a) To the extent that a trustee accounts for receipts from the sale of timber and related products pursuant to this section, the trustee shall allocate the net receipts:

(c) This chapter applies whether or not a decedent or transferor was harvesting timber from the property before it became subject to the trust.

(a) If a marital deduction is allowed for all or part of a trust whose assets consist substantially of property that does not provide the spouse or domestic partner with sufficient income from or use of the trust assets, and if the amounts that the trustee transfers from principal to income under § 28- 4801.04 and distributes to the spouse or domestic partner from principal pursuant to the terms of the trust are insufficient to provide the spouse or domestic partner with the beneficial enjoyment required to obtain the marital deduction, the spouse or domestic partner may require the trustee to make property productive of income, convert property within a reasonable time, or exercise the power conferred by § 28-4801.04(a). The trustee may decide which action or combination of actions to take.

(a) For the purposes of this section, the term "derivative" means a contract or financial instrument or a combination of contracts and financial instruments which gives a trust the right or obligation to participate in some or all changes in the price of a tangible or intangible asset or group of assets, or changes in a rate, an index of prices or rates, or other market indicator for an asset or a group of assets.

(c) If a trustee grants an option to buy property from the trust, whether or not the trust owns the property when the option is granted, grants an option that permits another person to sell property to the trust, or acquires an option to buy property for the trust or an option to sell an asset owned by the trust, and the trustee or other owner of the asset is required to deliver the asset if the option is exercised, an amount received for granting the option must be allocated to principal. An amount paid to acquire the option shall be paid from principal. A gain or loss realized upon the exercise of an option, including an option granted to a settlor of the trust for services rendered, shall be allocated to principal.

(a) For the purposes of this section, the term "asset-backed security" means an asset whose value is based upon the right it gives the owner to receive distributions from the proceeds of financial assets that provide collateral for the security. The term "asset-backed security" includes an asset that gives the owner the right to receive from the collateral financial assets only the interest or other current return or only the proceeds other than interest or current return. The term "asset-backed security" does not include an asset to which § 28-4804.01 or § 28-4804.09 applies.

(c) If a trust receives one or more payments in exchange for the trust's entire interest in an asset-backed security in one accounting period, the trustee shall allocate the payments to principal. If a payment is one of a series of payments that will result in the liquidation of the trust's interest in the security over more than one accounting period, the trustee shall allocate 10 percent of the payment to income and the balance to principal.