Tex. Prop. Code § 116.163 · Part 2. RECEIPTS NOT NORMALLY APPORTIONED
OBLIGATION TO PAY MONEY.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) An amount received as interest, whether determined at a fixed, variable, or floating rate, on an obligation to pay money to the trustee, including an amount received as consideration for prepaying principal, must be allocated to income without any provision for amortization of premium.
(b) A trustee shall allocate to principal an amount received from the sale, redemption, or other disposition of an obligation to pay money to the trustee more than one year after it is purchased or acquired by the trustee, including an obligation whose purchase price or value when it is acquired is less than its value at maturity. If the obligation matures within one year after it is purchased or acquired by the trustee, an amount received in excess of its purchase price or its value when acquired by the trust must be allocated to income.
(c) This section does not apply to an obligation to which Section 116.172, 116.173, 116.174, 116.175, 116.177, or 116.178 applies.
Notes and commentary — not statutory text
History
Added by Acts 2003, 78th Leg., ch. 659, Sec. 1, eff. Jan. 1, 2004.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/PR/htm/PR.116.htm
- Text hash
- sha256 4a16d38904b2ac832305e488a63d5d26f93a49d00b286dc263df4d881ab463a6
- Composed by
- compose_tx.py 2026-10-05: the Legislative Council's chapter files read in document order; verify_tx.py's independent reading (lxml DOM walk) agrees character for character
This section cites
Provisions in this library that the text above cites, as it prints each citation. A range cited as “ss. 61.13-61.16” links its first and last provisions.
Property Code
- Tex. Prop. Code § 116.172DEFERRED COMPENSATION, ANNUITIES, AND SIMILAR PAYMENTS.Printed as Section 116.172, 116.173, 116.174, 116.175, 116.177, or 116.178
- Tex. Prop. Code § 116.173LIQUIDATING ASSET.Printed as Section 116.172, 116.173, 116.174, 116.175, 116.177, or 116.178
- Tex. Prop. Code § 116.174MINERALS, WATER, AND OTHER NATURAL RESOURCES.Printed as Section 116.172, 116.173, 116.174, 116.175, 116.177, or 116.178
- Tex. Prop. Code § 116.175TIMBER.Printed as Section 116.172, 116.173, 116.174, 116.175, 116.177, or 116.178
- Tex. Prop. Code § 116.177DERIVATIVES AND OPTIONS.Printed as Section 116.172, 116.173, 116.174, 116.175, 116.177, or 116.178
- Tex. Prop. Code § 116.178ASSET-BACKED SECURITIES.Printed as Section 116.172, 116.173, 116.174, 116.175, 116.177, or 116.178
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.