1.  Interest on obligation to pay money; allocate to income.  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.  

2.  Amount received from sale, redemption or other disposition of obligation to pay money; allocate to principal.  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.  

3.  Not applicable.  This section does not apply to an obligation to which section 7‑449, 7‑450, 7‑451, 7‑452, 7‑454 or 7‑455 applies.