---
title: O.C.G.A. § 53-12-422. Obligation to pay money.
collection: code
id: 53-12-422
cite_as: O.C.G.A. § 53-12-422 (2025)
canonical_url: https://georgiacommons.org/code/53-12-422
md_url: https://georgiacommons.org/code/53-12-422.md
text_url: https://georgiacommons.org/code/53-12-422/text
source_url: https://www.legis.ga.gov/api/document/docs/default-source/joint-features-document-library/t52-t53-(v40)-2021-pdf.pdf?sfvrsn=d23ba203_0#page=947
date: 2025
status: active
corpus_version: 2025-supplement-89aa39ab3c68
license: CC0-1.0
publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
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version: the only printed version
in_force: true
current_through: Including Acts of the 2025 Regular Session of the General Assembly
heading_path: WILLS, TRUSTS, AND ADMINISTRATION OF ESTATES / TRUSTS / GEORGIA PRINCIPAL AND INCOME ACT / ALLOCATION OF RECEIPTS DURING ADMINISTRATION OF TRUST / Receipts Not Normally Apportioned
---

# O.C.G.A. § 53-12-422. Obligation to pay money.

(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, shall 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 shall be allocated to income.

(c) This Code section shall not apply to an obligation to which Code Section 53-12-425 through 53-12-428, 53-12-430, or 53-12-431 applies.

## History

Code 1981, § 53-12-422, enacted by Ga. L. 2010, p. 579, § 1/SB 131.