EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

1-1 Section 1. Chapter 164 of NRS is hereby amended by adding thereto

1-2 the provisions set forth as sections 2 to 44, inclusive, of this act.

1-3 Sec. 2. As used in sections 2 to 44, inclusive, of this act:

1-4 1. "Fiduciary" means a trustee or, to the extent that sections 15 to 44,

1-5 inclusive, of this act apply to an estate, a personal representative.

1-6 2. "Terms of a trust" means the manifestation of the intent of a

1-7 settlor or decedent with respect to the trust, expressed in a manner that

1-8 admits of its proof in a judicial proceeding, whether by written or spoken

1-9 words or by conduct.

1-10 Sec. 3. In performing his duties under sections 2 to 44, inclusive, of

1-11 this act, a fiduciary:

1-12 1. Shall administer a trust or estate in accordance with the terms of

1-13 the trust or the will, even if there is a different provision in sections 2 to

1-14 44, inclusive, of this act;

1-15 2. May administer a trust or estate by the exercise of a discretionary

1-16 power of administration given to the fiduciary by the terms of the trust or

1-17 the will, even if the exercise of the power produces a result different from

1-18 a result required or permitted by sections 2 to 44, inclusive, of this act;

1-19 and

2-1 3. Shall administer a trust or estate in accordance with sections 2 to

2-2 44, inclusive, of this act if the terms of the trust or the will do not contain

2-3 a different provision or do not give the fiduciary a discretionary power of

2-4 administration.

2-5 Sec. 4. A trustee shall invest and manage the trust property solely in

2-6 the interest of the beneficiaries.

2-7 Sec. 5. 1. If a trust has two or more beneficiaries, the trustee shall

2-8 act impartially in investing and managing the trust property, taking into

2-9 account any differing interests of the beneficiaries.

2-10 2. In exercising the power to adjust under section 18 of this act or a

2-11 discretionary power of administration regarding a matter within the scope

2-12 of sections 15 to 44, inclusive, of this act, whether granted by the terms of

2-13 a trust, a will, or sections 15 to 44, inclusive, of this act, a fiduciary shall

2-14 administer a trust or estate impartially, based on what is fair and

2-15 reasonable to all of the beneficiaries, except to the extent that the terms of

2-16 the trust or the will clearly manifest an intention that the fiduciary shall

2-17 or may favor one or more of the beneficiaries. A determination in

2-18 accordance with sections 15 to 44, inclusive, of this act is presumed to be

2-19 fair and reasonable to all of the beneficiaries.

2-20 Sec. 6. Sections 2 to 14, inclusive, of this act may be cited as the

2-21 Uniform Prudent Investor Act.

2-22 Sec. 7. A trustee who invests and manages trust property owes a duty

2-23 to the beneficiaries of the trust to comply with the prudent investor rule as

2-24 set forth in sections 2 to 14, inclusive, of this act but a trustee is not liable

2-25 to a beneficiary to the extent that the trustee acted in reasonable reliance

2-26 on the terms of the trust.

2-27 Sec. 8. 1. A trustee shall invest and manage trust property as a

2-28 prudent investor would, considering the terms, purposes, requirements for

2-29 distribution, and other circumstances of the trust. In satisfying this

2-30 standard, the trustee shall exercise reasonable care, skill and caution.

2-31 2. A trustee’s decisions concerning investment and management as

2-32 applied to individual assets must be evaluated not in isolation but in the

2-33 context of the trust portfolio as a whole and as part of an overall strategy

2-34 of investment having objectives for risk and return reasonably suited to

2-35 the trust.

2-36 3. Among circumstances that a trustee shall consider in investing and

2-37 managing trust property are such of the following as are relevant to the

2-38 trust or its beneficiaries:

2-39 (a) General economic conditions;

2-40 (b) The possible effect of inflation or deflation;

2-41 (c) The expected tax consequences of decisions or strategies;

2-42 (d) The role that each investment or course of action plays within the

2-43 overall trust portfolio;

3-1 (e) The expected total return from income and the appreciation of

3-2 capital;

3-3 (f) Other resources of the beneficiaries;

3-4 (g) Needs for liquidity, regularity of income, and preservation or

3-5 appreciation of capital; and

3-6 (h) An asset’s special relationship or special value, if any, to the

3-7 purposes of the trust or to one or more of the beneficiaries.

3-8 4. A trustee shall make a reasonable effort to verify facts relevant to

3-9 the investment and management of trust property.

3-10 5. A trustee may invest in any kind of property or type of investment

3-11 consistent with the standards of sections 2 to 14, inclusive, of this act,

3-12 which may include financial assets, interests in closely held enterprises,

3-13 tangible and intangible personal property, and real property.

3-14 6. A trustee who has special skills or expertise, or is named trustee in

3-15 reliance upon his representation that he has special skills or expertise,

3-16 has a duty to use those special skills or expertise.

3-17 Sec. 9. A trustee shall diversify the investments of the trust unless he

3-18 reasonably determines that, because of special circumstances, the

3-19 purposes of the trust are better served without diversifying.

3-20 Sec. 10. Within a reasonable time after accepting a trusteeship or

3-21 receiving trust property, a trustee shall review the trust property and make

3-22 and carry out decisions concerning the retention and disposition of assets,

3-23 in order to bring the trust portfolio into compliance with the purposes,

3-24 terms, requirements for distribution and other circumstances of the trust,

3-25 and with the requirements of sections 2 to 14, inclusive, of this act.

3-26 Sec. 11. In investing and managing trust property, a trustee may only

3-27 incur costs that are appropriate and reasonable in relation to the

3-28 property, the purposes of the trust and the skills of the trustee.

3-29 Sec. 12. Compliance with the prudent investor rule is determined in

3-30 light of the facts and circumstances existing at the time of a trustee’s

3-31 decision or action and not by hindsight.

3-32 Sec. 13. 1. A trustee may delegate functions of investment and

3-33 management that a prudent trustee of comparable skills could properly

3-34 delegate under the circumstances. He shall exercise reasonable care, skill

3-35 and caution in:

3-36 (a) Selecting an agent;

3-37 (b) Establishing the scope and terms of the delegation, consistent with

3-38 the purposes and terms of the trust; and

3-39 (c) Periodically reviewing the agent’s actions in order to verify the

3-40 agent’s performance and compliance with the terms of the delegation.

3-41 2. In performing a delegated function, an agent owes a duty to the

3-42 trust to exercise reasonable care to comply with the terms of the

3-43 delegation.

4-1 3. A trustee who complies with the requirements of subsection 1 is not

4-2 liable to the beneficiaries or to the trust for the decisions or actions of the

4-3 agent to whom the function was delegated.

4-4 4. By accepting the delegation of a function from the trustee of a trust

4-5 that is subject to the law of this state, an agent submits to the jurisdiction

4-6 of the courts of this state.

4-7 Sec. 14. The following terms or comparable language in the terms of

4-8 a trust, unless otherwise limited or modified, authorizes any investment or

4-9 strategy permitted under sections 2 to 14, inclusive, of this act:

4-10 "investments permissible by law for investment of trust funds," "legal

4-11 investments," "authorized investments," "using the judgment and care

4-12 under the circumstances then prevailing that persons of prudence,

4-13 discretion and intelligence exercise in the management of their own

4-14 affairs, not in regard to speculation but in regard to the permanent

4-15 disposition of their funds, considering the probable income as well as the

4-16 probable safety of their capital," "prudent man rule," "prudent trustee

4-17 rule," "prudent person rule," and "prudent investor rule."

4-18 Sec. 15. Section 2, subsection 2 of section 5 and sections 15 to 44,

4-19 inclusive, of this act may be cited as the Uniform Principal and Income

4-20 Act (1997).

4-21 Sec. 16. As used in sections 15 to 44, inclusive, of this act:

4-22 1. "Accounting period" means a calendar year unless another 12-

4-23 month period is selected by a fiduciary. The term includes a portion of a

4-24 calendar year or other 12-month period that begins when an income

4-25 interest begins or ends when an income interest ends.

4-26 2. "Beneficiary" includes, in the case of a decedent’s estate, an heir,

4-27 legatee, and devisee and, in the case of a trust, an income beneficiary and

4-28 a remainder beneficiary.

4-29 3. "Fiduciary" includes an executor, administrator, successor

4-30 personal representative, special administrator, and a person performing

4-31 substantially the same function.

4-32 4. "Income" means money or property that a fiduciary receives as

4-33 current return from a principal asset. The term includes a portion of

4-34 receipts from a sale, exchange, or liquidation of a principal asset, to the

4-35 extent provided in sections 24 to 38, inclusive, of this act.

4-36 5. "Income beneficiary" means a person to whom net income of a

4-37 trust is or may be payable.

4-38 6. "Income interest" means the right of an income beneficiary to

4-39 receive all or part of net income, whether the terms of the trust require it

4-40 to be distributed or authorize it to be distributed in the trustee’s discretion.

4-41 7. "Mandatory income interest" means the right of an income

4-42 beneficiary to receive net income that the terms of the trust require the

4-43 fiduciary to distribute.

5-1 8. "Net income" means the total receipts allocated to income during

5-2 an accounting period minus the disbursements made from income during

5-3 the period, plus or minus transfers under sections 15 to 44, inclusive, of

5-4 this act to or from income during the period.

5-5 9. "Principal" means property held in trust for distribution to a

5-6 remainder beneficiary when the trust terminates.

5-7 10. "Remainder beneficiary" means a person entitled to receive

5-8 principal when an income interest ends.

5-9 Sec. 17. In allocating receipts and disbursements to or between

5-10 principal and income, and with respect to any matter within the scope of

5-11 sections 19 to 23, inclusive, of this act, a fiduciary shall add a receipt or

5-12 charge a disbursement to principal to the extent that the terms of the trust

5-13 and sections 15 to 44, inclusive, of this act do not provide a rule for

5-14 allocating the receipt or disbursement to or between principal and

5-15 income.

5-16 Sec. 18. 1. A trustee may adjust between principal and income to

5-17 the extent he considers necessary if he invests and manages trust assets as

5-18 a prudent investor, the terms of the trust describe the amount that may or

5-19 must be distributed to a beneficiary by referring to the trust’s income, and

5-20 he determines, after applying the rules in sections 3 and 17 of this act,

5-21 that he is unable to comply with subsection 2 of section 5 of this act.

5-22 2. In deciding whether and to what extent to exercise the power

5-23 conferred by subsection 1, a trustee shall consider all factors relevant to

5-24 the trust and its beneficiaries, including the following factors to the extent

5-25 they are relevant:

5-26 (a) The nature, purpose, and expected duration of the trust;

5-27 (b) The intent of the settlor;

5-28 (c) The identity and circumstances of the beneficiaries;

5-29 (d) The needs for liquidity, regularity of income, and preservation and

5-30 appreciation of capital;

5-31 (e) The assets held in the trust, the extent to which the assets consist of

5-32 financial assets, interests in closely held enterprises, tangible and

5-33 intangible personal property, or real property, the extent to which an asset

5-34 is used by a beneficiary, and whether an asset was purchased by the

5-35 trustee or received from the settlor;

5-36 (f) The net amount allocated to income under the other provisions of

5-37 sections 15 to 44, inclusive, of this act and the increase or decrease in the

5-38 value of the principal assets, which the trustee may estimate as to assets

5-39 for which market values are not readily available;

5-40 (g) Whether and to what extent the terms of the trust give the trustee

5-41 the power to invade principal or accumulate income or prohibit him from

5-42 invading principal or accumulating income, and the extent to which he

6-1 has exercised a power from time to time to invade principal or

6-2 accumulate income;

6-3 (h) The actual and anticipated effect of economic conditions on

6-4 principal and income and effects of inflation and deflation; and

6-5 (i) The anticipated tax consequences of an adjustment.

6-6 3. A trustee may not make an adjustment:

6-7 (a) That diminishes the income interest in a trust that requires all of

6-8 the income to be paid at least annually to a surviving spouse and for

6-9 which an estate tax or gift tax marital deduction would be allowed, in

6-10 whole or in part, if the trustee did not have the power to make the

6-11 adjustment;

6-12 (b) That reduces the actuarial value of the income interest in a trust to

6-13 which a person transfers property with the intent to qualify for a gift tax

6-14 exclusion;

6-15 (c) That changes the amount payable to a beneficiary as a fixed

6-16 annuity or a fixed fraction of the value of the trust assets;

6-17 (d) From any amount that is permanently set aside for charitable

6-18 purposes under a will or the terms of a trust unless both income and

6-19 principal are so set aside;

6-20 (e) If possessing or exercising the power to make an adjustment causes

6-21 an individual to be treated as the owner of all or part of the trust for

6-22 income tax purposes, and the individual would not be treated as the

6-23 owner if the trustee did not possess the power to make an adjustment;

6-24 (f) If possessing or exercising the power to make an adjustment causes

6-25 all or part of the trust assets to be included for estate tax purposes in the

6-26 estate of an individual who has the power to remove a trustee or appoint a

6-27 trustee, or both, and the assets would not be included in the estate of the

6-28 individual if the trustee did not possess the power to make an adjustment;

6-29 (g) If the trustee is a beneficiary of the trust; or

6-30 (h) If the trustee is not a beneficiary, but the adjustment would benefit

6-31 him directly or indirectly.

6-32 4. If paragraph (e), (f), (g) or (h) of subsection 3 applies to a trustee

6-33 and there is more than one trustee, a cotrustee to whom the provision

6-34 does not apply may make the adjustment unless the exercise of the power

6-35 by the remaining trustee or trustees is not permitted by the terms of the

6-36 trust.

6-37 5. A trustee may release the entire power conferred by subsection 1 or

6-38 may release only the power to adjust from income to principal or the

6-39 power to adjust from principal to income if he is uncertain about whether

6-40 possessing or exercising the power will cause a result described in

6-41 paragraphs (a) to (f), inclusive, or (h) of subsection 3 or if he determines

6-42 that possessing or exercising the power will or may deprive the trust of a

6-43 tax benefit or impose a tax burden not described in subsection 3. The

7-1 release may be permanent or for a specified period, including a period

7-2 measured by the life of an individual.

7-3 6. Terms of a trust that limit the power of a trustee to make an

7-4 adjustment between principal and income do not affect the application of

7-5 this section unless it is clear from the terms of the trust that the terms are

7-6 intended to deny the trustee the power of adjustment conferred by

7-7 subsection 1.

7-8 Sec. 19. After a decedent dies, in the case of an estate, or after an

7-9 income interest in a trust ends, the following rules apply:

7-10 1. A fiduciary of an estate or of a terminating income interest shall

7-11 determine the amount of net income and net principal receipts received

7-12 from property specifically given to a beneficiary under the rules in

7-13 sections 21 to 44, inclusive, of this act which apply to trustees and the

7-14 rules in subsection 5. He shall distribute the net income and net principal

7-15 receipts to the beneficiary who is to receive the specific property.

7-16 2. A fiduciary shall determine the remaining net income of a

7-17 decedent’s estate or a terminating income interest under the rules in

7-18 sections 21 to 44, inclusive, of this act which apply to trustees and by:

7-19 (a) Including in net income all income from property used to

7-20 discharge liabilities;

7-21 (b) Paying from income or principal, in his discretion, fees of

7-22 attorneys, accountants, and fiduciaries, court costs and other expenses of

7-23 administration, and interest on death taxes, but he may pay those

7-24 expenses from income of property passing to a trust for which he claims

7-25 an estate tax marital or charitable deduction only to the extent that the

7-26 payment of those expenses from income will not cause the reduction or

7-27 loss of the deduction; and

7-28 (c) Paying from principal all other disbursements made or incurred in

7-29 connection with the settlement of a decedent’s estate or the winding up of

7-30 a terminating income interest, including debts, funeral expenses,

7-31 disposition of remains, family allowances, and death taxes and related

7-32 penalties that are apportioned to the estate or terminating income interest

7-33 by the will, the terms of the trust, or applicable law.

7-34 3. A fiduciary shall distribute to a beneficiary who receives a

7-35 pecuniary amount outright the interest or any other amount provided by

7-36 the will, the terms of the trust, or applicable law from net income

7-37 determined under subsection 2 or from principal to the extent that net

7-38 income is insufficient. If a beneficiary is to receive a pecuniary amount

7-39 outright from a trust after an income interest ends and no interest or

7-40 other amount is provided for by the terms of the trust or applicable law,

7-41 the fiduciary shall distribute the interest or other amount to which the

7-42 beneficiary would be entitled under applicable law if the pecuniary

7-43 amount were required to be paid under a will.

8-1 4. A fiduciary shall distribute the net income remaining after

8-2 distributions required by subsection 3 in the manner described in section

8-3 20 of this act to all other beneficiaries, including a beneficiary who

8-4 receives a pecuniary amount in trust, even if he holds an unqualified

8-5 power to withdraw assets from the trust or other presently exercisable

8-6 general power of appointment over the trust.

8-7 5. A fiduciary may not reduce principal or income receipts from

8-8 property described in subsection 1 because of a payment described in

8-9 section 39 or 40 of this act to the extent that the will, the terms of the

8-10 trust, or applicable law requires him to make the payment from assets

8-11 other than the property or to the extent he recovers or expects to recover

8-12 the payment from a third party. The net income and principal receipts

8-13 from the property are determined by including all of the amounts the

8-14 fiduciary receives or pays with respect to the property, whether those

8-15 amounts accrued or became due before, on, or after the date of a

8-16 decedent’s death or an income interest’s terminating event, and by

8-17 making a reasonable provision for amounts that he believes the estate or

8-18 terminating income interest may become obligated to pay after the

8-19 property is distributed.

8-20 Sec. 20. 1. Each beneficiary described in subsection 4 of section 19

8-21 of this act is entitled to receive a portion of the net income equal to his

8-22 fractional interest in undistributed principal assets, using values as of the

8-23 date of distribution. If a fiduciary makes more than one distribution of

8-24 assets to beneficiaries to whom this section applies, each beneficiary,

8-25 including one who does not receive part of the distribution, is entitled, as

8-26 of each date of distribution, to the net income the fiduciary has received

8-27 after the date of death or terminating event or earlier date of distribution

8-28 but has not distributed as of the current date of distribution.

8-29 2. In determining a beneficiary’s share of net income, the following

8-30 rules apply:

8-31 (a) He is entitled to receive a portion of the net income equal to his

8-32 fractional interest in the undistributed principal assets immediately before

8-33 the date of distribution, including assets that later may be sold to meet

8-34 principal obligations.

8-35 (b) His fractional interest in the undistributed principal assets must be

8-36 calculated without regard to property specifically given to a beneficiary

8-37 and property required to pay pecuniary amounts not in trust.

8-38 (c) His fractional interest in the undistributed principal assets must be

8-39 calculated on the basis of the aggregate value of those assets as of the

8-40 date of distribution without reducing the value by any unpaid principal

8-41 obligation.

9-1 (d) The date of distribution for purposes of this section may be the date

9-2 as of which the fiduciary calculates the value of the assets if that date is

9-3 reasonably near the date on which assets are actually distributed.

9-4 3. If a fiduciary does not distribute all of the collected but

9-5 undistributed net income to each person as of a date of distribution, he

9-6 shall maintain appropriate records showing the interest of each

9-7 beneficiary in that net income.

9-8 4. A trustee may apply the rules in this section, to the extent that he

9-9 considers it appropriate, to net gain or loss realized after the date of death

9-10 or terminating event or earlier date of distribution from the disposition of

9-11 a principal asset if this section applies to the income from the asset.

9-12 Sec. 21. 1. An income beneficiary is entitled to net income from the

9-13 date on which the income interest begins. An income interest begins on

9-14 the date specified in the terms of the trust or, if no date is specified, on the

9-15 date an asset becomes subject to a trust or successive income interest.

9-16 2. An asset becomes subject to a trust:

9-17 (a) On the date it is transferred to the trust in the case of an asset that

9-18 is transferred to a trust during the transferor’s life;

9-19 (b) On the date of a testator’s death in the case of an asset that

9-20 becomes subject to a trust by reason of a will, even if there is an

9-21 intervening period of administration of the testator’s estate; or

9-22 (c) On the date of an individual’s death in the case of an asset that is

9-23 transferred to a fiduciary by a third party because of the individual’s

9-24 death.

9-25 3. An asset becomes subject to a successive income interest on the day

9-26 after the preceding income interest ends, as determined under subsection

9-27 4, even if there is an intervening period of administration to wind up the

9-28 preceding income interest.

9-29 4. An income interest ends on the day before an income beneficiary

9-30 dies or another terminating event occurs, or on the last day of a period

9-31 during which there is no beneficiary to whom a trustee may distribute

9-32 income.

9-33 Sec. 22. 1. A trustee shall allocate an income receipt or

9-34 disbursement other than one to which subsection 1 of section 19 of this

9-35 act applies to principal if its due date occurs before a decedent dies in the

9-36 case of an estate or before an income interest begins in the case of a trust

9-37 or successive income interest.

9-38 2. A trustee shall allocate an income receipt or disbursement to

9-39 income if its due date occurs on or after the date on which a decedent dies

9-40 or an income interest begins and it is a periodic due date. An income

9-41 receipt or disbursement must be treated as accruing from day to day if its

9-42 due date is not periodic or it has no due date. The portion of the receipt or

9-43 disbursement accruing before the date on which a decedent dies or an

10-1 income interest begins must be allocated to principal and the balance

10-2 must be allocated to income.

10-3 3. An item of income or an obligation is due on the date the payor is

10-4 required to make a payment. If a date for payment is not stated, there is

10-5 no due date for the purposes of sections 15 to 44, inclusive, of this act.

10-6 Distributions to shareholders or other owners from an entity to which

10-7 section 24 of this act applies are deemed to be due on the date fixed by the

10-8 entity for determining who is entitled to receive the distribution or, if no

10-9 date is fixed, on the date of declaration of the distribution. A due date is

10-10 periodic for receipts or disbursements that must be paid at regular

10-11 intervals under a lease or an obligation to pay interest or if an entity

10-12 customarily makes distributions at regular intervals.

10-13 Sec. 23. 1. As used in this section, "undistributed income" means

10-14 net income received before the date on which an income interest ends.

10-15 The term does not include an item of income or expense that is due or

10-16 accrued or net income that has been added or is required to be added to

10-17 principal under the terms of the trust.

10-18 2. When a mandatory income interest ends, the trustee shall pay to a

10-19 mandatory income beneficiary who survives that date, or the estate of a

10-20 deceased mandatory income beneficiary whose death causes the interest

10-21 to end, his share of the undistributed income that is not disposed of under

10-22 the terms of the trust unless he has an unqualified power to revoke more

10-23 than 5 percent of the trust immediately before the income interest ends. In

10-24 the latter case, the undistributed income from the portion of the trust that

10-25 may be revoked must be added to principal.

10-26 3. When a trustee’s obligation to pay a fixed annuity or a fixed

10-27 fraction of the value of the trust’s assets ends, he shall prorate the final

10-28 payment if and to the extent required by applicable law to accomplish a

10-29 purpose of the trust or its settlor relating to income, gift, estate, or other

10-30 tax requirements.

10-31 Sec. 24. 1. As used in this section, "entity" means a corporation,

10-32 partnership, limited liability company, regulated investment company,

10-33 real estate investment trust, common trust fund, or any other organization

10-34 in which a trustee has an interest other than a trust or estate to which

10-35 section 25 of this act applies, a business or activity to which section 26 of

10-36 this act applies or an asset-backed security to which section 38 of this act

10-37 applies.

10-38 2. Except as otherwise provided in this section, a trustee shall allocate

10-39 to income money received from an entity.

10-40 3. A trustee shall allocate the following receipts from an entity to

10-41 principal:

10-42 (a) Property other than money;

11-1 (b) Money received in one distribution or a series of related

11-2 distributions in exchange for part or all of a trust’s interest in the entity;

11-3 (c) Money received in total or partial liquidation of the entity; and

11-4 (d) Money received from an entity that is a regulated investment

11-5 company or a real estate investment trust if the money distributed is a

11-6 capital gain dividend for federal income tax purposes.

11-7 4. Money is received in partial liquidation:

11-8 (a) To the extent that the entity, at or near the time of a distribution,

11-9 indicates that it is a distribution in partial liquidation; or

11-10 (b) If the total amount of money and property received in a distribution

11-11 or series of related distributions is greater than 20 percent of the entity’s

11-12 gross assets, as shown by the entity’s year-end financial statements

11-13 immediately preceding the initial receipt.

11-14 5. Money is not received in partial liquidation, nor may it be taken

11-15 into account under paragraph (b) of subsection 4, to the extent that it

11-16 does not exceed the amount of income tax that a trustee or beneficiary

11-17 must pay on taxable income of the entity that distributes the money.

11-18 6. A trustee may rely upon a statement made by an entity about the

11-19 source of character of a distribution if the statement is made at or near

11-20 the time of distribution by the entity’s board of directors or other person

11-21 or group of persons authorized to exercise powers to pay money or

11-22 transfer property comparable to those of a corporation’s board of

11-23 directors.

11-24 Sec. 25. A trustee shall allocate to income an amount received as a

11-25 distribution of income from a trust or an estate in which the trust has an

11-26 interest other than a purchased interest, and shall allocate to principal an

11-27 amount received as a distribution of principal from such a trust or estate.

11-28 If a trustee purchases an interest in a trust that is an investment entity, or

11-29 a decedent or donor transfers an interest in such a trust to a trustee,

11-30 section 24 or 38 of this act applies to a receipt from the trust.

11-31 Sec. 26. 1. If a trustee who conducts a business or other activity

11-32 determines that it is in the best interest of all the beneficiaries to account

11-33 separately for the business or activity instead of accounting for it as part

11-34 of the trust’s general accounting records, he may maintain separate

11-35 accounting records for its transactions, whether or not its assets are

11-36 segregated from other trust assets.

11-37 2. A trustee who accounts separately for a business or other activity

11-38 may determine the extent to which its net cash receipts must be retained

11-39 for working capital, the acquisition or replacement of fixed assets, and

11-40 other reasonably foreseeable needs of the business or activity, and the

11-41 extent to which the remaining net cash receipts are accounted for as

11-42 principal or income in the trust’s general accounting records. If a trustee

11-43 sells assets of the business or other activity, other than in the ordinary

12-1 course of the business or activity, he shall account for the net amount

12-2 received as principal in the trust’s general accounting records to the

12-3 extent he determines that the amount received is no longer required in the

12-4 conduct of the business.

12-5 3. Activities for which a trustee may maintain separate accounting

12-6 records include:

12-7 (a) Retail, manufacturing, service, and other traditional business

12-8 activities;

12-9 (b) Farming;

12-10 (c) Raising and selling livestock and other animals;

12-11 (d) Management of rental properties;

12-12 (e) Extraction of minerals and other natural resources;

12-13 (f) Timber operations; and

12-14 (g) Activities to which section 37 of this act applies.

12-15 Sec. 27. A trustee shall allocate to principal:

12-16 1. To the extent not allocated to income under sections 15 to 44,

12-17 inclusive, of this act, assets received from a transferor during the

12-18 transferor’s lifetime, a decedent’s estate, a trust with a terminating

12-19 income interest, or a payor under a contract naming the trust or its

12-20 trustee as beneficiary;

12-21 2. Money or other property received from the sale, exchange,

12-22 liquidation, or change in form of a principal asset, including realized

12-23 profit, subject to sections 15 to 44, inclusive, of this act;

12-24 3. Amounts recovered from third parties to reimburse the trust

12-25 because of disbursements described in paragraph (g) of subsection 1 of

12-26 section 40 of this act or for other reasons to the extent not based on the

12-27 loss of income;

12-28 4. Proceeds of property taken by eminent domain, but a separate

12-29 award made for the loss of income with respect to an accounting period

12-30 during which a current income beneficiary had a mandatory income

12-31 interest is income;

12-32 5. Net income received in an accounting period during which there is

12-33 no beneficiary to whom a trustee may or must distribute income; and

12-34 6. Other receipts as provided in sections 21, 22 and 23 of this act.

12-35 Sec. 28. To the extent that a trustee accounts for receipts from rental

12-36 property pursuant to this section, he shall allocate to income an amount

12-37 received as rent of real or personal property, including an amount

12-38 received for cancellation or renewal of a lease. An amount received as a

12-39 refundable deposit, including a security deposit or a deposit that is to be

12-40 applied as rent for future periods, must be added to principal and held

12-41 subject to the terms of the lease and is not available for distribution to a

12-42 beneficiary until the trustee’s contractual obligations have been satisfied

12-43 with respect to that amount.

13-1 Sec. 29. 1. An amount received as interest, whether determined at a

13-2 fixed, variable, or floating rate, on an obligation to pay money to the

13-3 trustee, including an amount received as consideration for prepaying

13-4 principal, must be allocated to income without any provision for

13-5 amortization of premium.

13-6 2. A trustee shall allocate to principal an amount received from the

13-7 sale, redemption, or other disposition of an obligation to pay money to

13-8 him more than one year after it is purchased or acquired by him,

13-9 including an obligation whose purchase price or value when it is acquired

13-10 is less than its value at maturity. If the obligation matures within one year

13-11 after it is purchased or acquired by the trustee, an amount received in

13-12 excess of its purchase price or its value when acquired by the trust must

13-13 be allocated to income.

13-14 3. This section does not apply to an obligation to which section 32,

13-15 33, 34, 35, 37 or 38 of this act applies.

13-16 Sec. 30. 1. Except as otherwise provided in this section a trustee

13-17 shall allocate to principal the proceeds of a life insurance policy or other

13-18 contract in which the trust or its trustee is named as beneficiary,

13-19 including a contract that insures the trust or its trustee against loss for

13-20 damage to, destruction of, or loss of title to a trust asset. He shall allocate

13-21 dividends on an insurance policy to income if the premiums on the policy

13-22 are paid from income, and to principal if the premiums are paid from

13-23 principal.

13-24 2. A trustee shall allocate to income proceeds of a contract that

13-25 insures him against loss of occupancy or other use by an income

13-26 beneficiary, loss of income, or, subject to section 26 of this act, loss of

13-27 profits from a business.

13-28 3. This section does not apply to a contract to which section 32 of this

13-29 act applies.

13-30 Sec. 31. If a trustee determines that an allocation between principal

13-31 and income required by section 32, 33, 34, 35, or 38 of this act is

13-32 insubstantial, the trustee may allocate the entire amount to principal

13-33 unless one of the circumstances described in subsection 3 of section 18 of

13-34 this act applies to the allocation. This power may be exercised by a

13-35 cotrustee in the circumstances described in subsection 4 of section 18 of

13-36 this act and may be released for the reasons and in the manner described

13-37 in subsection 5 of section 18 of this act. An allocation is presumed to be

13-38 insubstantial if:

13-39 1. The amount of the allocation would increase or decrease net

13-40 income in an accounting period, as determined before the allocation, by

13-41 less than 10 percent; or

14-1 2. The value of the asset producing the receipt for which the

14-2 allocation would be made is less than 10 percent of the total value of the

14-3 trust’s assets at the beginning of the accounting period.

14-4 Sec. 32. 1. As used in this section, "payment" means a payment

14-5 that a trustee may receive over a fixed number of years or during the life

14-6 of one or more individuals because of services rendered or property

14-7 transferred to the payor in exchange for future payments. The term

14-8 includes a payment made in money or property from the payor’s general

14-9 assets or from a separate fund created by the payor, including a private or

14-10 commercial annuity, an individual retirement account, and a pension,

14-11 profit-sharing, stock-bonus, or stock-ownership plan.

14-12 2. To the extent that a payment is characterized as interest or a

14-13 dividend or a payment made in lieu of interest or a dividend, a trustee

14-14 shall allocate it to income. He shall allocate to principal the balance of

14-15 the payment and any other payment received in the same accounting

14-16 period that is not characterized as interest, a dividend, or an equivalent

14-17 payment.

14-18 3. If no part of a payment is characterized as interest, a dividend, or

14-19 an equivalent payment, and all or part of the payment is required to be

14-20 made, a trustee shall allocate to income 10 percent of the part that is

14-21 required to be made during the accounting period and the balance to

14-22 principal. If no part of a payment is required to be made or the payment

14-23 received is the entire amount to which the trustee is entitled, he shall

14-24 allocate the entire payment to principal. For purposes of this subsection, a

14-25 payment is not "required to be made" to the extent that it is made because

14-26 the trustee exercises a right of withdrawal.

14-27 4. If, to obtain an estate tax marital deduction for a trust, a trustee

14-28 must allocate more of a payment to income than provided for by this

14-29 section, he shall allocate to income the additional amount necessary to

14-30 obtain the marital deduction.

14-31 5. This section does not apply to payments to which section 33 of this

14-32 act applies.

14-33 Sec. 33. 1. As used in this section, "liquidating asset" means an

14-34 asset whose value will diminish or terminate because the asset is expected

14-35 to produce receipts for a period of limited duration. The term includes a

14-36 leasehold, patent, copyright, royalty right, and right to receive payments

14-37 during a period of more than one year under an arrangement that does

14-38 not provide for the payment of interest on the unpaid balance. The term

14-39 does not include a payment subject to section 32 of this act, resources

14-40 subject to section 34 of this act, timber subject to section 35 of this act, an

14-41 activity subject to section 37 of this act, an asset subject to section 38 of

14-42 this act, or any asset for which the trustee establishes a reserve for

14-43 depreciation under section 41 of this act.

15-1 2. A trustee shall allocate to income 10 percent of the receipts from a

15-2 liquidating asset and the balance to principal.

15-3 Sec. 34. 1. To the extent that a trustee accounts for receipts from

15-4 an interest in minerals or other natural resources pursuant to this section,

15-5 the trustee shall allocate them as follows:

15-6 (a) If received as nominal delay rental or nominal annual rent on a

15-7 lease, a receipt must be allocated to income.

15-8 (b) If received from a production payment, a receipt must be allocated

15-9 to income if and to the extent that the agreement creating the production

15-10 payment provides a factor for interest or its equivalent. The balance must

15-11 be allocated to principal.

15-12 (c) If an amount received as a royalty, shut-in-well payment, take-or-

15-13 pay payment, bonus, or delay rental is more than nominal, 90 percent

15-14 must be allocated to principal and the balance to income.

15-15 (d) If an amount is received from a working interest or any other

15-16 interest not provided for in paragraph (a), (b) or (c), 90 percent of the net

15-17 amount received must be allocated to principal and the balance to

15-18 income.

15-19 2. An amount received on account of an interest in water that is

15-20 renewable must be allocated to income. If the water is not renewable, 90

15-21 percent of the amount must be allocated to principal and the balance to

15-22 income.

15-23 3. Sections 15 to 44, inclusive, of this act apply whether or not a

15-24 decedent or donor was extracting minerals, water, or other natural

15-25 resources before the interest became subject to the trust.

15-26 4. If a trust owns an interest in minerals, water, or other natural

15-27 resources on October 1, 1999, the trustee may allocate receipts from the

15-28 interest as provided in sections 15 to 44, inclusive, of this act or in the

15-29 manner used by the trustee before October 1, 1999. If the trust acquires

15-30 an interest in minerals, water, or other natural resources after October 1,

15-31 1999, the trustee shall allocate receipts from the interest as provided in

15-32 sections 15 to 44, inclusive, of this act.

15-33 Sec. 35. 1. To the extent that a trustee accounts for receipts from

15-34 the sale of timber and related products pursuant to this section, the trustee

15-35 shall allocate the net receipts:

15-36 (a) To income to the extent that the amount of timber removed from

15-37 the land does not exceed the rate of growth of the timber during the

15-38 accounting periods in which a beneficiary has a mandatory income

15-39 interest;

15-40 (b) To principal to the extent that the amount of timber removed from

15-41 the land exceeds the rate of growth of timber or the net receipts are from

15-42 the sale of standing timber;

16-1 (c) To or between income and principal if the net receipts are from the

16-2 lease of timberland or from a contract to cut timber from land owned by a

16-3 trust, by determining the amount of timber removed from the land under

16-4 the lease of contract and applying the rules in paragraphs (a) and (b); or

16-5 (d) To principal to the extent that advance payments, bonuses, and

16-6 other payments are not allocated pursuant to paragraph (a), (b) or (c).

16-7 2. In determining net receipts to be allocated pursuant to subsection

16-8 1, a trustee shall deduct and transfer to principal a reasonable amount for

16-9 depletion.

16-10 3. Sections 15 to 44, inclusive, of this act apply whether or not a

16-11 decedent or transferor was harvesting timber from the property before it

16-12 became subject to the trust.

16-13 4. If a trust owns an interest in timberland on October 1, 1999, the

16-14 trustee may allocate net receipts from the sale of timber and related

16-15 products as provided in sections 15 to 44, inclusive, of this act or in the

16-16 manner used by the trustee before October 1, 1999. If the trust acquires

16-17 an interest in timberland after October 1, 1999, the trustee shall allocate

16-18 net receipts from the sale of timber and related products as provided in

16-19 sections 15 to 44, inclusive, of this act.

16-20 Sec. 36. 1. If a marital deduction is allowed for all or part of a trust

16-21 whose assets consist substantially of property that does not provide the

16-22 surviving spouse with sufficient income from or use of the trust assets,

16-23 and if the amounts that the trustee transfers from principal to income

16-24 under section 18 of this act and distributes to the spouse from principal

16-25 pursuant to the terms of the trust are insufficient to provide the spouse

16-26 with the beneficial enjoyment required to obtain the marital deduction,

16-27 the spouse may require the trustee to make property productive of income,

16-28 convert property within a reasonable time, or exercise the power

16-29 conferred by subsection 1 of section 18 of this act. The trustee may decide

16-30 which action or combination of actions to take.

16-31 2. In cases not governed by subsection 1, proceeds from the sale or

16-32 other disposition of an asset are principal without regard to the amount of

16-33 income the asset produces during any accounting period.

16-34 Sec. 37. 1. As used in this section, "derivative" means a contract of

16-35 financial instrument or a combination of contracts and financial

16-36 instruments which gives a trust the right or obligation to participate in

16-37 some or all changes in the price of a tangible or intangible asset or group

16-38 of assets, or changes in a rate, an index of prices or rates, or other market

16-39 indicator for an asset or a group of assets.

16-40 2. To the extent that a trustee accounts for transactions in derivatives

16-41 pursuant to this section, he shall allocate to principal receipts from and

16-42 disbursements made in connection with those transactions.

17-1 3. If a trustee grants an option to buy property from the trust, whether

17-2 or not the trust owns the property when the option is granted, grants an

17-3 option that permits another person to sell property to the trust, or acquires

17-4 an option to buy property for the trust or an option to sell an asset owned

17-5 by the trust, and the trustee or other owner of the asset is required to

17-6 deliver the asset if the option is exercised, an amount received for

17-7 granting the option must be allocated to principal. An amount paid to

17-8 acquire the option must be paid from principal. A gain or loss realized

17-9 upon the exercise of an option, including an option granted to a settlor of

17-10 the trust for services rendered, must be allocated to principal.

17-11 Sec. 38. 1. As used in this section, "asset-backed security" means

17-12 an asset whose value is based upon the right it gives the owner to receive

17-13 distributions from the proceeds of financial assets that provide collateral

17-14 for the security. The term includes an asset that gives the owner the right

17-15 to receive from the collateral financial assets only the interest or other

17-16 current return or only the proceeds other than interest or current return.

17-17 The term does not include an asset to which section 24 or 32 of this act

17-18 applies.

17-19 2. If a trust receives a payment from interest or other current return

17-20 and from other proceeds of the collateral financial assets, the trustee shall

17-21 allocate to income the portion of the payment which the payor identifies

17-22 as being from interest or other current return and shall allocate the

17-23 balance of the payment to principal.

17-24 3. If a trust receives one or more payments in exchange for the trust’s

17-25 entire interest in an asset-backed security in one accounting period, the

17-26 trustee shall allocate the payments to principal. If a payment is one of a

17-27 series of payments that will result in the liquidation of the trust’s interest

17-28 in the security over more than one accounting period, the trustee shall

17-29 allocate 10 percent of the payment to income and the balance to

17-30 principal.

17-31 Sec. 39. A trustee shall make the following disbursements from

17-32 income to the extent that they are not disbursements to which paragraph

17-33 (b) or (c) of subsection 2 of section 19 of this act applies:

17-34 1. One-half of the regular compensation of the trustee and of any

17-35 person providing advisory or custodial services to the trustee concerning

17-36 investment;

17-37 2. One-half of all expenses for accountings, judicial proceedings, or

17-38 other matters that involve both the income and remainder interests;

17-39 3. All of the other ordinary expenses incurred in connection with the

17-40 administration, management or preservation of trust property and the

17-41 distribution of income, including interest, ordinary repairs, regularly

17-42 recurring taxes assessed against principal, and expenses of a proceeding

17-43 or other matter that concerns primarily the income interest; and

18-1 4. Recurring premiums on insurance covering the loss of a principal

18-2 asset or the loss of income from or use of the asset.

18-3 Sec. 40. 1. A trustee shall make the following disbursements from

18-4 principal:

18-5 (a) The remaining one-half of the disbursements described in

18-6 subsections 1 and 2 of section 39 of this act;

18-7 (b) All of the trustee’s compensation calculated on principal as a fee

18-8 for acceptance, distribution, or termination, and disbursements made to

18-9 prepare property for sale;

18-10 (c) Payments on the principal of a trust debt;

18-11 (d) Expenses of a proceeding that concerns primarily principal,

18-12 including a proceeding to construe the trust or to protect the trust or its

18-13 property;

18-14 (e) Premiums paid on a policy of insurance not described in subsection

18-15 4 of section 39 of this act of which the trust is the owner and beneficiary;

18-16 (f) Estate, inheritance, and other transfer taxes, including penalties,

18-17 apportioned to the trust; and

18-18 (g) Disbursements related to environmental matters, including

18-19 reclamation, assessing environmental conditions, remedying and

18-20 removing environmental contamination, monitoring remedial activities

18-21 and the release of substances, preventing future releases of substances,

18-22 collecting amounts from persons liable or potentially liable for the costs

18-23 of those activities, penalties imposed under environmental laws or

18-24 regulations and other payments made to comply with those laws or

18-25 regulations, statutory or common law claims by third parties, and

18-26 defending claims based on environmental matters.

18-27 2. If a principal asset is encumbered with an obligation that requires

18-28 income from that asset to be paid directly to the creditor, the trustee shall

18-29 transfer from principal to income an amount equal to the income paid to

18-30 the creditor in reduction of the principal balance of the obligation.

18-31 Sec. 41. 1. As used in this section, "depreciation" means a

18-32 reduction in value due to wear, tear, decay, corrosion, or gradual

18-33 obsolescence of a fixed asset having a useful life of more than one year.

18-34 2. A fiduciary may transfer to principal a reasonable amount of the

18-35 net cash receipts from a principal asset that is subject to depreciation, but

18-36 may not transfer any amount for depreciation:

18-37 (a) Of that portion of real property used or available for use by a

18-38 beneficiary as a residence or of tangible personal property held or made

18-39 available for the personal use or enjoyment of a beneficiary;

18-40 (b) During the administration of a decedent’s estate; or

18-41 (c) Under this section if a trustee is accounting under section 26 of this

18-42 act for the business or activity in which the asset is used.

19-1 3. An amount transferred to principal need not be held as a separate

19-2 fund.

19-3 Sec. 42. 1. If a trustee makes or expects to make a principal

19-4 disbursement described in this section, he may transfer an appropriate

19-5 amount from income to principal in one or more accounting periods to

19-6 reimburse principal or to provide a reserve for future principal

19-7 disbursements.

19-8 2. Principal disbursements to which subsection 1 applies include the

19-9 following, but only to the extent that the trustee has not been and does not

19-10 expect to be reimbursed by a third party:

19-11 (a) An amount chargeable to income but paid from principal because

19-12 it is unusually large, including extraordinary repairs;

19-13 (b) A capital improvement to a principal asset, whether in the form of

19-14 changes to an existing asset or the construction of a new asset, including

19-15 special assessments;

19-16 (c) Disbursements made to prepare property for rental, including

19-17 tenant allowances, leasehold improvements, and broker’s commissions;

19-18 (d) Periodic payments on an obligation secured by a principal asset to

19-19 the extent that the amount transferred from income to principal for

19-20 depreciation is less than the periodic payments; and

19-21 (e) Disbursements described in paragraph (g) of subsection 1 of

19-22 section 40 of this act.

19-23 3. If the asset whose ownership gives rise to the disbursements

19-24 becomes subject to a successive income interest after an income interest

19-25 ends, a trustee may continue to transfer amounts from income to

19-26 principal as provided in subsection 1.

19-27 Sec. 43. 1. A tax required to be paid by a trustee based on receipts

19-28 allocated to income must be paid from income.

19-29 2. A tax required to be paid by a trustee based on receipts allocated to

19-30 principal must be paid from principal, even if the tax is called an income

19-31 tax by the taxing authority.

19-32 3. A tax required to be paid by a trustee on the trust’s share of an

19-33 entity’s taxable income must be paid proportionately:

19-34 (a) From income to the extent that receipts from the entity are

19-35 allocated to income; and

19-36 (b) From principal to the extent that:

19-37 (1) Receipts from the entity are allocated to principal; and

19-38 (2) The trust’s share of the entity’s taxable income exceeds the total

19-39 receipts described in paragraph (a) and subparagraph (1) of this

19-40 paragraph.

19-41 4. For the purposes of this section, receipts allocated to principal or

19-42 income must be reduced by the amount distributed to a beneficiary from

20-1 principal or income for which the trust receives a deduction in calculating

20-2 the tax.

20-3 Sec. 44. 1. A fiduciary may make adjustments between principal

20-4 and income to offset the shifting of economic interests or tax benefits

20-5 between income beneficiaries and remainder beneficiaries which arise

20-6 from:

20-7 (a) Elections and decisions, other than those described in subsection 2,

20-8 that the fiduciary makes from time to time regarding tax matters;

20-9 (b) An income tax or any other tax that is imposed upon the fiduciary

20-10 or a beneficiary as a result of a transaction involving or a distribution

20-11 from the estate or the trust; or

20-12 (c) The ownership by an estate or trust of an interest in an entity whose

20-13 taxable income, whether or not distributed, is includable in the taxable

20-14 income of the estate, the trust, or a beneficiary.

20-15 2. If the amount of an estate tax marital deduction or charitable

20-16 contribution deduction is reduced because a fiduciary deducts an amount

20-17 paid from principal for income tax purposes instead of deducting it for

20-18 estate tax purposes, and as a result estate taxes paid from principal are

20-19 increased and income taxes paid by an estate, trust, or beneficiary are

20-20 decreased, each estate, trust, or beneficiary that benefits from the

20-21 decrease in income tax shall reimburse the principal from which the

20-22 increase in estate tax is paid. The total reimbursement must equal the

20-23 increase in the estate tax to the extent that the principal used to pay the

20-24 increase would have qualified for a marital deduction or charitable

20-25 contribution deduction but for the payment. The proportionate share of

20-26 the reimbursement for each estate, trust, or beneficiary whose income

20-27 taxes are reduced must be the same as its proportionate share of the total

20-28 decrease in income tax. An estate or trust shall reimburse principal from

20-29 income.

20-30 Sec. 45. NRS 423.235 is hereby amended to read as follows:

20-31 423.235 1. Except as otherwise provided in NRS 423.230, all money

20-42 (a) Keep a separate account for each child who receives money.

21-1 (b) Deduct from the account the costs for the care and support of the

21-2 child that are provided by the state, excluding any amount for which a

21-3 county is responsible. If the child is placed in foster care, money in the

21-4 account may be used for payments to a foster parent. Any surplus remaining

21-5 may be expended for extraordinary items deemed beneficial to the child.

21-6 (c) Remit any surplus balance to the child or his parent or legal guardian

21-7 upon release from the school.

21-8 4. The superintendent may be removed as trustee of such money only

21-9 upon application to the district court for the county in which the children’s

21-10 home is located. The district court may, for good cause shown and upon

21-11 notice to the beneficiary, relieve the superintendent from his duties as

21-12 trustee.

21-13 Sec. 46. NRS 452.160 is hereby amended to read as follows:

21-14 452.160 1. Endowment care funds must not be used for any purpose

21-38 notice, revoke the cemetery authority’s certificate of authority.

21-39 Sec. 47. NRS 452.720 is hereby amended to read as follows:

21-40 452.720 1. Money held in trust for the endowment care of a cemetery

21-42 income only, for the reserves authorized by law and for the endowment care

22-1 of the cemetery in accordance with the resolutions, bylaws, rules and

22-2 regulations or other actions or instruments of the cemetery authority.

22-3 2. The money must be invested and reinvested in:

22-4 (a) Bonds of the United States;

22-5 (b) Bonds of this state or the bonds of other states;

22-6 (c) Bonds of counties or municipalities of any state;

22-7 (d) With the approval of the administrator, first mortgages or first trust

22-8 deeds on improved real estate;

22-9 (e) Bank deposits in any federally insured bank or savings and loan

22-10 association; or

22-11 (f) With the written approval of the administrator, any investment which

22-12 would be proper under the provisions of [NRS 164.050.] sections 2 to 14,

22-13 inclusive, of this act.

22-14 Pending investment as provided in this subsection, such money may be

22-15 deposited in a federally insured account in any savings bank or savings and

22-16 loan association qualified to do business in this state.

22-17 3. Each cemetery authority shall annually submit to the administrator,

22-18 on a form prescribed and adopted by the administrator, a financial statement

22-19 of the condition of its trust fund for the endowment care of the cemetery.

22-20 The statement must be accompanied by a fee of $10. If the statement is not

22-21 received by the administrator he may, after giving 10 days’ notice, revoke

22-22 the cemetery authority’s certificate of authority.

22-23 Sec. 48. NRS 150.235, 164.050, 164.060, 164.065, 164.140, 164.150,

22-24 164.160, 164.170, 164.180, 164.190, 164.200, 164.210, 164.220, 164.230,

22-25 164.240, 164.250, 164.260, 164.270, 164.280, 164.290, 164.300, 164.310,

22-26 164.320, 164.330, 164.340, 164.350, 164.360 and 164.370 are hereby

22-27 repealed.

22-28 LEADLINES OF REPEALED SECTIONS

22-29 150.235 Use of income from securities or other property of trust

22-30 estate, life estate or estate for years created by or under will.

22-31 164.050 Standard of care in investing and managing property.

22-32 164.060 Investments and loans secured by Federal Housing

22-33 Administrator.

22-34 164.065 Investments in farm loan bonds and other obligations

22-35 issued by federal land banks and banks for cooperatives.

22-36 164.140 Short title.

22-37 164.150 Definitions.

22-38 164.160 "Income" defined.

22-39 164.170 "Income beneficiary" defined.

23-1 164.180 "Inventory value" defined.

23-2 164.190 "Principal" defined.