760 ILCS 15/4

(760 ILCS 15/4) (from Ch. 30, par. 504)

Sec. 4.

Income and Principal Defined.

(a) Income is the return in money or property derived from the use of principal,
including return received as:

(1) rent of real or personal property, including sums received for
cancellation or renewal of a lease;

(2) interest received, including sums received as consideration for the
privilege of prepayment of principal except as provided in Section 8 on
premium and discount;

(3) income earned during administration of a decedent's estate, as provided
in Section 6;

(4) corporate distributions, as provided in Section 7;

(5) accrued increment on bonds or other obligations issued at discount,
as provided in Section 8;

(6) receipts from business and farming operations, as provided in Section 9;

(7) receipts from disposition of natural resources, as provided in Sections 10 and 11.

(b) Principal is the property which has been set aside by the owner or
the person legally empowered so that it is held in trust eventually to be
delivered to a remainderman, while the income is in the meantime taken or
received by or held for accumulation for an income beneficiary.  Principal includes:

(1) consideration received by the trustee on
the sale or other transfer of principal or on repayment of a loan or as a
refund or replacement or change in the form of principal;

(2) proceeds of property taken on eminent domain proceedings;

(3) proceeds of insurance upon property forming part of the principal except
proceeds of insurance upon a separate interest of an income beneficiary;

(4) stock dividends, receipts on liquidation of a corporation and other
corporate distributions, as provided in Section 7;

(5) receipts from the disposition of bonds or other obligations, as provided
in Section 8;

(6) receipts from disposition of natural resources, as provided in Sections
10 and 11;

(7) receipts from other principal subject to depletion, as provided in
Section 12;

(8) any profit resulting from any change in the form of
principal;

(9) any allowances for depreciation established under Section 9 and
paragraph
(2) of subsection (a) of Section 14;

(10) receipts from the granting of options.

(c) After determining income and principal in accordance with the terms
of the instrument or this Act, the trustee shall charge to income or principal
expenses and other charges as provided in Section 14.

(Source: P.A. 82-390.)