Trustee Not to Amortize Sample Clauses

The 'Trustee not to Amortize' clause prohibits the trustee from reducing the principal of a trust's assets through amortization. In practice, this means that when the trust holds assets such as bonds or other investments that might typically be amortized over time, the trustee must not allocate any portion of the principal to income by amortizing premiums or discounts. This ensures that the principal value of the trust remains intact for the benefit of remainder beneficiaries, and that income beneficiaries receive only the actual income generated, not amounts derived from principal adjustments. The core function of this clause is to preserve the trust's principal and maintain a clear distinction between income and principal, thereby protecting the interests of both income and remainder beneficiaries.