{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/64.2-1061.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/64.2-1061.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/64.2-1061.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/64.2-1061.html"}],"law_id":67825,"edition_id":1,"section_id":67825,"structure_id":15635,"section_number":"64.2-1061","catch_line":"Derivative or option","history":"2022, c. 354.","full_text":"A\n\nAs used in this section, “derivative” means a contract, instrument, other arrangement, or combination of contracts, instruments, or other arrangements, the value, rights, and obligations of which are, in whole or in part, dependent on or derived from an underlying tangible or intangible asset, group of tangible or intangible assets, index, or occurrence of an event. “Derivative” includes stocks, fixed income securities, and financial instruments and arrangements based on indices, commodities, interest rates, weather-related events, and credit-default events.B\n\nTo the extent a fiduciary does not account for a transaction in derivatives as a business under § 64.2-1050, the fiduciary shall allocate 10 percent of receipts from the transaction and 10 percent of disbursements made in connection with the transaction to income and the balance to principal.C\n\nSubsection D applies if:1\n\nA fiduciary:\n\t\t\t\ta. Grants an option to buy property from a trust, whether or not the trust owns the property when the option is granted;\n\t\t\t\tb. Grants an option that permits another person to sell property to the trust; or\n\t\t\t\tc. Acquires an option to buy property for the trust or an option to sell an asset owned by the trust; and2\n\nThe fiduciary or other owner of the asset is required to deliver the asset if the option is exercised.D\n\nIf this subsection applies, the fiduciary shall allocate 10 percent to income and the balance to principal of the following amounts:1\n\nAn amount received for granting the option;2\n\nAn amount paid to acquire the option; and3\n\nGain or loss realized on the exercise, exchange, settlement, offset, closing, or expiration of the option.","order_by":null,"text":{"0":{"id":245640,"text":"As used in this section, “derivative” means a contract, instrument, other arrangement, or combination of contracts, instruments, or other arrangements, the value, rights, and obligations of which are, in whole or in part, dependent on or derived from an underlying tangible or intangible asset, group of tangible or intangible assets, index, or occurrence of an event. “Derivative” includes stocks, fixed income securities, and financial instruments and arrangements based on indices, commodities, interest rates, weather-related events, and credit-default events.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":245641,"text":"To the extent a fiduciary does not account for a transaction in derivatives as a business under § 64.2-1050, the fiduciary shall allocate 10 percent of receipts from the transaction and 10 percent of disbursements made in connection with the transaction to income and the balance to principal.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":245642,"text":"Subsection D applies if:","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"C1"},"3":{"id":245643,"text":"A fiduciary:\n\t\t\t\ta. Grants an option to buy property from a trust, whether or not the trust owns the property when the option is granted;\n\t\t\t\tb. Grants an option that permits another person to sell property to the trust; or\n\t\t\t\tc. Acquires an option to buy property for the trust or an option to sell an asset owned by the trust; and","type":"section","prefixes":["C","1"],"prefix":"1","entire_prefix":"C1","prefix_anchor":"C1","level":2,"prior_prefix":"C","next_prefix":"C2"},"4":{"id":245644,"text":"The fiduciary or other owner of the asset is required to deliver the asset if the option is exercised.","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C1","next_prefix":"D"},"5":{"id":245645,"text":"If this subsection applies, the fiduciary shall allocate 10 percent to income and the balance to principal of the following amounts:","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C2","next_prefix":"D1"},"6":{"id":245646,"text":"An amount received for granting the option;","type":"section","prefixes":["D","1"],"prefix":"1","entire_prefix":"D1","prefix_anchor":"D1","level":2,"prior_prefix":"D","next_prefix":"D2"},"7":{"id":245647,"text":"An amount paid to acquire the option; and","type":"section","prefixes":["D","2"],"prefix":"2","entire_prefix":"D2","prefix_anchor":"D2","level":2,"prior_prefix":"D1","next_prefix":"D3"},"8":{"id":245648,"text":"Gain or loss realized on the exercise, exchange, settlement, offset, closing, or expiration of the option.","type":"section","prefixes":["D","3"],"prefix":"3","entire_prefix":"D3","prefix_anchor":"D3","level":2,"prior_prefix":"D2"}},"ancestry":[{"id":15635,"edition_id":1,"name":"Allocation of Receipts: Receipts Normally Apportioned","identifier":"6","label":"article","depth":4,"order_by":1,"parent_id":13478,"metadata":{},"date_created":"2026-06-26 03:57:10","date_modified":"2026-06-26 03:57:10","permalink":{"id":273977,"object_type":"structure","relational_id":15635,"identifier":"6","token":"64.2\/III\/10.1\/6","url":"\/64.2\/III\/10.1\/6\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13478,"edition_id":1,"name":"Uniform Fiduciary Income And Principal Act","identifier":"10.1","label":"chapter","depth":3,"order_by":1,"parent_id":12724,"metadata":{},"date_created":"2026-06-26 03:44:58","date_modified":"2026-06-26 03:44:58","permalink":{"id":273863,"object_type":"structure","relational_id":13478,"identifier":"10.1","token":"64.2\/III\/10.1","url":"\/64.2\/III\/10.1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12724,"edition_id":1,"name":"Trusts","identifier":"III","label":"subtitle","depth":2,"order_by":1,"parent_id":12723,"metadata":{},"date_created":"2026-06-26 03:43:50","date_modified":"2026-06-26 03:43:50","permalink":{"id":273811,"object_type":"structure","relational_id":12724,"identifier":"III","token":"64.2\/III","url":"\/64.2\/III\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12723,"edition_id":1,"name":"Wills, Trusts, and Fiduciaries","identifier":"64.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:50","date_modified":"2026-06-26 03:43:50","permalink":{"id":272781,"object_type":"structure","relational_id":12723,"identifier":"64.2","token":"64.2","url":"\/64.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":81730,"structure_id":15635,"section_number":"64.2-1055","catch_line":"Insubstantial allocation not required","url":"\/64.2-1055\/","token":"64.2\/III\/10.1\/6\/64.2-1055","metadata":false},{"id":81654,"structure_id":15635,"section_number":"64.2-1056","catch_line":"Deferred compensation, annuity, or similar payment","url":"\/64.2-1056\/","token":"64.2\/III\/10.1\/6\/64.2-1056","metadata":false},{"id":70724,"structure_id":15635,"section_number":"64.2-1057","catch_line":"Liquidating asset","url":"\/64.2-1057\/","token":"64.2\/III\/10.1\/6\/64.2-1057","metadata":false},{"id":64796,"structure_id":15635,"section_number":"64.2-1058","catch_line":"Minerals, water, and other natural resources","url":"\/64.2-1058\/","token":"64.2\/III\/10.1\/6\/64.2-1058","metadata":false},{"id":59724,"structure_id":15635,"section_number":"64.2-1059","catch_line":"Timber","url":"\/64.2-1059\/","token":"64.2\/III\/10.1\/6\/64.2-1059","metadata":false},{"id":85155,"structure_id":15635,"section_number":"64.2-1060","catch_line":"Marital deduction property not productive of income","url":"\/64.2-1060\/","token":"64.2\/III\/10.1\/6\/64.2-1060","metadata":false},{"id":67825,"structure_id":15635,"section_number":"64.2-1061","catch_line":"Derivative or option","url":"\/64.2-1061\/","token":"64.2\/III\/10.1\/6\/64.2-1061","metadata":false},{"id":69967,"structure_id":15635,"section_number":"64.2-1062","catch_line":"Asset-backed security","url":"\/64.2-1062\/","token":"64.2\/III\/10.1\/6\/64.2-1062","metadata":false},{"id":72779,"structure_id":15635,"section_number":"64.2-1063","catch_line":"Other financial instrument or arrangement","url":"\/64.2-1063\/","token":"64.2\/III\/10.1\/6\/64.2-1063","metadata":false}],"previous_section":{"id":85155,"structure_id":15635,"section_number":"64.2-1060","catch_line":"Marital deduction property not productive of income","url":"\/64.2-1060\/","token":"64.2\/III\/10.1\/6\/64.2-1060","metadata":false},"next_section":{"id":69967,"structure_id":15635,"section_number":"64.2-1062","catch_line":"Asset-backed security","url":"\/64.2-1062\/","token":"64.2\/III\/10.1\/6\/64.2-1062","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/64.2-1061\/","history_text":"

This law was first created in 2022. The record of its establishment is cataloged in chapter 354<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year.<\/p>","references":[{"id":81918,"section_number":"64.2-1033","catch_line":"Definitions","order_by":null,"url":"\/64.2-1033\/"},{"id":60866,"section_number":"64.2-1050","catch_line":"Business or other activity conducted by fiduciary","order_by":null,"url":"\/64.2-1050\/"},{"id":64572,"section_number":"64.2-1053","catch_line":"Receipt on obligation to be paid in money","order_by":null,"url":"\/64.2-1053\/"},{"id":70724,"section_number":"64.2-1057","catch_line":"Liquidating asset","order_by":null,"url":"\/64.2-1057\/"},{"id":72779,"section_number":"64.2-1063","catch_line":"Other financial instrument or arrangement","order_by":null,"url":"\/64.2-1063\/"}],"refers_to":[{"id":60866,"section_number":"64.2-1050","catch_line":"Business or other activity conducted by fiduciary","order_by":null,"url":"\/64.2-1050\/"}],"permalink":{"id":274003,"object_type":"law","relational_id":67825,"identifier":"64.2-1061","token":"64.2\/III\/10.1\/6\/64.2-1061","url":"\/64.2-1061\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/64.2-1061\/","token":"64.2\/III\/10.1\/6\/64.2-1061","dublin_core":{"Title":"Derivative or option","Type":"Text","Format":"text\/html","Identifier":"\u00a7 64.2-1061","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> As used in this section, “derivative<\/span>” means a contract<\/span>, instrument, other arrangement, or combination of contracts<\/span>, instruments, or other arrangements, the value<\/span>, rights, and obligations of which are, in whole or in part, dependent on or derived from an underlying tangible or intangible asset, group of tangible or intangible assets<\/span>, index, or occurrence of an event. “Derivative<\/span>” includes stocks, fixed income<\/span> securities, and financial instruments and arrangements based on indices, commodities, interest rates, weather-related events, and credit-default<\/span> events. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> To the extent a fiduciary<\/span> does not account for a transaction in derivatives<\/span> as a business under § 64.2-1050<\/a>, the fiduciary<\/span> shall allocate 10 percent of receipts from the transaction and 10 percent of disbursements made in connection with the transaction to income<\/span> and the balance to principal<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Subsection D applies if: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> A fiduciary<\/span>:\n\t\t\t\ta. Grants an option to buy property from a trust<\/span>, whether or not the trust<\/span> owns the property when the option is granted;\n\t\t\t\tb. Grants an option that permits another person<\/span> to sell property to the trust<\/span>; or\n\t\t\t\tc. Acquires an option to buy property for the trust<\/span> or an option to sell an asset owned by the trust<\/span>; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The fiduciary<\/span> or other owner of the asset is required to deliver the asset if the option is exercised. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> If this subsection applies, the fiduciary<\/span> shall allocate 10 percent to income<\/span> and the balance to principal<\/span> of the following amounts: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> An amount received for granting the option; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> An amount paid to acquire the option; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Gain or loss realized on the exercise, exchange, settlement<\/span>, offset, closing, or expiration of the option. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nDERIVATIVE OR OPTION (\u00a7 64.2-1061)\n\nA. As used in this section, “derivative” means a contract,\ninstrument, other arrangement, or combination of contracts, instruments, or\nother arrangements, the value, rights, and obligations of which are, in whole or\nin part, dependent on or derived from an underlying tangible or intangible\nasset, group of tangible or intangible assets, index, or occurrence of an event.\n“Derivative” includes stocks, fixed income securities, and financial\ninstruments and arrangements based on indices, commodities, interest rates,\nweather-related events, and credit-default events.\n\nB. To the extent a fiduciary does not account for a transaction in derivatives\nas a business under § 64.2-1050, the fiduciary shall allocate 10 percent of\nreceipts from the transaction and 10 percent of disbursements made in connection\nwith the transaction to income and the balance to principal.\n\nC. Subsection D applies if:\n\n 1. A fiduciary:\n \t\t\t\ta. Grants an option to buy property from a trust, whether or not the trust\n owns the property when the option is granted;\n \t\t\t\tb. Grants an option that permits another person to sell property to the\n trust; or\n \t\t\t\tc. Acquires an option to buy property for the trust or an option to sell\n an asset owned by the trust; and\n\n 2. The fiduciary or other owner of the asset is required to deliver the asset\n if the option is exercised.\n\nD. If this subsection applies, the fiduciary shall allocate 10 percent to income\nand the balance to principal of the following amounts:\n\n 1. An amount received for granting the option;\n\n 2. An amount paid to acquire the option; and\n\n 3. Gain or loss realized on the exercise, exchange, settlement, offset,\n closing, or expiration of the option.\n\nHISTORY: 2022, c. 354.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}