                                 CODE OF VIRGINIA

ASSET-BACKED SECURITY (§ 64.2-1062)

A. Except as otherwise provided in subsection B, a fiduciary shall allocate to
income a receipt from or related to an asset-backed security, to the extent the
payor identifies the payment as being from interest or other current return, and
to principal the balance of the receipt.

B. If a fiduciary receives one or more payments in exchange for part or all of
the fiduciary&#8217;s interest in an asset-backed security, including a
liquidation or redemption of the fiduciary&#8217;s interest in the security, the
fiduciary shall allocate to income 10 percent of receipts from the transaction
and 10 percent of disbursements made in connection with the transaction and to
principal the balance of the receipts and disbursements.

HISTORY: 2022, c. 354.