                                 CODE OF VIRGINIA

RECEIPT ON OBLIGATION TO BE PAID IN MONEY (§ 64.2-1053)

A. This section does not apply to an obligation to which &#xA7; 64.2-1056,
64.2-1057, 64.2-1058, 64.2-1059, 64.2-1061, 64.2-1062, or 64.2-1063 applies.

B. A fiduciary shall allocate to income, without provision for amortization of
premium, an amount received as interest on an obligation to pay money to the
fiduciary, including an amount received as consideration for prepaying
principal.

C. A fiduciary shall allocate to principal an amount received from the sale,
redemption, or other disposition of an obligation to pay money to the fiduciary.
A fiduciary shall allocate to income the increment in value of a bond or other
obligation for the payment of money bearing no stated interest but payable or
redeemable, at maturity or another future time, in an amount that exceeds the
amount in consideration of which it was issued.

HISTORY: 2022, c. 354.