§ 2-3-825 — Asset-backed securities

Wyoming § 2-3-825

• Jurisdiction: Wyoming
• Title 02: Wills, Decedents' Estates and Probate Code
• Ch. 3: FIDUCIARIES
• Art. 8: PRINCIPAL AND INCOME

Text

(a) In this section, "asset-backed security" means an
asset whose value is based upon the right it gives the owner to
receive distributions from the proceeds of financial assets that
provide collateral for the security. The term includes an asset
that gives the owner the right to receive from the collateral
financial assets only the interest or other current return or
only the proceeds other than interest or current return. The
term does not include an asset to which W.S. 2-3-811 or 2-3-819
applies.
(b) If a trust receives a payment from interest or other
current return and from other proceeds of the collateral
financial assets, the trustee shall allocate to income the
portion of the payment which the payer identifies as being from
interest or other current return and shall allocate the balance
of the payment to principal.
(c) If a trust receives one (1) or more payments in
exchange for the trust's entire interest in an asset-backed
security in one (1) accounting period, the trustee shall
allocate the payments to principal. If a payment is one (1) of a
series of payments that will result in the liquidation of the
trust's interest in the security over more than one (1)
accounting period, the trustee shall allocate ten percent (10%)
of the payment to income and the balance to principal.