(a) As used in this Code section, the term “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. Such 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. Such term shall not include an asset to which Code Section 53-12-410 or 53-12-425 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 payor 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 or more payments in exchange for the trust's entire interest
in an asset-backed security in one accounting period, the trustee shall allocate the
payments to principal. If a payment is one of a series of payments that will result in the liquidation
of the trust's interest in the asset-backed security over more than one accounting
period, the trustee shall allocate 10 percent of the payment to income and the balance
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