§ 11-A-4.15 Asset-backed securities

(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
11-A-4.1 or 11-A-4.9 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 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 security over more than one
accounting period, the trustee shall allocate ten percent of the payment
to income and the balance to principal.