Utah Code 75A-5-415. Receipts normally apportioned — Asset-backed security
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(1) Except as otherwise provided in Subsection (2), a fiduciary shall allocate:
Terms Used In Utah Code 75A-5-415
- Asset-backed security: includes rights or other assets that ensure the servicing or timely distribution of proceeds to the holder of the asset-backed security. See Utah Code 75A-5-102
- Fiduciary: A trustee, executor, or administrator.
- Fiduciary: includes :(8)(a) a trustee, trust director as defined in Section
75-12-102 , personal representative, life tenant, holder of a term interest, and person acting under a delegation from a fiduciary;(8)(b) a person that holds property for a successor beneficiary whose interest may be affected by an allocation of receipts and expenditures between income and principal; and(8)(c) if there are two or more co-fiduciaries, all co-fiduciaries acting under the terms of the trust and applicable law. See Utah Code 75A-5-102- Income: includes a part of receipts from a sale, exchange, or liquidation of a principal asset to the extent provided in Part 4, Allocation of Receipts. See Utah Code 75A-5-102
- Principal: means property held in trust for distribution to, production of income for, or use by a current or successor beneficiary. See Utah Code 75A-5-102
(1)(a) to income, a receipt from or related to an asset-backed security, to the extent that the payor identifies the payment as being from interest or other current return; and(1)(b) to principal, the balance of the receipt.
(2) If a fiduciary receives one or more payments in exchange for part or all of the fiduciary’s interest in an asset-backed security, including a liquidation or redemption of the fiduciary’s interest in the security, the fiduciary shall allocate:
(2)(a) to income, 10% of receipts from the transaction and 10% of disbursements made in connection with the transaction; and
(2)(b) to principal, the balance of the receipts and disbursements.