469.449. Allocation of collateral financial assets and asset-backed securities. - Missouri Statutes

Allocation of collateral financial assets and asset-backed securities.

469.449. 1. As used in this section, the phrase "asset-backedsecurity" means an asset whose value is based upon the right it gives theowner to receive distributions from the proceeds of financial assets thatprovide collateral for the security. The phrase includes an asset thatgives the owner the right to receive from the collateral financial assetsonly the interest or other current return or only the proceeds other thaninterest or current return. The phrase does not include an asset to whichsection 469.423 or 469.437 applies.

2. If a trust receives a payment from interest or other currentreturn and from other proceeds of the collateral financial assets, thetrustee shall allocate to income the portion of the payment which the payeridentifies as being from interest or other current return and shallallocate the balance of the payment to principal.

3. If a trust receives one or more payments in exchange for thetrust's entire interest in an asset-backed security in one accountingperiod, the trustee shall allocate the payments to principal. If a paymentis one of a series of payments that will result in the liquidation of thetrust's interest in the security over more than one accounting period, thetrustee shall allocate ten percent of the payment to income and the balanceto principal.

(L. 2001 H.B. 241, A.L. 2004 H.B. 1511)