Georgia § 53-12-430 - Derivatives and options.
Full text of Georgia Official Code of Georgia Annotated § 53-12-430 — Derivatives and options., with citation guidance and answers to common questions.
§ 53-12-430. Derivatives and options.
As used in this Code section, the term "derivative" means a contract or financial instrument or a combination of contracts and financial instruments which gives a trust the right or obligation to participate in some or all changes in the price of a tangible or intangible asset or group of assets, or changes in a rate, an index of prices or rates, or other market indicator for an asset or a group of assets. To the extent that a trustee does not account under Code Section 53-12-412 for transactions in derivatives, the trustee shall allocate to principal receipts from and disbursements made in connection with those transactions. If a trustee grants an option to buy property from the trust, whether or not the trust owns the property when the option is granted, grants an option that permits another person to sell property to the trust, or acquires an option to buy property for the trust or an option to sell an asset owned by the trust, and the trustee or other owner of the asset is required to deliver the asset if the option is exercised, an amount received for granting the option shall be allocated to principal. An amount paid to acquire the option shall be paid from principal. A gain or loss realized upon the exercise of an option, including an option granted to a settlor of the trust for services rendered, shall be allocated to principal. (Code 1981, § 53-12-430 , enacted by Ga. L. 2010, p. 579, § 1/SB 131.)
Frequently Asked Questions About Georgia § 53-12-430
What does Official Code of Georgia Annotated § 53-12-430 cover?
Section 53-12-430 ("Derivatives and options.") is part of the Official Code of Georgia Annotated, the codified statutory law of Georgia. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Georgia § 53-12-430?
A common citation format is "Official Code of Georgia Annotated § 53-12-430" (Georgia). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Georgia law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Georgia official source linked on this page or consult a licensed Georgia attorney.
How does Georgia § 53-12-430 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Georgia can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Georgia.