Oklahoma § 60-175.415

§ 60-175.415.

Asset-backed securities.

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 Section 10 or 18 of this act 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 (10%) of the payment to income and the balance to principal.

Added by Laws 1998, c. 115, § 24, eff. Nov. 1, 1998.

Oklahoma Statutes - Title 60. Property