N.Y. EPT Law § 11-A-4.15

§ 11-A-4.15 Asset-backed securities\n (a) In this section, "asset-backed security" means an asset whose\nvalue is based upon the right it gives the owner to receive\ndistributions from the proceeds of financial assets that provide\ncollateral for the security. The term includes an asset that gives the\nowner the right to receive from the collateral financial assets only the\ninterest or other current return or only the proceeds other than\ninterest or current return. The term does not include an asset to which\n11-A-4.1 or 11-A-4.9 applies.\n (b) If a trust receives a payment from interest or other current\nreturn and from other proceeds of the collateral financial assets, the\ntrustee shall allocate to income the portion of the payment which the\npayer identifies as being from interest or other current return and\nshall allocate the balance of the payment to principal.\n (c) If a trust receives one or more payments in exchange for the\ntrust's entire interest in an asset-backed security in one accounting\nperiod, the trustee shall allocate the payments to principal. If a\npayment is one of a series of payments that will result in the\nliquidation of the trust's interest in the security over more than one\naccounting period, the trustee shall allocate ten percent of the payment\nto income and the balance to principal.\n