---
title: O.C.G.A. § 53-12-430. Derivatives and options.
collection: code
id: 53-12-430
cite_as: O.C.G.A. § 53-12-430 (2025)
canonical_url: https://georgiacommons.org/code/53-12-430
md_url: https://georgiacommons.org/code/53-12-430.md
text_url: https://georgiacommons.org/code/53-12-430/text
source_url: https://www.legis.ga.gov/api/document/docs/default-source/joint-features-document-library/t52-t53-(v40)-2021-pdf.pdf?sfvrsn=d23ba203_0#page=953
date: 2025
status: active
corpus_version: 2025-supplement-89aa39ab3c68
license: CC0-1.0
publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
up: https://georgiacommons.org/code/53-12.md
previous: https://georgiacommons.org/code/53-12-429.md
next: https://georgiacommons.org/code/53-12-431.md
index: https://georgiacommons.org/code/index.md
version: the only printed version
in_force: true
current_through: Including Acts of the 2025 Regular Session of the General Assembly
heading_path: WILLS, TRUSTS, AND ADMINISTRATION OF ESTATES / TRUSTS / GEORGIA PRINCIPAL AND INCOME ACT / ALLOCATION OF RECEIPTS DURING ADMINISTRATION OF TRUST / Receipts Not Normally Apportioned
---

# O.C.G.A. § 53-12-430. Derivatives and options.

(a) 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.

(b) 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.

(c) 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.

## History

Code 1981, § 53-12-430, enacted by Ga. L. 2010, p. 579, § 1/SB 131.