Part 12Accrued income profits
Chapter 2Accrued income profits and losses
The payments treated as made on transfers
635Payment on transfer of variable rate securities
1
In the case of a transfer of variable rate securities where the settlement day falls within an interest period, for the purposes of this Chapter a payment is treated as made to the transferor in that period.
2
The amount of the payment is such amount as is just and reasonable.
3
No one is treated as making the payment.
4
Accordingly, the payment is not brought into account in determining whether the transferee is treated as making accrued income profits or losses under section 628.
5
See section 630 for the rules that apply to transfers of variable rate securities where the settlement day falls outside an interest period.