What are derivative proceeds in asset forfeiture?

• A. Profits from the sale are saved for the agency.
• B. Proceeds obtained from the sale of forfeited assets, which may be distributed according to law or policy.
• C. Money returned to the owner.
• D. Proceeds from insurance claim.

Answer: (B)

Derivative proceeds are the funds obtained from selling assets that have been forfeited. After assets are forfeited, they’re often sold at auction or another disposition, and the money from those sales is the derivative (forfeiture) proceeds. These funds are typically distributed according to applicable laws or agency policies, rather than simply being kept as profit by the agency. This distinguishes them from simply returning money to the owner or from insurance payouts. So the correct description is that derivative proceeds come from the sale of forfeited assets and may be allocated per law or policy.