14-7419. Liquidating assets; definition

A. A trustee shall allocate to income ten per cent of the receipts from a liquidating asset and the balance to principal.

B. For the purposes of this section, "liquidating asset":

1. Means an asset whose value will diminish or terminate because the asset is expected to produce receipts for a period of limited duration.

2. Includes a leasehold, patent, copyright, royalty right and right to receive payments during a period of more than one year under an arrangement that does not provide for the payment of interest on the unpaid balance.

3. Does not include:

(a) A payment subject to section 14-7418.

(b) Resources subject to section 14-7420.

(c) Timber subject to section 14-7421.

(d) An activity subject to section 14-7423.

(e) An asset subject to section 14-7424.

(f) Any asset for which the trustee establishes a reserve for depreciation under section 14-7427.