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.