§ 22-3-410. Receipts normally apportioned -- Liquidating asset.

(1) In this section, "liquidating asset" means an asset whose value will diminish or terminate because the asset is expected to produce receipts for a period of limited duration. The term 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. The term does not include a payment subject to Section 22-3-409, resources subject to Section 22-3-411, timber subject to Section 22-3-412, an activity subject to Section 22-3-414, an asset subject to Section 22-3-415, or any asset for which the trustee establishes a reserve for depreciation under Section 22-3-503.

(2) A trustee shall allocate to income 10% of the receipts from a liquidating asset and the balance to principal.

Enacted by Chapter 285, 2004 General Session