§ 55-277.19. Liquidating asset
A. 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, or royalty right, and a 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 § 55-277.18, resources subject to § 55-277.20, timber subject to § 55-277.21, an activity subject to § 55-277.23, an asset subject to § 55-277.24, or any asset for which the trustee establishes a reserve for depreciation under § 55-277.27.
B. A trustee shall allocate to income ten percent of the receipts from a liquidating asset and the balance to principal.
(1999, c. 975.)
Sections: Previous 55-277.12 55-277.13 55-277.14 55-277.15 55-277.16 55-277.17 55-277.18 55-277.19 55-277.20 55-277.21 55-277.22 55-277.23 55-277.24 55-277.25 55-277.26 NextLast modified: April 16, 2009