1. (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 limited time. 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.
2. (2) This section does not apply to a receipt subject to section 15-1.2-401, 15-1.2-409, 15-1.2-411, 15-1.2-412, 15-1.2-414, 15-1.2-415, 15-1.2-416, or 15-1.2-503.

3. (3) A fiduciary shall allocate:

   1. (a) To income:

      1. (I) A receipt produced by a liquidating asset, to the extent the receipt does not exceed four percent of the value of the asset; or
      2. (II) If the fiduciary cannot determine the value of the asset, ten percent of the receipt; and
   2. (b) To principal, the balance of the receipt.

Source: L. 2021: Entire article added, (SB 21-171), ch. 143, p. 827, § 1, effective January 1, 2022.