§ 28-70-410 - Liquidating asset. - Arkansas Statutes

28-70-410. 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, 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 28-70-409, resources subject to 28-70-411, timber subject to 28-70-412, an activity subject to 28-70-414, an asset subject to 28-70-415, or any asset for which the trustee establishes a reserve for depreciation under 28-70-503.

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