§ 37A-4-410. Liquidating asset. - North Carolina Statutes

§ 37A‑4‑410. Liquidating asset.

(a)        In this section,"liquidating asset" means an asset whose value will diminish orterminate because the asset is expected to produce receipts for a period oflimited duration. The term includes a leasehold, patent, copyright, royaltyright, and right to receive payments during a period of more than one yearunder an arrangement that does not provide for the payment of interest on theunpaid balance. The term does not include a payment subject to G.S. 37A‑4‑409,resources subject to G.S. 37A‑4‑411, timber subject to G.S. 37A‑4‑412,an activity subject to G.S. 37A‑4‑414, an asset subject to G.S. 37A‑4‑415,or any asset for which the trustee establishes a reserve for depreciation underG.S. 37A‑5‑503.

(b)        A trustee shallallocate to income ten percent (10%) of the receipts from a liquidating assetand the balance to principal. (2003‑232, s. 2.)