55-277.19 - Liquidating asset. - Virginia Statutes

§ 55-277.19. Liquidating asset.

A. In this section, "liquidating asset" means an asset whose value willdiminish or terminate because the asset is expected to produce receipts for aperiod of limited duration. The term includes a leasehold, patent, copyright,or royalty right, and a right to receive payments during a period of morethan one year under an arrangement that does not provide for the payment ofinterest on the unpaid balance. The term does not include a payment subjectto § 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 fordepreciation under § 55-277.27.

B. A trustee shall allocate to income ten percent of the receipts from aliquidating asset and the balance to principal.

(1999, c. 975.)