58-9-410. Liquidating asset.

58-9-410

Chapter 58.--PERSONAL AND REAL PROPERTY Part 4.--ALLOCATION OF RECEIPTS DURING ADMINISTRATION OF TRUST Article 9.--UNIFORM PRINCIPAL AND INCOME ACT (1997)

      58-9-410.   Liquidating asset.(a) As used in this section, "liquidating asset" means anasset whosevalue willdiminish or terminate because the asset is expected to produce receipts for aperiodof limited duration. The term includes a leasehold, patent, copyright, royaltyright,and right to receive payments during a period of more than one year under anarrangement that does not provide for the payment of interest on the unpaidbalance. The term does not include a payment subject to K.S.A. 58-9-409 andamendments thereto, resourcessubject to K.S.A. 58-9-411 and amendments thereto, timber subject toK.S.A. 58-9-412 andamendments thereto, an activity subject to K.S.A. 58-9-414and amendments thereto, an asset subject to K.S.A. 58-9-415 andamendmentsthereto, or any asset for which the trusteeestablishes areserve for depreciation under K.S.A. 58-9-503 and amendmentsthereto.

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

      History:   L. 2000, ch. 61, § 19; July 1.