New Mexico § 46-3A-410 - Liquidating asset

§ 46-3A-410. Liquidating asset

(a) As used 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 Section 409, resources subject to

Section 411, timber subject to Section 412, an activity subject to Section 414, an

asset subject to Section 415 or any asset for which the trustee establishes a reserve

for depreciation under Section 503. (b) A trustee shall allocate to income ten percent of the receipts from a liquidating

asset and the balance to principal.