Liquidating asset

Ark. Code Ann. § 28-77-410 — under — Receipts Normally Apportioned.

Ark. Code Ann. § 28-77-410

(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 limited time. 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.

(b) This section does not apply to a receipt subject to § 28-77-401, § 28-77-409, § 28-77-411, § 28-77-412, § 28-77-414, § 28-77-415, § 28-77-416, or § 28-77-503.

(c) A fiduciary shall allocate:(1) to income:(A) a receipt produced by a liquidating asset, to the extent the receipt does not exceed five percent of the value of the asset; or(B) if the fiduciary cannot determine the value of the asset, 10 percent of the receipt; and(2) to principal, the balance of the receipt.

(1) to income:(A) a receipt produced by a liquidating asset, to the extent the receipt does not exceed five percent of the value of the asset; or(B) if the fiduciary cannot determine the value of the asset, 10 percent of the receipt; and

(A) a receipt produced by a liquidating asset, to the extent the receipt does not exceed five percent of the value of the asset; or

(B) if the fiduciary cannot determine the value of the asset, 10 percent of the receipt; and

(2) to principal, the balance of the receipt.