C.R.S. § 15-1.2-410: Liquidating asset - definition.

(1) 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.

(2) This section does not apply to a receipt subject to section 15-1.2-401, 15-1.2-409, 15-1.2-411, 15-1.2-412, 15-1.2-414, 15-1.2-415, 15-1.2-416, or 15-1.2-503.

(3) A fiduciary shall allocate:

(a) To income:

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

(II) If the fiduciary cannot determine the value of the asset, ten percent of the receipt; and

(b) To principal, the balance of the receipt.