K.S.A. 58-9a-410: Receipts produced by a liquidating asset.

(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 K.S.A. 58-9a-401, 58-9a-409, 58-9a-411, 58-9a-412, 58-9a-414, 58-9a-415, 58-9a-416 or 58-9a-503, and amendments thereto.

(c) A fiduciary shall allocate:

(1) To income:

(A) A receipt produced by a liquidating asset, to the extent the receipt does not exceed 4% of the value of the asset; or

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

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