N.Y. Estates, Powers & Trusts Law § 11-a-4.10: Liquidating asset

§ 11-A-4.10 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 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 11-A-4.9, resources subject

to 11-A-4.11, timber subject to 11-A-4.12, an activity subject to

11-A-4.14, an asset subject to 11-A-4.15, or any asset for which the

trustee establishes a reserve for depreciation under 11-A-5.3.

(b) A trustee shall allocate to income ten percent of the receipts

from a liquidating asset and the balance to principal.