2010 Code of Virginia
Chapter 15.1 - Uniform Principal and Income Act (55-277.1 thru 55-277.33)
55-277.19 - Liquidating asset.

§ 55-277.19. 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, or royalty right, and a 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 § 55-277.18, resources subject to § 55-277.20, timber subject to § 55-277.21, an activity subject to § 55-277.23, an asset subject to § 55-277.24, or any asset for which the trustee establishes a reserve for depreciation under § 55-277.27.

B. A trustee shall allocate to income ten percent of the receipts from a liquidating asset and the balance to principal.

(1999, c. 975.)

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