1. Liquidating asset. As used 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. “Liquidating asset” 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. “Liquidating asset” does not include a payment subject to section 7?449, resources subject to section 7?451, timber subject to section 7?452, an activity subject to section 7?454, an asset subject to section 7?455 or any asset for which the trustee establishes a reserve for depreciation under section 7?463.

2. Allocation. A trustee shall allocate to income 10% of the receipts from a liquidating asset and the balance to principal.