Arizona Code § 14-7419

Liquidating assets; definition
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14-7419. Liquidating assets; definition
A. A trustee shall allocate to income ten per cent of the receipts from a liquidating asset and the balance to principal.
B. For the purposes of this section, " liquidating asset" :
1. Means an asset whose value will diminish or terminate because the asset is expected to produce receipts for a period of limited duration.
2. 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.
3. Does not include:
(a) A payment subject to section 14-7418.
(b) Resources subject to section 14-7420.
(c) Timber subject to section 14-7421.
(d) An activity subject to section 14-7423.
(e) An asset subject to section 14-7424.
(f) Any asset for which the trustee establishes a reserve for depreciation under section 14-7427.

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