§ 637.422 — Liquidating asset

Iowa § 637.422

• Jurisdiction: Iowa
• Title XV: JUDICIAL BRANCH AND JUDICIAL PROCEDURES
• Ch. 637: UNIFORM PRINCIPAL AND INCOME ACT

Text

1. 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 leaseholds, patents, trademarks, copyrights, royalty rights, and rights 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

deferred compensation that is subject to section 637.421, natural resources that are subject
to section 637.423, timber that is subject to section 637.424, an activity that is subject to
section 637.426, or any asset for which the trustee establishes a reserve for depreciation
under section 637.503.
2. A trustee shall allocate to income ten percent of the receipts from a liquidating asset
and the balance to principal.