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Terms Used In Iowa Code 637.422

  • Trustee: A person or institution holding and administering property in trust.
  • year: means twelve consecutive months. See Iowa Code 4.1
637.422 Liquidating asset.
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 § 637.421, natural resources that are subject to § 637.423, timber that is subject to § 637.424, an activity that is subject to § 637.426, or any asset for which the trustee establishes a reserve for depreciation under § 637.503.
2. A trustee shall allocate to income ten percent of the receipts from a liquidating asset and the balance to principal.
99 Acts, ch 124, §18
Referred to in §637.412, 637.420, 637.421