(a) 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. The term 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. The term does not include a payment subject to Section 409 [46-3A-409 N.M. Stat. Ann.], resources subject to Section 411 [46-3A-411 N.M. Stat. Ann.], timber subject to Section 412 [46-3A-412 N.M. Stat. Ann.], an activity subject to Section 414 [46-3A-414 N.M. Stat. Ann.], an asset subject to Section 415 [46-3A-415 N.M. Stat. Ann.] or any asset for which the trustee establishes a reserve for depreciation under Section 503 [46-3A-503 N.M. Stat. Ann.].

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