(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 NMSA 1978], resources subject to Section 411 [ 46-3A-411 NMSA 1978], timber subject to Section 412 [ 46-3A-412 NMSA 1978], an activity subject to Section 414 [ 46-3A-414 NMSA 1978], an asset subject to Section 415 [ 46-3A-415 NMSA 1978] or any asset for which the trustee establishes a reserve for depreciation under Section 503 [ 46-3A-503 NMSA 1978].
(b) A trustee shall allocate to income ten percent of the receipts from a liquidating asset and the balance to principal.