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 limited time. "Liquidating asset" 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.
B. This section does not apply to a receipt subject to § 64.2-1048, 64.2-1056, 64.2-1058, 64.2-1059, 64.2-1061, 64.2-1062, 64.2-1063, or 64.2-1066.
C. A fiduciary shall allocate:
1. To income:
a. A receipt produced by a liquidating asset, to the extent the receipt does not exceed four percent of the value of the asset; or
b. If the fiduciary cannot determine the value of the asset, 10 percent of the receipt; and
2. To principal, the balance of the receipt.