South Dakota Codified Laws
Chapter 13A - Uniform Principal And Income Act
Section 55-13A-410 - Liquidating asset.

55-13A-410. Liquidating asset.
(a) In this section, the term, 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 §55-13A-409, resources subject to §55-13A-411, timber subject to §55-13A-412, an activity subject to §55-13A-414, an asset subject to §55-13A-415, or any asset for which the trustee establishes a reserve for depreciation under §55-13A-503.
(b) A trustee shall allocate to income ten percent of the receipts from a liquidating asset and the balance to principal.

Source: SL 2007, ch 282, §20.

Structure South Dakota Codified Laws