New Mexico Statutes Chapter 46. Fiduciaries and Trusts § 46-3A-410. Liquidating asset

(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, resources subject to Section 411, timber subject to Section 412, an activity subject to Section 414, an asset subject to Section 415 or any asset for which the trustee establishes a reserve for depreciation under Section 503.

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