What is a payment intangible

A general intangible in which an account debtor’s main obligation is to pay money. Loosely, a non-physical asset that is not easily assessed but manifests itself as an income stream for a given commercial entity.

What is an example of payment intangible?

The Uniform Commercial Code defines a payment intangible as “a general intangible under which the ac- count debtor’s principal obligation is a monetary obligation.” A general intan- gible “means any personal property, including things in action, other than accounts, chattel paper, commercial tort claims, deposit …

Is a payment intangible a general intangible?

(61) “Payment intangible” means a general intangible under which the account debtor’s principal obligation is a monetary obligation.

What is a payment intangible UCC?

Defined in the UCC as a general intangible under which the account debtor’s principal obligation is a monetary obligation (NY UCC § 9-102(a)(61)). A payment intangible is an asset type over which an entity can grant a security interest under Article 9 of the UCC.

Is a promissory note a payment intangible?

Section 9-109 also includes within the scope of this Article most sales of “payment intangibles” (defined in Section 9-102 as general intangibles under which an account debtor’s principal obligation is monetary) and “promissory notes” (also defined in Section 9-102).

Are contract rights general intangibles under the UCC?

General Intangibles means general intangibles (as that term is defined in the Code), including payment intangibles, contract rights, rights to payment, rights arising under common law, statutes, or regulations, choses or things in action, goodwill, patents, trade names, trade secrets, trademarks, servicemarks, …

How do you perfect a security interest in a general intangible?

To perfect a security interest in a general intangible, you must file a UCC-1 financing statement with the Secretary of State’s office in the state in which the individual resides, or in which the entity was formed, depending on whether the borrower is an individual or an entity.

What is a supporting obligation under the UCC?

Defined in the UCC as a letter-of-credit right or secondary obligation that supports the payment or performance of an account, chattel paper, a document, a general intangible, an instrument, or investment property (NY UCC § 9-102(a)(78)).

Is a tax refund a payment intangible?

Because no section of Article 9 expressly discusses federal income tax refunds, such refunds are deemed to be “general intangibles.” See Del.

What is a good UCC?

Article 2 of the UCC deals with the sale of goods. “Goods” means all things, including specially manufactured goods, which are tangible and moveable at the time of identification to the contract for sale. This includes unborn animals, growing crops and other identified things attached to realty.

Article first time published on

What is a supporting obligation?

Support Obligation means the obligation to provide for the necessary care, support, and maintenance, including medical expenses, of a dependent child or other person as required by statutes and the common law of this or another state.

What kind of collateral is a promissory note?

Secured Promissory Notes The property that secures a note is called collateral, which can be either real estate or personal property. A promissory note secured by collateral will need a second document. If the collateral is real property, there will be either a mortgage or a deed of trust.

What is chattel paper example?

What Is Chattel Paper? Chattel paper is a piece of writing that shows evidence of two things: a monetary obligation and a security interest in, or lease of, specific goods. An equipment lease is a good example of chattel paper.

Is an account a payment intangible?

A general intangible in which an account debtor’s main obligation is to pay money. Loosely, a non-physical asset that is not easily assessed but manifests itself as an income stream for a given commercial entity.

What is general intangible property?

General Intangible means any personal property, including things in action, other than accounts, chattel paper, commercial tort claims, deposit accounts, documents, goods, instruments, investment property, letter-of-credit rights, letters of credit, money, and oil, gas, or other minerals before extraction.

Are accounts receivable general intangibles?

The court concluded that the debtors interest should be classified as a general intangible and, as such, was subject to a properly perfected security interest created in a security agreement that covered “general intangibles.”

Is intellectual property a general intangible?

The Uniform Commercial Code defines intellectual property as “general intangibles” in which a lender’s security interest is perfected by the filing of a UCC-1 financing statement in the state where the borrower’s principal place of business is located.

Is Bitcoin a general intangible?

At this point in time, bitcoin appears to fall into the catch-all category of “general intangible.” However, circumstances may someday change that categorization. If a government begins honoring bitcoin as currency, then “money” may be the new categorization.

Is an LLC interest a general intangible?

In most cases, an LLC interest is a general intangible. Once the lender has made that determination, issues of perfection and priority of the security interest can be addressed under the UCC Article 9 perfection rules.

Is Goodwill a general intangible?

Goodwill is recorded as an intangible asset on the acquiring company’s balance sheet under the long-term assets account. … 1 Goodwill is considered an intangible (or non-current) asset because it is not a physical asset like buildings or equipment.

What does Article 9 say?

Article 9 protects your right to freedom of thought, belief and religion. It includes the right to change your religion or beliefs at any time. You also have the right to put your thoughts and beliefs into action.

What is considered negotiable collateral?

Negotiable Collateral means all of Borrower’s present and future letters of credit of which it is a beneficiary, drafts, instruments (including promissory notes), securities, documents of title, and chattel paper, and Borrower’s Books relating to any of the foregoing.

What does intangible tax mean?

Legal Definition of intangible tax : a tax imposed on the privilege of owning, transferring, devising, profiting by, or otherwise dealing with or benefiting from intangibles.

Is intangible amortization tax deductible?

When a company purchases an intangible asset, it is considered a capital expenditure. Rather than expense the purchase cost all at once, a company must amortize it over the life of the asset. … This amortized amount is used as a tax deduction to reduce the company’s taxable income.

What is a section 197 intangible?

Section 197 intangibles are certain intangible assets acquired after August 10, 1993 (or after July 25, 1991, if chosen) in connection with the acquisition of a business which must be amortized over 15 years from the date of acquisition regardless of the assets useful life. … Use Form 4563 to report annual amortization.

Can you perfect without attaching?

Since a trustee in bankruptcy is given the status of a lien creditor under §544(a) of the bankruptcy code, a perfected security interest will “beat” a bankruptcy trustee whose job it is to free up collateral for the unsecured parties. …

Who authenticates a security agreement?

Often, a business will purchase inventory or equipment on credit and then use that same property as collateral. The debtor must authenticate the security agreement by signing a statement that announces the intention to grant a security interest in the property specifically outlined in the security agreement.

What are the 3 elements of attachment?

Attachment involves three elements: 1) the secured party must give value to the debtor; 2) the debtor must have rights in the collateral or the power to give rights in the collateral to the secured party; and a third condition must be satisfied—usually, the debtor’s authentication of a security agreement describing the …

Can you contract around the UCC?

Usually, parties to an agreement may “contract out” of the UCC. If parties agree to terms other than what is stated in the UCC, those terms will govern. … In many cases, courts may have a difficult time determining whether this is actually a contract for labor (services), or for materials (goods).

Is a car a good under UCC?

Must a car contract be in writing? Yes, according to the Statute of Frauds of the Uniform Commercial Code (UCC). The UCC regulates sales of goods and securities and governs many kinds of commercial transactions.

What is the purpose of the UCC?

As the word “Uniform” in its title suggests, a primary purpose of the UCC is to make business activities more predictable and efficient by making business laws highly consistent across all American states.