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 …
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 cash a general intangible?
More specifically, any intangible personal property – except for money, documents, investment property, instruments, goods, accounts, chattel paper, and proceeds from letters of credit.
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).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.
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 chattel paper?
In secured transactions, a document used to sell property on credit while retaining some interest in the property. Chattel paper must show: (1) a monetary obligation from Party A to Party B, and (2) a security interest or other interest retained in the property by Party B. ACADEMIC TOPICS. law and economics. banking.
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 security interest 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 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.
Article first time published onWhat is a general intangible?
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 Money tangible or intangible?
Tangible assets are physical; they include cash, inventory, vehicles, equipment, buildings and investments. Intangible assets do not exist in physical form and include things like accounts receivable, pre-paid expenses, and patents and goodwill.
Is intangible asset?
An intangible asset is an asset that is not physical in nature. Goodwill, brand recognition and intellectual property, such as patents, trademarks, and copyrights, are all intangible assets. Intangible assets exist in opposition to tangible assets, which include land, vehicles, equipment, and inventory.
Is a bank account intangible personal property?
Tangible personal property has physical substance and can be touched, held, and felt. … Intangible personal property includes assets such as bank accounts, stocks, bonds, insurance policies, and retirement benefit accounts.
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 a website a general intangible?
Most legal scholars believe that an Internet domain name qualifies as a general intangible under the UCC.
What does perfecting a security interest mean?
A perfected security interest is any secure interest in an asset that cannot be claimed by any other party. The interest is perfected by registering it with the appropriate statutory authority, so that it is made legally enforceable and any subsequent claim on that asset is given a junior status.
Is cash a chattel?
Personal chattels means tangible moveable property excluding jewellery, cash, money or securities.
Are chattels real property?
At common law, chattel included all property that was not real estate and not attached to real estate. Examples included everything from leases, to cows, to clothes. In modern usage, chattel often merely refers to tangible movable personal property.
Are cars chattels?
Personal chattels are, in other words, personal possessions and include your jewellery, computer, phone, camera, furniture, paintings, photographs, car, clothes, household contents and even pets.
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.
Is intellectual property a good under the UCC?
An intellectual property right is viewed as a “general intangible” under the UCC. To a lender or other financial institution, a general intangible is a collateral category of comfort by virtue of the UCC whereas the concept of intellectual property collateral in its pure form may not be as familiar.
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 is an example of 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.
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.
How do you enforce security interest?
- The creditor can take possession of the collateral and sell it; …
- After the creditor takes possession of the collateral and sells it, the creditor can sue the debtor for a deficiency judgment; or.
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.
