Also known as: payment intangible
Written by attorneys · grounded in primary & secondary sources — see below
A subset of general intangibles under which the account debtor's principal obligation is a monetary obligation.
Pulse Media sells its rights to receive future licensing fees to Progressive Healthcare in exchange for immediate cash. Progressive Healthcare files a financing statement describing the payment intangibles as collateral. The filing perfects Progressive Healthcare's interest against later creditors of Pulse Media.
Patriot Insurance acquires controllable payment intangibles from Platinum Partners under a sale agreement. Patriot Insurance obtains control of the electronic records evidencing the payment intangibles. Control perfects Patriot Insurance's interest without the need for a filing.
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Article 9 applies to a sale of payment intangibles. The buyer is treated as a secured party with a security interest in the sold rights. This coverage ensures uniform rules for perfection and priority even though the transaction is a true sale rather than a loan.
A security interest in payment intangibles may be perfected by filing a financing statement. When the payment intangibles are controllable, perfection may also occur by obtaining control of the electronic record under the specified sections.
A sale of a payment intangible is automatically perfected upon attachment. This rule eliminates the need for filing or control in the context of an outright sale that falls within Article 9.
Payment intangibles are general intangibles whose principal obligation is monetary. Accounts are rights to payment for goods sold or services rendered that are not evidenced by chattel paper or instruments.