Basic Uniform Commercial Code

Pure Intangible

Pure intangibles are rights that have no physical embodiment.

Pure intangibles are either accounts or general intangibles:

  1. Account

    "Account", except as used in "account for", means a right to payment of a monetary obligation, whether or not earned by performance,

    1. for property that has been or is to be sold, leased, licensed, assigned, or otherwise disposed of,
    2. for services rendered or to be rendered,
    3. for a policy of insurance issued or to be issued,
    4. for a secondary obligation incurred or to be incurred,
    5. for energy provided or to be provided,
    6. for the use or hire of a vessel under a charter or other contract,
    7. arising out of the use of a credit or charge card or information contained on or for use with the card, or
    8. as winnings in a lottery or other game of chance operated or sponsored by a State, governmental unit of a State, or person licensed or authorized to operate the game by a State or governmental unit of a State.

    The term includes health-care-insurance receivables. The term does not include

    1. rights to payment evidenced by chattel paper or an instrument,
    2. commercial tort claims,
    3. deposit accounts,
    4. investment property,
    5. letter-of-credit rights or letters of credit, or
    6. rights to payment for money or funds advanced or sold, other than rights arising out of the use of a credit or charge card or information contained on or for use with the card.
    Copyright, The American Law Institute

    Bank accounts are sui generis deposit accounts, not pure intangible accounts.

  2. General Intangible

    A general intangible is anything that is not another type of property. UCC § 9-102(a)(42).

    E.g., payment intangibles, non-embedded software, etc.

    Payment Intangible

    "Payment intangible" means a general intangible under which the account debtor's principal obligation is a monetary obligation.

    Copyright, The American Law Institute

    Such as a tax refund