Also known as: arise out of the use · arises out of the use · arisen out of the use · arising from the use · arising from use
Written by attorneys · grounded in primary & secondary sources — see below
2 senses
A phrase identifying a category of rights to payment that qualify as accounts under Article 9. The phrase covers monetary obligations arising from use of a credit or charge card or information on or for use with the card.
A phrase identifying a category of rights to payment that qualify as accounts under Article 9. The phrase covers monetary obligations arising from use of a credit or charge card or information on or for use with the card.
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A causation standard in liability policies that requires only a causal connection between an event and the use of a covered item such as a vehicle. Courts interpret the phrase broadly to mean originating from, growing out of, or flowing from the use.
Select any source to read its text and confirm it supports the definition.
A causation standard in liability policies that requires only a causal connection between an event and the use of a covered item such as a vehicle. Courts interpret the phrase broadly to mean originating from, growing out of, or flowing from the use.
Each sense below has its own examples, sources, and questions.
Vertex Capital takes a security interest in all assets of NimbusApps, including rights to payment from in-app purchases. After default Vertex claims the rights are accounts because they arise out of the use of credit cards to buy virtual items. The court classifies the rights as general intangibles instead because they stem from platform interaction rather than card use.
The definition expressly includes rights to payment arising out of the use of a credit or charge card or information contained on or for use with the card. Such rights therefore qualify as accounts even if they would otherwise fall outside the enumerated categories.
Supporting sources
Yes. Both definitions expressly exclude rights to payment arising out of the use of a credit or charge card, ensuring those rights remain classified as accounts rather than chattel paper or instruments.
Supporting sources
A passenger distracts the driver of an insured car, causing an accident that injures a third party. The injured party sues the driver and seeks coverage under the driver's auto policy. The insurer denies the claim on the ground that the injury did not arise out of the use of the vehicle. The court finds coverage because the distraction occurred during ongoing operation of the car.
Courts require only a causal connection, not proximate cause. The phrase is read broadly to encompass events originating from, growing out of, or flowing from the use of the covered vehicle or other item.
Supporting sources