Lottery Winnings as Account
Lily Lopez wins a state lottery that pays in installments. Her right to receive those payments qualifies as an account because it is a right to payment of winnings in a lottery operated by a governmental unit.
Also known as: lotteries
Written by attorneys · grounded in primary & secondary sources — see below
A scheme for distributing prizes by chance among persons who purchase tickets or chances.
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Lily Lopez wins a state lottery that pays in installments. Her right to receive those payments qualifies as an account because it is a right to payment of winnings in a lottery operated by a governmental unit.
Leo Lynch sells his right to receive future lottery installment payments to a finance company. Because the sale involves an account consisting of lottery winnings, the transfer is automatically perfected upon attachment.
Yes. The definition of account expressly includes a right to payment of winnings in a lottery operated or sponsored by a state or governmental unit.
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Yes. Under UCC § 9-309(14), a sale by an individual of an account that is a right to payment of winnings in a lottery is perfected when it attaches without the need to file a financing statement.
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A lottery requires consideration for entry in addition to chance and a prize, whereas a contest determines the winner by skill or criteria beyond mere luck.
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