Also known as: payment intangibles · payment-intangible · payment-intangibles · UCC 9-102 payment intangible
Written by attorneys · grounded in primary & secondary sources — see below
A subset of general intangibles in which the account debtor's principal obligation is to pay money.
Pinnacle Holdings grants Phuong Pham a security interest in a controllable payment intangible arising from a software license. Phuong files a financing statement describing the collateral as required. The filing perfects her security interest under the applicable rule for such payment rights.
Pedro Pacheco grants Phoebe Park a security interest in a controllable payment intangible evidenced by an electronic record. Phoebe obtains control of the record through the designated system. Control perfects her security interest without the need for filing.
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A sale of a payment intangible is perfected upon attachment. An assignment of payment intangibles that does not transfer a significant part of the assignor's outstanding payment intangibles is also perfected upon attachment.
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A security interest in a controllable payment intangible may be perfected by filing a financing statement. It may also be perfected by obtaining control of the collateral under the designated statutory provisions.
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The local law of the controllable electronic record's jurisdiction governs perfection, the effect of perfection or nonperfection, and priority. Filing or automatic perfection rules may still apply depending on the transaction type.
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