What is a General Intangible? A Comprehensive Legal Overview
Definition & Meaning
A "general intangible" refers to a type of personal property as defined by the Uniform Commercial Code (UCC). This category includes various forms of property that are not classified as accounts, chattel paper, commercial tort claims, deposit accounts, documents, goods, instruments, investment property, letter-of-credit rights, letters of credit, money, or oil, gas, and other minerals before extraction. Additionally, general intangibles encompass payment intangibles and software. Essentially, it covers a wide range of non-physical assets that can hold value or rights.
Legal Use & context
General intangibles are commonly encountered in various areas of law, including commercial law and bankruptcy. They are significant in transactions involving secured interests, where creditors may seek to secure loans with these intangible assets. Users can manage related legal processes using templates from US Legal Forms, which can help in drafting necessary documentation for transactions involving general intangibles.
Real-world examples
Here are a couple of examples of abatement:
Here are a couple of examples of general intangibles:
- A software license that allows a business to use a specific program is considered a general intangible.
- A company's trademark rights, which provide the exclusive right to use a brand name, also fall under general intangibles. (hypothetical example)
Relevant laws & statutes
The primary legal framework governing general intangibles is the Uniform Commercial Code (UCC), particularly Article 9, which deals with secured transactions. This article outlines how general intangibles can be used as collateral for loans and the rights of creditors in such transactions.