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Simple English definitions for legal terms
Payment intangible
Read a random definition: Americans with Disabilities Act (ADA)
A quick definition of Payment intangible:
A payment intangible is a type of asset that doesn't have a physical form, but it represents money that someone owes to a business. It's like a promise to pay, and it's important because it helps the business make money over time.
A more thorough explanation:
A payment intangible is a type of asset that is not physical and cannot be easily valued, but it generates income for a business. It is a general intangible where the primary obligation of the account debtor is to pay money.
For example, a company may have a payment intangible in the form of a contract with a customer to provide services in exchange for regular payments. The contract itself is not a physical asset, but it represents a stream of income for the company.
Another example of a payment intangible is a patent license agreement. The agreement allows a company to use a patented technology in exchange for regular payments. The license agreement is not a physical asset, but it represents a valuable income stream for the patent holder.
Overall, payment intangibles are important assets for businesses as they represent a reliable source of income. They are often used as collateral for loans or as a way to attract investors.