Define: Payment Intangible

A payment intangible refers to a legal term used to describe a right to payment that is not evidenced by a physical document, such as a promissory note or a check. It includes electronic funds transfers, bank account balances, and other similar forms of payment.

Unlike tangible assets, such as real estate or vehicles, a payment intangible does not have a physical existence. It represents a legal right to receive payment rather than a physical item that can be touched or seen.

Examples of payment intangibles include accounts receivable, royalties, patent rights, and contractual rights to receive payment. These are all forms of payment that are not physically tangible but represent a legal entitlement to receive funds.

Yes, payment intangibles can be bought and sold. They can be transferred through various legal mechanisms, such as assignment or sale agreements. However, the transfer of payment intangibles may be subject to certain legal requirements or restrictions, depending on the jurisdiction and the nature of the intangible.

Payment intangibles are not typically protected by intellectual property laws. Intellectual property laws primarily cover intangible assets related to creative works, inventions, or trademarks. Payment intangibles, on the other hand, are generally governed by contract law and other relevant legal frameworks.

Yes, payment intangibles can be used as collateral for loans. Lenders may accept payment intangibles as security for a loan, allowing the borrower to pledge their right to receive payment as a form of guarantee. This is commonly seen in financing arrangements involving accounts receivable.

If a payment intangible is not honored or fulfilled, the party entitled to receive payment may have legal remedies available to them. This could include filing a lawsuit to enforce the payment obligation, seeking damages for breach of contract, or pursuing other appropriate legal actions.

In many jurisdictions, payment intangibles can be inherited. They can form part of a deceased person’s estate and be passed on to their heirs or beneficiaries according to the applicable laws of succession. However, the specific rules regarding inheritance of payment intangibles may vary depending on the jurisdiction.

Payment intangibles may be subject to taxation, depending on the applicable tax laws and regulations in the relevant jurisdiction. The tax treatment of payment intangibles can vary, and it is advisable to consult with a tax professional or legal advisor to understand the specific tax implications.

Yes, payment intangibles can be used as evidence in legal disputes. They can be presented as proof of a contractual obligation or a right to receive payment. However, it is important to ensure that the authenticity and admissibility of the payment intangible as evidence are established in accordance with the rules of evidence in the relevant jurisdiction.