8/12/2019 Article 9 Vocabulary for Classification of Collateral

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Article 9 Vocabulary for Classification of Collateral

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1. Consumer goods-means goodsthat are usedor boughtfor use primarilyfor personal, family,or household purposes.

2. Equipment- means goodsthat are not inventory, farm products, or consumer goods.3. Farm products- means goods, that are not standing timber, the debtoris engaged in a farming

operation, crops grown, or producedon trees, vines, bushes, aquatic goods, and livestock;

suppliesusedor producedin farming operation, and productsof crops or live stock in its

unmanufactured states.

4. Inventory- means goodsthat are not farm products, which are leasedby a person as lessor; areheld bya person for sale or leaseor to be furnishedunder a contract of service; are furnished

by a person under a contract of service; or consist of raw materials, work in process, or

materials used or consumed in a business.

5.

Instrument- means a negotiable instrumentor any other writing that evidences a right to thepaymentof a monetary obligation, and is of a type that in ordinary course of businessis

transferred by deliverywith any necessary indorsementor assignment.

6. Investment property- means a security, whether certificated or uncertificated, securityentitlement, securities account, commodity contract, or commodity account.

7. Letter-of-credit right- means a right to paymentor performance under a letter of credit,whether or notthe beneficiaryhas a right to or demanded payment or performance.

8. Tangible chattel paper- means chattel paperevidenced by a record consisting of informationthat is inscribedon a tangible medium.

9. Document- means a document of titleor a receipt of the type. Documents consist ofwarehouse receipts, bills of lading, and delivery orders.

10.Account-11.Commercial tort claim- means a claim arising in tort and the claimant is either an organization;

or the claimant is an individualwhose claim arosein the course of the claimants business or

profession, personal injury claims, or wrongful death suits are not included.

12.Deposit account- means a demand, time, savings, passbookmaintained with a bank, notincluding investment property or accounts evidenced by an instrument.

13.General intangible- means any personal property, including payment intangibles andsoftware; but does not include accounts, chattel paper, commercial tort claims, deposit

accounts, documents, goods, instruments, investment property, letter-of-credit rights, letters of

credit, money, and oil, gas, or other minerals before extraction.

8/12/2019 Article 9 Vocabulary for Classification of Collateral

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Article 9 Vocabulary for Classification of Collateral

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14.Healthcare Insurance Receivable- Right to payment, under insurance, for health care goodsorservices provided.

15.Payment intangible- means a general intangibleunder which the account debtorsprincipalobligationis a monetary obligation.

16.Proceeds- whatever is acquiredunder disposition of collateral, normally cash, an account,instrument, or chattel paper.