| important consequence relates to the adequacy of the | description in the security agreement. See Section 9-108 | [Maine cite section 9-1108]. |
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| | "Payment intangible" is a subset of the definition of "general | intangible." The sale of a payment intangible is subject to this | Article. See Section 9-109(a)(3) [Maine cite section 9-1109, | subsection (1), paragraph (c)]. Virtually any intangible right | could give rise to a right to payment of money once one | hypothesizes, for example, that the account debtor is in breach | of its obligation. The term "payment intangible," however, | embraces only those general intangibles "under which the account | debtor's principal obligation is a monetary obligation." | (Emphasis added.) |
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| | In classifying intangible collateral, a court should begin by | identifying the particular rights that have been assigned. The | account debtor (promisor) under a particular contract may owe | several types of monetary obligations as well as other, | nonmonetary obligations. If the promisee's right to payment of | money is assigned separately, the right is an account or payment | intangible, depending on how the account debtor's obligation | arose. When all the promisee's rights are assigned together, an | account, a payment intangible, and a general intangible all may | be involved, depending on the nature of the rights. |
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| | A right to the payment of money is frequently buttressed by | ancillary covenants, such as covenants in a purchase agreement, | note, or mortgage requiring insurance on the collateral or | forbidding removal of the collateral, or covenants to preserve | the creditworthiness of the promisor, such as covenants | restricting dividends and the like. This Article does not treat | these ancillary rights separately from the rights to payment to | which they relate. For example, attachment and perfection of an | assignment of a right to payment of a monetary obligation, | whether it be an account or payment intangible, also carries | these ancillary rights. |
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| | Every "payment intangible" is also a "general intangible." | Likewise, "software" is a "general intangible" for purposes of | this Article. See Comment 25. Accordingly, except as otherwise | provided, statutory provisions applicable to general intangibles | apply to payment intangibles and software. |
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| e. "Letter-of-Credit Right." The term "letter-of-credit | right" embraces the rights to payment and performance under | a letter of credit (defined in Section 5-102). However, it | does not include a beneficiary's right to demand payment or | performance. Transfer of those rights to a transferee | beneficiary is governed by Article 5. See Sections 9-107 |
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