Legal Definitions - Payment intangible

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.