Accounts | Practical Law

Accounts | Practical Law

Accounts

Accounts

Practical Law Glossary Item 4-382-3210 (Approx. 3 pages)

Glossary

Accounts

Except as used in "account for," defined in the UCC as a right to payment of a monetary obligation, whether or not earned by performance:
  • For property that has been or is to be sold, leased, licensed, assigned, or otherwise disposed of.
  • For services rendered or to be rendered.
  • For a policy of insurance issued or to be issued.
  • For a secondary obligation incurred or to be incurred.
  • For energy provided or to be provided.
  • For the use or hire of a vessel under a charter or other contract.
  • Arising out of the use of a credit or charge card or information contained on or for use with the card.
  • As winnings in a lottery or other game of chance operated or sponsored by a state, governmental unit of a state, or person licensed or authorized to operate the game by a state or governmental unit of a state.
The term includes health-care-insurance receivables.
The term does not include:
An account is an asset type over which an entity can grant a security interest under Article 9 of the UCC. For more information on security interests in accounts, see Practice Note, UCC Creation, Perfection, and Priority of Security Interests.