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Goods
Practical Law Glossary Item 4-382-3516 (Approx. 3 pages)
Glossary
Goods
Defined in the UCC as all things that are movable when a security interest attaches. The term includes:
- Standing timber that is to be cut and removed under a conveyance or contract for sale.
- The unborn young of animals.
- Crops grown, growing, or to be grown, even if the crops are produced on trees, vines, or bushes.
- Manufactured homes.
The term also includes a computer program embedded in goods and any supporting information provided in connection with a transaction relating to the program if either:
- The program is associated with the goods in such a manner that it customarily is considered part of the goods.
- By becoming the owner of the goods, a person acquires a right to use the program in connection with the goods.
The term does not include a computer program embedded in goods that consists solely of the medium in which the program is embedded.
The term also does not include:
- Oil, gas, or other minerals before extraction.
Article 9 of the UCC also includes four mutually exclusive types of collateral that consist of goods: consumer goods, equipment, farm products, and inventory. Goods are equipment if they do not fall into another category.
A good is an asset type over which an entity can grant a security interest under Article 9 of the UCC. For more information on taking a security interest in goods, see Practice Note, UCC Creation, Perfection, and Priority of Security Interests.