Which of the following is an example of intangible collateral in secured transactions?

• A. Accounts (account receivables)
• B. Proceeds
• C. IP
• D. Real property

Answer: (A)

Intangible collateral consists of non-physical assets that can serve as security for a loan. A classic example is accounts receivable—the rights a business has to collect money from its customers. These are not tangible items, but they represent real value that can be pledged to a lender and perfected under Article 9, typically by notice of assignment or filing.

Proceeds, while they can be tied to the original collateral, are the value received from that collateral and aren’t the collateral itself. Real property is tangible, so it isn’t an example of intangible collateral. Intellectual property is also intangible and can be collateral, but accounts receivable is the most straightforward and commonly cited example of intangible collateral in secured transactions.