Which would be considered general collateral under a secured party's interest?

Which would be considered general collateral under a secured party's interest?

• A. Accounts, inventory, and general intangibles.
• B. Specific equipment described.
• C. Real property.
• D. Cash in a special escrow.

Answer: (A)

General collateral is the broad catchall category for personal property that isn’t described by the other, more specific collateral types. Because of that, items like accounts (rights to payment) and general intangibles (intangible assets such as software, licenses, or goodwill) are classic examples that fall under this broad category. Inventory, while often treated as its own category under goods, can be included in the general collateral concept when a security agreement covers a wide, non-specified mix of assets. In contrast, real property is not personal property and sits outside Article 9 collateral, and money held in escrow is cash with a restricted, purpose-specific use and is not general collateral. So the option that lists accounts, inventory, and general intangibles aligns with the broad, non-specific nature of general collateral.

General collateral is the broad catchall category for personal property that isn’t described by the other, more specific collateral types. Because of that, items like accounts (rights to payment) and general intangibles (intangible assets such as software, licenses, or goodwill) are classic examples that fall under this broad category. Inventory, while often treated as its own category under goods, can be included in the general collateral concept when a security agreement covers a wide, non-specified mix of assets. In contrast, real property is not personal property and sits outside Article 9 collateral, and money held in escrow is cash with a restricted, purpose-specific use and is not general collateral. So the option that lists accounts, inventory, and general intangibles aligns with the broad, non-specific nature of general collateral.