Opinion ID: 483916
Heading Depth: 2
Heading Rank: 2

Heading: The Secured Creditor Claim

Text: 10 Resource's alternative position is that it has a perfected security interest in the funds held by ESM. ESM granted Resource a security interest in all interest and other amounts payable from the securities. The main question is whether New York law would classify this interest as a general intangible. The district court found that the principal and interest funds were general intangibles, and that Resource did not file a financing statement on its secured interest in these funds. If these funds are general intangibles, a financing statement must be filed. N.Y.U.C.C.Law Sec. 9-302 (McKinney Supp.1987). Conversely, if New York law would classify the principal and interest as the securities' proceeds and if Resource owns these proceeds, no financing statement is necessary. N.Y.U.C.C.Law Sec. 9-306(3) (McKinney Supp.1987). 11 We agree with the district court that these funds are to be considered general intangibles. General intangibles are defined as any personal property (including things in action) other than goods, accounts, chattel paper, documents, instruments, and money. N.Y.U.C.C.Law Sec. 9-106 (McKinney Supp.1987). General intangibles include miscellaneous types of contract rights. 2 We hold that this includes the right to payment not covered under the definition of account. 3 Since Resource did not own the principal and interest at the time of the bankruptcy petition, it only had a right to payment of these funds which come within our interpretation of a general intangible. Therefore, Resource is an unperfected secured creditor due to its failure to file a financing statement covering this right to payment.