Tangibility

Tangibility

Characteristic that an assets can be used as collateral to secure debt.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Tangibility

In law, the ability to be apprehended by the human senses. Many assets have tangibility, including but not limited to, cash, commodities, real estate, and personal property. Some more abstract things also have tangibility, at least in certain circumstances. For example, accounts receivable is a tangible asset for accounting purposes. Tangibility explicitly does not include patents, brands, or intellectual property. An asset must have tangibility in order to be used as collateral on a loan. For example, one may not use a patent as collateral, but may use his/her house. See also: Intangibility, Tangible net worth.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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