Which may not be used as collateral within scope of UCC Article 9 - studying for exam help

The choices were accounts receivable, equipment, real estate mortgages, and inventory. I was thinking real estate mortgages since those are handled under real estate law not Article 9?

Exactly right! Real estate mortgages are outside Article 9 - they're governed by real estate recording statutes. The other three are classic Article 9 collateral types.

That's helpful - so deposit accounts are IN scope but just have different perfection requirements than filing a UCC-1?

Right - deposit accounts require control agreements with the bank, not UCC-1 filing. Still Article 9 but different perfection method.

This stuff gets confusing when you're studying because there's what's excluded from scope vs what has special perfection rules vs what has special priority rules...

A chart sounds perfect - did you organize it by exclusion type or by collateral type?

I did it by exclusion type - statutory liens, real estate interests, federal preemption, and wage assignments. Then listed examples under each category.

Interesting - does that help identify when someone's trying to perfect against collateral that's actually outside Article 9 scope?

Exactly - it flags inconsistencies between your security agreement collateral and what you're describing on the UCC-1. Catches cases where someone's mixing real estate fixtures with equipment or including excluded collateral types.

That would have saved me from filing a UCC-1 against a landlord's lien last year - total waste of filing fee since those are statutory liens outside Article 9.

What about intellectual property - patents, trademarks, copyrights? Are those Article 9 collateral?

IP is tricky - federal IP like patents may require federal recording for perfection against certain parties, but state UCC filing still matters for general creditors. It's partially in Article 9.

Yeah IP gets messy because you might need both federal recording AND UCC-1 filing depending on who you're trying to beat in priority.

I feel you! Every time I think I understand the scope there's another wrinkle. But at least for the exam I just need to know the main exclusions.

True - stick to the big ones for test purposes. Real estate, statutory liens, wage assignments, federal preemption. Don't get lost in the weeds.

That's actually a really helpful way to think about it! So Article 9 fills the gap for personal property security interests.

Exactly - it's the catch-all for personal property collateral that doesn't have specialized laws governing it.

That's a great way to frame it. Article 9 is basically the default system for personal property security interests.

Thanks everyone! This really helped clarify the scope issues. I feel much more confident about spotting what's excluded now.

Good luck on your exam! Remember - when in doubt, think about whether there's already a specialized system for that type of collateral.

Right - so cars are Article 9 collateral but you perfect by noting the lien on the title, not filing a UCC-1?

Correct - certificate of title perfection for vehicles, not UCC-1 filing. But the security interest itself is still governed by Article 9.

This is where that Certana tool mentioned earlier would be helpful - it could flag when someone's trying to file a UCC-1 against certificate of title collateral.

Perfect summary! That's exactly the framework I needed to organize all this information.

Glad it helps! The key is starting with the assumption that personal property IS covered, then identifying the specific exclusions.

That's the right approach - Article 9 has broad scope with specific carve-outs, not the other way around.